Future Market Insights maintains a positive outlook toward the market for foodservice equipment. The global foodservice equipment market is expected to witness steady growth over 2016-2024, at a CAGR of 5.2%. Over the last few years, there has been a rapid increase in foodservice equipment sales, globally. Major foodservice equipment manufacturers are expanding their market footprint in developing countries such as India and China in order to capitalize on the growing consumer spending power in these countries. The retail foodservice equipment market in developing regions is highly fragmented and unorganized. However, a positive change in living standards along with the improving macro-economic scenario has led to a significant surge of various organized retail-based foodservice equipment sales, worldwide.
Rapid growth of the organized retail sector characterized by the rising number of hypermarkets, supermarkets, etc., is expected to boost growth of the overall food chain, which, in turn, is expected to boost the overall sales of foodservice equipment. The high cost price of foodservice equipment is a prime challenge for foodservice operators, as these account for a major share of the total capital cost for new foodservice outlets. Most foodservice outlets are mid-sized; operators cannot sustain the burden of expensive foodservice equipment costs, especially in developing countries. Thus, the replacement rate of foodservice equipment in developing countries is significantly less than that in developed countries. This, in turn, hampers the sales of new foodservice equipment.
Foodservice equipment (FSE) is widely used in commercial settings for food handling and processing applications. Although more popular in full-service restaurants, foodservice equipment is also gaining remarkable traction in quick service restaurants. With widespread adoption in restaurant settings based in developed countries, foodservice equipment is expected to witness an expanding market in developing countries as well. Over the last few years, there has been significant growth of the global foodservice equipment industry. However, quick service restaurants are expanding at a more than double digit growth rate in Asia Pacific and the Middle East & Africa. Increase in per capita food expenditure and rising urban population are major factors propelling the growth of the foodservice equipment industry. Companies are emphasizing on offering customized foodservice equipment to meet the diverse needs of foodservice operators. Furthermore, foodservice equipment manufacturing companies are strengthening their distribution networks to capture larger market shares, worldwide. Over the last decade, urbanization across the developing regions of Asia Pacific and Latin America is increasing at a robust rate. This trend is especially prominent in developing regions that have witnessed the rapid expansion of the foodservice equipment market over the last few decades. This, along with rising disposable income in these regions, is increasing overall consumer spending, especially on foodservice equipment.
The aforementioned factors are expected to boost the overall sales of foodservice equipment. Energy-efficient foodservice equipment is poised to gain traction among various end-use sectors, ranging from full service restaurants to quick service restaurants, owing to their operational advantage. Also, the governments of various countries, worldwide, are promoting green technologies by offering schemes such as tax credit programs, which will further push the demand for foodservice equipment. Increasing awareness regarding green technologies among consumers is expected to lead to the rapid replacement of conventional foodservice equipment over the next few years. This trend is expected to be prominent in the developing regions of Asia Pacific and Latin America.
Foodservice Equipment Market Participants
Some of the major companies participating in the global market for foodservice equipment are Electrolux, Libbey Inc., Tupperware Brands Corporation, Fujimak Corporation, Duke Manufacturing Co. Inc., Cambro Manufacturing Company, Inc., Vollrath Co., Hoshizaki Electric Co., Ltd., Dover Corporation, and Rational AG. However, the three most prominent players include Manitowoc Foodservice Inc, Middleby Corporation, and Ali S.p.A, Hobart Corporation. These three key companies collectively contribute a significant share to the total market revenues. In order to penetrate regional markets through strong distribution networks, key foodservice equipment suppliers are increasing their presence through acquisitions and collaborations.