Food Service Equipment Market Size & Trends Analysis Report By Product (Kitchen Purpose, Refrigeration, Storage, Ware Washing), By Washware, By Region, And Segment Forecasts, 2013 - 2024

Industry Insights

The global food service equipment market size was valued at USD 38.73 billion in 2015. Factors such as changing lifestyle, increased demand for refrigerated food products, increased import-export activity in the food & beverage sector, and a shift in food consumption trends are contributing to market growth. 

The need for technologically advanced products, Wi-Fi and Internet-enabled equipment and multi-function appliances is increasing amongst people. The increasing traction for smart kitchen and connected equipment is expected to boost the demand for food service equipment market.

Food service equipment differs in size and range depending on the type of hospitality businesses and their requirements. Government regulations, increasing cleanliness and hygiene requirements in commercial kitchens across the hotels and restaurants are expected to have a positive impact on the product demand. Growing awareness about energy consumption and evolution of freezers and refrigerators to comply with the new energy requirements is enabling consumers to adopt energy-efficient products.

Various government regulations and standards have made mandatory requirements to meet EPA standards. The enhanced digitization and accelerated adoption of technologically advanced products are creating a shift in consumer’s lifestyle. This transition is providing avenues to new opportunities and requirements for kitchen equipment, which is encouraging several manufacturers to discover novel ways to meet the customer demands. The major factor driving the manufacturers to develop energy-efficient appliances is to meet the consumer demand for energy-efficient products, and increasing volume sales of appliances with energy star certification.

The technological additions that are being adopted by restaurant owners such as providing free Wi-Fi, online food ordering facility, targeted social media campaigns and other technological advancements have boosted the demand for hotel and restaurant service by customers. The increase in demand for hotel and restaurant service has in turn boosted the sales of food service equipment.

Increasing popularity of IoT concept is increasing the demand for equipment enhanced with internet connectivity. Consumer-facing technology is gaining the most attention in the restaurant business as apps and mobile ordering systems are developed to ease the work of customers and satisfy customer’s demand for innovation. The advanced equipment offers various features such as sensors and controls, efficiency, pre-programmable features and interactive cooking, which is responsible for the growth of the market.

In addition to various developments in the food service equipment market, there has been an increase in the number of hotels, nursing homes, hospitals, fast food joints, and restaurants due to the varied needs of the customers. This is expected to boost the demand for food service equipment over the forecast period. The variety and types of restaurants such as day dining, fine dining, specialty and various bars, pubs, lounges, conference rooms, ball rooms and food courts have contributed to the growth of the hospitality industry.

Product Insights

Product segment analyzed in the report includes kitchen purposes, refrigeration, storage, ware washing, food holding and serving, and others. Kitchen food service 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 consumer’s preferential shift towards modular kitchen is boosting the segment demand. Smart kitchens and the various innovations in the food equipment industry are helping the kitchens in restaurants and hotels become efficient and manageable. Restaurants of various sizes are moving towards smart appliances and a connected kitchen to reduce training and staff shortage, energy saving and quality.

Refrigeration service 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. International food trade has given rise to trading of processed, canned and frozen food which requires proper refrigeration equipment to transport these food items. Stringent regulations and increasing environmental concern over the use of refrigerants with high global warming potential is expected to provide several growth opportunities for advancement in commercial refrigeration equipment.

Washware Insights

Dishwasher segment accounted for over 34% market in 2015 and is projected to grow at a CAGR of over 3.9% from 2016 to 2024. The high cost involved in hiring and employing manual labor for the cleaning process has encouraged consumers to adopt automation. The busy lifestyle of consumers has made them move towards time-saving appliances such as dishwashers to save time. The major market driver for the dishwasher segment is the growing preference of energy saving appliances among consumers. 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.

Regional Insights

North America is expected to be a key region for the market growth owing to high product penetration and an increasing need to adopt the latest technology. The rising working population and growing demand for fast food products by consumers are increasing the demand for the market. The number of hotels and restaurants have increased substantially due to the changing lifestyle of people and their demand for ready-to-eat and packaged food. The region accounted for over 38% revenue share in 2015, growing at a CAGR of over 3.8% from 2016 to 2024.

The Asia Pacific is projected to be the fastest growing region owing to the presence of robust economies such as China, India, and Japan. The standard of living of people in the developing countries has resulted in the development of the hotel and restaurant business. Moreover, rising trend of nuclear families, increasing need for processed food in developing countries 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 washware market is gaining importance owing to emergence of shifting consumer spending patterns, a proliferation of stores offering credit card and high rate of urbanization.

Food Service Equipment Market Share Insights

Some of the key industry players in this space include AB Electrolux, 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 appliances. In September 2016, AB Electrolux launched two product ranges, the mastery range and new laundry range which includes innovative kitchen equipment and washing machines & dryers. In February 2016, Falcon Foodservice Equipment, a subsidiary of Ali S.p.A introduced the F900 Series which comprises of professional catering 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.

Report Scope

Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2013 to 2024. For the purpose of this study, Grand View Research has segmented the global food service equipment market report on the basis of product, washware and region.

• Product Outlook (Revenue, USD Billion, 2013 - 2024)

  • Kitchen purposes

  • Refrigeration

  • Storage

  • Ware washing

  • Food holding and serving

  • Others

• Washware Outlook (Revenue, USD Billion, 2013 - 2024)

  • Booster heaters

  • Dish washers

  • Disposers

  • Utensil washer

  • Others

• Regional Outlook (Volume, Tons; Revenue, USD Billion, 2013 - 2024)

  • North America

  • Europe

  • Asia Pacific

  • RoW