Food Holding Cabinet Market

Market Overview

Human mobility, over the last few decades, has been on the rise. Reduced airfares, increased connectivity, and a relatively higher disposable income are among the contributing factors to this rising trend. In addition to this, faster internet connectivity has exposed the world to a variety of cuisines that were otherwise unknown. The flourishing demand for these cuisines, combined with the growing population having higher disposable incomes, is likely to urge restaurants to invest in equipment aiding in keeping the food fresh. These developments are expected to push the food holding cabinet market toward a higher growth graph during the forecast period.

The penchant for casual dining and the growing consumer demand for delivery services are foreseen to be among the leading factors driving the demand for food-holding cabinets. In addition to this, various small and medium enterprises have been focusing on visual appeal in food display. Food merchandising, the convenience of home delivery, and the rising popularity of the buffet services will be pivotal in driving the growth of this market.

Market Dynamics

Increased Working-Age Population

Hassle-free accessibility to better healthcare facilities and a relatively stable government in major economies has led toward favorable conditions for the growing population. The population coming under the working age has burgeoned in the last several decades. Food holding cabinets keeps the food fresh for a long time after it has been prepared, while also giving the chefs buffer time to prepare other food items or re-fill the cabinet. The age dependency ratio across the globe was at 73.49% in 1960 and has gradually declined to 54.36% in 2017, Our World in Data. This underlines the increase in the working-age population across the globe, which are likely to act as potential growth drivers for the food holding cabinet market.

In addition to this, there has also been a steady rise in the consumption of bakery products. The thriving e-commerce industry and the rise in start-ups catering to food and beverage needs have been instrumental in the growth of this food holding cabinet market. There has been an increase in socialization in emerging economies, which has drastically prompted the demand for innovation in various bakeries and cafes. Food holding cabinets not only serve to the purpose of keeping the food fresh but also helps in showcasing food products. A typical bakery-café includes a wide assortment of baked items such as cookies, croissants, puffs and pies, muffins, among others. These items have a short shelf-life, and the cabinets prove to be useful in increasing their shelf life.

These aspects have led the bakery owners and managers to invest more in equipment, which will cater to their demand of keeping the food fresh while acting as a display of the baked items. The growth of the bakery industry and its investment in food-producing and holding equipment is expected to drive the growth of the food holding equipment market.

Regional Analysis

Coffee Culture Underlining the Dominance of the U.S. and Europe in the Food Holding Cabinet Market

The coffee culture is popular in the U.S. and in several key economies of Europe. Despite the similar popularity of the beverage in these economies, the reason for their popularity is different. Commercial coffee chains such as Starbucks and Dunkin’ (previously known as Dunkin Donuts) seldom offer pre-cooked food items in combination with on-the-go coffee. The takeaway culture in North America, especially in the U.S., is expected to drive the demand for food holding cabinets in this region. The food holding cabinet market is also foreseen to hold a dominant share. On-the-go coffee isn’t exactly a norm followed in most parts of Europe. They are more inclined to sit outside the patios of the coffee shops with a croissant. This café-culture is likely to influence the rising influx of immigrants, which will drive the demand for food heating and holding equipment. However, with the Brexit, the European Union (E.U.) has seen a separation of one of the most prominent trading partners. But the U.K.’s point-based system is likely to see a rise in skilled laborers at a relatively inexpensive cost. This is expected to lead to considerable growth in population, engendering higher consumption of the ‘café-culture’ leading towards a growth in the food holding cabinet market.

Segmental Analysis

Manufacturers Focusing on Energy Efficient Products

Global power consumption is on the rise; the rate of power consumption is directly proportional to the rapid urbanization. Power generation has exerted significant strain on natural resources such as coal and other fossil fuels. These fossil fuels are exploited to generate power to satiate the growing needs of the manufacturing sector. This has urged the food holding cabinet manufacturing companies to come up with products that are energy efficient. For instance, Moffat Catering Equipment, a Scottish firm, is installing the Sahara multi-fan system, which provides heating services in holding cabinets and utilizes around 40% less energy.

Over recent years, the hot holding has become lucrative business areas, and manufacturers of cooking equipment have been focusing on rolling out products that will keep the food at serving temperatures. This is expected to result in a spike in demand from hotel chains and restaurant owners, as ready to serve food will result in a decrease in operation time for re-heating the food. Furthermore, companies are focusing on maintaining the longevity of the food rather than just limiting the equipment to keep the food at optimum temperature. Taking this into account, Unox, in 2018, unveiled the Evereo hot refrigerator, which has been designed to preserve food items at serving temperature for weeks.

Commercial End-Users to be Among the Biggest Contributors in Food Holding Cabinet Market

Several commercial end-users of food holding cabinet have been increasingly focusing on improving the safety of the vast quantities of pre-cooked food. Food holding cabinets have emerged as one of the efficient solutions that ensure the protection of food from pathogens and bacteria. The germs on the food are most likely to multiply between a temperature range of 5–60°c. In addition to this, various food safety regulations are also expected to ensure the continued rise of the food holding cabinet market.

Trends of Displaying Food and Keeping them Fresh to Boost Product Innovation

Small and medium enterprises have been focusing on an attractive display of food products to lure in potential customers. This trend of food merchandising has been one of the decisive factors of product innovation in a company’s product line.