The food service equipment industry provides equipment and appliances for commercial foodservice operations. This includes appliances for food preparation and cooking such as ovens, stoves, refrigerators, mixers, and slicers. Other equipment includes warewashing appliances, storage equipment, cooking equipment, and serving equipment. The equipment helps in minimizing food preparation time and ensures standards of hygiene and consistency. Food service operators use such appliances in restaurants, cafeterias, hotels, hospitals and other places.
The global food service equipment market is estimated to be valued at US$ 41.29 Bn in 2023 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
One driver from the heading is Rising Demand for Prepared Food Services. The demand for prepared meals and ready-to-eat food has been increasing significantly. Changing lifestyles and busier schedules have encouraged the adoption of prepared meals. This has boosted the procurement of food service equipment such as cooking appliances and storage equipment by restaurants, fast food chains, and commercial kitchens to meet the growing demand. Furthermore, growth in foodservice establishments such as restaurants, pubs, hotels and cafés have also augmented the demand for commercial kitchen equipment. Rising number of quick-service restaurants coupled with increasing disposable income is expected to propel the food service equipment market growth over the forecast period.
SWOT Analysis
Strength: Global Food Service Equipment Market Size has wide range of products to choose from like cooking equipment, refrigeration equipment, food & beverage preparation equipment and others. This variety allows customers to select products based on their specific needs. Furthermore, demand for energy efficient and eco-friendly food service equipment is increasing which presents an opportunity for manufacturers to develop sustainable products.
Weakness: High initial investments are required to purchase commercial grade food service equipment. Restaurants and commercial kitchens need to invest large capital to setup their infrastructure. Secondly, frequent technology advancements lead to shorter life cycles of some equipment categories like display counters and holding units.
Opportunity: Growing food services sector across regions boosts the demand for new and replacement equipment. Popularity of food delivery and takeaway services encourages opening of cloud/ghost/virtual kitchens which spurs additional equipment procurement. Emerging markets in Asia and Middle East provide new expansion opportunities for manufacturers.
Threats: Economic downturn and inflationary pressures may reduce discretionary spends of customers on equipment upgrades. Trade wars and geo-political issues disrupt global supply chains of raw materials and components. Strict regulations regarding food safety and commercial kitchen standards increase compliance costs.
Key Takeaways
The global food service equipment market is expected to witness high growth over the forecast period supported by expanding food industry worldwide. The global food service equipment market is estimated to be valued at US$ 41.29 Bn in 2023 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 to 2031.
The regional analysis comprises- North America captures the largest share currently led by U.S. market. However, Asia Pacific region is forecasted to witness fastest growth owing to rising number of food joints, restaurants and growing middle class population with higher disposable incomes in countries like China and India.
Key players operating in the food service equipment market are BASF SE, Bayer Cropscience AG, Bioworks Inc., Syngenta AG, Agrauxine by Lesaffre, Germains Seed Technology, Koppert Biological Systems, Novozymes, Marrone Bio Innovations, and Groundwork BioAg. These players are focused on developing sustainable and eco-friendly products through investments in research and development. Partnerships with distributors help achieve wider market reach. The market is moderately fragmented with presence of both international and domestic players. Acquisitions is one of the key strategies adopted by major companies to capture additional market share.
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