The global food service equipment market was valued at US$ 35.40 Bn in 2020 is expected to reach US$ 46.38 Bn by 2027, with a growing CAGR of 4.1% during the forecast period (2021-2027).
Food service equipment is utilized for the preparation and storage of food items for commercial purposes. This equipment incorporates cooking equipment, storage & handling equipment, ware washing equipment, food & beverage preparation equipment, and serving equipment. This equipment is majorly applied across various applications in the food service industry such as in restaurants, hotels, and other commercial kitchens.
Advancements in automated technologies is the key driver that has accelerated the growth of food service equipment market. The manufactures focus on the cost-effective services that can be provided to improve the food quality. In the present situation, it has become compulsory to monitor and cater the qualitative services of any equipment. Remote maintenance and self-diagnosis features are executed for interconnected and savvy activities, in this way perceiving the working of food service machinery. This equipment help to maintain hygiene, accurate temperature, and sterilizations of utensils that are used for food preparation and services. Companies operating in the industry are developing products based on artificial intelligence (AI) and IoT technology to enhance the user experience. For instance, In July 2020, In India, Samsung, expanded its Internet of Things (IoT) with the launch of the connected SpaceMax Family HubRefrigerator. The SpaceMax Family HubRefrigerator comes with features that automate meal planning, lets you see inside the refrigerator from anywhere, and connect with other smart appliances like smartphones and others, letting you watch your favorite TV show on the refrigerator’s massive entertainment screen while working in the kitchen.
In addition, the increasing awareness about energy consumption and eco-friendly initiatives facilitates consumers to adopt energy-efficient appliances. Energy consumption norms across the world emphasize reducing the Green House Gas (GHG) emissions to mitigate the rising impact of global climate change. Customers are increasingly choosing appliances holding the ENERGY STAR symbol, a mark of energy-efficiency of the equipment, which helps restaurants, institutional kitchens, and cafes save energy while also reducing maintenance and utility costs. For instance, according to the report published by the Energy Star program of U.S, Environmental Protection Agency (EPA), in 2018, food service equipment with the ENERGY STAR symbol helps the end-use operators to save USD 5,300 or around 340 MMBTU per year.
The key players operating in the market are:
The unique insights provided by this report also includes the following:
Based on product type, the cooking equipment segment is expanding at a growth rate of 5.4% during the period 2021-2027.
The cooking equipment segment is anticipated to grow at the highest CAGR during the forecast period. This growth can be attributed to the rise in popularity of creative cooking and baking methods that has resulted in a variety of dine-out options for consumers. Thus, to offer the best services to customers, restaurants invest in different types of cooking equipment, which accelerated the demand for food service equipment products. Storage & handling equipment is the second-highest revenue contributor in the food service equipment market as there is always demand for temperature-controlled storage equipment for perishable and processed food items.
Based on the end-user, the full-service restaurants & hotels accounted for a 40% share in the overall food service equipment market size, followed by the quick service restaurants & pubs and catering.
The full service restaurants & hotels expected to hold the largest revenue share throughout the period. The growth in this segment is attributed to the advent of digital dining trends, which has forced food service operators to deploy modern equipment to speed up the preparation process and reduce delivery uptime. The subsequent shift in the dine-out culture for formal events as well as informal gatherings during travel & tourism activities has increased the footfall in full-service restaurants over the past few years.
Further, the quick service restaurants (QSRs) segment is expected to grow at a substantial growth rate during the forecast period. The growth in this segment is attributed to the increase in working population, rising disposable incomes, and globalization of the prominent restaurant chains by establishing franchisee joints. Moreover, rising demand for ready-to-cook food to save the time of consumers will create ample demand for quick-service restaurants.
Based on regions, the market for food service equipment in Asia-Pacific accounted for the largest revenue share in 2020, followed by North America and Europe.
Asia-Pacific accounted for the highest revenue share of near to 35.0% in 2020 and is predicted to maintain its dominance within the market throughout the forecast period. Rapidly westernizing dining customs and expansion of the tourism sector, particularly in Singapore, Malaysia, Indonesia, and Australia, are accelerating the demand for food service equipment within the region. 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.
North America is anticipated the grow at the second-highest CAGR in the food service equipment market during the forecast period owing to the presence of well-established brands such as McDonald's, Burger King Corporation, KFC Corporation, and Starbucks Coffee Company. Moreover, government dynamism to influence the tourism sector and immigration in the country are expected to elevate the restaurant industry in the near future, which, in turn, to create the lucrative opportunity for the deployment of these equipment within the region. .
The report also provides in-depth analysis of food service equipment market dynamics such as drivers, restraints opportunities and challenges
The impact of COVID-19 has greatly affected the market of the food service equipment 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 food service equipment 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.
The report also provides in-depth analysis of key trends in food service equipment market
|1||Automated technology is the key trend in the food service industry. People expect fast service, personalization, and convenience in all aspects of their lives, and that includes a more convenient and customized dining experience.||Positive|
|2||On-site composting and recycling bins are the key trends in the food service industry that require specialized equipment to reduce food waste.||Positive|
|3||The concepts of visually appealing and multi-functional cooking equipment are the major trends among the customers.||Positive|
The report also provides an in-depth analysis of recent news developments and investments
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.