Advancement in refrigeration technology, cost-effectiveness, safety, efficiency & automation in kitchen equipment brings growth to the global foodservice equipment market.
The global foodservice equipment market is predicted reach $43,379 million by 2022, according to a new report by Allied Market Research, “Foodservice Equipment Market: Global Opportunity Analysis and Industry Forecast, 2014-2022.”
The cooking equipment segment is expected to dominate this market throughout this period. North America accounted for more than one-third share of the global foodservice equipment market in 2015.
Increase in tourism, growth in restaurant & hotel industry, enhancements in urban infrastructure in developing & developed nations, and rising disposable income worldwide have catalyzed the market growth. The rise in number of application areas for foodservice equipment, coupled with increasing per capita income & spending power is expected to boost the market.
Advancement in refrigeration technology, cost-effectiveness, safety, efficiency & automation in kitchen equipment results in steady growth of the foodservice equipment market, globally. In addition, growing health consciousness among consumers and demand for fresh fruits are anticipated to further drive the market. However, high initial capital investment to install kitchen equipment has restrained the market growth. Moreover, the European economy is recovering after the Greece crisis, which has resulted in more number of consumers dining at small cafes and quick-service restaurants. This has supplemented the adoption of foodservice equipment in European countries.
Factors such as increasing demand for fresh food and decrease in cooking time have contributed towards the growth of cooking equipment. This segment accounted for about 32% of the overall foodservice equipment market in 2015 owing to rising demand for advanced and modular kitchen equipment. In addition, storage & handling segment is the fastest growing segment, owing to growing demand for refrigeration and advanced cooling & food warming techniques in commercial kitchens.
Based on end users, full-service restaurants & hotel segment is projected to maintain its lead due to growth in hotel and foodservice industry in developing nations, which can be attributed to the technological improvements in kitchens and innovation in cooking techniques. The growing demand for cooking and food preparation equipment in the developed economies, such as North America and Europe, due to established hotel industry has further boosted the market growth.
North America accounted for the majority of revenue in 2015 and is expected to maintain its dominance throughout the forecast period. This is attributed to the increased adoption of technologically advanced products, high penetration in terms of equipment installation in commercial kitchens, improved living standard, and increased demand for readymade food from rapidly aging population.
“Growing number of hotels and restaurants in developing nations along with flourishing travel & tourism industry is expected to promote the demand for foodservice equipment. Moreover, stringent government regulations, energy-efficient products and increasing sanitation and hygiene requirements in commercial kitchens are expected to contribute to the further growth of the market,” stated Deepankar Bose, research manager, consumer goods at AMR. In addition, the enforcement of the F-gas regulation by European government and mandatory requirements to meet EPA standards have derived the growth of the foodservice equipment in developed nations. These regulations and standards set by foodservice regulatory authorities urge manufacturers to develop equipment matching with these standards.
Asia-Pacific is projected to be the fastest growing region throughout the analysis period. China, being dominant in the Asia-Pacific, especially in cooking and storage & handling equipment, contributes two-sevenths for the Asia-Pacific foodservice equipment market. This is a result of blooming tourism industry and vast dining out options for consumers. Furthermore, improving economical and infrastructural in the emerging markets (India and Australia) have accelerated the market growth. Technological advancements for cost-effective equipment in these nations offer a lucrative opportunity for the foodservice equipment market growth.
Key findings of the study:
In the year 2015, cooking equipment led the overall foodservice equipment market revenue, and is projected to reach around 31% by 2022.
Storage & handling is expected to grow at a CAGR of 6.7%, owing to rising need for processed food in developing countries.
North America generated the highest revenue, among all regions in 2015, owing to rising working population & growing demand for fast food products.
Full-service restaurant & hotels segment is projected to generate the highest revenue in the foodservice equipment market.
U.S. is the major shareholder, accounting for more than 53% share of the North America foodservice equipment market in 2015.
Summary of Similar Reports can be viewed at