Research firm, Trusted Business Insights, has analysed the fortunes of the toaster market until 2029 in its latest report.
The global toaster market size was valued at US$3.2bn in 2018 and is estimated to register a CAGR of 4.8% over the forecast period.
The appliance’s growing usage in commercial settings, such as coffee shops, hotels, cafes, diners, and restaurants, is said to be a key growth factor, with the research company believing that the quick-service restaurant industry will provide opportunity for market players.
Trusted Business Insights says that the number of slots in a toaster, and the width of each slot, is important while making a choice, be it for home or commercial use. Other additional features that companies have been offering in toasters include digital timers and heat settings, LED display screens, multiple crumb trays, push buttons, sound alerts and alarms, and cancel functions.
Based on product, the market is segmented into pop-up, oven, and conveyor toasters. Pop-up toasters held the dominant share of 54.9% in 2018 and are the most preferred type among consumers. These appliances are claimed to consume lesser energy as compared to toasting bread in the oven or stove, which are less efficient. Moreover, these toasters should allow automatic heat adjustments and defrost options.
Conveyor toasters, on the other hand, are anticipated to be the fastest growing segment in the market, registering a CAGR of close to 6.0% from 2019 to 2025. The product is in demand at restaurants, hotels, and catering events because of its capacity to handle large volumes of food items.
The commercial segment is expected to register the highest CAGR of 6.1% from 2019 to 2025. The segment is influenced by changing industry demand from generic toasters to customised appliances that can suit individual preferences in various application settings at foodservice establishments. The research company believes the segment is characterised by introduction of toasters with improved features, ability to perform multiple tasks simultaneously, and toast large batches of bread at a time. Technological advancements for improved efficiency is a key factor driving the segment.
In terms of value, Asia Pacific is said to have held the largest revenue share of over 40.0% in 2018. The market is driven by growing presence of leading quick service restaurants and fast food retailers that use toasters for quick meals. Bread is one of the quickest and most convenient breakfast meals and with increasing working population in the region, demand for toasters to make easy breakfast items will continue to be steady. Product demand and sales are also fuelled by rising purchasing power of consumers, thanks to increasing disposable incomes.
North America is expected to register the highest CAGR of 6.1% over the forecast period, on account of greater adoption of advanced kitchen appliances in the foodservice industry as well as in homes across US and Canada. When it comes to commercial toasters, North America has been a prominent market owing to the strong presence and expansion of coffee shops that also serve a variety of baked bread-based items.
Trusted Business Insights analysed that the industry is highly competitive with manufacturers concentrating on new product launches, marketing campaigns, and technological innovations to stay ahead. The firm believes that some of the key players are The APW Wyott, Hatco, Star Manufacturing International, Waring Commercial, and Toastmaster. With steady demand for toasters from developing markets like China, India, and Brazil, companies are said to be looking to expand in these countries over the coming years.