The value of the global foodservice equipment market is tipped to expand at a healthy compound annual growth rate (CAGR) of 4.7% over the next 10 years, new research suggests.
Rising inclination towards open kitchens and growing adoption of digital menus and online ordering facilities are among some of the key factors that will drive demand for new kit, creating a market worth £49.1 billion (£36.2 billion) by 2027, according to Future Market Insights.
With the number of restaurants, hotels, and fast food joints around the world continuing to increase, the value of the catering equipment market is poised to become significantly higher than the $29.8 billion (£21.9 billion) that it was at the end of 2016.
“Developing regions are expected to raise significant demand for foodservice equipment,” the report stated. “Asia Pacific will remain the most lucrative market for foodservice equipment.”
Increasing market demand for processing, handling, and storage of food products will continue to fuel the market for innovative foodservice equipment.
In addition to cooking and baking equipment, the demand for refrigerators and other freezing equipment is also projected to propel due to an ever-growing need for food storage. Evolving consumer lifestyle, including the consumption of packaged and ready-to-eat foods will be another strong factor pushing the global market growth.
The proliferation of open kitchens and third party takeaway will bolster growth, while traditional big users of catering equipment, such as hotels, restaurants, nursing homes and hospitals, will also “raise substantial demand” for advanced foodservice equipment in order to process and serve significant amounts of food within a timeline, the report said.
“Rising consumer inclination toward healthy yet indulgent food, growing preference for grab-and-go culinary settings, and digitised foodservice are a few recent trends in the global FSE market. In addition, open kitchen renovation is a trend among restaurant owners and foodservice operators. These trends will continue to hold a positive impact on the market growth.”
Based on product type, cooking equipment segment is expected to continue to lead the market during the assessment period with a high market valuation and is poised to register a significant CAGR during this period.
In terms of end-users, full-service restaurants are expected to remain the largest consumer of foodservice equipment, followed by quick-service restaurants. Full-service restaurants spent $ 21 billion (£15.5 billion) on kit last year, compared with $5 billion (£3.6 billion) by QSRs.
By region, Asia Pacific, excluding Japan, is predicted to become the largest buyer of foodservice equipment market. In 10 years time it will be worth £17 billion (£12.5 billion), with an anticipated CAGR of 7.1% outstripping the global growth rate.