Commercial Refrigeration Market Is Indispensable To The Food Industry

The rise of e-commerce and the increasing importance of cold chain logistics are also boosting the demand for high-quality refrigerated display cabinets to ensure the freshness and quality of perishable goods

The commercial refrigeration market in India is on an impressive growth trajectory and is poised to double from its current valuation of Rs 4,500- Rs 5,000 crore to Rs 10,000 crore by FY28.

This surge is fuelled by the rising demand for food safety and quality, making commercial refrigeration indispensable to the food industry. The sector's rapid expansion offers exciting opportunities for innovation and growth.

The country’s commercial refrigeration equipment market generated revenue of $1,226.4 million in 2023 and is expected to reach $2,110 million by 2030. It is expected to grow at a CAGR of 8.1 per cent from 2024 to 2030. In terms of segment, other equipment was the largest revenue generating product in 2023. Refrigerators and freezers is the most lucrative product segment registering the fastest growth during the forecast period.

In terms of revenue, India accounted for three per cent of the global commercial refrigeration equipment market in 2023.

Country-wise, the United States is expected to lead the global market in terms of revenue in 2030. In Asia Pacific, the Chinese commercial refrigeration equipment market is projected to lead the regional market in terms of revenue in 2030, while India is the fastest growing regional market in Asia Pacific.

The Indian commercial refrigerated display cabinet market size is estimated to reach 201k units by 2030, growing at a CAGR of 6.6 per cent during the forecast period 2024-2030 and generate revenue of $1.1bn. Its growth is majorly driven by increasing demand for remote cabinets among supermarkets and hypermarkets.

Additionally, the expansion of supermarkets and hypermarkets chain after a sharp recovery from pandemic-led blows will also trigger the growth of the refrigerated display cabinet market in India. Furthermore, increasing demand for ready to eat food will create demand for the commercial refrigerated display cabinets among the retail stores. Ready to eat food require proper refrigeration at lower temperatures to provide higher shelf-life, maintain nutritional value and related benefits.

This crucially drives the demand for commercial refrigerated display cabinets to maximize customer attention, increase business profits and so on in retail stores. Such factors are anticipated to boost sales of commercial refrigerated display cabinet in the coming years.

Increasing urbanization and the expansion of organized retail chains are driving demand for advanced refrigeration solutions. Energy efficiency and sustainability are becoming critical concerns, leading to the adoption of eco-friendly refrigerants and energy-efficient models that reduce operational costs and environmental impact. Technological advancements, such as smart refrigeration systems equipped with IoT sensors and remote monitoring capabilities, are enhancing operational efficiency and food safety by providing real-time data on temperature and performance.

The rise of e-commerce and the increasing importance of cold chain logistics are also boosting the demand for high-quality refrigerated display cabinets to ensure the freshness and quality of perishable goods. Customization and aesthetic appeal are gaining importance as retailers seek to enhance store ambiance and customer experience. Meanwhile, government initiatives to improve food safety standards and support the development of cold chain infrastructure are positively impacting the market.

The growing trend of quick-service restaurants (QSRs) and hyper-local delivery services is further propelling the demand for efficient and reliable refrigerated display solutions. These trends are shaping the future of the country’s market, making it more innovative, sustainable, and customer-centric.

Organized retail stores, including hypermarkets, supermarkets, convenience stores, specialty store and others are major growth drivers, which is boosting the adoption rate of refrigerated display cabinet.

Refrigerated display cabinets (RDC) are used to exhibit and preserve food products thus raises its adoptability among retail food stores. This type of equipment is considered an area for displaying food products that can be quickly and easily accessed by customers.

Increasing demand for ready to eat food is creating demand for the commercial refrigerated display cabinets among the retail stores, which, in turn, triggers the growth of this market. They require proper refrigeration at lower temperatures to provide higher shelf-life and maintain nutritional value, which drives the demand for commercial refrigerated display cabinets to maximize customer attention, increase business profits and so on.

The factors that attribute to the rise in demand for ready to eat foods are busy lifestyle of millennial workforce, growing consumer preferences for vegan or healthier alternative food products, spike in gross family income, the growing number of single-person households, among other such factors.