Walk-in Cooler & Freezer Industry Analysis in Latin America

A Complete Study of Walk-in Cooler & Freezer in Latin America from 2024 to 2034

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:

• Demand for packaged & ready-to-eat meals is increasing significantly with changing consumer lifestyles & food preferences.
• Increasing awareness about food preservation & maintaining the quality and freshness of products in the commercial food service industry.
• The increasing need to maintain a continuous and controlled cold chain to preserve the quality of products during transportation has led to a higher demand for reliable and efficient cold storage solutions and logistics in LATAM.
• Increasing environmental concerns & desire to reduce operational costs are prompting businesses to invest in energy-efficient and sustainable commercial freezer installations, enhancing demand for advanced walk-in coolers & freezers.

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%

Historical Analysis Between 2019 and 2023 Vs Sales Forecast from 2024 to 2034

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.

Latin America Walk-in Cooler & Freezer Key Highlights

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.

Key Industry Drivers

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.

Key Restraining Factors

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.

Country-wise Insights

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%

Discovering the Pinnacle of Excellence in Latin America’s Top Country

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:

• The expanding regional food service industry is a key driver for walk-in coolers & freezers in the country.
• The country’s agricultural sector makes a substantial contribution to the LATAM walk-in coolers & freezers industry trends.
• Continued investments in the pharmaceutical sector, expansion of the retail industry, and the development of the agricultural supply chain are expected to be key drivers.
• The region is expected to benefit from increased awareness of the importance of efficient cold storage in maintaining product quality and adherence to regulatory standards.

Expanding Warehousing & Cold Chain Logistics in Mexico is Fueling Demand for Walk-in Coolers & Freezers

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.

• The expanding influence of e-commerce, escalating trade activities, and rising demand from enterprises seeking efficient warehousing and inventory management solutions.
• The heightened need for preserving perishable foods & groceries.
• A considerable demand for cold storage and warehousing in the pharmaceutical sector is driven by the stringent temperature requirements for various drugs.
• The retail sector in Mexico is growing, with supermarkets, convenience stores, and hypermarkets expanding their footprint.

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.

Category-wise Insights

Dominance of Commercial Kitchens & Restaurants as the End Users

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.

• Region's ongoing urbanization and changing lifestyles with growth in the tourism and hospitality industry are prompting restaurants to diversify menus in commercial kitchens & restaurants.
• The growing demand for expanded storage capacities leads to an increased reliance on indoor walk-in coolers and freezers for the efficient storage of perishable products.
• The rise of food delivery and takeout services has added another layer to the demand for portable walk-in coolers & freezers.
• Businesses are increasingly prioritizing efficiency and cost savings, leading to the adoption of technologically advanced and energy-efficient coolers and freezers.

Self-contained Cooling Technology Redefining Refrigeration Industry

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%

• Manufacturers are focusing on cutting-edge features like remote monitoring, smart temperature control, and modular & portable designs to gain a competitive advantage.
• Highlighting energy-efficient technologies that preserve freshness and reduce spoilage in walk-in coolers & freezers.
• Offering attractive financing plans and leasing options to make walk-in coolers and freezers more accessible to smaller businesses and restaurants.

Competitive Landscape

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

• In June 2023, Hussmann, an American OEM, announced the introduction of air-cooled propane (R290) monoblock refrigeration units for walk-in cold rooms and freezers soon. The water-cooled MicroDS monoblocks that the firm debuted last year are planned to be supplemented by the new self-contained MicroSC units.
• The research for this project was conducted by Hussmann and Embraco, the Brazilian company that makes variable-speed compressors for the MicroSC and MicroDS units. It was found that the R290 monoblocks can lower cold room CO2 emissions by as much as 6% throughout their lifetime when compared to conventional HFC-based options.
• In September 2023, Tecumseh introduced Tauri, a dependable and sturdy condensing unit platform for commercial refrigeration applications up to 15 HP. The company displays new compressor lines for the Latin American countries at FEBRAVA 2023 at the São Paulo Expo.

Research Scope

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.

Latin America Walk-in Cooler & Freezer Segmentation

By Place of Use:

• Indoor
• Outdoor

By Sales Channel:

• Original Equipment Manufacturer (OEM)
• Aftermarket

By Technology:

• Self-Contained
• Remote Condensing
• Multiplex Condensing

By End Use:

• Retail Food Services
  • Supermarket
  • Hypermarket
  • Convenience Stores
  • Other Stores
• Cold Storage Warehouse
• Breweries
• Commercial Kitchen & Restaurants
• Pharmaceuticals
• Research laboratories
• Hospitals & Mortuaries

By Country:

• Brazil
• Mexico
• Argentina
• Chile
• Rest of LATAM

Frequently Asked Questions

What was the Valuation of Walk-in Cooler & Freezer Industry in Latin America in 2019?

The industry recorded a valuation of USD 1,221.8 million in 2019 in Latin America.

How Big is the Walk-in Cooler & Freezer Industry in Latin America Currently?

The Latin America industry value is estimated to reach USD 1,473.1 million in 2024.

At What Rate the Demand for Walk-in Cooler & Freezer is Expected to Rise?

Demand for walk-in cooler & freezer in Latin America is anticipated to rise at 6.8% CAGR through 2034.

What is the Expected Walk-in Cooler & Freezer Industry Size by 2034 in Latin America?

The sales of walk-in cooler & freezer in Latin America are set to reach USD 2,827.7 million by 2034.

Which End-use Segment is expected to lead the Regional Industry?

Commercial kitchen & restaurant segment is expected to record a 6.2% CAGR through 2034.