The global minibar market size was valued at USD 1.15 billion in 2016 and is expected to witness growth on account of rising use of these products by the hospitality and recreational markets at large. Hoteliers are obligated to modify their service offerings with the aim of not losing their guests to convenience stores in the proximity. Hotels are increasingly using these cellarets to deliver an exclusive experience to their guests and generate additional revenues, which is aiding to the growth of the industry. The prevailing demand from the mentioned sectors is expected to keep the market afloat over the forecast period as well. Increasing installation of minibars in hotel rooms, rendering favorable services to the guests’ will further enhance the acceptance of these types of counters over the forecast period.
Global minibar market size, by technology, 2014 - 2024 (USD Billion)
The shift in focus towards environment-friendly and automatic minibar from manual ones is expected to strengthen over the coming years. The use of automated counters minimizes the operational glitches observed during the final billing for the customer in line with their actual consumption. Competitors in the market are focusing on colorful, retro designs and product innovation for attracting more number of buyers. In addition, the steady increase in the number of studio, service and small apartments is expected to spur demand growth for minibars over the forecast period.
Segmentation by product
The manual counters segment accounted for the largest revenue market share of more than half of the market share in 2016 as these are economical and are easy to install. On the other hand, the automatic minibar segment was valued well over USD 450.0 million in 2016 and is expected to show the fastest growth over the forecast period. The growth is attributed to the rise in travel and tourism activities worldwide. Automatic cellarets can enhance hotel revenues by detecting a missing item and are more energy efficient, eco-friendly, noiseless and also reduce labor costs. Automatic segment ensure that guests are billed according to the products used to avoid confusion and improve accuracy and efficiency in all the hotel operations. With the rise in competition among various hotel chains to deliver best-in-class services to their guests, the hotel management is inclined towards implementing value-added services such as automated minibars for additional revenue owing to which this market is expected to exhibit growth over the forecast period.
Segmentation by technology
The global market for absorption minibar is expected to grow fastest over the forecast period owing to attributes such as being noiseless and being more environment friendly as it employs a distinct heating component to power the refrigerating system rendering high energy efficiency and reliability. Absorption cellarets are economical, noiseless, eco-friendly, and possesses a comprehensive service life as compared to thermoelectric or compressor minibars. Automatic counters are fit for hotels, resorts, and villas and help them generate added revenues.
Segmentation by application
• Commercial & Residential buildings
The commercial & residential buildings segment occupied the largest revenue share of more than three-fourth of global market in 2016 and is expected to grow over the forecast period owing to the growing hospitality industry and commercial buildings all over the world. The use of these products in hotels and resorts is increasing with the rise in demand for quality services by the customer and guests all over the world. In the current scenario, hotel guests or customers prefer privileged services rendering high comfort. This results in the increased competition among the hotels to offer best services and ensure the customer satisfaction and loyalty which in turn renders more number of customers. The transportation segment, on the other hand, is estimated to exhibit the fastest growth rate of around 4.0% over the forecast period on an account of the rise in travel and tourism activities worldwide. With the rise in tourism industry, the demand for services and amenities such as portable counters on recreational vehicles, commercial vehicles, and passenger vehicles by the travelers is also budding. The use of these products in marine industry such as ships, cruises, and yachts are estimated to increase on an account of the rise in consumer demand for in-room value-added services during their stay over the forecast period.
Segmentation by region
• North America
• Asia Pacific
• Middle East & Africa
• Central & South America
The Europe minibar market held the largest share in terms of revenue in 2016 is expected to grow over the forecast period on account of the well-established hospitality industry and other commercial buildings in the region. The minibar market for Asia-Pacific is expected to grow at the fastest growth rate over the forecast period owing to the rise in travel and tourism industry and presence of major hotel chains such as Oberoi, Four Seasons, and others. The Europe absorption minibars market is expected to grow owing to the rise in the use of eco-friendly products. The demand for absorption minibars is projected to grow on account of the rules and norms stated by the European Union (EU) over the use of CFC’s and other chemical gases.
The global market is competitive with the existence of a few main and abundant minor and local manufacturers. Some of the active vendors in this space include Bartech, Dometic Group AB (publ), Indel B S.p.A., Vitrifrigo, Minibar Systems. The leading players are enhancing their scope by concentrating on diverse customer segments and various distribution networks. The major companies are focusing on improving brand positioning by constant innovations and product differentiation.
Research Support Specialist, USA