- Sales for refrigerated display cases are expected to rise at a CAGR of 9.8% to hit $20.8 billion by 2022, according to a new report from Allied Market Research.
- Consumers' increased demands for ready-to-eat and prepared foods along with tightening regulations and concerns about food safety have driven market growth for refrigerated display cases.
- Low awareness and limited adoption in less developed areas are two factors hindering growth for this retail equipment.
Retailers and manufacturers alike have moved to create more prepared and RTE foods and RTD beverages for consumers who want more convenience and freshness from their meals at home. By the nature of their ingredients and processing, many of these RTE and prepared products require refrigeration to prevent spoilage and bacterial contamination. As manufacturers and retailers ready their facilities and products for FSMA compliance, proper refrigeration is becoming more important.
However, if retailers don't invest in the refrigerated display cases needed to house these types of foods and drinks, competition for refrigerated shelf space heats up. To promote their own prepared foods and include the increasing number of branded RTE products, retailers have been and will continue to invest in expanding their stock of refrigerated display cases.
But another challenge for retailers and manufacturers alike could be the loss of shelf stable product space in the center store, which retailers may choose to replace with refrigerated display cases. That loss of shelf space could also increase competition for shelf visibility among national and local brands and retailers' private label products.
However, since refrigerated display cases require more electrical energy than normal shelving, adding more of themcould be a concern for retailers and their sustainability initiatives.