Food Service Equipment Market is Expected to Reach US$46.38 Bn by 2027 with CAGR 4.1%
Theintegration of automated technologies will accelerate the growth of food service equipment market.
The global food service equipment market was valued at US$35.40 Bn in 2020 and expected to reach US$46.38 Bn by 2027 and is expanding at a CAGR of 4.1% during the forecast period
Most of the food and beverage companies are entering the segment of ghost kitchen owing to the rising rents and shrinking margin levels where cutting off the excess space for dining can provide a growth opportunity. The concept of ghost kitchen has transformed the phase of the hospitality and restaurant industry. Also, factors such as less food delivery time, low risk in launching new concepts, growing online food service industry, among others, are propelling the demand for ghost kitchens Which, in turn, proliferating the market for food service equipment.
The Global Food Service Equipment Market Segmentation:
The Global Food Service Equipment Market is segmented on the basis of Product Type, End-User, and by Region.
By Product Type
- Cooking Equipment
- Storage & Handling Equipment
- Ware Washing Equipment
- Serving Equipment
By End User
- Full-Service Restaurants & Hotels
- Quick Service Restaurants & Pubs
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
The increasing popularity of quick service restaurants among consumers is the key factor to support the growth of food service equipment market to a great extent. Changing lifestyle and rising disposable income has greatly influenced the growth of quick-service restaurants in developing countries like India, Brazil, Thailand, and others. For instance, nearly 74% of the India's food industry is captured by quick-service restaurants and casual dining restaurants. Furthermore, the growing popularity of quick-service restaurant chains such as KFC, Subway, McDonald's, and others is projected to fuel the demand for food service equipment market
From the revelation of equipment for preparing and storing food, like cooking ovens, ranges, and electrical refrigerators, to the accessibility of custom foodservice machines to cook various cooking styles, the scope of technologically advanced and innovative products to have entered the market throughout the years is additionally expected to support the market development in the long term. Moreover, fast innovative headways accomplished with the assistance of nonstop Research and Development (R&D) activities have helped appliance producers to bring to the table innovation driven efficiencies to their customers.
The market for food service equipment is expected to bounce back by the end of 2021 despite a slow recovery. The demand might also surge for full automated machines to enhance convenience and sophistication that requires minimal contact level for the downpour. The revival of trading activities can also promote the effectiveness of the supply chain across the geographies. The vendors are also forced to innovate new, safer, and hygienic food service equipment during the forecast period where the automated technologies are only the future.
In terms of region, Asia-Pacific accounted for the highest market share and is projected to keep up its dominance within the market during the forecast period owing to the rapid urbanization, rising disposable income, changing lifestyle and others. Furthermore, restaurants are including multiple cuisines in their menus due to an increasing number of consumers experimenting with new foods and developing a taste for various cuisines. Additionally, the increasing consumption of processed foods is projected to make an attractive demand for these appliances within the region.
- Based on product type, the cooking equipment segment is expanding at a growth rate of 5.4% during the period 2021-2027
- Based on the End User, the full-service restaurants & hotels accounted for the largest market share in 2020 and will maintain its position throughout the forecast period (2020-2027)
- Based on regions, the Asia Pacific region is witnessing a revenue share of 35.0% in the food service equipment industry
- In July 2020, Hydro Systems, a brand of ware washing equipment under PSG Dover (Pump Solutions Group, acquired by Dover Corporation) launched two new integrated rinse pumps, EVoWash and EvoRinse. This equipment is integrated with optional powdered or solid detergent dissolver ideal for commercial as well as non-commercial food service operations.
- In October 2020, Schenck Process Group (SPG) acquired Baker Perkins, a leading global supplier of food processing equipment and aftermarket services for the bakery, confectionery, biscuit, cookie and cracker, breakfast cereal and pet food end-markets. This acquisition is a continuation of SPG’s strategic focus to further extend its global offering for the food end-markets. It will significantly strengthen European capabilities in the food processing and equipment sector, broaden their product offering in the Americas and provide opportunities for growth across the Asia Pacific region.
Company Profiles and Competitive Intelligence
The key players operating in the market are:
- Duke Manufacturing
- Dover Corporation
- Illinois Tool Works Inc.
- Ali Group S.r.l. a Socio Unico
- The Middleby Corporation
- Alto-Shaam, Inc.
- Comstock-Castle Stove Co., Inc.
- Haier Group
- SMEG S.p.A.
- AMTek Microwaves
- AMERICAN RANGE
- APW Wyott
- Dragon Food Equipment Inc.
- Food Processing Equipment
- Henny Penny
- Hoshizaki America, Inc.
- RISCO S.p.A.
- R.M Kitchen Equipments Pvt. Ltd.
- Somerset Industries, Inc.
- The Vollrath Company, LLC
- VR Food Equipment