Food Service Equipment Market Size (2024 – 2030)

The global food service equipment market was valued at USD 36 billion and is projected to reach a market size of USD 54.13 billion by the end of 2030. Over the forecast period of 2024–2030, the market is projected to grow at a CAGR of 6%.

Food service equipment helps facilitate food preparation. In addition to this, food service equipment ensures food safety in commercial kitchens. It is made up of cookware and dishware as well as equipment for preparing, storing, and serving food that is used to prepare and preserve food for use in businesses. In the past, the market was primarily focused on basic needs for serving, cooking, and storing. This included equipment like refrigerators, stoves, and serving carts. Presently, the market has witnessed an enormous expansion due to innovation in technologies and demand. In the future, with increasing disposable income and an emphasis on sustainability, immense growth is anticipated.

Key Market Insights:

With a market share of almost 30% in 2022, LG was the market leader in India for refrigerators, followed by Samsung with 29%.

It is anticipated that between 2024 and 2028, the number of refrigerators sold worldwide will rise by 16.1 million units to 206.37 million units in 2028.

Over 300 million ovens and cookers were sold worldwide in 2023, according to Statista, bringing in $110.40 billion in sales.

The value of food processing machinery produced in India in 2022 was 122.1 billion Indian rupees.

According to the Centers for Disease Control and Prevention (CDC), foodborne infections cause 128,000 hospital admissions, 3,000 fatalities, and 48 million illnesses annually in the US. To reduce this number, advanced sanitation technologies with antimicrobial, ozone, and UV protection are being implemented in equipment like refrigerators, ovens, mixers, etc.

Food Service Equipment Market Drivers:

Changing consumer preferences have been boosting the market.

Over the years, there have been many changes in the standard of living. This is because of economic progress that has led to urbanization. People can invest in and afford different equipment. Besides, people have realized the importance of having good health. This equipment helps in temperature control, preventing bacterial contamination, storage, cooling, heating, grinding, processing, etc. This facilitates a healthier nutritional profile. Additionally, better quality and cooking efficiency are achieved. This reduces the risk of foodborne diseases. Furthermore, the rise in the number of restaurants, hotels, and other eateries is elevating the need for this equipment for preparing better food.

Technological advancements have been fueling the acceleration.

Continuous innovations in equipment have led to the creation of superior quality.  Automation and robotics are two such fields that have led to efficient technologies. This is used in equipment like dishwashers, cooking appliances, and other food preparation systems. With the aid of these fields, manual labor can be reduced, productivity can be increased, and consistency can be achieved. Secondly, connecting equipment with sensors that are IoT-enabled helps in data analysis, remote monitoring, and predictive maintenance. Additionally, settings can be monitored and changed as per the needs of the food products. This is mainly used in smart refrigerators to control temperature settings. Thirdly, AI and ML technologies help with enhancing decision-making and optimizing the process. These fields even help in gaining insights to predict customer demand, predict failures, and reduce waste. Apart from this, smart control interfaces have touch features that provide greater control and flexibility to people. Remote operations are made possible by these interfaces, allowing people to access them from anywhere.

Food Service Equipment Market Restraints and Challenges:

Cost constraints, lack of accessibility, and environmental impact are the main issues that the market is currently facing.

High initial costs are required for the installation of this equipment in commercial and residential areas. Energy costs for the smooth running of the equipment are vital. Some of them can consume a lot of watts, increasing expenses. Additionally, maintenance and upgrade charges add up. This can be a major barrier for small and medium-sized businesses with limited capital resources. Secondly, many rural regions might not have access to these technologies. They require electricity and power to run. A lot of villages still do not have a stable connection. As such, people living in these areas might opt for other options. Thirdly, one significant impact is the enormous consumption of energy. High energy demand leads to the emission of greenhouse gases and other harmful substances. The waste generated contributes to a higher carbon footprint. As such, manufacturers must adopt suitable strategies to address these concerns.

Food Service Equipment Market Opportunities:

Focusing on the environment and sustainability provides the market with an ample number of possibilities. Adopting sustainable practices can result in cost savings and regulatory compliance. This attracts environmentally conscious customers. Using energy-efficient materials, reducing waste and recycling throughout the product lifespan, and designing equipment with a low environmental impact are a few examples of these practices. Secondly, the customization of this equipment is beneficial. By tailoring the technology to the needs of clients, industries, and weather conditions in different regions, a broader consumer base can be achieved. Apart from this, expansion into emerging economies is advantageous. Asia, the Pacific, Latin America, and the Middle East have rapidly growing economies. Investments and funds are rising as a result. Companies can prioritize product launches and collaborations in these areas to increase revenue generation.

FOOD SERVICE EQUIPMENT MARKET REPORT COVERAGE:

Food Service Equipment Market Segmentation: By Product Type

• Cooking Equipment

• Storage & Handling Equipment

• Ware Washing Equipment

• Food & Beverage Preparation Equipment

• Serving Equipment

Cooking equipment is the largest growing product type. Cooking may be done more quickly, efficiently, and safely with the use of cooking equipment. Making it simpler to measure ingredients and keep an eye on the cooking process can also help lower stress levels. This category includes appliances like mixers, induction pans, pressure cookers, and slow cookers. Furthermore, since good cooking equipment conducts heat more effectively, it can help save energy expenditures. Additionally, it aids in reducing preheating time. Storage and handling equipment is the fastest-growing segment. These equipments are made to improve productivity in food handling and manufacturing processes, guarantee food safety, and uphold quality standards. Cooking may be done more safely and efficiently with the right kitchen storage and handling supplies. In industrial kitchens, they can also aid in preventing food waste and illnesses. Fridges, freezers, walk-in cold storage units, and stainless-steel tanks are a few types of handling and storage appliances used in kitchens.

Food Service Equipment Market Segmentation: By End-Users

• Full-Service Restaurants

• Quick Service Restaurants

• Catering

Full-service restaurants are the largest growing end-users. Food service providers use this equipment to expedite the preparation process and decrease delivery downtime. This trend began with the introduction of digital dining trends. Throughout the past several years, full-service restaurants have seen a surge in business due to the shift in the dine-out culture for both formal and casual meetings during travel and tourist activities. Quick-service restaurants are the fastest-growing segment. In the food service equipment industry, quick service restaurants (QSRs) are well-liked end customers because of their high volume of operations, streamlined efficiency, and focus on affordable solutions. Commercial-grade machinery is needed for these restaurants to ensure consistent portion sizes and food quality despite handling high production rates. They frequently invest in small, adaptable appliances. Furthermore, QSRs benefit from robust construction to lower downtime and maintenance costs and energy-efficient technology to minimize running costs.

Food Service Equipment Market Segmentation: By Distribution Channels

• Offline

• Online

The offline channel is the largest growing. Customers may converse with the shops, pose inquiries, and evaluate the visual appeal of their products. People who are not familiar with the Internet tend to make purchases in person. Easy accessibility is still another key element driving this category. These establishments are often found in every nearby area, which drives segment growth. Online retail is the distribution channel with the fastest rate of growth. The sector has grown as a result of the increasing digitization trend. Customers use this option due to its convenience. Customers may purchase products online and have them delivered straight to their houses. Additionally, they will find it simpler to get a wider variety of both native and imported goods. Online retailers may also benefit their customers by offering discounts and free shipping on frequent orders.

Food Service Equipment Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

Asia-Pacific is the largest growing market. Countries like China, Japan, Australia, India, and South Korea dominate the market. A lot of well-established players are present in this region. These companies have a global presence, leading to greater profits. Prominent ones include Rational AG, Hoshizaki Corporation, Fujimak Corporation, and Middleby Corporation. Secondly, rapidly growing industrialization has led to a larger number of restaurants, cafes, and hotels. Many people in this region prefer to try out new cuisines regularly. This creates an augmentation for the equipment to comply with the hygienic and efficiency standards. emerging economies of Thailand, Indonesia, and Vietnam have a growing tourism sector. This leads to a higher demand for different eateries for tourists and locals, facilitating the expansion of this market. North America is the fastest-growing market. The United States and Canada are at the forefront. The need for food service equipment in the region is driven by the growing number of food-borne illnesses and diseases, which necessitate the need for advanced kitchen equipment that can ensure food safety and hygiene. Food service companies are progressively implementing smart kitchen gadgets and technology that may expedite and enhance the cooking process. The region's economy is making it easier to fund the projects with the latest technologies. Regular collaborations and launches are helping the market grow.

COVID-19 Impact Analysis on the Global Food Service Equipment Market:

The outbreak of the virus had a mixed impact on the market. The new normal included social isolation, movement restrictions, and lockdowns. Transportation, logistics, and supply chain were all impacted by this. The majority of the businesses and eateries were closed due to the strict enforcement of laws and regulations. This caused disruptions in the manufacturing and production processes. Safety rules hindered the operations. The main goal was to work remotely. A lot of folks lost their jobs. Most of the money was allocated to healthcare-related programs. The tourism sector encountered losses as people were advised to stay at home. This caused a severe decline in the food & beverage industry, impacting the demand for food service equipment. As per a report by Reply, in certain markets, the early phases of the COVID-19 pandemic resulted in an 80% decrease in F&B open rates. This caused delays in collaborations and launches. Many merely purchased necessities. However, on the other hand, the pandemic increased measures for hygiene and sanitation. People started to emphasize clean food. Measures were taken to cook that were hygienic by using various equipment. Home cooking and baking activities saw an upsurge due to boredom. According to Supermarket News, 31% of families, as opposed to just 18% before the epidemic, have had supper at home every day since COVID-19. A lot of people started to purchase ovens, grillers, fryers, dishwashers, etc. Stoves and induction pans were regularly used in households due to the rise in the precaution of eating only hot food. This is because hot and warm foods are known to kill the presence of germs, if any. Post-pandemic, the market has started to pick up and is growing. Normal functioning is made possible by loosening of rules and guidelines.

Latest Trends/ Developments:

Veganism has gained tremendous popularity over the years. This includes the practice of incorporating plant-based foods. Dairy products like milk, eggs, and butter are excluded. Businesses are trying to market food service equipment tailored to vegan diets. This includes air fryers, eco-friendly pans, grillers, vegan food wraps, and blenders. Measures are being taken to make this equipment from unique materials that are recycled or biodegradable.

Key Players:

1. Middleby Corporation

2. Illinois Tool Works Inc. (ITW)

3. Welbilt, Inc.

4. Rational AG

5. Ali Group S.p.A.

6. Hobart Corporation (ITW)

7. Electrolux AB

8. Manitowoc Company, Inc.

9. Hoshizaki Corporation

10. Fujimak Corporation

• In March 2024, Elista, an Indian producer of electronics and home appliances, introduced a new range of single-door refrigerators in the Indian market. Six versions with capacities ranging from 190 to 230 liters and energy efficiency ratings ranging from 1-star to 4-star are part of the new range. Starting at Rs 23,999 for the base model with a capacity of 190 liters, the highest model costs Rs 38,999 for a capacity of 230 liters.

• In February 2024, Bürkert introduced a new line of simple-to-maintain, tool-free valves for controlling liquids and steam. The U.S. Food and Drug Administration (FDA) has approved the range for use in food and beverage applications because of its durability and resistance to high temperatures. A solenoid directly operates the valves, and its straightforward design allows high-volume OEM procurement to be done at a lower cost.

• In February 2023, Samsung introduced the Series 7 Bespoke AITM Oven. With its AI Pro Cooking technology, which can identify 80 different components and cuisines, it can suggest the ideal cooking temperature, mode, and duration. Additionally, the oven's handleless design lets you open the door with just a push.