Demand for commercial refrigeration equipment in the U.S. will grow at 5.5% per year (including price increases) and reach $8.6 billion by 2008. Commercial refrigeration products expected to experience the best growth are cryogenic equipment, display cases, and beverage refrigeration equipment.
Those are some of the conclusions presented in Commercial Refrigeration Equipment, a new study from The Freedonia Group, Inc., a Cleveland, OH based market research firm.
According to the study, the rise in commercial refrigeration demand will result from an improving capital investment outlook, as economic recovery encourages end users to renovate or expand existing facilities. Growth will also result from retailers' ongoing attempts to increase impulse purchases through the addition of display cases in new locations in their stores
The food and beverage retail market will post the highest gains of any major market for commercial refrigeration equipment, due to the rising number of food retailers in the U.S. The continuing popularity of frozen foods will also spur gains.
Restaurants, as well as other foodservice venues such as cafeterias, accounted for more than 40% of food and beverage spending in 2003, and the percentage is expected to rise through 2008. This, along with the increased number of restaurants, will lead to solid growth in demand for commercial refrigeration equipment in the foodservice market.
Transportation refrigeration equipment is the largest product segment, due to the high unit cost of this equipment, and the rising level of refrigerated food shipped in the U.S. Gains in this segment have been adversely affected by both high fuel prices and concerns over mad cow disease, which have reduced U.S. meat exports. However, demand will recover as concerns over U.S. meat safety subside.
Rising standards of living in Asia will also create opportunities, as shipping container demand will rise in the region.
Cryogenic equipment will benefit from rising health care expenditures in the U.S., as well as from increasing medical and scientific research.
Display cases will benefit from the need of retailers to maintain new, aesthetically pleasing displays to encourage impulse purchasing. In addition, the rising number of grocery stores and the continued expansion of grocery sales into major retail chains such as Wal -Mart will boost gains.
For more information, or to purchase the complete study, contact Corinne Gangloff at The Freedonia Group, 440/684-9600, e-mail pr@ freedoniagroup.com, or visit www. freedoniagroup.com
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