2020-2027 Southeast Asia’s beverage and wine refrigerator market forecast
As emphasized by a report released by Coherent Market Insights, the value of the Southeast Asian beverage and wine cooler refrigeration market in 2019 was US$444.2 million, and the compound annual growth rate during 2020-2027 is expected to be 5.1%.
Countries in Southeast Asia mainly rely on traditional food markets, kiosks, food stalls and small independent retail stores for retail. However, in the past few years, the retail shopping patterns of Southeast Asian countries including Indonesia, Vietnam, the Philippines and Cambodia have been changing. The growth in Southeast Asia is mainly attributable to the increase in per capita disposable income in the region, the increase in the number of urban residents, the increase in demand for packaged food or ready-to-eat food, and the demand for one-stop shopping malls due to changes in lifestyles. And the demand for high-quality food has increased. According to an analysis by Coherent Market Insights, Cambodia’s urbanized population accounts for 53% of the total population. Therefore, refrigerators and beverage refrigeration equipment are mainly deployed in large retail stores.
In addition, retail business is unevenly distributed among these Southeast Asian countries. In some countries such as Cambodia, the Philippines and Vietnam, retail operations are highly fragmented. In addition, in developing countries such as Indonesia, the penetration rate of food and retail is increasing in an organized manner, which is expected to be a good opportunity for operators in the beverage and wine cabinet market. For example, according to the analysis of Coherent Market Insights, the growth rate of the Indonesian retail market is expected to be 5.8% from 2020 to 2023, which is expected to drive market growth.
The urbanization rate of Southeast Asian countries such as Indonesia and Vietnam is increasing. The development of BPO (business process outsourcing) and KPO (knowledge process outsourcing) industries has made the lives of the people of this country more complicated and hectic. In addition, consumer demand for frozen and packaged food provides huge opportunities for large-scale frozen and packaged food companies and refrigeration equipment manufacturers for commercial applications to develop business in Southeast Asia. According to the analysis of Coherent Market Insights, Indonesia’s urbanization degree was 53.3% in 2015, and it will rise to 56% in 2019.
In addition, many Southeast Asian countries such as Indonesia and Vietnam have also witnessed the process of industrialization. In these countries, the government is taking a number of measures to improve domestic manufacturing capabilities. This has affected several multinational companies and beverage and wine cabinet manufacturers to conduct business in these countries. For example, the Vietnamese government is working to increase the GDP contribution of the industrial sector to more than 40% by 2030.
In addition, low labor costs also encourage beverage and wine cabinet manufacturers to set up manufacturing plants in Southeast Asian countries. For example, global food industry giants such as KFC, Pizza Hut and McDonald’s have entered Southeast Asian countries such as Vietnam and Indonesia. These mentioned companies use refrigerated equipment to store their products.
Post time: Aug-17-2021