Middle East and Africa’s commercial refrigeration equipment to be valued at USD 5 billion in 2023

Middle East and Africa’s commercial refrigeration equipment to be valued at USD 5 billion in 2023

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The Middle East and Africa commercial refrigeration equipment market is projected to grow to $4.8 billion.

The market progress can be credited to the development of restaurant chains and organized retail (hypermarkets and supermarkets), and growing requirement for ready-to-eat products.

The market is divided into food and beverage distribution, food service, and food and beverage retail. Among these, in 2017, the food and beverage retail category held almost 24 percent market share. Upcoming events, such as the FIFA World Cup 2022 in Qatar and World Expo 2020 in UAE, will accelerate the food and beverage retail sector growth in the GCC. As the food and beverage industry expands, the demand for commercial refrigeration equipment would also project a similar pattern during the forecast period. In terms of value, the food and beverage retail category is predicted to advance at a CAGR of over six percent. 

The development of organized retail with respect to restaurants, supermarkets, and hypermarkets, in countries, such as Algeria, Morocco, and Egypt, is one of the key drivers of the MEA commercial refrigeration equipment market growth. This is due to government support for the development of urban pockets, and increasing urbanization.

Furthermore, in developing countries, consumers living in urban areas have a higher disposable income than those in rural areas. In recent years, the governments of several of these nations have come up with new development projects for smart urban areas. Hence, with an increase in the level of urbanization, the demand for refrigeration equipment during the forecast period is expected to be fueled in the food retail industry, medium-sized grocery stores, hypermarkets, and Tier I and Tier II restaurants.

The retail market in the Middle East is projected to develop at a rapid pace in the near future. The region is witnessing heavy investments in infrastructural development, building of strong digital platforms, and acquiring of new brands, resulting in the transformation of the retail landscape here. The organized retail sector is projected to expand considerably in the U.A.E., Saudi Arabia, and the U.A.E. The CAGR of the organized retail space is expected to be about 17.0% in Qatar, 9.0% in Saudi Arabia, 9.5% in U.A.E., 18.0% in Oman, and 8.5% in Kuwait during the forecast period.

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