Hospitality Industry Steering Market Growth
Hospitality industry is among the primary end-users of food service equipment market. The growth of the hospitality industry directly influences the growth of the market. The critical equipment required by the hospitality sector includes refrigeration equipment, commercial grills, ice machines, salamander broilers, griddles, grease traps, chef knives, commercial shelving, and squeeze bottles.
Over the last decade, hospitality sector has observes sturdy growth and thereby promoted the use of food service equipments. However, the recent outbreak of COVID-19 has severely impacted the hospitality industry, Shutdowns and lockdowns imposed by the governments around the globe has resulted decreasing volume of business. This trend is anticipated to hurt the business volumes of hospitality industry over the short term period. Thereby, is expected to hamper the growth of food service equipment over the predicted timeline.
Rising Popularity of Quick Service Restaurants Influencing Market Growth
Quick service restaurants are defined as the fast food centers that require minimal time duration of food preparation. The sector is also the key end-users for the food service equipment products. The growth of the quick service restaurants is expected to drive the futuristic growth for the food service equipments.
Changing lifestyle and rising disposable income has greatly influenced the growth of quick service restaurants in developing countries such as India, Brazil, Thailand, and others. For instance, nearly 74% of the India's food industry Is captured by quick service restaurants and casual dining restaurants. The rising popularity of quick service restaurant chains such as KFC, Subway, McDonald's, and others is projected to positively drive the demand for food service equipment market over the forecast period.
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On the basis of product, the market is segmented into kitchen purpose, cooking equipment, ware washing, food holding and storing, and others. Within this category, Kitchen purpose segment is anticipated to dominate the market share over the forecast period. The rising prominence for modular kitchens In restaurants around the globe is promoting the segments growth. Another prominent factor which is likely to push the segments growth is increasing focus towards enhancing efficiency inside kitchen rooms of quick service restaurants. Owing to the aforementioned drivers, the kitchen purpose product segment is likely to observe swift growth while maintaining its dominance in terms of market share over the forecast period.
Food holding and storing product segment is expected to emerge as the second most dominant product segment over the forecast period. The rising popularity of processed food coupled with rising emphasis on international food trade is projected to augment this product segments growth over the coming years. In addition, rising awareness towards the wasting of food and its impact on global food supply chain is likely to further fuel the growth for food holding and storing product segment.
On the basis of end-use, the market is segmented into full service restaurant, quick service restaurant, institutional and others. Within this category, full service restaurant segment is likely to dominate the market share over the coming years. The rising trend towards outdoor dining by individuals and families is driving the demand for full service restaurants. The segment is likely to witness steady growth rates over the short term period. However, emergence of coronavirus and shutting down of public places such as eateries and restaurants is likely to hurt the market growth of the segment over the short term period.
Quick service restaurant segment is predicted to observe swift growth over the forecast period. The rising popularity of this segment is largely attributed to millennial population which due to their hectic lifestyle prefer easy and quick fast food. In addition, this category of restaurants has observes strong demand from developing countries such as India, Thailand, Malaysia, and others. The improving living standards of people in these aforementioned countries is boosting the penetration of quick service restaurants. Thus, steady demand for fast food coupled with rising popularity in developing countries is influencing the market growth of quick service restaurants which in-turn is expected to boost the market growth for food service equipments over the forecast period.
The key vendors of the industry are Vollrath Co., SMEG, Manitowoc Company, Middle by Corporation, Hobart Corporation, Hoshizaki Electric Co. Ltd, Haier Group Corporation, Funeral Corporation, Duke Manufacturing Co. Inc., Dover Corporation, Ali Group, and Electrolux Corporation.
The industry vendors are extensively investing in enhancing market presence by launching innovative products. At the same time, industry vendors are focusing towards strategic acquisitions to enhance their market presence. For instance, in 2018, Middleby Corporation acquired a manufacturer of cooking equipment called Crown Food Service Equipment.
Food Service Equipment is defined as the equipment or machinery required by commercial kitchens for the purpose of food preparation and storage.
Global Food Service Equipment Market Segmentation
-Food Holding & Storing
-Full Service Restaurant
-Quick Service Restaurant