The global food service equipment market size was valued at USD 32.18 billion in 2021, expected to reach USD 51.68 billion growing at a CAGR of 6.1% during the forecast period. The term ""food service equipment"" refers to all the instruments, utensils, crockery, and cutlery required for washing food and its preparation, cooking, holding, and serving. In addition to ensuring food safety, food service equipment facilitates food preparation in commercial kitchens. It consists of cookware, wash-ware, and equipment for food preparation, storage, and service used for cooking and preserving food products for commercial reasons. This equipment is used to prepare and store various cuisines in various establishments, including hotels, restaurants, commercial institutes, and budget hotels. Increases in business-related travel and the number of hotels and restaurants contribute to the expansion of the hospitality industry, which drives the demand for food service equipment.
Increased demand for refrigerated food products and a preference for junk food stimulate the global adoption of food service equipment. In addition, the trend toward modular kitchens with advanced features drives demand for cooking food service equipment. In addition, a rise in the proportion of cafés and restaurants, as well as an increase in demand for multi-functional, space- and time-saving equipment, contribute to the expansion of the food service equipment market. In the last few years, stringent government regulations regarding refrigerant leakages and emissions have pushed the market toward product replacement, as companies replace their old equipment with new energy-efficient devices. However, high capital expenditures and complexities associated with using these devices inhibit food service equipment market expansion.
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The Growth in Food Service Industry and Preference for Quick-Service Restaurants
The development of the food service equipment market is fueled by the rise in business-related travel and the increase in the number of establishments that serve food, such as hotels and restaurants. It is anticipated that international investments, experiments, innovations in various cuisines, and growth in the travel and tourism industry will provide lucrative opportunities to expand the food service equipment market. Although, the outbreak of the pandemic caused a significant portion of the food service industry, including hotels and restaurants, pubs, and bars, to close. Consequently, this impeded the expansion of the market for food service equipment during the pandemic. As a result of the current global situation, it is anticipated that the food industry will increase production and drive market expansion.
The demand for ready-to-eat meals has increased in recent years due to consumers' transitioning eating behaviors and increasingly hectic lifestyles. Rapid shifts in the supporting factors, such as disposable income, consumer preferences, an increase in the population of working women, and digitization, have led to a rise in the number of restaurants offering quick service, pop & shop, and other types of dining options. Additionally, an increase in the demand for processed foods increases the number of grocery stores, hypermarkets, and retail shops, which in turn increases the demand for products related to refrigeration and storage.
Requirement for High Capital
The high implementation cost and incorporation capabilities required for kitchen equipment setup are factors restraining the adoption of food service equipment. The original investment and ongoing maintenance costs are high due to the incorporation of high-quality hardware, effective condensers, and compressors in cooking and refrigeration equipment. Thus, creating difficulties for the growth of the food service equipment market.
The Demand for Energy-Efficient and Cost-Effective Products
Increased awareness of the desire to save water and electricity contributes to the increase in demand for products that consume less energy. As refrigerants, the refrigerators used in hotels and retail stores emit greenhouse gases, like hydrofluorocarbons (HFCs) and chlorofluorocarbons (CFCs), which have a detrimental effect on the environment.
In addition, the increased consumption of these refrigerants leads to a decline in compressor performance, which incurs additional expenses. Refrigerators' use of chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs) is limited by the F-Gas Regulation of the European Union and EPA standards. In addition, the adoption of commercial ovens and refrigerators will likely be influenced by factors such as increased productivity and reduced greenhouse gas emissions.
In commercial kitchens, using natural refrigerants, such as carbon dioxide (CO2), solar power, and others, in compressors and condensers of various cooling devices has grown in popularity. These contribute positively to the environment. Manufacturers have emphasized using wood and metal as insulation foams to reduce the thermal emissions from electronic kitchen appliances. Thus, it is anticipated that the manufacturers' and researchers' development efforts to develop eco-friendly kitchen products will further generate market expansion opportunities.
The global food service equipment market is classified based on product, end-use, and region.
Segmentation based on product includes cooking equipment, storage & handling, ware-washing, food & beverage preparation, and serving equipment.
The cooking equipment segment will likely advance at a CAGR of 5.5% and hold the largest share during the forecast period. Kitchen cooking equipment consists of the basic utensils used for food preparation. These consist of grills, fryers, ovens, toasters, cookers, cooking implements, and baking implements. Changes in society and industrialization are among the primary causes of the modernization of the kitchen. Food service equipment reduces labor costs, food safety, and operational expenses. Because of lifestyle changes and the influence of outside food, the popularity of restaurants is growing.
In addition, the rising popularity of inventive cooking and baking has expanded dining options for consumers. To provide the best customer service, restaurants invest in various cooking equipment, contributing to the market expansion. There is an increase in the popularity of more extensive, open kitchens in fast-food chains to demonstrate to customers the food preparation process and the types of equipment used. In addition, rising investments in cooking equipment and substitutions in Europe and Asia-Pacific are anticipated to drive market expansion.
The storage & handling equipment segment will hold the second-largest share during the forecast period. Food bags, containers, refrigerators, RDCs, food warmers, and other food holding equipment are included in storage and handling equipment. In restaurant kitchens, the increased demand for temperature-controlled storage equipment for perishable and processed foods drives the need for storage and handling equipment. This equipment aids in the protection of food throughout the entire production process, including raw, semi-cooked, and fully cooked food products.
Due to robust economic growth and urbanization, the food and beverage industry is experiencing high demand, which resulted in a significant shift in kitchen equipment usage patterns. Open front cases, multi-deck display cabinets, and walk-in coolers are in tall order due to the need for frozen food and the expansion of fast-food chains. In addition, bottle coolers are anticipated to gain popularity soon due to the rising demand for bottled and carbonated beverages.
Segmentation based on end-use includes Full-Service restaurants & Hotel, Quick-Service Restaurants & Pubs, and Catering.
The full-service restaurant segment is estimated to expand at a CAGR of 5.5% and holds the largest share. Full-service restaurants & hotels involve upscale full-service facilities. These food chains give a wide selection of food and beverages in addition to accommodations and luxury amenities. Luxurious dining is popular among wealthy tourists and customers. Full-service restaurants are more likely to adopt new technologies for the preparation of quick-served foods as a result of the inclination of consumers toward new cuisines at reasonable prices. The market for full-service restaurants is anticipated to be driven by continuing tourism and upscale dining trends. Additionally, a high disposable income increases consumers' ability to spend on luxuries. In addition, the proliferation of full-service restaurants is caused by the expansion of shopping centers in global business centers.
The quick-service restaurants & pubs segment will hold the second-largest share. Quick service restaurants, also known as fast-food restaurants, provide limited menu options and minimal table service. In addition, they offer food that has been processed in large quantities to meet the growing needs of their customers. Quick Service Restaurants include fast-casual dining establishments and mobile caterers. Rapid changes in supporting factors, such as disposable income, consumer preferences, an increase in the number of working women, and digitization, increase the number of quick services, pop & shop, and other types of restaurants, thereby driving the growth of the food service equipment market.
The region-wise segmentation of the global food service equipment market includes North America, Europe, Asia Pacific, and LAMEA.
North America and the Asia Pacific Will Dominate the Regional Market
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North America will advance at a CAGR of 4.4% and command the market with the largest share. In North America, food service solutions are utilized by numerous industries, including hotels, fast food restaurants, and institutional cafeterias. The North American hospitality market dominates the utilization of food service equipment due to the region's high adoption of innovative products and rising demand for processed foods. Regarding product affordability and technological advancement, the food service industry has experienced substantial growth in recent years. Commercial eateries, such as cafes, pubs, and restaurants, prefer to use automated equipment. Market participants have made significant investments in food equipment solutions to automate their processes and deliver high-quality products in response to the expanding needs of consumers. Growth-wise, the fast-food chain & restaurant segment is anticipated to dominate the North American food service industry.
Early adoption of automation in commercial kitchens is a further factor driving the expansion of the North American food service equipment market. Small businesses can explore and implement kitchen solutions for various applications due to the availability of affordable, high-quality, and safe equipment. In addition, the rising cost of skilled labor encourages businesses to adopt food service equipment. Consequently, upscale hotels and restaurants have invested in sophisticated equipment and automation solutions to integrate technology and hygiene into their work processes and eliminate the risks of bacteria and other hazards.
Asia Pacific will hold a share of USD 16,164 million, growing at a CAGR of 8.1%. Asia-Pacific offers the most lucrative markets for food service equipment due to digitization in commercial kitchens and emerging economies like China and India. In addition, countries in this region have adopted food equipment solutions due to technological advances, the emergence of new business models like e-commerce, and the growth of the hospitality industry. The primary factors contributing to market expansion are a large population base, an increase in household income, and an increase in the middle-class population in this region. In addition, stringent regulations, like Hazard Analysis Critical Control Point certifications and NSF international certifications, pave the way for hotels and restaurants to adopt global standard food service equipment.
List of key food service equipment market suppliers profiled