Food Service Equipment Market Size

Increasing awareness of eco-friendly initiatives and energy consumption to boost the market growth

Consumers are becoming increasingly aware of energy consumption and eco-friendly initiatives, leading them to adopt energy-efficient appliances, which creates opportunities for the market. To mitigate the impacts of climate change,  consumption norms emphasize reducing greenhouse gas emissions (GHG). Restaurants, institutional kitchens, and cafes increasingly prefer appliances displaying the ENERGY STAR symbol, a symbol that signifies a product is energy efficient, saving energy and reducing maintenance costs. A study by the Energy Star program of the U.S. EPA found that food service equipment featuring the ENERGY STAR symbol can save operators USD 5,300 annually or about 340 million BTUs.

Further, the market demand has significantly increased due to the emergence of several casual restaurant chains in North America and Europe. According to several regulatory bodies worldwide, companies must sell certified and tested commercial kitchen appliances. By setting these safety standards, restaurant operators and consumers can expect a safe and secure environment. The mission ensure food safety requirements and sanitation protocols are adhered to by the end-user sector, the National Sanitation Foundation (NSF), a non-profit organization that tests, inspects and certifies products, has developed equipment safety standards.

Additionally, with a growing awareness of food safety and smart kitchen appliances, advanced food service machinery will be in high demand in the coming years. Therefore, the introduction of IoT, Big Data, and Industry 4.0 have led to the growth of smart food companies whose equipment is based on technology. In addition to helping restaurants achieve the highest level of food safety, waste reduction, traceability improvement, and cost reduction, this technique can also help to reduce the risks associated with various food serving techniques that are becoming a key trend on the market.

However, technological advancements coupled with changing social customs have created a dynamic market for end-use equipment, another factor driving the growth of the Commercial Restaurant Equipment market revenue.

The expansion of the hospitality sector significantly influences the Global Food Service Equipment Market Industry. As tourism and travel continue to rebound, hotels, restaurants, and catering services are investing in modern equipment to meet the rising expectations of consumers. This growth is reflected in the projected market value of 66.5 USD Billion by 2035, indicating a robust demand for high-quality food service solutions. The hospitality industry's focus on enhancing guest experiences drives the need for innovative cooking and serving equipment. Consequently, food service operators are likely to prioritize investments in advanced technologies to remain competitive and meet evolving consumer demands.

The Global Food Service Equipment Market Industry experiences a notable increase in demand for convenience foods, driven by changing consumer lifestyles and preferences. As more individuals seek quick meal solutions, food service establishments are adapting their offerings. This shift necessitates advanced equipment that can efficiently prepare and serve convenience foods. In 2024, the market is projected to reach 39.3 USD Billion, reflecting the growing need for innovative cooking and storage solutions. Additionally, the trend towards ready-to-eat meals is likely to propel the market further, as restaurants and catering services invest in equipment that enhances efficiency and food quality.

Technological innovations play a pivotal role in shaping the Global Food Service Equipment Market Industry. The integration of smart technologies, such as IoT-enabled appliances and energy-efficient systems, enhances operational efficiency and reduces energy consumption. For instance, smart ovens and refrigerators allow for remote monitoring and control, which can lead to significant cost savings. As the industry moves towards automation, the demand for advanced food service equipment is expected to rise. This trend aligns with the projected market growth, with estimates suggesting a CAGR of 4.9% from 2025 to 2035, indicating a robust future for technologically advanced food service solutions.

Sustainability has emerged as a critical driver in the Global Food Service Equipment Market Industry. With increasing awareness of environmental issues, food service operators are prioritizing energy-efficient and eco-friendly equipment. This shift not only helps in reducing operational costs but also aligns with consumer preferences for sustainable practices. Equipment manufacturers are responding by developing products that minimize waste and energy consumption. The market is likely to benefit from this trend, as establishments seek to comply with regulatory standards and enhance their brand image. As a result, the demand for sustainable food service equipment is expected to grow, contributing to the overall market expansion.

Health consciousness among consumers is reshaping the Global Food Service Equipment Market Industry. As individuals become more aware of nutrition and dietary preferences, food service establishments are adapting their menus to include healthier options. This trend necessitates the use of specialized equipment for preparing and serving nutritious meals. Operators are increasingly investing in equipment that supports healthy cooking methods, such as steamers and grills, to cater to this demand. The focus on health and wellness is likely to drive market growth, as establishments seek to attract health-conscious consumers and differentiate themselves in a competitive landscape.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Restaurant and Kitchen Equipment market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the food service equipment industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturers adopt in the food service equipment industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. The food service equipment industry has provided medicine with some of the most significant benefits in recent years. In the food service equipment market, major players such as Dover Corporation (US), Meiko (Germany), Duke Manufacturing Co. Inc. (US), and others are working on expanding the market demand by investing in research and development activities.

Dover Corporation (US) manufactures industrial products and manufacturing equipment. In addition to printing, identification, marking, coding, waste handling, industrial equipment, Industrial Refrigeration System, display cases, industrial pumps, fuel dispensers, nozzles, piping, and electronic tank gauges, Dover's products serve customers worldwide. In October 2021, Electrolux Professional acquired Dover Corporation's Unified Brands, part of its Refrigeration & Food Equipment segment. Unified Brands manufactures, designs, and markets professional cooking equipment. The focus of Electrolux Professional on the commercial food service market, along with its complementary customer base, product lines, and channel partners, will benefit Unified Brands.

Founded in 1908, Manitowoc Company, Inc., is a diversified industrial manufacturer that manufactures a variety of cranes and related equipment. These include lattice-boom cranes, tower cranes, mobile telescopic cranes, and boom trucks. The company announced in March 2022 that it had reached a deal to sell its Manitowoc Ice business for $1.6 billion in cash, cash-free, and debt-free. Manitowoc Ice designs, manufactures and sells a complete line of ice machines and related equipment. The company's focus on water solutions, as well as its diverse customer base, will prove beneficial to Manitowoc Ice.