Report Overview

India Refrigerator market is growing due to growing food and beverage industry, the growth of smart homes, growing investment under “Make in India” scheme, initiatives from the government across multiple sectors/industries, and growing application of environment-friendly refrigerants like ammonia (NH3), carbon dioxide (CO2) in refrigerators.

India refrigerator market was worth USD 2.9 billion in 2020 and is further projected to reach USD 6.1 billion by 2027, at a CAGR of 11.2% during 2021-2027 (forecast period). Refrigerator penetration is constantly rising throughout India. Growing household incomes and improved technology are significant factors behind this growth. Additionally, the thriving food and beverage industry and the popularity of smart homes in the country drive the demand for more intelligent features in the new-age refrigerator. Furthermore, the growing government investment under the "Make in India" scheme across numerous sectors/industries, as well as increased use of environmentally friendly refrigerants such as ammonia (NH3) and carbon dioxide (CO2) in refrigerators, are fueling the growth of the refrigerator market in India.

Source: BlueWeave Consulting

India Refrigerator Market Overview:

A refrigerator, popularly known as the fridge, is an electrical appliance that includes a thermally shielded compartment and a heat pump that transfers heat from the inside of the fridge to its external environment. This provides coolness inside the refrigerator by decreasing the temperature below the room temperature. A refrigerator preserves a temperature a few degrees above the water freezing point. The primary reason for having a fridge is to keep food cold. The cold temperature extends the shelf life of food and protects it from bacteria.

India Refrigerator Market Forecast and Trend

Growth Drivers

Growing Urbanization is driving the Market for Refrigerator

The demand for refrigerators in India comes primarily from urban areas, which account for most of the sales volume. India's urban population was 34.92% of its total population in 2020, according to WorldBank data. Urban dwellers in India have a very different lifestyle than their rural counterparts. Refrigerator forms an essential part of the kitchen of urban households as this appliance is considered a safe and convenient method for storage of food & beverages and other perishable food products. The growing popularity of refrigerators in urban India is driving the growth of the India refrigerator market.

Aside from that, the significant increase in disposable income and easy financing schemes have resulted in shortened product replacement cycles and transformed lifestyles, as a result of which consumer durables such as refrigerators are now seen more as necessities rather than as luxury commodities.

In urban areas, the online retail channels are one of the easiest and convenient modes for purchasing consumer durables, such as refrigerators, as it gives free delivery and various deals to lure the urban population. As a result of these tactics, as well as the increased demand for refrigerators among urban populations, the refrigerator market in India is expected to develop significantly during the forecast period.

Growing initiatives from the government

Refrigerators come under the “White Goods” category. The government has started many initiatives to increase the investment in the sector for its growth. According to INVEST INDIA, National Investment Promotion & Facilitation Agency, refrigerator volume in India is expected to reach 27.5 million units by FY25 from 14.5 million in FY19. Both central and state governments have started multiple schemes and incentive programs to attract companies in the white goods sector.  Among the projects initiated by the Central government are Production Linked incentives (PLI), Duty Drawback Schemes, and Export Promotion Schemes. Furthermore, state governments offer a capital subsidy, stamp duty exemption, interest subsidy, tax reimbursement, and electrical duty exemption on white goods. Initiatives like these are the main drivers of the India refrigerator market.

Restraints

Impacting the Health of Environment

Commercially, Freon is a refrigerant gas containing halocarbons used in air conditioning, refrigeration, and dehumidification. Halocarbons that contain chlorine are known as ozone-depleting substances (ODS). The chlorine in halocarbons reacts with the ozone layer, which destroys ozone concentrations in a layer 10 to 40 km above the earth. This layer protects the planet from ultraviolet radiation and its harmful effects. Increasing refrigeration and air conditioning use are causing a vicious cycle, which is affecting the ozone layer. Therefore, growing environmental consciousness is crippling the growth of refrigerator sales.

Impact of COVID-19 in the industry

The beginning of 2020 saw the breakout of a novel coronavirus, which changed the market's fundamental dynamics. Sales declined during the first months of 2020 due to temporary halts in manufacturing and a slowdown in logistics caused by the nationwide lockdowns imposed by the country to prevent the spread of the virus.However, relaxations in lockdown regulations implemented by the Indian governments throughout the country in the last few months of 2020 increased the production of refrigerators. Additionally, the resumption of shipping operations and the e-commerce websites allowed for a steady increase in sales of such appliances.

India Refrigerator Market: Type

India refrigerator market is categorized into two product types—direct cool refrigerator and frost-free refrigerator. A frost-free refrigerator does not require manual defrosting, whereas a direct cool refrigerator needs manual defrosting. Direct cool refrigeratordominatesthe India refrigerator market as they are cheap, require less space for installation and consume less energy as compared to frost-free refrigerators. Due to the wide range of features they offer, frost-free refrigerators are fast becoming popular among urban households, thereby propelling their growth in the India refrigerator market.

Source: BlueWeave Consulting

India Refrigerator Market: By Category

India refrigerator market is classified into French door refrigerator, top freezer refrigerator, bottom freezer refrigerator, side by side Refrigerator, and others, based on category. The top freezer refrigerator segment dominates the market due to its ability to combine freezer and shelf storage in one unit without the necessity of purchasing separate freezers. These refrigerators offera lot of space, making it easy for consumers to store larger dishes. Freezer-on-top is one of the most popular styles across the world. Additionally, these refrigerators are economically priced, due to which this segment accounted for significant market shares during 2020.

India Refrigerator Market: Regional Insights

Based on the regions, the India refrigerator market is segmented into Eastern India, Northern India, Southern India, and Western India. The Southern part of the country held the maximum market share in 2020, followed by Western India. However, India's western region is expected to dominate the Indian market over the forecast period, followed by India's southern region. This growth is attributable to the hot weather in that area all year round, which causes refrigerators to sell rapidly. Moreover, the shift from traditional refrigerators to smart refrigerators is opening up various opportunities for market players.

Competitive landscape

The India refrigerator market is highly concentrated. The major players in the India refrigerator market are Samsung, Whirlpool Corporation, Panasonic, LG Electronics, Godrej, Electrolux, Haier, Onida Electronics, Videocon Consumer Electronics & Home, Kelvinator, Sharp Corporation, Hitachi, Voltas, and other prominent players. By implementing various innovations and technologies, players are expanding their global presence. To gain a competitive advantage over their rivals and capture more market share, companies set up manufacturing plants, acquire local players, or collaborate with players across industries.

Recent Developments

• In August 2021, Chief Minister of Karnataka, inaugurated the mobile vaccination drive 'Vaccination on Wheels.’ The program was organized by Narayana Health in collaboration with Volvo Group. The mobile vaccination program will be conducted across Karnataka state for the next 6 months and will be using customized buses with vaccination stations, and a special vaccine refrigerator that can store up to 2,000 vaccine doses.
• In March 2021, Haier India launched a new range of magic convertible big bottom mounted refrigerators to expand its product portfolio.The new refrigerator comes with triple inverter, dual fan technology, and extra space.

Scope of the Report

By Type

• Direct Cool Refrigerator
• Frost-free Refrigerator

By End-User

• Residential
• Commercial
• Government
• Offices and Buildings
• Retail
• Entertainment Industry
• Hotels and Restaurants
• Others

By Distribution Channel

• Specialty Retail Stores
• Departmental Stores
• Supermarkets
• Discount Store
• Online

By Category

• French Door Refrigerator
• Top Freezer Refrigerator
• Bottom Freezer Refrigerator
• Side by Side Refrigerator
• Others

By Region

• Eastern India
• Northern India
• Southern India
• Western India