Rising Outdoor Activities Creates Conducive Environment for Sales Uptick
Sales uptick in the portable fridges market is a result of increasing focus on outdoor activities among consumers. People in general are more cautious about their health and fitness. As increasing number of them are spending time outdoor, taking up exercises or activities such as trekking.
Focus on health is not limited to fitness among consumers, instead their eating pattern too demonstrates significant shift. Many of them prefer carrying fresh food and drinks when venturing outside. Portable fridges are perfect storage solution for them, keeping their food fresh for a longer time.
Portable fridges also are ideal to be carried during picnics and other recreational activities. Their lightweight and compact design makes them idea for carrying fresh food and drinks for outside activities. They are ideal appliances to keep food and beverages cool for a longer time especially during long trips.
Rising Camping Activities Fuels Scope for Expansion
According to the American Camper Report of 2017, over 40 million U.S. citizens participated in camping activities. People in the U.S. primarily prefer staying at tents, taking their RVs, or putting up tents to enjoy a holistic camping experience. Portable fridges find important applications as people venture on camping activities, keeping the freshness of their food and beverages intact.
Besides increasing outdoor activities, the country is witnessing a surge in the number of mobile and micro homes and portable fridges are considered highly compatible with such living environment. This, coupled with the rising number of adventure trips, will bolster sales prospects for portable fridges.
While the unprecedented COVID-19 outbreak may have temporarily rendered the aforementioned driver irrelevant, studies suggest camping activities to pick up post pandemic. According to the findings from the special pandemic edition from the North America Camping Report and compiled by the Kamgrounds of America, camping activities are expected gain strength as restrictions imposed to contain the spread of COVID-19 ease in the coming years.
This will invariably cause surge in growth of the portable fridges market. The demand witnessed in both mini and standard size portable fridge categories is expected to pick up in the coming years.
Demand from Hospitality Sector Supporting Growth
Besides outdoor activities, the demand for portable fridges is expected to surge in the hospitality sector too. Often mini-sized portable fridges are used in hospitality sector, in the hotel rooms and suites to add luxury to the hotel stays of the client.
In the last few years, the hospitality sector has emerged as a key end user for portable fridges exhibiting significant growth. According to a survey by the International Hotel & Restaurant Association (IH&RA), the hospitality sector contributes nearly US$ 950 Bn to the global economy every year.
The rising number of hotel chains and fondness for travel among people around the world is creating a conducive environment for the growth of the market. Corporate offices too, account for a small share of sales proceeds of the market. Several companies have installed portable fridge for their employees.
The application of portable fridges is therefore getting diverse. On the back of this, experts foresee impressive growth of the market in the near future.
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Commercial Applications of Portable Fridges to Surge
Commercial applications of portable fridges have been rising significantly over the past few years. Experts believe it to continue accounting for the maximum share of revenue generated in the market. These compact and portable fridges are widely installed in caravans, campervans, RVs, motorhomes, and vanity vans.
Some of the leading manufacturers such as Danby, Midea Group, Haier Inc., and ARB are launching novel products across key markets such as the U.S., the U.K., Canada, and Germany to gain competitive advantage. Consumers across these countries share the common interest of camping and recreational activities.
The aforementioned companies primarily intended to capitalize on this opportunity. For instance, a few years ago ARB launched advanced portable fridges for cars, trucks, boats, and RVs under the brand name ’50-Quart Fridge Freezer”. The mini fridge also is integrated with an adjustable and automated battery protection system, avoiding battery run-down of the vehicle.
As it is known, a portable fridge derives power from a vehicle’s electrical system to keep food and beverages cool for extended period of time. Considering this, the portable fridges that offer batter saving are highly sought-after.
Besides commercial applications, residential sector too has been exhibiting lucrative prospects for growth. The rising trend of having a mini-bar especially among the demography comprising the working-class has been giving impetus to portable fridge sales.
Companies Leveraging Online Presence to Stay Relevant
The COVID-19 outbreak has put a dent on the sales proceeds of various electrical and electronics products manufacturers. Disruptions in supply chain have been real, while frequency of purchase is greatly hampered during the pandemic crisis. Aggravating concerns is the increased lead time for the delivery of orders.
Limited availability of labor and materials too has hampered the market’s trajectory. Even after lockdown norms are eased, people in general are likely to follow certain restrictions to contain the spread of the virus.
As caution among consumers continues, most companies are likely to explore online channels. Several leading brands of portable fridges have been bolstering their online presence as a major strategic move to stay relevant amid the untoward situation.
They are diligently planning to leverage ecommerce channels. According to Future Market Insights, sales via online channels are expected to significantly pick up in the coming years. Ecommerce presence also will help these companies improve their visibility and penetration across the globe.
Leading companies in Portable Fridges Market
The portable fridges market is fairly competitive, exhibiting the presence of a large number of companies. However, it is the presence of smaller companies operating at a regional scale that is expected to make competition fiercer in the coming years. Nonetheless, a majority of the share is currently help by some of the leading brands.
Since consumers expect lightweight, compact, and advanced features in portable fridges, these companies are investing increasingly in research and development. Besides this, merger and acquisition is seen as a primary strategy to expand portfolio as well as footprint.
Product launches are also considered crucial for the growth of the companies. For instance, Engel Australia Pty Ltd. Launched two limited edition portable fridge of its Retro Series under the brand names Engel MT60F-G4FT and Engel MT45F-G4FT in 201. These mini fridges were especially designed to complement recreational activities and camping trips.
Some of the leading companies operating in the portable fridges market are:
- Whirlpool Corporation
- ARB Corporation
- Dometic Group AB
- EdgeStar (Living Direct, Inc.)
- Engel Australia Pty Ltd.
- Haier Inc.
- AB Electrolux
- Samsung Electronics Co., Ltd.
Portable Fridges Market: Region-wise Analysis
North America is currently holding dominance in the portable fridges market. The high demand for portable fridge in countries such as the U.S. and Canada is attributable to the higher degree of fondness and interest toward outdoor activities among prospective buyers in these countries.
Recreational activities enjoy widespread popularity in North America. This, coupled with businesses backed by the demand from the hospitality sector, is enabling growth in the North America market. The region also boasts one of the largest travel and tourism industries in the world.
While travel may have hit a lull amid the COVID-19 outbreak, it is expected to pick up in the coming years, creating high demand for portable fridges. According to a survey by the International Trade Administration and the U.S, Department of Commerce, foreign tourists spend over US$ 300 Bn in hotel accommodation in 2017.
This is indicative of a flourishing hospitality sector, subsequently a booming market for portable fridges. In the Europe and Oceania too consumers show much interest in camping and caravanning activities, which is aiding growth of the portable fridges market in these regions.
However, over the course of the forecast period, East and South Asia markets are expected to emerge as the most lucrative ones in the world. Consumers in these regions are demonstrating increasing enthusiasm for outdoor activities, which is expected to aid the expansion of the market. Also growth of the hospitality sector and presence of an incredible youth demography will support growth in these regions.
The emplacement of North America in the product lifecycle (PLC) chart below demonstrates the region’s dominance. Europe and Oceania too are expected to showcase impressive growth opportunities since both regions exhibit higher inclination towards outdoor activities among consumers.
Portable Fridges Market: The Way Forward
The coming months are expected to be somewhat difficult for the portable fridges market since consumers across high potential markets are likely to embrace more isolated lifestyle to contain the spread of the novel coronavirus. While lockdown orders are easing around the world, it may take a while before the market completely recovers.
Nonetheless, different surveys conducted across the world have revealed that people are waiting with baited heart for the situation to get better so that they can resume normal course of living without the fear of contracting the disease.
Their interest in camping and caravanning among other outdoor activities is considerably high, which is expected to stoke demand for portable fridges in the coming years. The demand for hospitality sector too is expected to pick up as soon as businesses resume.
- Mini Portable Fridge
- Standard Portable Fridge
- North America
- Middle East and Africa
- East Asia
- South Asia
- Latin America