Minibar Refrigerator Market Size, Share & Growth Report 2032

Report Description

Market Outlook:

The global minibar refrigerator market was estimated at USD 1,202.7 million in 2023 and is anticipated to reach USD 1,878.4 million by 2032, expanding at a CAGR of 5.3% during the forecast period.

Minibar refrigerators are primarily used in hotel rooms and minibars. They hold enough beverages for a few people and function similarly to standard refrigerators, maintaining a temperature perfect for keeping drinks cool. Their excellent features make them suitable for hotel settings. Their capacity, noise level, and other properties make them well-suited for this use. Mini bar units are energy-efficient and are suitable for small groups. These devices are installed in compact spaces and conventional cabinets.

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The demand for compact beverage storage solutions is growing among individuals, driving the minibar refrigerator market. Compact minibar refrigerators cater to urban dwellers and small living spaces, offering convenience and accessibility for storing beverages at home, aligning with lifestyle trends favoring convenience and efficient use of space.

The increasing trend of travel and tourism has led to a rise in the demand for portable minibar refrigerators. For instance, in 2019, the World Bank recorded a total of 2.4 billion international tourist arrivals. Travelers seek convenient solutions to store beverages and snacks in hotel rooms or temporary accommodations. Portable minibars offer flexibility, allowing individuals to enjoy their favorite refreshments while on the go, enhancing their travel experience.

The research report states that the COVID-19 pandemic has had a significant impact on the global minibar refrigerator market. The pandemic has considerably disrupted global supply chains, leading to delays in production and shipping for various products, such as minibar refrigerators. This has caused some manufacturers to struggle with meeting the demand, as they cannot fulfill orders promptly. Furthermore, the sales of minibar refrigerators declined during the pandemic, as the hospitality sector was adversely affected due to COVID-19.

Artificial Intelligence (AI) Impact on the Minibar Refrigerator Market

The emergence of artificial intelligence is expected to drive the minibar refrigerator market during the forecast period. Modern lifestyles and the rising adoption of fast-evolving technologies have led to the rise in the use of smart home appliances. Minibar refrigerators have evolved with the evolving technology, from basic chilling units to sophisticated equipment with state-of-the-art features and capabilities. Artificial intelligence-enabled minibar refrigerators with an array of other smart capabilities can be remotely filled, monitored, and operated, which helps hotels improve guest satisfaction and operational efficiency. Additionally, these gadgets allow consumers to minimize waste and maximize refilling by providing consumption information.

Macro-economic Factors

Gross Domestic Product (GDP)

GDP considerably impacts the minibar refrigerator market. The rise in the GDP leads to a rise in consumer purchasing power, leading to a rise in the demand for tourism and hospitality sector services such as hotels, restaurants, and other temporary accommodations. This rise in the hospitality sector further drives the demand for minibar refrigerators. Moreover, economic growth increases the demand for minibar refrigerators, as people have disposable income to spend on luxury items in their residential as well as commercial spaces.

Minibar Refrigerator Market Dynamics

Market Driver- Burgeoning Growth in the Hospitality Sector

The burgeoning growth in the hospitality sector has positively impacted the minibar refrigerator market. There is a growing demand for hospitality services such as dining, lodging, and experience travel, due to increasing disposable incomes and urbanization. For instance, according to the India Brand Equity Foundation, the Indian hotel industry, comprising domestic, inbound, and outbound, was projected at around USD 32 billion in FY20 and is predicted to reach nearly USD 52 billion by FY27.

Government expenditures on tourist infrastructure are critical for accommodating the increasing number of tourist visitors, consequently contributing to the growth of the hospitality sector. The demand for compact beverage storage solutions rises in hotels and other temporary accommodations, as the hospitality sector rises. Minibar refrigerators offer visitors and tourists comfort and convenience by enabling them to have food and beverages without leaving their rooms. They also bring in additional revenue for hotels.

Market Driver- Rising Demand for Minibar Refrigerators in Residential and Commercial Spaces

The popularity of minibar fridges among homeowners, valued for their space-saving attributes, is complemented by their adaptable placement options in kitchens, bedrooms, or living areas, serving both residential and commercial needs. The surge in compact-sized residential spaces due to urbanization further drives the demand for minibar refrigerators. According to The World Bank, about 56% of the global population lives in cities. This trend is anticipated to continue in the coming years, with the urban population more than doubling its current size by 2050.

The growing trend of house parties and cocktail parties amongst households, especially in urban areas, has led to the requirement for extra space to store beverages across dining outdoors such as on terraces, gardens, and backyards. Moreover, growing preference among homeowners for compact cold storage to store beverages has created a demand for portable, mid-size, and under-the-counter minibar refrigerators in their small and compact residential settings.

Minibar refrigerators are very popular in offices, especially for workers who work long hours and want easy access to beverages. These are installed in break rooms or on workstations to provide easy access to food and cold beverages, promoting continuous productivity all day. Therefore, the rise in the demand for compact and portable minibar refrigerator devices across residential and commercial spaces further contributes to the growth of the market.

Restraints - The limited temperature range, compromised storage capacity, and maintenance cost associated with the minibar refrigerators.

The limited temperature range, compromised storage capacity, and maintenance cost associated with the minibar refrigerators are expected to hamper the market growth. While these refrigerators excel as beer coolers due to their ability to maintain cooler temperatures, their limited temperature range renders them unsuitable for storing wines, potentially limiting their market appeal as comprehensive drinks fridges.

The compromise in storage capacity to achieve a compact and portable design poses a challenge, as consumers require backup from large kitchen fridges to fulfill all their storage needs effectively. Shelf placement in minibar refrigerators offers limited flexibility, impacting their ability to accommodate a diverse range of items such as beer supplies, cans, bottles, mixes, or oversized bottles. Opting for models with removable shelves enhances flexibility and appeal to a wide range of consumers.

The initial purchase cost and ongoing operational expenses associated with minibar refrigerators need to be carefully justified by the benefits they are expected to provide. Minibar refrigerator manufacturers need to align their products with the lifestyle preferences and budgetary considerations of their target market to ensure consumer satisfaction and market success.

Emerging Opportunities - Increase in Technological Advancements

The minibar refrigerator market is experiencing significant growth due to technological improvements. One noteworthy innovation is the incorporation of intelligent functions, such as interoperability with property management systems and Wi-Fi connectivity. Hotels maximize energy efficiency and expedite maintenance procedures with the help of these features, which enable remote monitoring, control, and automation.

Minibar Systems introduced the SmartFridge Eco, a guestroom refrigerator that is controlled over Wi-Fi using a tablet or smartphone. It is linked to a property-management system of a hotel, enabling it to be switched on and off at check-in and check-out. Thus, minibar refrigerators continue to adapt to evolving technology, providing innovative solutions to meet the changing needs of hotels, residential, and office spaces. This rise in the demand for the smart minibar refrigerator further contributes to the growth of the market.

Scope of the Minibar Refrigerator Market Report  

The report on the global minibar refrigerator market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Based on product type, the market is segmented into portable, cube, mid-size, and under-the-counter. The portable segment is expected to hold a considerable share of the market during the forecast period, due to the increasing demand for convenient and compact beverage storage solutions in various settings.

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Based on technology, the market is divided into absorption, compressor, and thermoelectric. The compressor segment is anticipated to expand at a significant CAGR during the forecast period, as they are well suited to cool and store a wide range of beverages. These are quiet-operating machines, which are a suitable option for commercial use.

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In terms of design type, the market is classified as solid door model, glass door model, and drawer model. The solid door model segment is anticipated to expand at a significant CAGR during the forecast period. It is well-suited for built-in installations, allowing end users to affix a cabinet front to the door, seamlessly integrating the minibar refrigerator into its surroundings.

In terms of capacity, the market is divided into below 35 liters, 36 liters to 55 liters, 56 liters to 70 liters, 71 to 100 liters, and above 100 liters. The 36 to 55 liters segment held a considerable share of the market in 2022. Minibar refrigerators with capacities ranging from 36 to 55 liters offer compact yet versatile storage solutions.

In terms of price range, the market is segmented into economic, mid-range, and premium. The economic segment is anticipated to expand at a significant CAGR during the forecast period, as it offers cost-effective cold storage solutions for hotels and residences. A trend towards energy efficiency and smart features enhances their appeal in the market.

In terms of End-use, the market is divided into transportation, hospitality, commercial, and residential. Furthermore, the transportation segment is further categorized into marine, cruise ships, campervans, and others. The hospitality segment is anticipated to expand at a significant CAGR during the forecast period, as minibar refrigerators are essential amenities in hotel rooms, providing guests with convenient access to refreshments. Minibar refrigerators continue to evolve with features such as energy efficiency and smart technology integration, as the sector prioritizes guest satisfaction and operational efficiency.

In terms of sales channel, the market is bifurcated into online and offline. Furthermore, the online segment is further divided into third-party e-commerce and company-owned websites. The offline segment is further segmented into hypermarkets/supermarkets, specialty stores, and others. The online segment is anticipated to expand at a significant CAGR during the forecast period, due to the increasing consumer preference for online purchasing channels.

• A total of 5.30 billion people across the globe were using the internet at the start of Q4 2023, which is about 65.7% of the global total population.

Regional Outlook

Based on region, the market is fragmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The minibar refrigerator market in North America is projected to expand at a significant CAGR during the forecast period, due to the increasing hospitality sector in the region.

According to THE AMERICAN HOTEL & LODGING ASSOCIATION, in 2023, the US hotel industry had expected to surpass the total occupied room nights recorded in 2019, reaching 1.3 billion. Additionally, the demand for minibar refrigerators is rising in the region due to the growing number of Western cocktail parties and house parties conducted by the households in US.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Minibar Refrigerator Market

• Historical, Current, and Projected Market Size in Terms of Value

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players