Food Service Equipment Market To Grow Enormously with Size Worth $56.90 Billion By 2030 |Grand View

Author : Mrudula Karmarkar | Published On : 24 Jan 2024

San Francisco, 24 January 2024: The Report Food Service Equipment Market Size, Share & Trends Analysis Report By Product (Kitchen Purpose Equipment), By End-use (Full Service Restaurant), By Sales Channel (Online, Offline), And Segment Forecasts, 2024 - 2030

The global food service equipment market size is expected to reach USD 56.90 billion by 2030, registering a CAGR of 7.1% during the forecast period, 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 2024, 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.

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Changing food consumption patterns, increased demand for takeaways and the expanding hospitality sector are some of the key factors driving the market. Furthermore, factors such as increasing digitalization, the need for sustainable & eco-friendly equipment, and stringent consumer safety norms are expected to create promising growth opportunities for the market in the near future. The market has rapidly evolved following the changing needs of clients for outfitting their kitchen spaces. Changing social customs coupled with technological progressions, have created a dynamic marketplace for the equipment used in the end-use sector.

Food Service Equipment Market Report Highlights

• The Asia Pacific market accounted for the highest revenue share of close to 36% in 2023 and is expected to retain its dominance in the market over the forecast period.
• In terms of product, the kitchen purpose equipment segment dominated the market with a revenue share of over 35% of the overall market in 2023
• The Full Service Restaurant (FSR) end-user segment is estimated to dominate the food service equipment industry over the forecast period.

The market has rapidly evolved following the changing needs of clients for outfitting their kitchen spaces. Changing social customs coupled with technological progressions, have created a dynamic marketplace for the equipment used in the end-use sector. From the discovery of equipment for preparing and storing food, such as cooking stoves, ranges, and electrical refrigerators, to the availability of custom foodservice appliances to cook different cuisines, the range of technologically-advanced and innovative products has entered the market over the years and is expected to favor the market growth in the longer run. Furthermore, rapid technological advancements achieved with the help of continual Research & Development (R&D) activities have helped appliance manufacturers to offer technology-driven efficiencies to their clients.

The market demand has significantly increased in response to the emergence of several casual restaurant chains in North America and Europe. Companies are mandated to sell certified and tested commercial kitchen appliances according to the safety rules laid by several regulatory bodies worldwide. These safety standards aim to create a guarded environment for both the restaurant operators and consumers. National Sanitation Foundation (NSF), an American product testing, inspection, and certification non-profit organization, has developed equipment safety standards to ensure food safety requirements and sanitation protocols are maintained by the end-use sector. With food safety being the utmost priority, standards have been set for the material used, design, and equipment architecture.

The growing awareness about energy consumption and eco-friendly initiatives facilitates consumers to adopt energy-efficient appliances, thereby creating opportunities for this market. Energy consumption norms across the globe emphasize reducing the Green House Gas (GHG) emissions to mitigate the rising impact of climate change. End customers are increasingly preferring appliances holding the ENERGY STAR symbol, a mark of energy efficiency of the equipment, which helps restaurants, institutional kitchens, and cafes save energy while also reducing maintenance and utility costs. As reported in 2018 by the Energy Star program of the U.S, Environmental Protection Agency (EPA), food service equipment with the ENERGY STAR symbol helps the end-use operators to save USD 5,300 or around 340 MMBTU per year.

Food Service Equipment Market Report Scope

The rising innovation is leading to the Industry 4.0 revolution in the industrial and commercial sectors. The advancements in semiconductors and microelectronics have driven the development of high-quality and high-precision equipment for various applications in the food industry. Connected devices, real-time alerts, workflow processing, temperature monitoring, remote control, etc., are some of the advanced features being researched and introduced in the food service equipment. Key manufacturers of the food service equipment are launching such innovated equipment, targeting the high-end commercial kitchens, cafes, and restaurants.

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. Moreover, the food service equipment market is also characterized by technological advancements that incorporate automation, digital features, advanced user interface, device linking capabilities, and IoT specifications. In May 2022, Welbilt, Inc. launched the Largest Smart Restaurant Ecosystem. This is likely to empower the offering for the connected restaurant equipment,KitchenConnect. Additionally, strategies such as new product launch targeted marketing are being adopted to gain a competitive edge in the market.

List of Key Players in the Food Service Equipment Market

• AB Electrolux
• Ali Group S.r.l. a Socio Unico
• Dover Corporation
• Duke Manufacturing
• Haier Group
• SMEG S.p.A.
• The Middleby Corporation