The global food service equipment market size was USD 38.73 billion in 2015. Increasing need for technologically advanced products is expected to boost the demand for these equipment. Changing lifestyle, increased demand for refrigerated food products, increased import-export activity of food & beverage sector and a shift in food consumption trends is contributing to market growth.
The transition of freezers and refrigerators to comply with new energy requirements is expected to have a positive impact on the product demand. Growing awareness about energy consumption is enabling consumers to adopt energy-efficient products. Various government regulations and standards have made mandatory requirements to meet EPA standards. The accelerated digitization of consumer’s lifestyle is providing avenues to new opportunities and requirements of kitchen equipment.
Global food service equipment market by product, 2013 - 2024 (USD Billion)
Growing popularity of IoT concept is increasing the demand for equipment enhanced with internet connectivity. Development of new technology along with growing digitization has led to an accelerated adoption by consumers across the globe. This allows the development of increasingly advanced products, which is expected to significantly augment demand for food service equipment.
Additionally, increase in the number of hotels, nursing homes, hospitals, fast food joints, and restaurants are expected to boost the demand for food service equipment over the forecast period.
Product segment analyzed in the report includes kitchen purposes, refrigeration, storage, ware washing, food holding and serving, and others. Kitchen food service equipment accounted for over 28% of the overall revenue share in 2015 and is expected to dominate the market over the forecast period. Increasing need for modern kitchen amenities and shift towards modular kitchen is boosting the segment demand.
Refrigeration service equipment is expected to be the fastest growing segment over the forecast owing to the increasing demand for refrigeration products in the commercial and industrial kitchen. Also, rising middle-class population is expected to boost the demand across residential sector. Growing awareness about environment and increasing energy consumption concerns among consumers are attracting the need for more energy-efficient products.
Dishwasher segment accounted for over 30% market in 2015 and is projected to grow at a CAGR of over 3.5% from 2016 to 2024. This growth can be attributed to the increasing demand for automatic dishwashers in hotel and food chains. Dishwasher segment is gaining popularity among households owing to the increasing need to reduce energy and time. Moreover, growing urbanization is also contributing to the product demand.
Utensil washers are estimated to grow at a CAGR of over 4.3% from 2016 to 2024 owing to the need to replace existing product in developing countries. Increasing urbanization, rise in disposable income and demand for smart appliances is expected to boost the demand for utensil washer.
North America is expected to be a key region for food service equipment growth owing to high product penetration and increasing need to adopt the latest technology. The region accounted for over 38% revenue share in 2015, growing at a CAGR of over 3.8% from 2016 to 2024.
Asia Pacific is projected to be the fastest growing region owing to the presence of robust economies such as China, India and Japan. Moreover, rising trend of nuclear families and increasing production in India and China is contributing to the regional growth.
Growth in hotel and food industry in India is expected to contribute to the overall market demand. In Africa, the wash ware market is gaining importance owing to emergence of shifting consumer spending patterns, proliferation of stores offering credit card and high rate of urbanization.
The global food service equipment company market share is mainly occupied by key competitors such as Ali Group, ITW, Middleby Corporation, Dover Corporation and Manitowoc Company Inc. These players are involving in research and development activities to develop products compliant with new energy standards and regulations mandated by the government authorities.
Shifting consumer preferences from conventional to technologically advanced products are enabling key players to offer innovative kitchen equipment. The companies are also focusing on developing strategic partnerships and acquisitions to gain a competitive advantage. For instance, in 2015, Middleby Corporation announced the acquisition of Aga Rangemaster. The acquisition further strengthens Middleby’s global presence its leadership in premium residential kitchen equipment segment. Vendors are also focusing on initiating a cost reduction program within small appliances segment to restore profitability.
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