Thinking of Buying a Refrigeration Business in Australia? Here Are 3 Vital Questions to Ask

The Australian commercial refrigeration industry generated $449 million in revenue in 2024, with profit margins averaging 6.4%. The sector employs about 1,469 people across 132 establishments and 110 enterprises.

Revenue grew at 1.4% annually over the past five years and is forecast to expand at 1.7% annually through 2029, reaching $489.1 million. Demand is supported by supermarkets, food manufacturers, and hospitality venues, though import penetration and rising raw material costs create challenges.

1. Is the Business Financially Resilient Amid Import Competition?

Why It Matters

Refrigeration manufacturing faces pressure from low-cost imports from New Zealand, China, and Southeast Asia. While demand is steady, small operators often struggle with high purchase costs for steel, plastics, and rubber. Larger businesses with scale can pass costs on to clients and achieve healthier margins.

What to Check

• Profitability – Benchmark against the industry’s 6.4% margin.
  
  

• Revenue mix – Review reliance on supermarkets, food manufacturers, and hospitality clients.
  
  

• Purchase costs – Assess exposure to volatile raw materials and imported parts.
  
  

• Cash flow – Evaluate resilience to price competition and margin pressure.
  
  

2. Does the Business Have Strong Market Positioning?

Why It Matters

Supermarkets and convenience stores account for almost 40% of demand, with food manufacturers and hospitality also significant. Businesses with contracts for walk-in coolers, display freezers, or custom units are best placed. Location near key clients and a reputation for after-sales service and maintenance support long-term growth.

What to Check

• Client base – Confirm exposure to supermarkets, food manufacturers, or healthcare facilities.
  
  

• Product range – Assess balance across walk-in coolers, display fridges, blast chillers, and custom units.
  
  

• Reputation – Review after-sales service, warranties, and compliance with energy efficiency standards.
  
  

• Competition – Benchmark against imports and established brands such as SKOPE.
  
  

3. Is the Business Prepared for Future Trends and Regulation?

Why It Matters

Energy efficiency and compliance with refrigerant regulations are reshaping the sector. Clients seek sustainable solutions to reduce operating costs. Growth opportunities lie in eco-friendly products, automation, and exports to Asia-Pacific markets.

What to Check

• Regulatory compliance – Verify licences under the Australian Refrigeration Council and adherence to MEPS standards.
  
  

• Sustainability – Review energy efficiency of products and refrigerant use.
  
  

• Technology adoption – Confirm capacity for automation, smart systems, and product innovation.
  
  

• Export readiness – Assess potential to expand into Asian and Pacific markets as exports are forecast to grow at 10.4% annually.
  
  

Ready to Invest in a Thriving Refrigeration Business?

With supermarkets, food service, and manufacturing underpinning demand, refrigeration businesses remain essential to Australia’s food economy.

Success will depend on cost control, securing long-term contracts, and positioning for energy-efficient, sustainable solutions.

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