The global food service equipment market size is expected to be worth around US$ 70.01 billion by 2030, according to a new report by Vision Research Reports.
The global food service equipment market size was valued at US$ 34.70 billion in 2020 and is anticipated to grow at a CAGR of 5.10% during forecast period 2021 to 2030.
Food Service Equipment Market (By Product: Kitchen Purpose Equipment, Refrigeration Equipment, Ware Washing Equipment, Food Holding & Storing Equipment, Others; By End-user: Full Service Restaurant (FSR), Quick Service Restaurant (QSR), Institutional) – Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook 2021 – 2030
Report Coverage
| Report Scope | Details |
| Market Size | USD 70.01 billion by 2030 |
| Growth Rate | CAGR of 5.10% From 2021 to 2030 |
| Base Year | 2021 |
| Forecast Period | 2021 to 2030 |
| Segments Covered | Product, End-user |
| Regional Scope | North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
| Companies Mentioned | AB Electrolux, Ali Group S.r.l. a Socio Unico, Dover Corporation, Duke Manufacturing, Haier Group, SMEG S.p.A., The Middleby Corporation |
Growth Factors
The increasing trade activities in the food and beverage industry, upsurge in travel and tourism activities, changing food consumption habits, and rise in disposable incomes are some of the key factors driving the growth of this market.
Equipment manufacturers are focusing on mergers and acquisitions to introduce state-of-the-art product offerings for attaining a competitive edge in the market. For instance, in 2019, SMEG S.p.A collaborated with Dolce & Gabbana S.r.l. for special styling of Fab28 SMEG refrigerator, which was encouraged by old Sicilian art. This collaboration was aimed at developing products in captivating designs consumers would like to incorporate in their modular, open commercial kitchen spaces. Furthermore, the pressing need to conserve energy has compelled manufacturers to focus on the development of energy-efficient appliances for commercial kitchens. Appliances are being integrated with bidirectional (IoT) connectivity. These connected appliances can automatically alert kitchen staff to increase the preparation uptime. Additionally, the increasing number of restaurants across the globe is also driving the market. As per the National Restaurant Association, the U.S region itself accounts for more than 1 million restaurants of different kinds and sizes.
The COVID-19 breakout and the subsequent lockdowns imposed by governments worldwide to minimize its communal spread at the beginning of 2020 had a substantial negative impact on the market for food service equipment. Various industries such as food and beverage, travel and tourism, and hospitality have been severely impacted by the temporary shutdown of manufacturing units, transportation, and logistic operations. Relaxations announced by several governments in the mid of 2020 led to the gradual increase in the online delivery business and takeaway from restaurants and hotels, resulting in some recovery of the food and beverage industry.
Report Highlights
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 (IoT) connectivity in commercial refrigerators to remotely monitor food inventory and temperature.
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.
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 Players
Market Segmentation
The study objectives of this report are:
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