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The Food Service Equipment Market size is forecast to increase by USD 12.35 billion at a CAGR of 6.09% between 2022 and 2027. The market's expansion is intricately linked to several key factors, including the ongoing shift toward energy-efficient food service equipment driven by sustainability concerns and cost savings. Furthermore, the changing food consumption patterns influence the demand for innovative equipment tailored to diverse culinary needs and preferences. Additionally, the increasing awareness of eco-friendly initiatives and the importance of reducing energy consumption propel the adoption of greener practices in the food service industry. As consumers prioritize sustainability and environmental consciousness, businesses are compelled to invest in energy-efficient solutions to meet evolving demands. This convergence of factors underscores the dynamic nature of the market, presenting opportunities for growth and innovation as the industry continues to embrace eco-friendly practices and adapt to shifting consumer preferences.
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The market share growth by the offline segment will be significant during the forecast period. It includes sales through specialty stores, department stores, hypermarkets, supermarkets, convenience stores, and clubhouse stores. To compete with E-commerce, companies are making strategic alliances with large retail chains for household appliances. For example, Haier Group has signed a partnership with GOME Retail and Suning, among the largest Chinese retail markets to better understand region-specific demands. Hence, extensive marketing shall help the segment to maintain a steady growth rate during the forecast period.
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The offline segment showed a gradual increase in the market share of USD 23.29 billion in 2017 and continued to grow by 2021. Specialty stores accounted for the greatest share of the total offline market due to offering a wide range of products from various brands at different prices. Some major specialty stores which sell food service equipment include Home Depot Product Authority, AJ Madison, GOME Retail, and Suning. Another important segment includes hypermarkets and supermarkets, which have the advantages of convenience, huge SKUs (stock-keeping units), and numerous brands. Walmart is the largest American hypermarket, and it offers kitchen and food service appliances such as toaster ovens. Hence, these factors are likely to contribute to the growth of the market during the forecast period.
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APAC is estimated to contribute 37% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The market in APAC comprises warewashing equipment and other service equipment. Japan, known for its technological advancements, hosts numerous vendors focusing on product innovation and the development of technologically advanced equipment. Sales channels in the region cater to various establishments, including full service restaurants, quick service restaurants, pubs, clubs, and bar lounges. China, with its vast resources, contributes significantly to the market due to its low production costs. Food Consumption Patterns in the region, such as takeaways and the presence of UHNWIs in countries like Australia and Japan, fuel the demand for premium equipment.
Moreover, big Data analysis is utilized to optimize operations and inventory management. Cooking Equipment, such as woks, pots, pans, and utensils like ladles, spoons, forks, knives, whisks, microwaves, deep fryers, gas stoves, ovens, mixers, grinders, blenders, and juicers, are essential tools for the food service industry. Tableware, cutlery items, plates, cups, bowls, colanders, glasses, and storage units complete the offerings in this market. Hence, the above factors are likely to contribute to the growth of the market during the forecast period.
The market in the hospitality sector has witnessed significant digitalization, leading to the integration of eco-friendly equipment to ensure consumer safety and adherence to kitchen spaces' technological progressions. Cooking stoves, electrical refrigerators, and various cooking tools are essential components of food service establishments. Ware washing equipment, tools, utensils, storage units, tableware, cutlery items, plates, cups, bowls, colanders, glasses, woks, pots, pans, ladles, spoons, and forks are all integral parts of this market. Eco-friendly equipment, such as energy-efficient cooking stoves and refrigerators, is increasingly being adopted to reduce carbon footprint and promote sustainability. Consumer safety norms continue to drive the demand for advanced equipment, ensuring the highest standards of hygiene and safety. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. A holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The shift toward energy-efficient food service equipment is driving market growth. The market is experiencing significant growth as vendors introduce eco-friendly solutions to reduce carbon footprint. Equipment such as steamers, boilers, and dishwashing machines now feature water- and energy-saving technologies. Garbage disposal setups and incinerators have been upgraded with improved insulation and temperature control for increased efficiency. Perishable items are stored in massive storage units with optimal airflow and temperature maintenance. Electronic appliances like sinks, drain boards, drainage pipes, and wash nozzles are being redesigned with environmental awareness in mind. Smart kitchens and bars, including catering businesses and cloud kitchens, are integrating cloud connectivity and AI for efficient food and beverage production.
Additionally, food safety and sanitization protocols are also prioritized through advanced technologies. Garbage bins and disposal systems are being replaced with more eco-friendly alternatives. Overall, the market is witnessing a strong trend toward sustainable and technologically advanced food service tools. Food outlet owners are encouraged to adopt and upgrade their equipment to meet the increasing demand for energy-efficient and eco-friendly solutions. Hence, the above factors are predicted to contribute to the growth of the market during the forecast period.
Increasing focus on proper food storage is a key trend in the market. The market encompasses various types of equipment, including steamers, boilers, and garbage disposal setups, catering to the needs of kitchen areas, bars, catering businesses, and cloud kitchens. Manufacturers focus on product innovations, such as temperature control, insulation, and airflow systems, to maintain the freshness of perishable items. Enhanced odor control is a key feature in storage tools, including drain boards, drainage pipes, sinks, dishwashing machines, wash nozzles, and garbage bins. Incinerators and sanitization protocols ensure food safety and environmental awareness.
Further, electronic appliances, such as dishwashing machines and smart kitchens with cloud connectivity and AI technology, are increasingly popular. Eats outlet owners prioritize these advanced features to adhere to food safety regulations and provide high-quality food and beverage services. Hence the emphasis on sanitary and safe food storage will result in the growth of the market during the forecast period.
High installation and operational costs are challenging market growth. In the market, investments in specialized equipment such as steamers, boilers, and dishwashing machines can have high initial costs. However, the long-term advantages include lower food costs due to precise temperature control and insulation, as well as reduced labor costs through automation. Essential facilities include sinks, drainage pipes, and garbage disposal setups. Perishable items require massive storage units with proper temperature control and airflow. Bars, catering businesses, and cloud kitchens utilize electronic appliances like wash nozzles and incinerators.
Moreover, environmental awareness is increasingly important, with a focus on sanitization protocols and cloud connectivity in smart kitchens. Food outlet owners consider the payback period and growth capabilities when investing in tools like garbage bins and dishwashing machines. Eats safety is paramount, with an emphasis on sanitization and AI technology in food and beverage handling. Hence, the above factors are expected to hinder the growth of the market during the forecast period.
Our analysis of the adoption life cycle of the market research and growth indicates its movement between the innovator’s stage and the laggard’s stage. The market report illustrates the lifecycle of the market growth and forecasting, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop market growth and forecasting strategies from 2022 to 2027.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
3M Co. - The company offers food service equipment such as scotch brite cleaning solutions and 3m labels and polish.
Duke Manufacturing - The company offers food service equipment such as flush-mount cold pans, serving systems, food prep counters, and countercraft.
We also have detailed analyses of the market’s competitive landscape and offer information on 15 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
The market is a significant sector that caters to the demand for efficient and advanced equipment used in the food service industry. This market encompasses various types of equipment such as refrigeration systems, cooking equipment, dishwashing machines, and food processing equipment. The market is driven by factors such as increasing consumer preference for convenience and ready-to-eat food, the growing foodservice industry, and technological advancements in service equipment. Manufacturers are focusing on developing energy-efficient and sustainable equipment to cater to evolving consumer needs and regulatory requirements.
Further, the market is highly competitive, with key players including Consumer Products, Manitowoc, Hussmann, and Welbilt. These companies are investing in research and development to launch innovative products and expand their market presence. Furthermore, the market is witnessing a trend towards automation and digitization, with the integration of IoT and AI technologies in food service tools. This is expected to enhance operational efficiency, reduce labor costs, and improve quality and safety. Overall, the market is poised for growth, driven by the increasing demand for advanced and sustainable equipment in the food service industry.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.09% |
Market growth 2023-2027 |
USD 12.35 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.02 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 37% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading companies, market growth analysis, Market forecasting, market forecast, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
3M Co., Ali Group Srl, Cambro Manufacturing Co., Duke Manufacturing, Electrolux Professional AB, Haier Smart Home Co. Ltd., Illinois Tool Works Inc., Koninklijke Philips NV, LG Electronics Inc., MEIKO Maschinenbau GmbH and Co. KG, Panasonic Holdings Corp., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Selecta Group BV, The Middleby Corp., and RATIONAL Group |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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