Across Australia, a significant shift is underway in refrigeration, and for many independent retailers, it is becoming increasingly relevant.

If your business relies on R404A refrigerant, current industry advice indicates that supply is tightening and may become increasingly constrained over the coming months. With national import volumes already reduced in 2026 and further reductions scheduled, retailers who delay planning may find themselves with fewer options available when issues arise.

What’s happening and why it matters

R404A has been widely used across cool rooms, freezers, display cabinets and beer systems for decades. However, its environmental impact has led to increased regulatory focus globally.

Australia commenced a phase-down of high global warming potential (GWP) refrigerants in 2018 as part of its commitments under the Montreal Protocol. This phase-down is managed through a quota system that reduces the volume of refrigerant that can be imported each year, with supply expected to reduce to approximately 15% of baseline levels by 2036.

In practical terms, this is contributing to:

• Reduced volumes of refrigerant entering the country each year
• Increasing pressure on availability
• Upward pressure on pricing over time

This is not a short-term disruption, but part of a longer-term structural transition.

The real risk for retailers

There is currently no requirement to replace existing refrigeration systems. However, availability of refrigerant may become a key consideration.

If a system leak or failure occurs and R404A is difficult to source:

• Repairs may be delayed
• Costs may increase
• There may be risk of stock loss
• Operational disruption may occur

At the same time, increased demand across the market may place pressure on contractors and supply chains, potentially impacting response times and available options.

For some businesses, this may extend beyond a maintenance issue and become a broader operational consideration.

What about retrofit options?

Lower-GWP retrofit refrigerants such as R448A or R452A are being used by some retailers as a short-term measure.

These options may help extend the life of existing systems. However, they are not without limitations.

Industry advice suggests that some retrofit alternatives may also experience supply pressure over time due to their own GWP profiles. As a result, they are generally considered a transitional option rather than a long-term solution.

Planning your next move

There is no one-size-fits-all approach, however retailers are encouraged to consider a staged and proactive plan.

Short-term

• Identify where R404A is used across your site
• Assess system condition and potential leakage risk
• Engage with your refrigeration contractor

Medium-term

• Consider retrofit options where appropriate
• Plan for maintenance in a potentially constrained supply environment

Long-term

• Explore system replacement options using low or zero GWP alternatives such as CO₂ or hydrocarbons

Taking a proactive approach may assist in managing costs, timing and operational impacts.

The bottom line

• R404A is not being immediately phased out, however supply is expected to continue tightening over time
• Retailers who plan ahead may have greater flexibility in how and when they respond
• Those who delay may face more limited options depending on timing and market conditions

Need support?

MGA encourages members to begin considering their position and engaging with relevant providers.

If you are unsure where to start, MGA corporate partner AJ Baker can provide guidance on current systems, retrofit options and longer-term planning, helping you better understand the options available to your business. To reach the branch in your state, contact AJ Baker on 1800 423 626 or visit: https://ajbaker.com.au/support/