According to recent reports by Research and Markets, the global Commercial Kitchen Equipment market size is anticipated to reach USD 131.77 billion by 2027, growing at a CAGR of 6.7 percent during the forecast period. Major factors driving the growth of the Commercial Kitchen Equipment market include the rising popularity of Quick Service Restaurants and Full-Service Restaurants and expanding travel and tourism. The surge in demand for drive-through meals, fast-paced life in metros and cosmopolitans, and rising disposable income of individuals are the other factors fueling the market growth.
The emergence of smart kitchen equipment is anticipated to significantly contribute to the growth of the commercial kitchen appliances
market. Since smart technologies are capable of not only keep track of the performance of kitchen equipment but also increase food preparation consistency, the key market participants are focusing more on technological advancements. These include ventilation, temperature control, and automated techniques for maintenance and cleaning of the equipment to reduce operational time and capital in the long run.
In addition, the Internet of Things is taking charge of commercial kitchens worldwide by integrating the appliances with other electronic devices owned by the consumers. And, this, in turn, helps in increasing efficiency and saving time.
For example, Monnit Corporation that helps to capitalize on the emerging trends of connecting to, monitoring, and controlling machines - designs remote monitoring solutions for commercial refrigerators. These are built with temperature and humidity sensors in order to ensure food quality, monitor cold inventory, and optimal inventory storage.
Well-known end-use industries of commercial kitchen appliances are supplying multi-functional equipment with state-of-the-art solutions since they are not only highly efficient but also combine several functions in a single device.
Increasing awareness about energy consumption
As per the U.S. Environmental Protection Agency (EPA), commercial kitchens consume 2.5 times more energy per square foot, approximately, than any other commercial space. Therefore, rising concerns about the energy consumption of equipment used and the shift towards more energy-efficient appliances are predicted to significantly contribute to the growth of this industry. Also, increasing government initiatives in order to spread awareness about energy consumption and a rise in the electricity cost are anticipated to fuel the demand for eco-friendly and energy-efficient equipment over the forecast period.
Based on the type, the dishwasher segment is anticipated to reach USD 4.09 billion by 2027 in the North American region. The segments that are anticipated to grow at the highest CAGR over the forecast period include the rail, cruise, and airways catering segment. Owing to greater variation in prices and availability of a diverse product range, the average selling price of kitchen equipment is higher in the USA. However, MEA is anticipated to witness the fastest growth during the forecast period.
The rise of quality concerns of the hospitality industry, the need for modular and advanced kitchen equipment, and the increase in spending power of the population are the factors driving the kitchen equipment market. Other factors such as smart appliances and cost-effective and eco-friendly equipment are influencing the market growth. Surging concerns about health and hygiene, the need for smart and compact kitchen appliances, and the growing number of the working population is augmenting the demand for smart kitchen appliances and this, in turn, is propelling the kitchen equipment market.
Furthermore, the rise in adoption of ease of handling equipment having energy-efficient and time-saving features are factors that are expected to fuel the market. Additionally, the hospitality sector is growing in emerging economies, especially in the Asia Pacific.
Kitchen appliance manufacturers in India were finding it a struggle in order to meet the festive demand with a 10 percent to 15 percent supply shortage across consumer categories in November, owing to the labor shortage in component makers, delayed import shipments.
TTK Prestige non-executive chairman TT Jagannathan said, “During the lockdown, migrant laborers who went back, haven’t returned. Though the demand is surging we don’t have enough supply. At the end of the September quarter, we carried a pending order of Rs 74 crore. We sold only over Rs 265 crore, a lag from Rs 340 crore of orders received. This gap between supply and demand is mainly due to labor shortage in the small-scale industries which produced the components.” Manufacturers say they did not expect demand to pick up at this pace. “We expected the demand to come back only by October, but we saw the surge as early as July 2020,” added Jagannathan.