Market Overview
The total addressable market (TAM) for cookware was valued at USD 23.73 billion in 2021. It is estimated to reach USD 41.12 billion by 2030, growing at a CAGR of 6.3% during the forecast period (2022-2030).
Cookware is a term used to describe a variety of kitchen tools used to prepare food, including pots, pans, work turners, whisks, and spoons. Cookware includes cooking utensils made of heat-resistant materials like ceramic, glass, fiber, steel, and aluminum. The growing preference for modular kitchens and rising living standards drive global demand for cookware products. The demand for cookware items is developing in both the commercial and residential sectors due to the growing popularity of modular kitchens and rising living standards.
Additionally, the growing popularity of eating out has increased awareness of diverse cooking methods and tools, encouraging the use of various cookware items. Due to expanding consumer preference for modular kitchens increased spending on home remodeling/improvement projects is also boosting product demand.
Market Dynamics
Market driving factors
Growing Trend of Cook-at-Home
The demand for cookware is being boosted by the increasing number of people who like cooking at home. Customers have been choosing home-cooked meals in the current environment of choices driven by wellness and hygiene to protect themselves from external germs and viruses. The popularity of cooking reality programs has increased interest in developing one's culinary abilities and discovering new cooking methods and cuisines. This trend is positively impacting the sale of cookware. Social media have dramatically influenced an unexpected interest in home cooking and trying out novel recipes.
The popularity of meals prepared at home, propelling the expansion of cookware products, has been dramatically influenced by millennials. Among the trends influencing the cookware market in the residential sector are more color, pieces that can adapt to smaller spaces, and pieces that cater to consumers' specific needs. Due to an increase in disposable income and millennials' migration to cosmopolitan cities, consumer living standards have improved over time.
Market restraining factors
Volatility in the Price of Raw Materials
Changing costs for materials like glass, steel, and copper are key barriers to market expansion. The cookware market can use these basic materials in various ways, and changes in raw material prices directly affect it. Stainless steel, high-temperature steel, high-speed steel, and carbon steel are just a few of the varieties of steel that are accessible. These materials have various uses in construction, automotive, aircraft, transportation, packaging, energy, and appliances. Various alloys and types of steel offer different qualities for usage in various applications.
Key market opportunities
Growing Number of Commercial Kitchens, Restaurants, and Eateries
According to the TOP HOTEL PROJECTS construction database, there are almost 1,700 development projects planned across Europe, with 414 openings in the U.K. in 2021. The demand for upscale living and gourmet cuisine has increased due to expanding international tourism, which is fueling the construction of upscale hotels across the globe. For instance, approximately 170 million Americans visited some form of eatery every day in 2018, according to the Travel and Tourism Research Association in March 2021. Therefore, improved restaurant profitability and performance will undoubtedly open up several prospects for the cookware sector.
Regional Analysis
Asia-Pacific Dominates the Global Market
The global cookware market is divided into four regions, namely Asia-Pacific, North America, Europe, and LAMEA.
Asia-Pacific is the most significant shareholder in the global cookware market and is expected to grow at a CAGR of 7.35% during the forecast period. Due to the residential sector's ongoing expansion, the rise in home renovation and remodeling projects, and increased disposable income, there will likely be significant demand for cookware items over the forecast period. Due to long-term demographic trends and growing economic independence, single-person households have been the fastest-growing household type in the Asia-Pacific region over the past few years. Simple cooking methods and nutritious, fresh ingredients are skillfully combined to create Asian cuisine. Additionally, these meals generate some of the most mouthwatering and aromatic flavors.
Europe is expected to boost at a CAGR of 5.95% during the forecast period. The most popular category on the European market is aluminum cookware. The concept of innovation and distinctiveness, which uses a variety of colors and personalized collections to catch consumers' attention, is essential in the European cookware market. Cookware comes in a vast range of designs, materials used, and features and characteristics, giving buyers a vast selection. This tendency is especially prevalent among cookware sellers and manufacturers that draw their inspiration from the fashion industry and broader lifestyle trends. These producers produce more frequent updates on smaller runs that give customers more choices.
North America is expected to grow significantly over the forecast period. Innovative shapes and multi-functionality are low on the priority list of consumers in North America, where more classic and traditional designs mainly influence cookware trends. Customers in North America prefer riveted handles made of sturdier materials like steel. They also favor darker hues like black, gray, and metal, with almost exclusively red being used as a pop of color. The use of frosted colors with a metallic appearance (gold, copper, or gray/silver), which are also used for the coatings of the pans, is a developing trend in this market for handles and grips.
Skewers are in high demand because so much meat is barbecued on them in Middle Eastern cuisine. Although stainless steel skewers are becoming more popular, consumers still prefer wooden skewers since they are safer and do not need to be thrown away after each usage. Many Middle Eastern houses own sturdy roasting pans because they are perfect for roasts, legs of lamb, chicken, turkey, and many other sorts of meat. Meat roasted in a roasting pan and rack is juicier and more tender. Cleaning up is pretty simple, thanks to the roasting rack. Customers frequently choose cookware sets since they come with various valuable items for everyday cooking.
Segmental Analysis
The global cookware market is segmented by product, material, application, and distribution.
Based on product, the global cookware market is bifurcated into pots and pans, cooking racks, pressure cookers, cooking tools, and microwave cookware.
The pots and pans segment is the highest contributor to the market and is expected to grow at a CAGR of 7.20% during the forecast period. Due to the increased demand for multifunctional and colorful pans, this segment is anticipated to expand steadily over the forecast period. Pots and pans are items that people buy depending on their needs. Consumers prefer variety in terms of features, patterns, and colors. Tefal, also known as T-fal, a French cookware manufacturer, plans to expand its line of vibrant nonstick pots and pans in response to a demand increase. As part of its focus on vibrant hues, the business has already produced pots and pans in ruby and turquoise.
Sales of pressure cookers are increasing due to an increase in the number of cafes, shops, fast-food restaurants, and hotels in the region and an increase in demand for quick and easy-use equipment. These cookers come in stovetop and electric varieties. As individuals continue to lead busy lives in most urban regions, pressure cooker sales are anticipated to rise. Cookers made of hard-anodized aluminum and stainless steel are becoming more and more common since they are durable, light, nonstick, and economical to use.
Racks for cooling, roasting, and frying are all cooking racks. A cooling rack is a kitchenware used to transfer cooked food to a surface so it can finish cooling after baking. The food is immediately placed onto the cooling racks after being taken out of the baking sheet or pan. Cooling racks are made of stainless steel wires formed into mesh squares comprising a few straight, closely spaced parallel bars or small, crisscrossed bars. In order to keep the food from storing too much moisture and becoming soggy, these racks only allow a little air to touch the bottom of the food. Cooling racks can be circular, square, rectangular, or oval and have one or more tiers.
Based on material, the global cookware market is bifurcated into stainless steel, aluminum, glass, and others.
The stainless steel segment owns the highest market share and is expected to grow at a CAGR of 6.60% during the forecast period. Chromium and nickel are typically added to steel during the manufacturing process of stainless steel. The proportion of chromium to nickel added determines the grade of stainless steel. The best grade of stainless steel currently on the market is 18/10. The market is growing steadily due to the material's properties, which include that it does not react with acidic or alkaline foods, does not impart a metallic flavor to food, and is appropriate for use in the dishwasher, oven, and broiler.
Although stainless steel is a poor heat conductor, the process that has been developed to bond the layers of stainless steel to a highly conductive material, such as copper or aluminum, is responsible for the continued production of stainless-steel-clad cookware. The material is cheap and produces responsive and lightweight cookware when strengthened, usually by adding copper, magnesium, or other metals. As it is more aesthetically pleasing, easier to clean, and more durable, several manufacturers are increasingly using anodized aluminum cookware to make the interior of a utensil nonstick or stainless.
Glass cookware is becoming more popular among home bakers and business bakeries. It is considered safe to cook in because it has no harmful effects. These cooking items are competitively priced, simple to use, and maintain. Glass cookware is perfect for cooking, as well as for food storage and microwave or oven warming. Glass cookware has several disadvantages, including the ease with which it might break in the event of a fall or a fast temperature shift, shattering the utensil. Despite this drawback, glass cookware can retain heat for extended periods.
Based on application, the global cookware market is bifurcated into residential and commercial.
The residential segment is the highest contributor to the market and is expected to grow at a CAGR of 6.45% during the forecast period. The market is driven primarily by increased residential structures, rapid urbanization, and nuclear family formation. In addition, the growth of the market is being fueled by miniature cookware that is convenient, portable, and well-suited for kitchens with limited space. According to estimates, rising kitchen remodeling projects would also increase demand for cookware.
The hotel industry has expanded due to changes in the hospitality industry, which has increased the number of hotels built worldwide. Due to consumer desire for opulent stays in resorts or top-rated hotels, a growing journey and tourism business also provides growth potential for other categories. As a result, these trends are expected to cause hotel chains and restaurants to place a greater emphasis on high-end cookware. Additionally, as more commercial spaces like bars, wedding venues, and gathering places are built, there are more options for buffets and self-service, which is driving up demand for cookware in commercial kitchens.
Based on distribution, the global cookware market is bifurcated offline and online.
The offline segment owns the highest market share and is expected to grow at a CAGR of 6.55% during the forecast period. The growing customer preference for buying high-end goods from exclusive retailers or corporate stores is the primary driver promoting the expansion of this market category. These corporate shops typically provide clients with a rich shopping experience and make it simple to judge the product's size, look, weight, and quality. To enhance the shopping experience for customers, brands are now opening creative storefronts. For instance, Werhahn Group subsidiary Zwilling launched its first flagship store in China in April 2018, the country's most prominent consumer products market. As part of its brand development strategy, the consumer goods section incorporated a cooking school and restaurant into the shop.
The increasing acceptance of e-commerce has facilitated the expansion of the online distribution segment. Manufacturers may now expand their consumer base, enhance communication, keep track of finances, and increase brand awareness, all while saving money thanks to the internet distribution market. The rise of digitalization has given the cookware business several opportunities for expansion and a vibrant customer base that loves to shop online. The digital era has also altered several societal trends, directly impacting consumer preferences and purchase behavior.
