European Refrigerator Market 2022-2028

European Refrigerator Market 2022-2028

Europe Refrigerator Market Size, Share, & Analysis by type(single door, double door, side-by-side door, french door, and others (mini fridge), by application (household, commercial), and by distribution channel (offline, and online). The Europe refrigerator market is estimated to grow at a CAGR of 4.9% during the forecast period (2021-2028). The market was valued at nearly $9.7 billion in 2021, which is expected to reach nearly $14.4 billion in 2028. The major factors contributing to the market growth include the rising standards of living, increasing disposable income, and the adoption of innovative technologies such as the implementation of the IoT (smart refrigerator) in the region. Besides, the market in the region is also driven by the replacement of the refrigerators owing to the high penetration in most of the categories and low or stagnated population (& household) growth of the region. Government regulation also acts significantly in the consumer electronics market in Europe. Consumers rely on the EU energy label (E-label) for the purchasing of home appliances. In March 2021, the European Commission announced the first set of new energy labels for dishwashers, washing machines, refrigerators, and electronic displays which will be applied on the ground from March 2021. The new E-label will assist consumers in effectively differentiating between more technologicallyadvanced home appliances. Moreover, the government is also limiting the usage of toxic chemicals for cooling purposes to curb greenhouse emissions. Due to this, the companies are offeringrefrigerators to minimize the environmental impact of their products along with reduced energy consumption. For instance, in 2021, Electrolux AB, the Swedish company joined the Cool Coalitioninitiative. The initiative encourages companies to make commitments to reduce emissions in the cooling sector. The company has committed to finding alternative refrigerants with less global warming potential in refrigerators, freezers, and air conditioning units.

COVID-19 IMPACT

Since January 2021, the COVID-19 has created serious havoc across the globe. The COVID-19 virus has been spread across the globe and has severely impacted the developed as well as emerging economies. The COVID-19 has also put the Europe refrigerator market under immense financial strain. Most of the manufacturing units were shut down during the initial months of the COVID-19 in Europe (March-April 2021). As lockdown was announced, commercial places were also closed which result ina downfall in the demand for commercial refrigerator segment by 10.0% in 2021 compared to 2021. However, a spike in the demand from the household segment has been recorded all across the region, as a result of which, an increment of 14.6% has been recorded in 2021 as compared to a year earlier. Combined, a growth of 11.0% is expected to be registered in 2021 in the refrigerator market in Europe. In 2021, the Europe refrigerator market is expected to reach $10.8 billion as compared to $9.7 billion in 2021.

MARKET SEGMENTATION

The Europe refrigerator market is segmented based on product type, application, and distribution channel. Based on product type, the market is classified into a single door, double door (top freezer & bottom freezer), side by side door, French door, and others. The other type contains mini fridge models. In 2021, single door refrigerator type held the largest share (by volume) whereas double door refrigerator holds the largest market share by value in the market. Single door refrigerators generally come with in-built freezers and offer higher energy efficiency. Whereas a double door refrigerator has an external refrigerator door. Double door refrigerator market is expected to reach $4.8 billion in 2028

from $3.1 billion in 2021 at a CAGR of 4.7% during the forecast period. Moreover, side by side door is expected to witness the fastest growth rate of 5.1% during the forecast period. Based on the application, the market is bifurcated into household and commercial. The domestic refrigerator market holds the largest market share owing to the considerable replacement rate of refrigerators and the adoption of smart refrigerators among people in the region. Household refrigerator market was around $8.3 billion in 2021 and is expected to reach $12.6 billion in 2028 at a CAGR of 4.8% during the forecast period. Moreover, higher growth in the commercial refrigerator segment than the household segment is expected in the region. It is owing to the downfall in the demand of commercial segment in 2021 (base year). With the start of the vaccination and re-opening of the commercial places by the end of 2021, significant growth in commercial segment is expected in the near future. The commercial sub-segment includes restaurants, ice cream parlors, supermarkets, and commercial pharmaceutical storage. Commercial segment is expected to witness a growth of 5.4% during the forecast period and is anticipated to reach $1.8 billion in 2028 from $1.4 billion in 2021. Further, the distribution channels for the Europe refrigerator market include online and offline channels. Among these, the offline channel still holds a major market share. However, the online distribution channel is growing significantly across Europe owing to the consumers’ increasing preference for convenient shopping through e-commerce websites. Moreover, after the COVID-19 pandemic, a faster shift than earlier toward online purchasing has been witnessed all across the globe and so, in the region. The online channel is expected to witness a growth of 7.9% during the forecast period and is expected to reach more than $2.7 billion in 2028 as compared to nearly $1.5 billion in 2021.

REGIONAL ANALYSIS

The Europe refrigerator market is divided into Eastern Europe and Western Europe. Eastern Europe includes Russia, Ukraine, the Czech Republic, Poland, Romania, and the Rest of Eastern Europe. The rest of Eastern Europe include Belarus, Bulgaria, Hungary, Moldova, and Slovakia. Russia holds the largest market share during the forecast period and is expected to reach $2.1 billion in 2028 from nearly $1.4 billion in 2021 at a CAGR of 5.1% during the forecast period. High population base and high disposable income in the country is the major factor for the largest market share in Europe. In Eastern Europe, Poland holds the second-largest refrigerator market and is expected to grow at a CAGR of 5.3% during the forecast period. The Polish market is anticipated to reach $649 million in 2028 from $435 million in 2021.Western Europe holds the major market share during the forecast period. Western Europe refrigerator market is expected to reach more than $10.2 billion in 2028 as compared to around $6.9 billion in 2021 at a CAGR of 4.8% during the forecast period. Western Europe is further divided into Germany, France, UK, Spain, Italy, and the Rest of Europe. Germany holds the largest market share in Western Europe and is expected to hit $1.9 billion in 2028 as compared to $1.3 billion in 2021 at a CAGR of 4.3% during the forecast period.

MARKET PLAYERS OUTLOOK

Prominent players in the Europe refrigerator market include Haier Group Corp., BSH Hausgeräte GmbH, Liebherr-International Deutschland GmbH, Electrolux AB, Whirlpool Corp., and Samsung Electronics Co., Ltd., among others. Most of the market players have their manufacturing unit in the region to cater to domestic demand. However, they also import a substantial number of refrigerators from outside countries such as China. With the increasing demand, the companies are furtherincreasing their production capacity in the region. For instance, in October 2021, Haier Group Corp. started constructing a refrigerator manufacturing unit in Aricestii Rahtivani, Prahova county, Romania with an investment of $65 million. The facility will be ready by Spring of 2021 and will manufacturerefrigerators to fulfill the demand in Europe. Moreover, the market players are adopting various strategies to sustain in the competitive market, which include innovations, product launches, investments, and expansion. These companies are embarking on aggressive strategies such as partnerships and product launches in the Europe refrigerator market to gain a leading position in the country. For instance, in January 2021, Samsung introduced the new Bespoke series of refrigerators at CES 2021. The company’s refrigerators offer users fully modular designs and allow users to switch and customize all four doors of the Bespoke refrigerators based on their choice.