Latin America walk-in cooler & freezer is projected to reach USD 2,827.7 million by 2034 from USD 1,383.7 million in 2023. The sales of walk-in coolers & freezers in LATAM are forecast to expand at a CAGR of 6.8% from 2024 to 2034.
Key Insights on the Walk-in Coolers & Freezers Sector of Latin America
The demand for walk-in coolers & freezers in Latin America is expected to create an absolute growth opportunity of USD 1,444.0 million during the period between 2024 and 2034. This growth is attributed to the following factors:
| Attributes | Key Insights |
|---|---|
| Industry Size in 2023 | USD 1,383.7 million |
| Estimated Industry Value in 2024 | USD 1,473.1 million |
| Projected Industry Revenue by 2034 | USD 2,827.7 million |
| Value-based Industry CAGR from 2024 to 2034 | 6.8% |
| Collective Value Share: Top 2 Countries (2024E) | 78.1% |
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Sales of walk-in coolers & freezers recorded a CAGR of 3.2% between 2019 and 2023. The total industry size accounted for USD 1,383.7 million in 2023.
Latin America is expected to evolve with changing consumer preferences and industry dynamics, presenting opportunities for many businesses requiring cold storage solutions, such as commercial food chains, pharmaceuticals & healthcare, cold storage warehouses, etc.
| Historical CAGR (2019 to 2023) | 3.2% |
|---|---|
| Forecast CAGR (2024 to 2034) | 6.8% |
Future Scope: Increased demand for ready-to-eat meals and frozen foods is expected to drive walk-in coolers & freezer adoption in convenience stores and supermarkets owing to the rising urbanization & busy lifestyle. The trend of online grocery delivery is booming, impacting the industry positively for walk-in coolers & freezers in LATAM. These services add flexibility and recurring revenue, facilitating easier penetration in Latin America.
Increasing Focus on the Agricultural Sector:
Substantial growth of the agricultural sector is a pivotal factor contributing to the growth of the walk-in cooler and freezer in LATAM. The region's vast agricultural output, including fruits, vegetables, and meat products, requires a sophisticated cold chain infrastructure for storage and transportation to prevent spoilage and contamination. Walk-in refrigeration systems play a critical role in maintaining the quality and freshness of these agricultural products, prompting heightened adoption within this sector.
Government & Private Companies' Investments in Cold Chain Facilities:
Rising government and private investments in commercial refrigeration in Latin America to improve the overall infrastructure for storage and distribution. Cold chain investments also benefit the agricultural sector by reducing post-harvest losses. This support is also encouraging farmers and producers to adopt better storage practices, increasing the overall demand for walk-in cooler & freezer.
Growing Demand in the Retail Industry:
Rising urbanization is driving the demand for quick and easy access to a variety of fresh and frozen products at a single stop. This shift is propelling the requirement for efficient coolers and freezers in supermarkets and convenience stores, also driven by a need to comply with food safety regulations, ensuring that food products meet quality standards throughout the supply chain.
The Need for Precise Temperature Control for Pharmaceutical Products
A pivotal driver of walk-in cooler & freezer demand is the imperative need for precise temperature control, particularly driven by the stringent requirements to uphold the efficiency of pharmaceutical products. The pharmaceutical industry relies heavily on maintaining specific temperature ranges for storing medications and vaccines to ensure their stability and effectiveness. This necessity propels the demand for advanced cooling solutions, such as walk-in coolers and freezers equipped with cutting-edge temperature control technology.
These solutions not only safeguard the integrity of pharmaceuticals but also cater to the broader healthcare sector, creating a significant demand. Furthermore, as healthcare infrastructure in Latin America continues to expand, the call for reliable and sophisticated cooling systems is anticipated to witness sustained growth, bolstering the overall demand for the walk-in chiller freezer industry in LATAM.
High Replacement Sales Due to Outdated Equipment Standards
As industries across the region strive to modernize their infrastructure, many businesses in sectors such as retail food services, cold storage warehouses, and commercial kitchens find themselves compelled to upgrade their existing walk-in refrigeration systems.
The push for compliance with evolving industry standards, technological advancements, and the need for energy-efficient solutions contribute to a surge in replacement sales. End users are seeking cutting-edge walk-in coolers and freezers that not only adhere to the latest standards but also offer improved performance, reducing operational costs and environmental impact.
High Rate of Compressor Failure
Several factors, including irregular maintenance practices, power fluctuations, and environmental conditions, can cause the malfunction of compressors, leading to disruptions in the cooling systems and resulting in temperature inconsistencies. The frequency of compressor failures not only poses operational challenges for businesses relying on these refrigeration units but also increases maintenance costs and downtime.
Another factor limiting the adoption of industrial refrigeration in Latin America is limited access to skilled technicians for timely repairs and replacements. Addressing this restraint requires focusing on improving maintenance protocols, enhancing technical expertise in the field, and investing in advanced technologies that offer more reliable and durable compressors.
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The table below shows the estimated shares of the top two countries. Brazil and Mexico are set to record higher CAGRs of 6.8% and 7.1%, respectively, through the forecast period 2024 to 2034.
| Countries | CAGR (2024 to 2034) |
|---|---|
| Brazil | 6.8% |
| Mexico | 7.1% |
Brazil is estimated to hold a significant share of 48.2% in 2024 and is expected to continue its dominance throughout the forecast period, growing at a steady rate of 6.8%. The sales of walk-in coolers & freezers in Brazil are anticipated to grow from USD 666.8 million in 2023 to USD 1,366.9 million by 2034.
The following factors are driving Brazil walk-in coolers & freezers sales:
Mexico commands a substantial presence as the leading country for warehousing, holding around 30% of the overall regional share in 2024. Mexico is expected to play a pivotal role in driving significant growth and opportunities for walk-in coolers & freezers by following a 7.1% CAGR through 2034. It is expected to remain among the top two countries of walk-in coolers & freezers in Latin America, with expected valuations of USD 860.0 million by 2034.
Growth of the pharmaceutical industry, a hub for manufacturing and industrial activities, interest, and investments from global players in Mexico signifies the region's potential growth owing to a favorable environment in Mexico to expand their operations and cater to the growing demand for walk-in coolers & freezers.
As per the analysis, commercial kitchens & restaurants hold a share of 32.4% in 2023. It is projected to reach a size of USD 868.5 million by 2034, with a steady growth rate of 6.2% during the forecast period.
| Top Segment by End Use | Commercial Kitchen & Restaurants |
|---|---|
| CAGR (2024 to 2034) | 6.2% |
Demand for walk-in coolers and freezers in Latin America for commercial kitchens and restaurants is witnessing a notable upswing due to various contributing factors.
Based on technology, the self-contained category is anticipated to dominate over other technologies till 2034. It is set to exhibit a CAGR of 6.8% during the forecast period.
| Top Segment by Technology | Self-contained Cooling Technology |
|---|---|
| CAGR (2024 to 2034) | 6.8% |
Latin America's competitive landscape is fragmented, with leading players accounting for about 15% to 25% of the market. The presence of established players from North America and Europe shows a competitive landscape with high-quality standards of walk-in coolers and freezers. Manufacturers are focusing on emphasizing research and development activities to introduce products with lower GWP and GHG emissions and modular designs to gain a competitive advantage.
Leading manufacturers are collaborating with research institutions and healthcare providers to understand and address their unique needs for temperature control. Meanwhile, new manufacturers are focusing on technological advancements in insulation materials and refrigeration systems catering to diverse temperature requirements, leading to a demand for specialized walk-in cooler & freezer. Also, they are highlighting the use of recycled materials and low-carbon manufacturing processes for the growing demand for green solutions.
Recent Developments
| Attribute | Details |
|---|---|
| Estimated Industry Size (2024) | USD 1,473.1 million |
| Projected Industry Size (2034) | USD 2,827.7 million |
| Anticipated Growth Rate (2024 to 2034) | 6.8% |
| Historical Data | 2019 to 2023 |
| Forecast Period | 2024 to 2034 |
| Quantitative Units | Value (USD million) and Volume (Units) |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Industry Segments Covered | Place of Use, Sales Channel, Technology, End Use, Country |
| Regions Covered | Latin America |
| Key Countries Covered | Brazil, Mexico, Argentina, Chile, Rest of LATAM |
| Key Companies Profiled | Panasonic Corporation (Hussmann); Welbilt, Inc; Danfoss A/S; USA Cooler; SRC Refrigeration; TMP Manufacturing Company; American Panel Corporation; Arctic Industries Inc.; Amerikooler LLC; Commercial Cooling - Par Engineering, Inc.; Thermo-Kool; Bally Refrigerated Boxes, Inc; Nor-Lake Inc.; Air Services & Refrigeration Specialties Inc; Refrigerator Manufacturers, Inc.; Everidge; Master-Bilt; Imperial Brown; Polar King. International, Inc. |
The industry recorded a valuation of USD 1,221.8 million in 2019 in Latin America.
The Latin America industry value is estimated to reach USD 1,473.1 million in 2024.
Demand for walk-in cooler & freezer in Latin America is anticipated to rise at 6.8% CAGR through 2034.
The sales of walk-in cooler & freezer in Latin America are set to reach USD 2,827.7 million by 2034.
Commercial kitchen & restaurant segment is expected to record a 6.2% CAGR through 2034.
| Estimated Size, 2025 | USD 11,242.5 million |
|---|---|
| Projected Size, 2035 | USD 19,570.9 million |
| Value-based CAGR (2025 to 2035) | 5.7% |
| Estimated Industry Value (2024) | USD 3,049.9 million |
|---|---|
| Projected Industry Revenue (2034) | USD 5,081.6 million |
| Value-based CAGR (2024 to 2034) | 5.2% |
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Walk-in Cooler & Freezer Industry Analysis in Latin America
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