Global Retail Cooler Market Grows Steadily at a CAGR of 8.8%

Introduction

A retail cooler is a self-contained or remote-condensing device with a vapor-compression refrigeration system for storing food and beverages. A retail cooler prevents product contamination by sustaining products at a constant temperature. These refrigerators use evaporators and condensers to keep the interior storage area cool. In addition, portable retail coolers make outdoor activities such as hiking and camping extremely convenient. Typically, it is filled with ice crystals to keep the contents cool. Occasionally, ice packs are utilized because they either contain water capable of dissolving or a gel that maintains a lower temperature for longer than ice alone. During warmer months, they can transport chilled food or groceries, preventing ice cream from melting in a vehicle. This is advantageous even without ice, particularly if the journey back home is protracted.

Market Dynamics

Increasing Participation in Outdoor Activities Drives the Global Market

Outdoor recreational sports such as fishing, camping, and hiking are becoming increasingly popular globally. These travel and outdoor recreation fads considerably increase the demand for cold beverages, processed foods, and refrigerated snacks, particularly among young people. This increases the adoption of retail coolers across most store formats, box coolers, collapsible coolers, ice cases, and personal-use camping coolers. According to the Outdoor Industry Association (OIA), roughly half of the U.S. population engaged in at least one outdoor recreation activity in 2018, such as hunting, hiking, camping, fishing, and canoeing. In 2016, participants in outdoor activities embarked on an average of 77 excursions per individual; 3.3% of the total participants, or 4.8 million Americans, were new participants. Therefore, rising adolescent participation in outdoor activities stimulates market expansion.

Growing Adoption of Sustainable Materials Creates Tremendous Opportunities

Increasing numbers of businesses are pursuing innovation in the sustainable space, especially when selecting materials. In 2019, the Toronto-based meat delivery service NIKU Farms selected a novel biodegradable and compostable material from KTM Industries for its insulated coolers. NIKU is the first company in Canada to use KTM's Green Cell Foam for its farm-to-door livestock delivery subscription boxes. Green Cell Foam is a natural, eco-friendly packaging material made from non-GMO cornstarch that has demonstrated performance levels comparable to petroleum-based foams. KTM Industries asserts that this material can be manufactured with 70% less energy and 80% fewer greenhouse gas emissions. The material is also compostable, biodegradable, and water-soluble. For cooler retail market participants, investing in sustainable materials opens up opportunities.

Regional Analysis

North America is the most significant global retail cooler market shareholder and is anticipated to exhibit a CAGR of 7.31% during the forecast period. People in the United States strongly prefer outdoor recreation, day excursions, and picnics, driving the demand for retail coolers. According to prevalent trends, U.S. and Canadian consumers prefer to travel short distances with minimal planning, and retail coolers are convenient. Therefore, manufacturers consistently develop lightweight, compact coolers for transporting cold beverages and frozen foods. In addition, outdoor cooler sales skyrocket in the summer in North America because more people are on the road. Due to the decline in petroleum prices, many Americans are engaging in off-roading. Demand for retail coolers has grown as consumer attitudes toward road trips and adventurous vacations have changed.

Europe is estimated to exhibit a CAGR of 6.8% over the forecast period. The region's high demand and preference for alcoholic beverages such as beer and wine at social gatherings, outdoor picnics, and excursions drives the demand for 28 to 50-quart coolers. This necessitates portable coolers, such as portable thermoelectric coolers, dependent on the budget and needs of the end users. In addition, the availability of a vast selection of retail coolers will continue to be one of the primary factors encouraging consumers to buy these products from offline retailers. This channel also allows consumers to confirm that the product meets their specifications tangibly. However, many tech-savvy consumers and working individuals with hectic schedules prefer to purchase coolers through online sales channels due to their convenience, a wide selection of products, and free shipping services. Such factors drive the regional market over the forecast period.

Key Highlights

• The global retail cooler market was valued at USD 1,443.39 million in 2022. It is estimated to reach USD 3,082.67 million by 2031, growing at a CAGR of 8.8% during the forecast period (2023–2031).
• Based on capacity, the global retail cooler market is divided into below 10 quarts, 11-25 quarts, 26-50 quarts, and above 50 quarts. The above 50 quarts segment is the most significant contributor to the market and is expected to grow at a CAGR of 6.7% over the forecast period.
• Based on distribution channels, the global retail cooler market is bifurcated into offline and online distribution channels. The offline segment dominates the global market and is projected to exhibit a CAGR of 6.8% over the forecast period.
• North America is the most significant global retail cooler market shareholder and is anticipated to exhibit a CAGR of 7.31% during the forecast period.

Competitive Players

Competitive Players

The key players in the global retail cooler market are YETI Holdings, Inc., The Coleman Company, Inc., Huntington Solutions, ORCA Coolers, LLC, ICEE Insulated Folding Boxes, Polar Bear Coolers, Bison Coolers, Grizzly Coolers LLC, Plastilite Corporation and Lifoam Industries LLC.

Recent Developments

Market News

• In May 2023, ChillWell, a manufacturer of portable coolers, introduced ChillWell 2.0, a new and improved iteration of its flagship product.
• In September 2022, Novamax, one of the country's leading manufacturers of air coolers and air-cooler components, launched a new line of high-quality, long-lasting Industrial air coolers at an affordable price beginning at INR 9000.

Segmentation

Global Retail Cooler Market: Segmentation

By Capacity

• Below 10 quarts
• 11-25 quarts
• 26-50 quarts
• Above 50 quarts

By Distribution Channel

• Offline
• Online

By Regions

• North America
• Europe
• Asia-Pacific
• Central and South America
• The Middle East and Africa