Earlier this year, Catering Insight reported that research firm Future Market Insights had predicted the global foodservice equipment market would be worth US$49.1bn (£36.2bn) by 2027.
Now a new report published by Allied Market Research, titled ‘Food Service Equipment Market by Product and End Use: Global Opportunity Analysis and Industry Forecast, 2018-2025’ has analysed that the sector is even stronger than previously thought, with a value of $31bn (£23.9bn) in 2017. The American market analyst now projects the sector will reach $50bn (£38.5bn) by 2025, registering a CAGR of 6.4% from 2018 to 2025.
Based on product, the report segments the market into cooking equipment, storage and handling equipment, warewashing equipment, and serving equipment. Cooking equipment generated the highest revenue in 2017, and is expected to dominate the market in the near future, predicted to grow at a CAGR of 6.0%. In 2017, the storage and handling equipment segment accounted for approximately two-sevenths share in the overall foodservice equipment market, and is projected to grow at the highest CAGR of 7.5%.
Based on end users, the segment was sorted into full-service restaurants and hotels, quick-service restaurants, and catering. Full-service restaurant and hotels held the maximum share in 2017, owing to the fact that they usually ensure premium quality food with high hygienic ambience and fuller table services. In addition, high disposable income results in increased dining out with entertainment options. These factors drive the growth of full-service restaurants and hotels. However, Allied Market Research predicted that it’s the quick-service restaurants and pubs that are projected to grow at the highest CAGR of 8.5%.
Changes in food habits and busy lifestyles of consumers have led to increases in demand for ready-to-eat meals, said the research firm. Rapid changes in the supporting factors such as disposable income, consumer preferences, an increase in the working women population, and digitisation have resulted in the rise in number of quick-service, pop and shop, and other types of restaurants. Moreover, changes in trends of food consumption and growth in need to reduce food wastage have led to the development of innovative kitchen equipment. These factors are anticipated to drive the growth of foodservice equipment market during the forecast period.
By region, the foodservice equipment market was classified across North America, Europe, Asia-Pacific, and Latin America, Middle East and Africa (LAMEA). In 2017, North America dominated the overall market, in terms of revenue, owing to high adoption of advanced technology and a rise in demand for processed food in the market. The region is expected to maintain its dominant position throughout the analysis period, registering a CAGR of 4.7% from 2018 to 2025. The US itself accounted for the highest market share, and is anticipated to grow at a CAGR of 4.8%.
However, the Asia-Pacific area is forecasted to increase at the highest CAGR of 8.4% from 2018 to 2025. In terms of value, Asia-Pacific and LAMEA collectively accounted for more than one-third of the share in the foodservice equipment market in 2017.
The major players profiled in the report include Alto-Shaam, Cambro Manufacturing, Castle Stove, Duke Manufacturing, Dover Corporation, Electrolux, ITW, the Ali Group, Middleby Corporation, and Welbilt.