Household Refrigerators and Freezers Market By Refrigerators, Freezers, Distribution Channel, & Region for 2024-2031

Household Refrigerators and Freezers Market Valuation - 2024-2031

Technological improvements are important in increasing demand for domestic refrigerators and freezers. Manufacturers are increasingly emphasizing energy economy, smart technology, and cutting-edge features including frost-free technology, temperature management, and multi-door designs. Energy-efficient models are especially popular as consumers grow more environmentally concerned and strive to lower their energy expenses. The incorporation of smart technology which allows refrigerators and freezers to be operated via smartphones and other devices is also attractive to tech-savvy consumers by enabling the market to surpass a revenue of USD 101.09 Billion in 2024 and reach a valuation of around USD 164.19 Billion by 2031.

Several main reasons contribute to the rising demand for domestic refrigerators and freezers including changes in consumer behavior, technological improvements, and economic situations. One of the key factors is the growing global population which is accompanied by increased urbanization. As more people relocate to cities and household sizes grow, the demand for dependable food storage options becomes critical. Urban inhabitants, in particular, require efficient refrigeration systems to store perishable foods lowering the number of shopping visits and reducing food wastage by enabling the market to grow at a CAGR of 6.25% from 2024 to 2031.

Household Refrigerators and Freezers Market: Definition/ Overview

Refrigerators and freezers are vital household appliances that keep food and other perishable products cool at all times. Refrigerators normally include two compartments: one for short-term storage of fresh meals and one for long-term storage of frozen things. The refrigeration component runs at temperatures slightly above freezing (often between 35°F and 40°F) reducing the growth of microorganisms and extending food storage life. The freezer compartment, on the other hand, operates at temperatures below 32°F which inhibits bacterial growth and allows food to be preserved for longer durations.

Household refrigerators and freezers play an important role in daily life by preserving food and prolonging its shelf life making them essential appliances in modern households. One of its key uses is food storage and preservation. Refrigerators limit the growth of bacteria, mold, and yeast, which can cause food to spoil. This feature enables households to preserve perishable things such as dairy products, meats, fruits, and vegetables for extended periods, eliminating waste and providing a consistent supply of fresh ingredients.

Technological improvements and an increased emphasis on energy efficiency and sustainability will determine the future of residential refrigerators and freezers. One major development is the incorporation of smart technology which transforms standard refrigerators and freezers into intelligent appliances. These smart refrigerators will be outfitted with advanced sensors, cameras, and connectivity technologies allowing consumers to monitor and manage their appliances remotely via smartphones or other devices.

Will the Increasing Awareness of Energy Conservation Drive the Household Refrigerators and Freezers Market?

The growing awareness of energy conservation is a major driver in the household refrigerators and freezers market. As consumers grow more environmentally concerned and strive to reduce their energy use and utility expenses, they are increasingly choosing energy-efficient appliances such as refrigerators and freezers. This trend is backed by a variety of government initiatives and laws targeted at increasing energy efficiency in household appliances. According to the United States Department of Energy (DOE), refrigerators are one of the most energy-consuming equipment in American homes accounting for around 7% of total energy consumption. The DOE also claims that modern ENERGY STAR-certified refrigerators consume 15% less energy than non-certified models and 40% less energy than ones marketed in 2001.

Government restrictions and incentives help to drive the quest for energy efficiency in household appliances. For example, the European Union's Ecodesign and Energy Labelling requirements impose rigorous energy efficiency standards for refrigerators and freezers. The European Commission estimates that these changes will save around 167 TWh of electricity per year by 2030, which is similar to Denmark's yearly energy use. In the United States, the Department of Energy regularly updates its energy efficiency guidelines for refrigerators and freezers. The DOE forecasts that these requirements will save 4.93 quads (quadrillion British thermal units) of energy over 30 years which is comparable to three times the yearly energy use of all refrigeration products in American homes.

Will the Cost Constraints Hamper the Household Refrigerators and freezers Market?

Cost constraints may present obstacles for the Household Refrigerators and Freezers Market, especially as consumers want more advanced features and energy-efficient appliances. Modern refrigerators and freezers with smart technology, advanced cooling systems, and eco-friendly designs frequently have high research, development, and manufacturing expenditures. These expenses are often passed on to customers in the form of increased retail pricing. For many households, particularly those with low discretionary money, the increasing prices might be discouraging. As a result, consumers may choose less expensive versions with fewer advanced features or even postpone purchasing entirely waiting for costs to fall or more cheap options to become available.

Furthermore, in emerging areas where the demand for household appliances is increasing, cost limitations can be much more severe. In these areas, the average consumer's purchasing power is frequently smaller making it difficult to afford high-end refrigerators and freezers. Manufacturers may encounter a problem in reconciling the need to deliver competitively priced products with the growing demand for energy efficiency and smart features. If these cost hurdles are not addressed sufficiently, market growth may be limited because potential consumers may choose to continue with older, less efficient models or look for alternate cooling options.

Category-Wise Acumens

Will the Growing Trend Towards Smart Home Integration Drive Growth in the Refrigerators Segment?

French door refrigerators now dominate the market. This supremacy stems mostly from their blend of style, convenience, and utility which appeals to a diverse spectrum of consumers. French door refrigerators have a double-door design for the fresh food section allowing for easier access and organizing of commonly used products. The bottom-mounted freezer offers a convenient alternative for storing frozen foods, making them more accessible without the need to lean down which is a considerable benefit for users. This style is very popular among customers who value both aesthetics and functionality in their kitchen appliances. French door refrigerators are great for bigger households that demand more storage capacity and flexibility, thanks to their spacious interior and configurable shelving options.

Another element contributing to French door refrigerators prevalence is the growing popularity of modern kitchen designs and smart home technology. As consumers seek equipment that improves the overall appearance and feel of their kitchens, French Door Refrigerators' sleek and contemporary design complements modern kitchen aesthetics. Furthermore, many French door models also have smart features like Wi-Fi connectivity, touchscreens, and advanced temperature controls, increasing their desirability. These smart capabilities appeal to tech-savvy consumers who want to integrate their appliances into a linked home ecosystem. The mix of modern features convenience, and elegant style makes french door refrigerators the preferred choice for many consumers confirming their position as the dominant type in the family.

Will the Widespread Accessibility and the Variety of Products Drive the Distribution Channel Segment?

Hypermarkets/Supermarkets dominate distribution channels due to their universal accessibility and diverse product offerings. These major retail chains have a considerable advantage since they cater to a varied client base by offering a one-stop shopping experience. Customers may buy household needs, groceries, and appliances all in one place making it easy for them to buy refrigerators and freezers alongside other items. Hypermarkets and supermarkets frequently have a diverse choice of products at various price points from basic versions to more complex, feature-rich appliances making them appealing to a wide range of consumers with varying budgets.

Hypermarkets and supermarkets profit from economies of scale allowing them to charge competitive prices for domestic refrigerators and freezers. These stores usually offer promotions, discounts, and financing alternatives to help customers acquire higher-priced items. Their capacity to buy in volume and negotiate better terms with suppliers allows them to pass cost savings on to clients reinforcing their market dominance. Furthermore, hypermarkets and supermarkets benefit from increased visibility and foot traffic which can lead to impulse purchases of higher-value items such as refrigerators and freezers. This broad reach combined with competitive pricing and convenience makes hypermarkets and supermarkets the main distribution channel in the household refrigerators and freezers market.

Country/Region-wise Acumens

Will Rapid Urbanization and Government Initiatives Drive the Market in the Asia Pacific Region?

The Asia-Pacific region dominates the household refrigerators and freezers market owing to growing urbanization and strong government initiatives. These elements are causing tremendous growth and market expansion in the region. Rapid urbanization is a major driver of Asia Pacific's household refrigerators and freezers market. According to the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), the region's urban population is projected to increase from 2.3 billion in 2019 to 3.5 billion by 2050. This increases the urbanization rate from 50% to 66%. As more people move to cities, there is a greater need for contemporary appliances like refrigerators and freezers.

Government actions have an important role in boosting the market. Many Asia Pacific countries have developed energy efficiency programs and legislation to encourage the use of energy-efficient equipment such as refrigerators and freezers. For example, India's Bureau of Energy Efficiency (BEE) has implemented a mandated labeling program for frost-free freezers resulting in a 35% increase in energy efficiency since its commencement in 2006. Similarly, China's National Development and Reform Commission (NDRC) has set proud goals for energy efficiency in household appliances seeking to cut consumption by 15% by 2025 compared to 2020 levels.

Will the Growing Number of Nuclear Families Drive the Market in the North American Region?

The increasing number of nuclear families is not the most important driver driving the industry in North America. Economic considerations and technology improvements are often regarded as quick and significant drivers of market expansion in this sector. However, the growing number of nuclear families is an important driver for several industry sectors in North America. A nuclear family which consists of two parents and their offspring, frequently has different consumption patterns and requirements than other household configurations. According to the United States Census Bureau, married-couple family households accounted for 47.3% of all households in 2021.

The nuclear family structure also promotes growth in certain consumer goods industries. According to the USDA, a middle-income married couple with two children will spend $233,610 to raise a child born in 2015 to the age of 17 excluding college fees. This large spending is spread across several sectors including food, housing, childcare, education, and healthcare. In the education sector, the National Center for Education Statistics predicts that elementary and secondary school enrollment will rise from 56.6 million in 2019 to 57.4 million by 2029 indicating the increased proportion of school-age children from nuclear households. Furthermore, the rise in nuclear families is associated with higher spending on family-oriented activities and items.

Competitive Landscape

The Household Refrigerators and Freezers Market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support. The organizations are focusing on innovating their product line to serve the vast population in diverse regions.

Some of the prominent players operating in the household refrigerators and freezers market include:

LG Electronics

Haier Group

Electrolux

Samsung

Whirlpool Corporation

Robert Bosch GmbH

Midea Group

Panasonic Corporation

Hisense

Liebherr

Sub-Zero

Latest Developments

In March 2023, Blue Star Limited introduced a new line of deep freezers designed specifically for commercial use. This newly announced series of deep freezers is manufactured at Blue Star's sophisticated Wada Plant and features a unique design that adds storage space and cooling capacity.

In May 2023, Entergy Corporation launched a new recycling project for home customers to streamline the process of replacing obsolete refrigerators and freezers. This effort provides an easy way to dispose of and recycle energy-inefficient refrigerators and freezers, so contributing to reduced energy costs. Participants can get a $25 incentive check for recycling their old appliances.