Food Service Equipment Market Size, Share & Trends Analysis Report By Product (Kitchen Purpose Equipment, Refrigeration Equipment, Food Holding & Storing Equipment), By End-user, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global food service equipment market size was valued at USD 34.68 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 5.5% from 2021 to 2028. Changing food consumption patterns, increased demand for takeaways, and the expanding hospitality sector are some of the key factors driving the market. Furthermore, factors such as increasing digitalization, the need for sustainable and eco-friendly equipment, and stringent consumer safety norms are expected to create promising growth opportunities for the market in near future. The market has rapidly evolved in accordance with the changing needs of clients for outfitting their kitchen spaces. Changing social customs, coupled with technological progressions, have created a dynamic marketplace for the equipment used in the end-use sector.

From the discovery of equipment for preparing and storing food, such as cooking stoves, ranges, and electrical refrigerators, to the availability of custom food service appliances to cook different cuisines, the range of technologically-advanced and innovative products to have entered the market over the years is also expected to favor the market growth in the longer run. Furthermore, rapid technological advancements achieved with the help of continual Research and Development (R&D) activities have helped appliance manufacturers to offer technology-driven efficiencies to their clients.

The demand has significantly increased in response to the emergence of several casual restaurant chains in North America and Europe. Companies are mandated to sell certified and tested commercial kitchen appliances according to the safety rules laid by several regulatory bodies worldwide. These safety standards aim to create a guarded environment for both the restaurant operators and consumers. National Sanitation Foundation (NSF), an American product testing, inspection and certification non-profit organization, has developed several equipment safety standards to ensure food safety requirements and sanitation protocols to be maintained by the end-use sector. With food safety being the utmost priority, standards have been set for the material used, design, and equipment architecture.

The growing awareness about energy consumption and eco-friendly initiatives facilitates consumers to adopt energy-efficient appliances, thereby creating opportunities for this market. Energy consumption norms across the globe emphasize reducing the Green House Gas (GHG) emissions to mitigate the rising impact of climate change. Customers are increasingly opting for 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. As reported in 2018 by the Energy Star program of U.S, Environmental Protection Agency (EPA), 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 COVID-19 pandemic resulted in the temporary shutdown of food service operations owing to stringent social distancing and shelter-in-place norms imposed by governments worldwide. This resulted in negative growth of the industry as both production and sales were negligible during 2020. Nevertheless, as governments announce relaxations to lockdowns and the first vaccines arrive, the food service industry is expected to bounce back over the forecast period. While the dine-in restaurant traffic is expected to take longer to come to normalcy, end-customers are expected to recover through off-premise, takeaways, and online delivery services. On account of the subsequent rise in footfall in food service restaurants and institutional kitchens, the beleaguered market is expected to flourish over the years to come.

Product Insights

The kitchen purpose equipment segment accounts for the largest revenue share of over 35.0% of in 2020 and is estimated to witness the fastest growth from 2021 to 2028. The procurement of appropriate kitchen appliances is a must while establishing a new business or refurbishing an existing place to ensure smooth operations. The growth of the kitchen purpose equipment segment is highly subject to the use of innovative products in commercial kitchens depending on the space and budget of the kitchen. The increasing demand for meal preparation appliances in the open food service kitchens has encouraged manufacturers to increase their focus on elements including the latest technology solutions and appliance exterior designs. The trend of embedding sensors in kitchen purpose equipment, such as fryers, ovens, and cooktops, has led to real-time monitoring of meal preparations.

Furthermore, restaurants are shifting to smaller kitchens owing to the increasing rent of commercial spaces. This is compelling food service equipment manufacturers to upgrade their product designs and make them compact, multipurpose, and faster in functionality. The refrigeration equipment segment constituted a significant share of the food service equipment market in 2020. The rising popularity of take-away and ready-to-eat items has compelled restaurant chains to equip themselves with modern refrigerators. This has necessitated manufacturers to incorporate bidirectional internet of things (IoT) connectivity in commercial refrigerators to remotely monitor food inventory and temperature.

End-user Insights

The Full Service Restaurant (FSR) segment accounted for the dominant revenue share of over 40.0% in 2020. The high market share of FSRs can be attributed to the advent of digital dining trends, which has compelled 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. As a result, the FSR segment is likely to retain its dominance over the forecast period.

The Quick Service Restaurants (QSRs) segment is expected to register the fastest growth over the forecast period. This can be attributed to the rising working population and globalization of prominent restaurant chains by establishing franchisee joints. QSRs are emphasizing on menu innovation, convenience, and competitive pricing. Furthermore, the continual product innovations in food service equipment have been acknowledged as an added stimulus enabling time-constrained consumers to have quicker access to good-quality cooked items.

Regional Insights

Asia Pacific accounted for the highest revenue share of close to 35.0% in 2020 and is expected to maintain its dominance in the market over the forecast period. Rapidly westernizing dining customs and expansion of the tourism sector, particularly in Singapore, Malaysia, Indonesia, and Australia, are driving the demand for food service equipment in the region. Furthermore, restaurants are incorporating multiple cuisines in their menus owing to an increasing number of customers experimenting with new foods and developing a taste for different cuisines. Additionally, the rising consumption of processed foods is expected to create a soaring demand for these appliances in the Asia Pacific region.

With the U.S. at the forefront, North America dominated the market in 2020 and is anticipated to constitute nearly 20.0% of the revenue share by 2028 The U.S. has emerged as the dominant market in the food service equipment industry, owing chiefly to the presence of well-established brands such as McDonald's, Burger King Corporation, KFC Corporation, and Starbucks Coffee Company. Moreover, government initiatives influencing the tourism sector and immigration in the country are projected to uplift the restaurant industry in the near future, which could work well for these appliances deployment rate in the region. Latin America is anticipated to witness significant growth over the forecast period owing to the rising demand for off-premise or home delivery services.

Key Companies and Market Share Insights

The rising deployment of sustainable technology equipment has compelled key players to focus on business strategies such as collaborations, mergers, and acquisitions beneficial for their businesses. Key manufacturers are collaborating with solution providers to build customer-centric equipment addressing food wastage by grocery stores, hypermarkets, and supermarkets. For instance, in 2018, AB Electrolux collaborated with Karmalicious AB, a Sweden-based startup that builds food rescue applications. This collaboration was aimed at introducing a new technologically-advanced refrigerator for grocery stores to minimize food wastage. In 2019, Daikin Industries, Ltd. acquired AHT GROUP GmbH, one of Germany's leading food service manufacturers. This acquisition helped the company to expand its business presence in the European region. Additionally, strategies such as new product launch targeted marketing are being adopted to gain a competitive edge in the market. Some of the prominent players operating in the food service equipment market are:

• AB Electrolux

• Ali Group S.r.l. a Socio Unico

• Dover Corporation

• Duke Manufacturing

• Haier Group

• SMEG S.p.A.

• The Middleby Corporation

Food Service Equipment Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global food service equipment market report based on product, end-user, and region:

• Product Outlook (Revenue, USD Billion, 2016 - 2028)

  • Kitchen Purpose Equipment

    • Cooking Equipment

    • Food & Beverage Preparation Equipment

  • Refrigeration Equipment

  • Ware Washing Equipment

  • Food Holding & Storing Equipment

  • Others

• End-user Outlook (Revenue, USD Billion, 2016 - 2028)

  • Full Service Restaurant (FSR)

  • Quick Service Restaurant (QSR)

  • Institutional

  • Others

• Regional Outlook (Revenue, USD Billion; 2016 - 2028)

  • North America

    • U.S

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa