Market Growth Within The Global Foodservices Equipment Industry
Eatting out is an important part of many peoples live, and the industries behind it is growing.
Advances in new technologies, increased production speed, decreased costs, and automation are all paving the way for record levels of growth within the foodservices equipment industry, with 2017 set to bring increases in turnover across the board.
Forecasters at Allied Market Research (Foodservice Equipment Market: Global Opportunity Analysis and Industry Forecast, 2014-2022) are projecting the market values of between $43.4 billion and $60.8 billion by 2022; this is up from $29.8 billion in 2015.
Cooking equipment is expected to increase faster than other types of foodservice equipment, with North America occupying the largest portion of the market, at 33%. Europe and Asia following rapidly behind with a merging market set to provide increasing competition.
Reasons for such a rapid growth within the industry are many and varied, but largely rest on the following:
- Increased tourism throughout the world as globalisation settles and takes hold within the hotel and restaurant industries.
- Advances in technology lending greater efficiency to the urban infrastructure, particularly in emerging markets and developing countries.
- Economic prosperity in all developed nations, leading to greater increases in disposable income.
- Developments in the food services industry (e.g. the growth of novelty food outlets, such as Sushi bars and mobile gourmet foods) leading to a greater application for foodservices equipment.
These trends all contribute to sustained and increasing growth within the food services industry.
Furthermore, cultural changes in food habits are increasing demands for refrigeration, storage & handing. For example, the health industry has increasingly pushed a health-food narrative. For example, the NHS recommends we consume 5 fruit and vegetables a-day (increasing to 7 a-day by 2018). Changes in the way we eat and store our foods are driving part of the growth for food service equipment.
Following the 2008 global recession, the majority of economies and industries are in a period of growth. This is particularly true of European markets, which are slowly recovering from the Greek crisis.
Most of Europe has a strong restaurant and café culture, and this is helping to drive the market. For example, in the early part of 2017, Southampton is opening an extension to its West Quay shopping centre, which includes at least 20 new restaurant and cafés.
Such developments are common around the UK and Europe and provide much of the impetus for growth within the commercial catering equipment market.
According to the research, the health and fresh food drive accounted for around 30% of the market share for growth in 2015. This included both domestic and commercial equipment.
North America will continue to dominate the market, as it has for the last decade. This is largely due to the increased adoption of newer technologies within the American food industry.
Restaurants, cafes, and home kitchens are all adapting and transforming and this has kept the market well stocked with new customers.
However, Asia-Pacific is the fastest growing market, containing within it many emerging markets, as well as the Chinese dominance. Their biggest market is in storage & handling equipment and cooking equipment, which account for 28% of the market share in Asia-Pacific.
In part, this is the result of increasing tourism to that part of the world, and the accompanying growth in strength and efficiency of the infrastructure. As the area evolves to accommodate tourists – particularly Western tourists – the need for commercial kitchen equipment and its ancillary components grows ever stronger. Couple this with the arrival of cost-effective technology, and their rapid adoption of cooking and storage technologies is predictable.
Summary of key trends and developments:
- The foodservice equipment market was largely dominated by cooking equipment, which is projected to account for 30% of the market by 2022.
- The restaurant and hotel industry will generate the largest profits within the foodservices equipment industry – across all regions.
- North America will continue as the largest consumer and contributor within the foodservices equipment industry. In view of this, mergers between European and Asian markets are likely.
- With increasing leisure and tourism to developing countries, refrigeration and storage & handling equipment sales will grow by a whopping 6.7% per year.
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