Study: Global foodservice equipment market to reach $50B by 2025
The cooking equipment segment contributed the highest share of 31.3% in 2017, and is projected to maintain its lead through 2025.
The global foodservice equipment market generated $31.09 billion in 2017, and is expected to reach $50.04 billion by 2025, registering a CAGR of 6.40% from 2018-2025, according to a report published by Allied Market Research, Portland, Ore.
The study, “Food Service Equipment Market by Product (Cooking Equipment, Storage & Handling Equipment, Warewashing Equipment, Food & Beverage Preparation Equipment, and Serving Equipment) and End Use (Full-service Restaurants & Hotels, Quick-service Restaurants & Pubs, and Caterings) - Global Opportunity Analysis and Industry Forecast, 2018-2025,” offers comprehensive analyses of the global foodservice equipment market along with the market trends, drivers and opportunities, key player positioning, top investment pockets and competitive landscape.
Increased pace of urbanization, rapid advancements in the hospitality industry and rise in preference for quick-service restaurants (QSRs) continue to drive the growth of the global foodservice equipment market. Moreover, advancements in refrigeration technology, changing trends of food consumption and growing concerns for food wastage and safety supplement the market growth. However, higher installation cost of equipment is expected to hamper the market growth. On the contrary, continuous developments in cooling technologies and favorable government regulations to promote the production of eco-friendly refrigerators and ovens may create lucrative prospects for the market players.
Cooking equipment segment to dominate
The cooking equipment segment contributed the highest share of 31.3% in 2017, and is projected to maintain its lead through 2025. This is attributed to the growing popularity of creative cooking and baking among consumers, which has led to the rise in a variety of dining-out options.
However, the storage and handling equipment segment is anticipated to witness the fastest CAGR of 7.50% during the forecast period, owing to the growing demand for temperature-controlled storage equipment for perishable and processed food items, which augment the demand for storage and handling equipment in restaurant kitchens. The other product types analyzed in the report include washing equipment, food and beverage preparation equipment and serving equipment.
QSRs to grow the fastest through 2025
Among end users, full-service restaurants and hotels contributed nearly three-fourths of the market share in 2017, owing to surge in business-related travels across the globe. However, QSRs and pubs would register the fastest CAGR of 8.5% from 2018-2025, owing to the increase in demand for ready-to-eat meals, rise in disposable income, change in consumer preferences and growth in working women population. Furthermore, the catering segment would exhibit steady growth during the forecast period.
North America to remain dominant, Asia-Pacific to witness fastest growth through 2025
North America contributed 35% of the total market share in 2017, and is expected to retain its dominance throughout the forecast period, owing to high adoption of advanced products and increased demand for processed food in the region.
On the other hand, Asia-Pacific is expected to register the fastest CAGR of 8.40% from 2018-2025 due to rise in disposable income of consumers in the region and increase in spending on luxury eating outlets.