The global beverage dispenser market was valued US$ 5,785.7 Mn in 2020 is expected to reach US$ 8,429.9 Mn by 2027, with a growing CAGR of 5.5% during the forecast period (2020-2027).
The beverage dispenser is an equipment used in food service industry or other commercial or residential spaces to distribute beverages manually or automatically. The food service equipment such as Beverage Dispenser is serving as a major backbone for success in the hospitality sector. Further, the rise in the number of restaurants and the increase in food establishments have led to the growth of the industry along with the industry leading innovations. There is also a consistent growth in the need for energy-efficient and sustainable equipment, which is eventually leading the innovators to develop advanced beverage dispenser. The latest innovations are focused on reduced labor efforts and maximizing the operational efficiency in the kitchen. Restaurant chains have started implementing touch screen kiosks, self-service beverage machines and vending machines for convenience and customized dining experience. With the rise in preference for automation and Internet-of-Things (IoT), the beverage dispenser market have gained a unique momentum in the foodservice equipment industry.
In addition to this, there is a surge in the number of Quick Service Restaurants (QSR) owing to the busy life schedule of the working citizens. QSR is gaining momentum, mainly due to the quick deliveries and competitive pricing, which attracts most of the consumers. It has huge growth potential in countries such as China, and India where there is an increased preference for fast foods. With the huge increment in the QSRs the demand for beverage dispenser market witnessed a significant rise.
By Material Type
By Dispenser Type
By Beverage Type
By Sales Channel
Based on dispenser type, the drop ins dispenser type segment is expanding at a growth rate of 5.6% during the period 2020-2027.
The drop ins dispenser type is usually preferred as an alternative for countertop version in commercial spaces where the demand for downpour quantity is high. They are also capable of dispensing beverages into larger cups and glasses after customization efforts. the drop ins beverage dispensers are also more ideal for hot and cold beverages, which provides flexibility in adoption. Predominantly found in stainless steel categories, drop ins beverage dispensers are more effective is dispensing fountain and cold beverages. However, the adoption is quite less common in the Asia Pacific region, which poses growth opportunities during the next seven years owing to the prevailing demand-supply gap and potential opportunities.
Moreover, the conventional beverage dispensers is a floor-installed version, and is more significant for the huge capacity requirement. The conventional beverage dispenser is predominantly found in developing markets of the Asia Pacific and Latin America region, whereas across North America and Europe there is a rapid shift towards the modern countertop versions. In an industry dominated by compact and countertop versions, the drop ins beverage dispenser tends to act as a differentiating factor through its large space for merchandising opportunity and multi-factored beverage options for crowded spaces.
Based on the end-users, the QSR & restaurants accounted for a 34.8% share in the overall beverage dispenser market size, followed by the convenience stores.
The growing number of ghost or virtual kitchens, food trucks, online delivery platforms, rise in internet penetration levels have all supported the growth of adoption of beverage dispensers in the QSR & restaurant segment. The segment also picked up during the latter half of 2020, where hotels and restaurants were allowed to function on takeaway mode only. This forced the retail operators to rely on quick and convenient solutions like beverage dispensers to comply with rising online food orders.
Further, the intensity of dominance is more prevalent in North America and Europe, where the fast-food chains and restaurants are abundant with huge renovation activities planned for the next five years. Also, the concept of food trucks and mobile kitchens are more familiar in the western markets, which eventually increases the demand for compact and energy-efficient solutions such as beverage dispensers.
Based on regions, the market for beverage dispenser in North America accounted for the largest share in 2020, followed by Asia Pacific and Europe.
The US is the largest market, which accounted for 25.80% of the beverage dispenser market size in 2020. The level of adoption is highly influenced by the growing demands for on-the-go food culture, price points, technology, customer knowledge, space constraints and concerns with the huge initial investments in the equipment. Further, the global leaders in the beverage dispenser industry are also concentrated in the US, followed by Europe, which is a backbone for the growth and significance in the market.
North America is expected to sustain its dominance in the beverage dispenser industry throughout the forecast period. The region is also considered as a forerunner in terms of adopting the latest technologies, which are considered expensive in other geographies. Coke solutions consider the US as the hot spot for installing new innovations, including the extraordinarily successful freestyle variant. There are also a growing number of schools, hotels, QSR chains, shopping malls that are in the pipeline, which boosts the adoption rate. The US can also be the first nation to adopt fully automated beverage dispensers at a high level.
The impact of COVID-19 has greatly affected the market of the beverage dispenser industry. The momentum dropped globally, both from usage frequency and stimulation of new and replacement demand. The stringent policies and regulations from the local and national governments greatly restricted the movement of goods and distribution of equipment, including beverage dispensers, where the situation was highly challenging for the vendors in the industry. Sustaining in such uncertain economic conditions acted as an opportunity for the vendors to strategize for the upcoming market threats and hazards.
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Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.