Food Service Equipment Market: Kitchen Purpose Equipment Segment Dominated With A Revenue Share
Food Service Equipment Industry Overview
The global food service equipment market size is estimated to reach USD 56.90 billion by 2030, registering an estimated CAGR of 6.3% from 2023 to 2030, according to a new report by Grand View Research, Inc The increasing trade activities in the food & beverage industry, upsurge in travel & tourism activities, changing food consumption habits, and rise in disposable incomes are some of the key factors driving the growth of this market.
Equipment manufacturers are focusing on mergers & acquisitions to introduce state-of-the-art product offerings for attaining a competitive edge in the market. For instance, in 2019, SMEG S.p.A collaborated with Dolce & Gabbana S.r.l. for special styling of Fab28 SMEG refrigerator, which was encouraged by old Sicilian art. This collaboration was aimed at developing products in captivating designs consumers would like to incorporate in their modular, open commercial kitchen spaces.
The pressing need to conserve energy has compelled manufacturers to focus on the development of energy-efficient appliances for commercial kitchens. Appliances are being integrated with bidirectional Internet of Things (IoT) connectivity. These connected appliances can automatically alert kitchen staff to increase preparation uptime. Additionally, the increasing number of restaurants across the globe is also driving the market. As per the National Restaurant Association, the U.S region itself accounts for more than 1 million restaurants of different kinds and sizes.
The COVID-19 pandemic and the subsequent lockdowns imposed by governments worldwide to minimize its communal spread at the beginning of 2020 had a substantial negative impact on the market. Various industries such as food & beverage, travel & tourism, and hospitality have been severely impacted by the temporary shutdown of manufacturing units, transportation, and logistic operations. Relaxations announced by several governments in the mid of 2020 led to the gradual increase in the online delivery business and take away from restaurants & hotels, resulting in some recovery of the food & beverage industry.
Food Service Equipment Market Segmentation
Grand View Research has segmented the global food service equipment market based on product, end-user, and region:
Based on the Product, the market is segmented into Kitchen Purpose Equipment, Refrigeration Equipment, Ware Washing Equipment, Food Holding & Storing Equipment, and Others.
- The kitchen purpose equipment segment accounts for the largest revenue share of over 38.8% of the overall market in 2022 and is estimated to witness the fastest growth from 2023 to 2030. The procurement of appropriate kitchen appliances is a must while establishing a new business or refurbishing an existing place to ensure smooth operations.
- The rising popularity of take-away and ready-to-eat items has compelled restaurant chains to equip themselves with modern refrigerators. This has necessitated manufacturers to incorporate bidirectional Internet of Things(IoT) connectivity in commercial refrigerators to remotely monitor food inventory and temperature.
Based on the End-user, the market is segmented into Full Service Restaurant (FSR), Quick Service Restaurant (QSR), Institutional, and Others.
- The Fullfull-Service service Restaurant restaurant (FSR) segment accounted for the dominant revenue share of over 44.13% of the market in 2022. The high market share of FSRs can be attributed to the advent of digital dining trends, which has compelled food service operators to deploy modern equipment to speed up the preparation process and reduce delivery uptime.
- The Quick quick Service service Restaurants restaurants (QSRs) segment is expected to register the fastest growth over the forecast period. This can be attributed to the rising working population and globalization of prominent restaurant chains by establishing franchisee joints.
Key Companies & Market Share Insights
The rising deployment of sustainable technology equipment has compelled key players to focus on business strategies such as collaborations, mergers, and acquisitions beneficial for their businesses. Key manufacturers are collaborating with solution providers to build customer-centric equipment addressing food wastage by grocery stores, hypermarkets, and supermarkets. For instance, in 2018, AB Electrolux collaborated with Karmalicious AB, a Sweden-based startup that builds food rescue applications. This collaboration was aimed at introducing a new technologically-advanced refrigerator for grocery stores to minimize food wastage. In 2019, Daikin Industries, Ltd. acquired AHT GROUP GmbH, one of Germany's leading food service manufacturers. This acquisition helped the company to expand its business presence in the European region. Additionally, strategies such as new product launch targeted marketing are being adopted to gain a competitive edge in the market. Some of the prominent players operating in the global food service equipment market include:
- AB Electrolux
- Ali Group S.r.l. a Socio Unico
- Dover Corporation
- Duke Manufacturing
- Haier Group
- SMEG S.p.A.
- The Middleby Corporation
Order a free sample PDF of the Food Service Equipment Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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