Food service equipment, also known as commercial refrigeration, is used extensively across hotels, hospitals, restaurants, and the food and beverages industry. The booming food and hotel industry has a favorable impact on the performance of the global food service equipment market.
Ongoing market trends indicate that the global food service equipment market will reach a market value of US$44,326 million by 2020, thereby exhibiting a CAGR of 4.8% between 2014 and 2020. The size of the global food service equipment market in 2013 was US$31,544 million. As mentioned earlier, the hospitality market drives the global market for food service equipment.
What Makes North America a Prominent Player in the Food Service Equipment Market?
The two main parameters based on which the global food service equipment market is segmented are type and geography. Type-wise, this steadily progressing market is segmented into walk-ins, ice cream cabinets and machines, blast freezers, GDMs, refrigerated vending machines, ice machines, beverage dispensers, commercial freezers and fridges, and others. The segment of walk-ins boasts an ever-increasing demand from the global hospitality market. There are two types of walk-ins, namely walk in freezers and walk-in coolers, the demand for both being high.
Browse Market Research Report of Food Service Equipment Market:
Walk-ins derive much of their demand from the global healthcare sector, which calls for efficient vaccine storage. It is anticipated that the North America food service equipment market will expand robustly in the years to come owing to the booming healthcare market.
Unit-wise, the demand for walk-ins was registered at 990,790 last year. The inclination of the industrial sector of North America towards adopting newer technologies is one of the key factors fuelling the market for food service equipment in this region. Geographically, the global food service equipment market is categorized into the following: Latin America, North America, Central Europe, Northwestern Europe, Southwestern Europe, Eastern Europe, Russia, Asia Pacific, and MEA and Turkey.
The Problem of High Capital Expenditure
High energy efficiency and hygiene standards, coupled with surging demand for environment-friendly equipment and appliances, are the ongoing trends that drive the global food service equipment market. Interestingly, the global food service equipment market at present is characterized by high demand for such appliances from schools, universities, and other educational institutions as well, and not just the hospitality sector.
Moreover, the frequently changing regulations of food regulatory authorities have also been fuelling the global food service equipment market over the past couple of years. The global food service equipment market did witness a substantial demand crunch during the period of recession. However, with economic recovery and widespread availability of credit, the demand for such equipment was restored in subsequent years.
In the face of growing demand, the global food service equipment market has to deal with issues such as complexities in the working of the equipment. High capital investment is another glaring restraint upon the global food service equipment market.
Browse Press Release of Food Service Equipment Market:
Meiko, Fujimak Corporation, Hobart Corporation, Ali Group, Rational AG, Libbey Inc., and Electrolux are a few of the many companies operating in the global food service equipment market. Japan-based Fujimak Corporation recently launched the VarioCooking Center, which is a unified bulk cooking unit and ensures efficient energy utilization.