Key Market Overview:
Commercial Kitchen Equipment/Appliances Market is projected to grow from USD 89.45 Billion in 2022 to USD 159 Billion by 2030, at a CAGR of 6.6% in the forecast period, 2023-2030.
Commercial kitchen appliances are designed and built for use in professional kitchens and food service establishments where the appliances are used to prepare and cook food for a large number of people. Commercial kitchen appliances are considered to be more robust and durable than domestic kitchen appliances. The rising awareness of food safety and hygiene is driving the growth of the market as commercial kitchen appliances help to ensure the proper storage, preparation, and cooking of food to prevent food-borne illnesses.
Technological advancements in commercial kitchen appliances is one of the key factors boosting the market growth. Additionally, energy-efficient motors, improved insulation, and efficient heating/cooling systems are being used to design energy-efficient commercial kitchen appliances. The approach of using energy-efficient appliances has the potential to reduce operational costs and enhance sustainability, making commercial kitchen appliances a preferred choice for businesses. Moreover, several companies are launching cost-effective commercial kitchen appliances which in turn is positively impacting the market growth. For instance, in July 2020, Unified Brands introduced new line of commercial kitchen Ventilation Hoods, specifically designed to meet the price-sensitive requirements of foodservice professionals while delivering convenience, performance and versatility for a variety of applications.
The rise of delivery services and the need for speed and efficiency in food preparation has led to a demand for equipment that can handle high volumes of food with consistent quality. Moreover, the foodservice industry is investing in high-quality commercial kitchen appliances to facilitate smooth and uninterrupted kitchen operations to meet the demands of large volumes of food and ensure consistent quality and hygiene standards. The proper utilization of efficient commercial kitchen appliances, restaurants expand the delivery and takeout operations, enhance the overall service quality, and capitalize on the increasing market demand. For instance, according to Tacit Corporation 39% of quick-service restaurants have implemented more online ordering systems.
The presence of stringent regulations and standards that govern the design, manufacturing, and use of the appliances is restraining market growth. The regulations are primarily focused on ensuring the safety and hygiene of the food products prepared using commercial kitchen appliances. For instance, the regulations include health and safety codes, electrical safety standards, sanitation regulations, and energy efficiency requirements. Businesses operating in the market often fails to comply with the regulations, which in turn restraints the growth of the market.
The incorporation of Artificial Intelligence (AI) with commercial kitchen appliances offers numerous opportunities for market growth in the upcoming period. The utilization of AI technology in commercial kitchen appliances is anticipated to enhance efficiency and precision by allowing the kitchen appliances to learn and adjust to the specific requirements of a business. For instance, AI-powered ovens are projected to adjust the cooking time and temperature based on the food’s properties and desired outcome, resulting in more consistent and high-quality results. Furthermore, AI-powered commercial kitchen appliances are expected to collect data on usage patterns, food waste, and energy consumption, enabling businesses to optimize the operations and reduce costs. The data can also be analyzed to identify trends and patterns, helping businesses to make informed decisions about menu planning, inventory management, and resource allocation.
Commercial Kitchen Appliances Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||159 Billion|
|By Type||Cooking Appliances, Refrigerator, Cooktop and Cooking Ranges, Ovens, Dishwashers, and Other Types|
|By Distribution Channel||Direct and Indirect|
|By Application||Quick Service Restaurant (QSR), Railway Dining, Institutional Canteen, Resort and Hotel, Hospital, Full-Service Restaurant (FSR), and Other Applications|
|By Geography||North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa|
|Key Players||Welbilt Inc., Middleby Corporation, The Manitowoc Company, Inc., Duke Manufacturing Co., Rational AG, The Electrolux Group, ITW Food Equipment Group, Ali Group S.p.A, Garland Group Inc., Hoshizaki Electric Co., Ltd.|
The type segment is separated into cooking appliances, refrigerator, cooktop and cooking ranges, ovens, dishwashers, and other types. The cooking appliances segment dominates the market and generates the largest revenue share in 2022. Cooking appliances are essential for food preparation in commercial kitchens and is used for a wide range of applications, including baking, roasting, grilling, and frying, making cooking appliances a versatile and indispensable tool in commercial kitchens. For instance, in January 2023, GE Appliances launched a new Induction Cooktop Line-Up packed comprised with precision temperature control and guided cooking features. The product is equipped with in-built technology that allows users to decide the degree of the burner for optimal consistency and performance from 100 to 500 degrees instead of settling for high, medium, or low.
The refrigerator segment is anticipated to register the fastest CAGR during the forecast period and includes refrigerators, freezers, and ice makers used for storing and preserving food, to increase the shelf life. The growing trend of online food ordering and delivery services has increased the demand for refrigeration appliances as refrigerators are necessary for storing and transporting perishable food items. Also, owing to surge in trend towards lowering the emission of greenhouse gases several companies are manufacturing refrigerators with natural refrigerants. For instance, in May 2022, Hoshizaki launched the commercial refrigerator that use natural refrigerants for restaurants and central kitchens. The product uses natural refrigerants in place of specific CFCs and CFC substitutes that affect the global environment, reducing the global warming potential (GWP) by approximately 99% compared to conventional products.
By Distribution Channel
The distribution channel segment is bifurcated into direct and indirect. The indirect sales segment dominates the market as indirect sales channels provide customers with a more convenient and accessible way to purchase commercial kitchen appliances. Retailers offer a range of appliances from different manufacturers, providing customers with more choices and the ability to compare prices and features. Indirect sales channels also provide after-sales support and services such as installation, maintenance, and repair.
The direct sales segment is expected to register a significant CAGR as by bypassing intermediaries, manufacturers reduce costs associated with commissions and fees paid to distributors, wholesalers, or retailers. Also, direct sales channels provide manufacturers with valuable data on customer preferences, purchasing patterns, and feedback, which is projected to improve products and services and enhance customer satisfaction.
The application segment is divided into Quick Service Restaurant (QSR), Railway Dining, Institutional Canteen, Resort and Hotel, Hospital, Full-Service Restaurant (FSR), and Other Applications. The quick service restaurant dominates the market due to the large-scale operations and high demand for efficient and reliable equipment. QSRs require a wide range of commercial kitchen appliances, including ovens, fryers, grills, refrigerators, and other specialized equipment, to prepare and serve food quickly and efficiently. QSRs have a significant presence in the food service industry, with many popular fast-food chains operating globally. Additionally, the QSRs require equipment to handle a high volume of food and maintain consistent quality and efficiency, due to the large-scale operations and high-volume sales. For instance, in September 2021, according to The NPD Group, due to the pandemic, fast-food chains have adopted digital technology at a faster pace. In the 12 months ending March 2021, fast-food chains received 70.2% of the money spent on eating out and 82.9% of all restaurant visitors.
Railway dining is expected to register the fastest CAGR due the growing demand for onboard catering services, which is driven by the increasing number of passengers travelling by trains. A greater number of passengers results in an increased requirement for onboard food and beverage services, which in turn is expected to drive the demand for commercial kitchen appliances. Also, railways are investing in upgrading the dining services and facilities, and includes investing in modern and efficient commercial kitchen appliances. The use of new technologies including induction cooking, smart refrigeration, and automated cooking systems helps to improve the quality and efficiency of onboard catering services. For instance, in October 2022, Indian Railways announced to set up ‘Restaurant on Wheels’ at 4 more stations in Maharashtra to give a different kind of dining experience to rail passengers with a modified coach mounted on tracks
North America has dominated the market and generated the largest share in terms of revenue in 2022. The factors driving the growth of the market in North America are the presence of a large number of players operating in food service industry including General Mills, Kellogg’s, and Kraft Heinz among others, thus requiring advanced and efficient kitchen equipment. Major corporations regularly use strategic partnerships, acquisitions, and new product launches to strengthen the market position. For instance, in May 2020, Duke Manufacturing launched Duke HotColdFreeze that operates in three modes- hot, cold, and freeze with sub-modes of wet or dry operation for both hot and cold options.
Asia Pacific is projected to register the fastest CAGR growth during the forecast period owing to the rising demand for commercial kitchen appliances in countries including Japan, India, and China. The commercial kitchen appliances market in Asia-Pacific is experiencing growth acceleration due to the expansion of commercial kitchen appliance business into other countries. For instance, in October 2022, Japanese restaurant chain COCO ICHIBANYA opened second outlet in India and the brand operates over 1400 outlets across cities such as Tokyo, London, Los Angeles, Singapore and Bangkok.
Commercial Kitchen Appliances Market Competitive Landscape:
The commercial kitchen appliance market is highly competitive and features a mix of large multinational corporations as well as smaller, specialized local companies. These companies compete on factors such as product quality, technology, innovation, pricing, and brand recognition. Mergers and acquisitions are also common in the industry, leading to consolidation and the strengthening of market positions. Some of the major players in the market include:
- Welbilt Inc.
- Middleby Corporation
- The Manitowoc Company, Inc.
- Rational AG
- Duke Manufacturing Co.
- The Electrolux Group
- ITW Food Equipment Group
- Ali Group S.p.A
- Garland Group Inc.
- Hoshizaki Electric Co., Ltd.
- In August 2022, Wonderchef launched 9 coffee machines. Wonderchef’s coffee machines, built with high-quality materials and advanced technology to ensure a consistent and satisfying coffee experience.
- In August 2022, PT Holdings Group acquired Commercial Kitchen Parts & Service. The acquisition enhances the company’s parts distribution through its home appliance parts division.
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