QSR Food Service Equipment Market Size, Share & Trends Analysis Report By Equipment Type (Cooking, Warewashing, F&B Preparation, Refrigeration, Serving, Storage & Handling), And Segment Forecasts, 2020 - 2027

Report Overview

The global QSR food service equipment market size was valued at USD 12.8 billion in 2019 and is projected to expand at a compound annual growth rate (CAGR) of 5.5% from 2020 to 2027. The changing lifestyle and food preferences along with rapid urbanization have led to an increase in the number of Quick Services Restaurants (QSR), thereby driving the demand for various types of food service equipment. The initial inclination of urban youth towards processed fast food led to the establishment of multiple fast food serving restaurants. However, the inclusion of healthier food in various QSRs, such as Chipotle Mexican Grill, KFC, and Subway, has also proved to be vital in the market growth over the past few years.

According to the United States Department of Agriculture (USDA), the QSRs in the country grew by nearly 20% reaching over 340,000 establishments in 2015 in comparison to approximately 285,000 in 2000. The growth has been supported by the increasing number of diners. The rush in restraints is met by a greater number of orders for which restaurant chefs need advanced equipment apart from traditional ones to shorten the cooking time. The chefs alter multiple recipes as the orders are random and customers expect shorter waiting times. Hence, advanced equipment with sensors and controls, interactive cooking, and pre-programmable features are expected to witness high demand over the forecast period.

Most of the quick-service restaurant menus include pizza, burger, pasta, and french fries, which are categorized as fast food. However, these food items are modified as per the country of operation and local consumer preference. The food choices across the world also dictate the demand for most often used kitchen equipment, such as rice cookers and steamers in Asian countries to the ovens and griddles in Europe and North America. Moreover, rising demand for international and local fast food results in an increasing number of QSRs, which will further boost the demand for QSR food service equipment.

The vendors involved in the manufacturing of QSR kitchen equipment face challenges of meeting the standard specification while following the government guideline for energy consumption. Moreover, the higher cost of installation and repair often inhibits small restaurants from opting for premium kitchen equipment, thereby restricting market growth. However, the higher Return-on-Investment (RoI) also encourages most of the medium-sized restaurants to invest in these time-saving and efficient kitchen equipment.

Equipment Type Insights

The cooking equipment segment accounted for the highest revenue share of 26.2% in 2019 and is expected to grow further at the fastest CAGR of 6.8% from 2020 to 2027. Cooking equipment, such as slow cookers, oven, induction, and Wi-Fi-enabled cooking ranges, help reduce the cooking time while improving the cooking process due to technological advancements. This is expected to be the major factor driving the product demand.

Food & beverage is estimated to be the second-fastest-growing segment from 2020 to 2027. The growth is attributed to the rising usage of mixers, meat processors, juice extractors, dicers, graters, peelers, and similar time-saving equipment. For instance, blenders or breaders reduce the time required to mix and sift the breading mixture.

Cooking Equipment Insights

The oven segment led the market in 2019 with a share of 30.7% and is projected to expand further at a significant CAGR over the forecast period. The growth is attributed to the increasing use of microwave heating and cooking technique for popular international fast foods, such as pasta and pizza, which are traditionally baked using even heat in the oven. Various types of oven, such as deck, conveyor, and convection ovens, are available in different sizes and with either gas or electric hookups.

Braising pans/tilting skillets is estimated to be the fastest-growing segment over the forecast period. The pan and skillets play a crucial role in enhancing the texture, aroma, and taste of the food. The demand is further boosted by its availability as non-stick pans and application in various cooking methods, such as grilling, sautéing, simmering, and braising.

Storage And Handling Equipment Insights

The cabinets segment emerged as the highest revenue contributor in 2019 and accounted for over 40% of the overall share. The segment is expected to continue its dominance over the forecast period due to the high demand for cabinets as a result of their utility in storing non-perishable groceries, such as bread flour, condiments, and other goods. Also, dish cabinets are useful in storing the required cooking and serving utensil in an organized fashion. The kitchen cabinets in restaurants are made of steel for easier cleaning and to avoid molds and bacteria formation.

Food & ingredient canisters and containers segment is expected to witness the fastest CAGR of over 5% from 2020 to 2027. The growth is contributed to the rising demand for containers due to their higher storage capacity. The hard food-grade paper and plastic containers are used for storing pre-prepped food, on the counter service, and take away across QSRs, such as Pizza Hut and Domino’s. Furthermore, the government guidelines to reduce one-time-use plastic is increasing the demand for paper containers and high-quality reusable plastic in restaurants, which is expected to augment segment growth over the forecast period.

Warewashing Equipment Insights

The dishwasher segment emerged as the highest revenue contributor in 2019 accounting for 30.1% of the overall share. It is expected to retain its leading position in the global market over the forecast years. The dishwasher ensures faster and hygienic cleaning with less human intervention, which also help restaurants reduce expense and number of workers. In addition, higher Return-on-Investment (RoI) and benefits, such as fuzz-free cleaning and reduced cleaning time & efforts are boosting the demand for dishwashers.

The produce and utensil washer segment is expected to witness the fastest CAGR of over 7% during the forecast period. The growth is attributed to the demand for high-pressure produce washer guidelines from food and health departments across the world. For instance, the Hawaii Department of Health, California Department of Public Health (CDPH), and NYC Healthcare Department have laid down rules to maintain food hygiene and usage of products in QSRs which is expected to boost the demand for produce and utensil washer.

Food & Beverage Preparation Equipment Insights

The mixers segment held the highest revenue share of 17.8% in 2019 and is estimated to maintain the leading position throughout the forecast period. The utilization of mixers ensures smoothly processed and evenly mixed produce while breaders provide finely sifted flours for various types of bread. Blenders and breaders is anticipated to be the second-largest segment owing to the high demand for mixing and sifting large quantities of bread flour and other raw materials.

Breaders are available in small and large sizes based on business capacity and requirement. There are various types of commercial mixers available in the market such as planetary mixers, dough mixers, and vertical cutter mixers among others. Manual speed setting and additional type of mixing blades help in achieving the desired consistency in food preparation.

Refrigeration Equipment Insights

The freezer segment emerged as the highest revenue contributor accounting for over 19% of the global share in 2019. It is also expected to be the fastest-growing segment over the forecast period. The demand for freezers across QSRs is attributed to the rising need for preserving semi-cooked packaged products and perishable ingredients, such as raw vegetables, sauces, meat, poultry, and dairy products. Moreover, restaurants need to store perishable goods for a longer period owing to bulk purchase and irregular order cycle, thereby boosting the demand for freezers.

The refrigeration segment is estimated to account for the second-highest market share over the forecast period. The refrigeration equipment includes reach-in coolers, walk-in coolers, under counter refrigeration, refrigerated prep tables, merchandising units/display refrigerators, and restaurant bar refrigeration. Rising number of QSRs across the globe is driving the demand for refrigeration equipment to store food products for a longer duration.

Serving Equipment Insights

The coffee equipment segment held the largest market share of 26% in 2019 and is expected to remain dominant over the forecast period. The demand for coffee equipment in QSR is attributed to the higher consumption of coffee across the globe. Moreover, the coffee machines make it simple for the restaurant staff to prepare a variety of coffee in less time with manual description, which is expected to boost the demand over the forecast period.

The beverage dispensers/soda fountains equipment segment is expected to register the highest growth rate from 2020 to 2027. The rising demand for beverage dispensers can be attributed to the increased consumption of soda and cold beverages with fast food. The usage of beverage dispensers and soda fountains allow proper storage of drinks while maintaining the required temperature for serving. The equipment also reduces the preparation time and offers various flavors at the click of a button providing ready-to-serve non-alcoholic beverages.

Regional Insights

Asia Pacific held the largest market share of over 40% in 2019 and is projected to expand further at the fastest CAGR of 6.4% over the forecast period. The developing nations across the region, such as South Korea, New Zealand, Malaysia, India, China, Japan, Australia, Indonesia, Singapore, and the Philippines, have some of the biggest international QSR chains. These QSRs need kitchen equipment to store, stack, refrigerate, cut, and cook foods in large amounts.

Moreover, rising population and consumer disposable income levels are driving the demand for fast foods, thereby supporting market growth. North America is estimated to be the second-highest revenue contributor over the forecast period. The growth can be attributed to the existing and increasing number of QSRs chains across the U.S. and Canada. In addition, preference for QSRs owing to a busy lifestyle is expected to contribute to the market growth.

Key Companies & Market Share Insights

The companies are offering a myriad of cooking, serving, storage, and food preparation kitchen equipment to QSRs across the world. The QSR food service equipment companies follow a mix of inorganic and organic growth strategies to strengthen their market position. For instance, in Feb 2019, Alto-Shaam initiated the expansion of its headquarters and manufacturing facility in Menomonee Falls, Wisconsin, due to its exponential growth in the year 2018. The prominent companies in the market include:

• Kings Kitchen Solutions

• Guangzhou Junjian Kitchen Appliances & Refrigeration Equipment Co., Ltd.

• Taylor Commercial Foodservice, Inc.

• Alto-Shaam, Inc.

• Cambro

• Hoshizaki America, Inc.

• Hobart

• Vulcan

• The Vollrath Company, LLC

• Hatco Corp.

• LIBBEY Inc.

QSR Food Service Equipment Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global QSR food service equipment market report on the basis of equipment type, cooking, ware washing, food & beverage preparation, refrigeration, serving, storage & handling, and region:

• Equipment Type Outlook (Revenue, USD Million, 2016 - 2027)

  • Cooking

  • Warewashing

  • Food & Beverage Preparation

  • Refrigeration

  • Serving

  • Storage and Handling

• Cooking Equipment Outlook (Revenue, USD Million, 2016 - 2027)

  • Braising Pans/Tilting Skillets

  • Broilers/Charbroilers/Grills/Griddles

  • Fryers

  • Ovens

  • Cookers

  • Ranges

  • Others

• Warewashing Equipment (Revenue, USD Million, 2016 - 2027)

  • Dish washer

  • Booster Heaters

  • Produce washer and Utensil Washer

  • Sinks

  • Others

• Food & Beverage Preparation Equipment (Revenue, USD Million, 2016 - 2027)

  • Blenders

  • Choppers, Dicers, Graters, Peelers, Non-Bread Slicers

  • Juice Extractors/Juicing Equipment

  • Meat Processing Equipment

  • Mixers

  • Others

• Refrigeration Equipment (Revenue, USD Million, 2016 - 2027)

  • Blast Chillers

  • Freezers

  • Ice-Making/Dispensing/Holding Equipment and Ice Cream Equipment

  • Refrigeration

  • Water Filters & Water Filter Systems

  • Others

• Serving Equipment (Revenue, USD Million, 2016 - 2027)

  • Beverage Dispensers/Soda Fountains & Equipment

  • Carving Stations/Meat-Serving Stations

  • Coffee Equipment

  • Warmers (not Merchandisers)

  • Serving/Buffet Lines and Serving Carts

  • Others

• Storage and Handling Equipment (Revenue, USD Million, 2016 - 2027)

  • Bus/Tote Boxes and Dispensers (Non-Food)

  • Cabinets

  • Carts and Conveyor

  • Food & Ingredient Canisters & Containers

  • Racks

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • MEA