Food Service Equipment Market Size, Share & COVID-19 Impact Analysis, By Equipment Type (Cooking & Preparation Equipment, Refrigeration Equipment, Warewashing Equipment, Storage & Handling Equipment, and Others), By Sales Channel (Online, and Offline), By End-user (Full Service Restaurant, Quick Service Restaurant, Hotels & Pub Bar Clubs, and Others) and Regional Forecast, 2020-2027

The global food service equipment market size was valued USD 33.85 billion in 2019 and is projected to reach USD 46.38 billion by 2027, exhibiting a CAGR of 4.1% during the forecast period.

The emerging hospitality industry across the world is driving the market growth. Rising demand for this equipment can also be attributed to the exponential growth in the number of food service establishments, particularly in European and Asian countries. Restaurants, hotels, and catering establishments require technologically advanced and energy-efficient service equipment to perform uninterrupted operations in the kitchen. Also, the improved lifestyle due to the rising consumer disposable income is propelling the market growth.

Growing Food Safety Concerns amid COVID-19 to Hinder Growth

The entire world is facing an unprecedented threat owing to the COVID-19 pandemic with the rising necessity of physical distancing to minimize the transmission of this disease. The abrupt outbreak of this disease has taken a significant dip in the food service equipment manufacturing industry across the world, affecting major food businesses in countries such as the U.S., China, Japan, Germany, Italy, and many more. The Shanghai Composite index has depicted the downfall of 8% in the food service sector at reopening for the Lunar New Year Holiday. The entire food service industry is combating the crisis, disruption of food supplies, minimized lack of food customs over the outbreak period.

The ongoing unpredicted lockdown in several countries has led to the shutdown of restaurants and other food service outlets, affecting the global food service machine market. The National Restaurant Association has issued recommendations to give a helping hand to the restaurant operators for protecting employees, customers, and offering safe and hygienic food products. The entire food industry is focusing on the Food Safety Management Systems (FSMS) based on the Hazard Analysis and Critical Control Point (HACCP) principles to prevent food contamination and maintain food safety. The World Health Organization (WHO) highlights the food safety guidelines for food industry workers, and retail food premises, to maintain the integrity of the food chain with adequate and safe food supply to the customers.

LATEST TRENDS

Increasing Demand for Advanced Machinery to Propel Market Growth

The increasing awareness regarding food safety, as well as smart kitchen appliances, will create huge demand for advanced food service machinery in the forthcoming years. Hence, the introduction to IoT, Big Data, and Industry 4.0 has led to the rise of smart food industries to manufacture technology-based equipment. This helps aid restaurants to achieve the highest level of food safety, cut down wastage, improve traceability, and reduce cost, as well as risks associated with various food serving techniques that are becoming a key market trend.

DRIVING FACTORS

Integration of Automated Technologies to Boost Market Growth

The equipment manufacturers aim to focus on the cost-effective services that can be provided to improve the food quality. In the current market scenario, it has become obligatory to monitor and cater the qualitative services of any equipment. Remote maintenance and self-diagnosis features are implemented for interconnected and smart operations, thus recognizing the functioning of food service machinery. This equipment helps maintain hygiene, accurate temperature, and sterilization of utensils that are used for preparing food, concerning food safety of the consumers. Companies operating in the industry are developing products based on AI and IoT technology to enhance user experience. For instance, in July 2018, Samsung launched an IoT-enabled refrigerator with a 21-inch display and Bixby voice control.

RESTRAINING FACTORS

High Cost of Advanced Machinery to Impede Market Growth

Food safety is the basic aim of any food equipment manufacturer, wherein the manufacturing of these machines requires skilled laborers that can operate over the traditional as well as the automated machines. The integration of automated food service machines is costlier and arrives with the demand for trained labors, and other automated facilities. This results in increasing the overall setup and maintenance cost of the machines, hindering the market growth.

SEGMENTATION

By Equipment Type Analysis

Cooking & Preparation Equipment is Projected to Grow at a Higher CAGR Owing to Need for High Efficiency

Among all the types of equipment, cooking and preparation equipment is projected to grow exponentially due to their demand across the general and convenience stores, full and quick service restaurants, etc. Refrigeration equipment is expected to witness remarkable growth owing to its efficiency in the food and beverage industry for storing frozen food products, providing healthy and hygienic food items.

Warewashing equipment is expected to showcase a significant growth due to its increasing demand in commercial kitchens for maintaining a hygienic environment and utensils for serving safe food products to the customers. Similarly, storage and handling equipment are estimated to show progressive growth owing to the requirement of storage of a huge amount of food products.

The other segment consists of service equipment, and it is likely to depict steady growth, owing to moderate demand and limited requirement of the food service machines.

By Sales Channel Analysis

Wider Analysis of Technical Specifications in Offline Sales Channel Creates Remarkable Impact on the Market

Offline sales are anticipated to grow exponentially in the coming years, with rising demand of large amounts of food products across the food and beverage sector. Offline sales assist the customers to identify the food service machines technical specifications personally, by analyzing the proper functioning of the equipment. Purchasing this equipment offline offers a wide range of post-purchase services, hence uplifting the food service equipment market globally.

Online sales of this equipment are projected to depict steady growth owing to the limited demand and decreasing purchase ratio.

By End-User Analysis

Full Service Restaurants (FSR) to Dominate the Market Share Owing to Changing Customer Preferences

Full service restaurants (FSR) have higher demand in the metro and mini metro cities owing to the increasing demand for ready to eat food services, as a large number of the population comprise of working professionals across the world. The increasing dependence of customers on full service restaurants in developed and developing countries is increasing day by day with the availability of high disposable income levels of the people.

Quick service restaurants (QSR) are anticipated to have remarkable growth due to enhancement in food delivery services. For instance, McDonald, Dominos, KFC, Subway, and many more are the global franchise of quick service restaurants that provide take away food facilities to their customers.

Hotels, Pubs, Clubs, and Bar Lounges are expected to portray significant growth due to the rising young generation population and their demand for such lounges. Thereby, contributing to the growth of the global market. The other segment consists of general and retail stores and is likely to exhibit steady growth owing to the limited demand for food service equipment.

REGIONAL INSIGHTS

Asia Pacific holds the largest food service equipment market share and is projected to depict exponential growth over the forecast period due to the emerging hospitality industry in India, China, and Japan. As per the statistics shared by the National Restaurant Association of India (NRAI), the country’s food service industry is expected to reach around USD 843 billion by the end of 2023, offering opportunities to the market growth. Moreover, the increasing demand for frozen food products in China and Japan is expected to boost the food service machinery market growth across the region.

North America is anticipated to showcase a dynamic growth over the projection timeline due to the rising numbers of food joints in the region. Restaurants across the U.S. and Canada are making large investments to enhance their customer services. Therefore, using several food service equipment such as cooking equipment, refrigerators, and ware-washing equipment, etc. will help restaurants to improvise their food services. As per the data shared by the National Restaurant Association of the U.S., in 2019, the country has over one million restaurants, providing ample opportunities to market growth. Moreover, the growing demand for technologically advanced equipment in the U.S. food industry will drive market growth over the forthcoming years.

The food service industry of Europe is expected to witness rapid market growth, with increasing hotel & restaurants, and developing travel & tourism sector across the region. Restaurants are tending towards adopting technology based advance food service equipment to enhance their services, thus surging the market growth. Moreover, the rising demand of bakery and confectionery food products in Germany, UK, and France are anticipated to create enormous demand for the food service machines over the forthcoming years.

The Middle Eastern and African countries are shifting their preferences towards packaged and frozen food products due to increased disposable income and lifestyle. The UAE and Saudi Arabian governments are announcing new Foreign Direct Investments (FDI) within the food service industry. Similarly, Brazil is expected to contribute the largest market share in Latin America’s food service industry due to changing customer preferences and increasing investments from major market players across the world.

KEY INDUSTRY PLAYERS

Vollrath Company Offering Innovative Line of Frozen Beverage Machine to Enhance Market Potential

Welbilt, The Middleby Corporation, Standex International Corporation, and Ali Group S.r.l. are the major market players focusing on expanding their product portfolio by introducing innovative food service equipment worldwide. In May 2018, The Vollrath Company, LLC introduced a new line for frozen beverages granita machine. These machines are compact in size and used for a variety of high margin cold, frozen, and milk-based drinks including ice tea or coffee, frozen cocktails, granitas, smoothies, and many more. Furthermore, the major market players are expanding their product portfolio with low maintenance costs.

LIST OF KEY COMPANIES PROFILED:

• Welbilt (New Port Richey, Florida)


• The Middleby Corporation (Elgin, Illinois)


• Ali Group S.r.l. (Milan, Italy)


• Standex International Corporation (Salem, New Hampshire)


• Hoshizaki America, Inc. (Peachtree City, Georgia)


• FUJIMAK CORPORATION (Shinbashi, Tokyo)


• ITW FOOD EQUIPMENT GROUP (Troy, Ohio)


• Dover Corporation (Downers Grove, Illinois)


• Duke Manufacturing (‎St. Louis, Missouri‎)


• The Vollrath Company, LLC (Sheboygan, Wisconsin)


• Haier Inc. (Qingdao, China)


• Smeg S.p.A. (Guastalla, Italy)

KEY INDUSTRY DEVELOPMENTS:

• July 2020: Hydro Systems, a brand of warewashing equipment under PSG Dover (Pump Solutions Group, acquired by Dover Corporation) launched two new integrated rinse pumps, EvoWash and EvoRinse. This equipment is integrated with optional powdered or solid detergent dissolver ideal for commercial as well as non-commercial food service operations

• July 2018:  Welbilt, a global commercial foodservice equipment provider, announced the agreement with NexGen Procurement Group, a professional food service equipment procurement group for Cleveland and Delfield. These organizations became primary suppliers of refrigeration, steam, and serving systems under NexGen Procurement Group.

REPORT COVERAGE

The food service equipment market research report provides a detailed market analysis and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation