Key Growth Influencers - Foodservice Equipment Market
Multifunctional Cooking Equipment Acting as Product Differentiators
Growing integration of automation in the food service industry is anticipated to create demand for advanced and cost-effective products. Substantial investments are made by manufacturers to develop advanced equipment with visual appeal and multi-functional cooking features in line with the open kitchen concept.
Foodservice operators are shifting towards the open kitchen concept so as to capitalize on the trend of clean menus with natural ingredients. Customers want to know the origin of the food that they consume and be a part of the whole experience; hence, restaurants, hotels, and resorts are shifting their preference towards visually-appealing cooking and foodservice equipment.
Energy-efficient Equipment More Relevant
By virtue of high efficiency, demand for technological advancements in foodservice equipment such as combi-ovens and blast chillers, is anticipated to gain more relevance. These devices are inexpensive and labor saving. Combi ovens are capable of producing both convection and steam heat, by switching between the two automatically throughout the cooking process. These can roast, bake, braise, grill, steam, blanch, and poach at the same time, saving large amount of time and labor.
Along with increased cooking speed, many units have self-cleaning features. Saving energy, labor cost, water, kitchen space, water, and expansion of the menu are well worth the price of one of these units. The convenience, along with reduced cost, offered by these equipment is anticipated to propel the demand for technologically-advanced foodservice equipment.
Expansion of QSR Sector
Foodservice operators across Asia Pacific, Latin America, and the Middle East and Africa will be witnessing the entry of new participants in these regional markets. Rapid increase in the number of quick service restaurants (QSRs) and rising frequency of establishment of new delivery units, especially for grab and go food products, will hold a significant impact on the foodservice equipment market.
Foodservice Equipment Market Structure Analysis
- The presence of multiple service providers, installers, and integrators makes the foodservice equipment market fragmented.
- Tier I players such as Middleby Corporation, Welbilt, Ali Group S.r.l., ITW Food Equipment Group, AB Electrolux, Hoshizaki Electric Co., Ltd, Qingdao Haier Co., Ltd, and Rational AG, together are anticipated to account for approximately 30 percent of the global market share.
- Key manufacturers of foodservice equipment will continue to rely on methods such as launch of technologically-enhanced foodservice equipment for a stronger foothold in target markets.
FAQ About the Market
Market outlook for foodservice equipment in the future?
Flourishing food and tourism industry is expected to boost demand for foodservice equipment in the near future. Incorporation of advanced technologies and smaller-size equipment designs with embedded multi-functional cooking features to boost product demand.
Will foodservice equipment price restrain growth?
Foodservice equipment are expensive in nature, which may slightly impact their product growth. The price of these products tends to reduce with advancements in technology and better innovation. However, several smart features and cost-cutting benefits such as reduced time requirement, low labor cost and water consumption will drive market growth.
Which end-use industry holds potential growth opportunities for foodservice equipment market players?
While full service restaurant & bars hold huge growth potential, increasing use of technology in the retail space has spurred business, leading to quick service and fast casual chains. The need to integrate and manage disparate technologies is expected to open new growth opportunities.
Which region will lead the global sales of foodservice equipment?
North America is projected to lead sales of foodservice equipment, owing to rising awareness of health & food safety in the region. Major population of the region prefers eating outside of the home, and the global food chain is becoming increasingly complex. Thus, managing food safety and quality has become a major task for food providers, thereby demanding greater number of foodservice equipment. Beside, Europe holds huge growth potential due to increasing travel and tourism activities in the region.
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Foodservice Equipment Sales Set to Hit US$ 37 Bn by 2019 End
Breakneck competitiveness of the HoReCa (Hotel, Restaurant, and Café) sector remains a key factor boosting the need for multi-functional and technologically advanced foodservice equipment. With this, being among the important trends, the global market for foodservice equipment would hit a valuation of US$ 37 Bn by the end of 2019.
This study has projected a promising CAGR for the foodservice equipment sales, through 2029. Smart foodservice equipment is currently capturing strategic interests of leading market players, with visual appeal and compact design as the key parameters associated with new launches.
Cooking Equipment Make up for 1/3rd of Total Sales
Being among the indispensable component in commercial kitchens, cooking equipment remain the top selling category in foodservice equipment market. Though cooking equipment bear a significant share in the equipment costs for the foodservice industry, they will continue to make up for a leading share of over 32% in the market.
A mounting number of cooking equipment manufacturers are entering the market with a wider range of more affordable yet efficient models, thereby targeting small and medium scale facilities with a budget constraint. Demand for food and drink preparation equipment integrated with next-generation technological features would also mark an emerging trend in the foodservice equipment market.
Opportunities Abound in Developed Countries
While the foodservice industry and HoReCa sector continue to flourish in both developed and developing regional economies, adoption of high-tech food processing and foodservice equipment has remained significant in the former.
The latter have been showcasing more preference for traditional cooking equipment at most commercial kitchens, which limits the scope for innovation and sales, for foodservice equipment manufacturers. Leading market players in North America and Europe are targeting these regions for expansion by acquiring small players.
The Future Looks Energy-efficient and Sustainable
Foodservice equipment market players are zooming in their focus on sustainable and energy-efficient foodservice equipment, as buyers are considering the significant savings on fuel bills, which ultimately adds to the whole life-cost calculations vis-à-vis the equipment.
A strong shift in purchase attitudes and knowledge surrounding the environmental as well as economic benefits are expected to reflect in the rising adoption of sustainable technologies such as induction technology, in the manufacturing of modern foodservice equipment.
Full Service Restaurants and Bars Hold 3/5th Market Share
The number of stakeholders in the foodservice equipment market is increasing, leading to stiff competition. Companies are prioritizing full service restaurants and bars as their target customers, as they account for more than 60% of the total demand for foodservice equipment in the global market.
Introduction of state-of-the-art foodservice equipment would remain a key strategy to target busy commercial kitchens at full service restaurants and bars. Moreover, as the possible equipment failure remains a challenge, companies are also introducing repair and maintenance services as an add-on.
FOODSERVICE EQUIPMENT MARKET TAXONOMY
The global foodservice equipment market is segmented in detail to cover every aspect of the market and present complete market intelligence to the reader.
- Food Preparation Equipment
- Slicers & Peelers
- Mixers & Grinders
- Food Blenders
- Drink Preparation Equipment
- Drink Blenders
- Ice Crushers
- Cooking Equipment
- Heating & Holding Equipment
- Sauce Dispensers
- Refrigerators & Chillers
- Baking Equipment
- Countertops/Benchtop & Portables
- Other F&B Service Equipment
- Full Service Restaurant & Bars
- Quick Service Restaurant
- Indoor and Outdoor Caterers
- Hotels & Resorts
- Club Restaurants
- Commercial Canteens
- Institutions & Offices
- Physical Stores
- Online Platforms
- North America
- Latin America
- South Asia
- East Asia