Food Service Equipment Market to Reach $56.31 Bn, Globally, by 2027 at 6.2% CAGR: Allied Market Research
Surge in preference for quick-service restaurants, growth in the food service industry across the developing economies, and advancement in refrigeration technology drive the global food service equipment market
PORTLAND, Oregon, May 14, 2020 /PRNewswire/ -- Allied Market Research published a report, titled, "Food Service Equipment Marketby Product Type (Cooking Equipment, Storage & Handling Equipment, Ware Washing Equipment, Food & Beverage Preparation equipment, and Serving Equipment) and End Use (Full-Service Restaurants & Hotels, Quick Service Restaurants & Pubs, and Catering): Global Opportunity Analysis and Industry Forecast, 2020–2027." According to the report, the global food service equipment industry garnered $34.25 billion in 2019, and is estimated to reach $56.31 billion by 2027, registering a CAGR of 6.2% from 2020 to 2027.
Drivers, restraints, and opportunities
Surge in preference for quick-service restaurants, growth in the food service industry across the developing economies, and advancement in refrigeration technology drive the global food service equipment market. However, heavy investment required for the installation of food equipment restrains the market growth. On the other hand, growing demand for energy and cost-efficient products creates new opportunities in the coming years.
During the coronavirus pandemic, the revenue generated from the full-service restaurants and hotels segment will be reduced for a few months as the government has ordered to shut their business till further notice to stop the spread of coronavirus. However, it will rebound quickly as market resumes.
The demand for cooking, storage and handling equipment from restaurants and hotels is likely to experience a downfall during the coronavirus pandemic as the hospitality industry have completely shut down their operations due to lockdown.
The government of the countries such as China and India have partially lifted the lockdown to start the commercial activities and have permitted the online delivery of food which likely is to increase the demand for food service equipment across these countries.
The cooking equipment segment to dominate throughout the forecast period
Based on product, the cooking equipment segment accounted for more than one-fourth of the total share of the global food service equipment market in 2019, and is expected to maintain its leadership status in terms of revenue throughout the forecast period. This is attributed to increased usage of food service equipment as it helps in reducing the labor cost, improving food safety, and minimizing the operational cost. However, the storage and handling equipment segment is estimated to portray the fastest CAGR of 7.3% from 2020 to 2027. This is attributed to growing demand for storage and refrigeration equipment from the food and beverage industry.
The full-service restaurants and hotels segment held the lion's share during the forecast period
Based on end-use, the full-service restaurants and hotels segment contributed to the highest market share, accounting for more than two-thirds of the global food service equipment market share in 2019, and is estimated to maintain its leadership position during the forecast period. This is attributed to the adoption of new technologies for preparing quick-served foods among full-service restaurants. However, the quick-service restaurants and pubs segment is estimated to generate the fastest CAGR of 8.3% from 2020 to 2027. This is attributed to growing popularity of quick service restaurant chains due to experimental food items, limited edition menu, and unique food combinations.
North America to maintain its dominant by 2027
Based on region, North America accounted for the highest share, holding for more than one-third of the global food service equipment market in 2019, and is projected to maintain its dominant position throughout the forecast period. This is attributed to the adoption of automation in commercial kitchens and increase in sales of food service equipment across the region. However, Asia-Pacific is estimated to portray the fastest CAGR of 8.3% from 2020 to 2027, owing to the presence of numerous hotels and restaurants in this region.
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Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.
We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.