FOOD SERVICE EQUIPMENT MARKET ANALYSIS

The global food service equipment market size was valued at US$ 33.91 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 5.7% from 2023 to 2030. Growing need for commercial kitchens to have more efficient and cost-effective appliances that are easier to clean and maintain is key factor augmenting food service equipment market growth. Additionally, the rapid westernization of eating traditions is encouraging restaurants to offer more diverse cuisines and boosting demand for foodservice equipment that can prepare these meals quickly and easily.

Global Food Service Equipment Market: Regional Insights

Based on geography, the global food service equipment market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

North America is expected to dominate the global food service equipment industry, owing to early adoption of innovative kitchen equipment. In addition, the booming hotel and restaurant industries in the region are creating huge opportunities for this market.

Europe is the second-largest market for food service equipment, mainly owing to the rapidly westernizing dining customs of the region’s population. Additionally, the expanding tourism industry is boosting the growth of hotels and restaurants in the region.

Asia Pacific is projected to exhibit the fastest growth during the forecast period. The region’s fast-growing economy and growing middle class are spurring the expansion of restaurants and cafes. In addition, the Asian population is gaining interest in western cuisines and is increasingly seeking restaurants with varied menu options.

Figure 1. Global Food Service Equipment Market, By Region, 2023

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Global Food Service Equipment Market Drivers:

Rapid growth of food service industry to fuel market growth

Growth of business-related travel and rising number of food joints such as hotels & restaurants are key factors fueling growth of the food service equipment market. Key factors such as According to the National Restaurant Association’s Restaurant Performance Index, the U.S. restaurant industry is expected to reach $863 billion in 2019 with over 1 million restaurants operating in the U.S. Cross-border investments, experiments & innovations in varieties of cuisines, and growth in travel & tourism industry are anticipated to provide lucrative opportunities for the market expansion.

Growing preference for quick-service restaurants to foster market growth

Growing demand for quick and convenient meals is one of the major factors driving the global food service equipment market growth. With increasing working population and changing lifestyle, people are looking for faster ways to prepare food and drink. This is driving the growth of food delivery services and takeaway restaurants, which in turn, is fueling the growth of food service equipment market.

Global Food Service Equipment Market Opportunities:

Launch of new product due to ongoing technological advancement is expected to provide significant market growth opportunities. Manufacturers in the food service equipment market are introducing new and advanced equipment to increase their sales. For instance, in May 2018, Vollrath Company, LLC launched a line of single countertop granita machines that can be used to make a variety of high margin cold and frozen beverages including ice tea or coffee, smoothies, iced frappe, and more. The company’s machine features a compact design, easy operation, and minimal maintenance costs.

Increasing focus on food safety is expected to offer profitable market opportunities. According to a report by the Centers for Disease Control and Prevention (CDC), around 1 in 6 Americans gets sick as a result of eating contaminated food or drinks. Moreover, more than 3,000 people die from such foodborne diseases every year. This is driving the adoption of advanced food service equipment in order to maintain proper hygiene and ensure the safety of food.

Global Food Service Equipment Market Trends:

Smart kitchen solution is a recent trend

Manufacturers are introducing smart kitchen appliances that incorporate IoT and data analytics to increase restaurant efficiency. These systems can track and analyze the performance of each piece of equipment to identify any malfunctions or failures. They can also monitor and manage the energy usage of various equipment to reduce costs and increase sustainability. Several key companies are incorporating new technology in their equipment such as ventless hood systems for air quality to prevent grease accumulation, machine intelligence to automate tasks and reduce human error, robotics for efficient food preparation, and cloud connectivity for easy inventory management.

Eco-friendly initiatives is another trend

The growing trend of eco-friendly initiatives and rising knowledge about energy consumption has led to a shift in consumer preference for energy-efficient appliances. The availability of ENERGY STAR-certified appliances helps in saving energy and reduces maintenance costs. In addition, these devices are known to produce fewer greenhouse gas emissions. Additionally, the adoption rate of innovative commercial ovens in restaurants is expected to boost the market growth over the forecast period.

Global Food Service Equipment Market Restraints:

High capital investment for kitchen equipment is expected to hinder market growth

Purchasing restaurant kitchen equipment is a major investment, and can wipe out a large portion of a start-up budget for the business. To avoid this situation, manufacturer are opting for lease catering equipment instead of buying it.

Lack of technical experts to hamper market growth           

Food processing equipment can be dangerous to use without proper training and equipment. Training can help to prevent injuries and other safety hazards at work. Thus shortage of technical experts is expected to restrict the market growth.                        

Figure 2. Global Food Service Equipment Market, By End-Use, 2023

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Global Food Service Equipment Market Segmentation:

The global food service equipment market report is segmented into end use, product type, and region

Based on end use, the market is segmented into Full-service Restaurants & Hotels, Quick Service Restaurants & Pubs, and Catering. Out of which, Full-service Restaurants & Hotels segment holds the largest share in the market. Consumers are increasingly exploring new cuisines and preferring to dine out rather than cook at home.

Quick Service Restaurants & Pubs segment is also expected to witness significant growth in the near future and this is owing to the growing demand for quick and convenient meal.

Based on product type, the market is segmented into Cooking Equipment, Storage & Handling Equipment, Warewashing Equipment, Food & Beverage Preparation Equipment, and Serving Equipment. Out of which, Cooking Equipment is expected to dominate the global market over the forecast period and this is attributed to the fact that they are the basic utensils used for the preparation of food.

Storage & Handling Equipment segment is also expected to witness significant growth in the near future and this is owing to the growing demand for temperature-controlled storage equipment for processed perishable, and frozen food.  

Global Food Service Equipment Market: Key Developments

In June 2018, DHR, subsidiary as well as brand of Ali S.p.A., launched dishwasher machine Twin Star. Twin Star combines the advantages of the tunnel machines with those of the cycle machines.

In June 2018, Carpigiani, a subsidiary as well as brand of Ali S.p.A., launched Freeze&Go, which is a compact tabletop batch freezer.

In April 2018, Ambach, subsidiary as well as brand of Ali S.p.A., collaborated with premium food-led pub chain Fuller. The collaboration aims to provide kitchen equipment to Fuller.

In September 2020, Alto-Shaam, a recognized innovator in the global foodservice equipment industry, has launched the latest version of its Vector® F Series of Multi-Cook Ovens with a new design, advanced user-friendly interface, and the ability to stack with a Combitherm® oven to provide the most value from a single, vertical cooking footprint.

High capital investment for kitchen equipment

Global Food Service Equipment Market: Key Companies Insights

The global food service equipment market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global food service equipment market are ALI GROUP S.R.L. A SOCIO UNICO, ALTO-SHAAM, INC., AMBRO MANUFACTURING CO. INC., COMSTOCK-CASTLE STOVE CO., INC., DOVER CORPORATION, and DUKE MANUFACTURING CO. INC.

*Definition: Food service equipment includes any type of machinery used in restaurants or commercial kitchens for cooking, storing and preparing food. These equipment can include anything from small appliances to ovens, grills and other large industrial machines.