According to US-based research firm, Million Insights, the commercial kitchen equipment market is set to reach higher peaks than ever forecasted before.
In the recent past, the consensus has been that the industry would garner $50bn (£38.5bn) per annum by 2025. However, this company’s latest report more than doubles this estimate, predicting the sector will reach a total of $112.47bn (£86.31bn) in that same period.
The report details that the cookers segment dominated the commercial kitchen equipment market in 2016 and that this is anticipated to maintain its dominance by 2025, owing to the utilisation of cookers by end users such as catering companies, hotels and restaurants.
Million Insights predicts that labour and operational costs will reduce and that this, in concert with rising concerns regarding food safety will boost commercial kitchen equipment industry growth in the years to come. The firm also believes that disposable income growth will boost the market growth.
However, this report does note that there are factors which may hamper the growth of the commercial kitchen appliances market, such as the volatile prices of raw materials, and the high cost of initial investment with regards to production plant. Nevertheless Million Insights states that the market is anticipated to grow at a significant CAGR in the upcoming period as the scope, product types, and its applications, are increasing across the globe.
In terms of end user segments, in the snapshot Million Insights took of the market in 2016, it analysed that the QSR dominated the rest of the sectors and is anticipated to maintain its strength to 2025. In fact, QSR catering equipment usage is anticipated to grow at the highest CAGR of 7.5% over the forecast period.
North America accounted for the major share of the commercial kitchen equipment market size in 2016 and will continue to lead in the forecast period, according to the research firm. The factors that the report attributed to the growth include a surge in the number of fast food outlets due to hectic and busy lifestyles, a rise in eating out expenditure, and an increase in the number of working women. North America is followed in the percentage stakes by Europe and Asia-Pacific.
Million Insights analysed that some of the key players that fuel the growth of the commercial kitchen equipment industry comprise Hamilton Beach, Hobart, Carrier Corporation, Middleby Corporation, True Manufacturing, The Vollrath Company, and AIHO Corporation. The leading companies are taking up partnerships, mergers and acquisitions, and joint ventures in order to boost the inorganic growth of the industry.
The ‘Global Commercial Kitchen Equipment Market’ report scrutinises the industry across equipment types, end users and geography. It breaks cooking equipment analysis down into char broilers/broilers/griddles/grills, braising pans/tilting skillets, cook-chill systems, steamers, fryers, ovens, ranges, cookers, kettles, and others. End user segments explored include fast food chains cafés and bars, QSRs, railway dining, institutional canteens, ferry and cruise, resort and hotel, hospital and FSRs.