Commercial Cooking Equipment Market by Product Type (Broilers, Grills & Griddles, Cook-chill System, Refrigerators, Ovens, Dishwashers, and Other Products), by Size (Small-scale Equipment, Medium-scale Equipment, and Large-scale Equipment), and by End-user (Full-Service Restaurants, Quick Service Restaurants, Catering, Railway Dining, Resorts & Hotel, Hospitals, and Other End Users) – Global Opportunity Analysis and Industry Forecast 2024-2030

Commercial Cooking Equipment Market Overview

The global Commercial Cooking Equipment Market size was valued at USD 12.9 billion in 2023, and is predicted to reach USD 18.8 billion by 2030, with a CAGR of 5.1% from 2024 to 2030. Commercial cooking equipment also known as heavy-duty kitchen equipment market refers to a diverse range of appliances and tools specifically designed for professional kitchens in restaurants, hotels, catering businesses, and other food service establishments. It surpasses residential appliances in durability, efficiency, and functionality. Designed for heavy-duty usage, these equipments is constructed with robust materials and features to withstand continuous operation in professional kitchens.

It prioritizes efficiency and safety, offering precise temperature control, rapid heating, and advanced cooking functionalities to meet the demands of high-volume production. Furthermore, modern cooking equipment prioritizes energy efficiency, assisting businesses in reducing utility expenses and environmental impact. Thus, investment in high-quality commercial kitchen tools is fundamental for achieving smooth operations, competitiveness, and profitability in the food service industry.

Growing Tourism Industry Across the Globe Boosts the Commercial Cooking Equipment Industry

The rapid expansion of the hospitality sector including hotels, resorts, and vacation rentals, the demand for heavy-duty kitchen equipment is growing significantly to meet the culinary needs of travelers. According to the World Travel and Tourism Council, the Travel & Tourism sector contributed 9.1% to the global GDP in 2023, marking a notable increase of 23.2% compared to its contribution in 2022.

As the tourism sector continues to flourish and play a significant role in the global economy, the market is growing at a significant rate, creating lucrative growth opportunities for the manufacturers and suppliers to innovate and diversify their product offerings to meet the evolving requirements of the hospitality industry worldwide.

Rise in Quick-Service Restaurants (QSRs) Worldwide Boosts the Adoption of Commercial Cooking Equipment

The growth of quick-service restaurants (QSRs) worldwide is driving the demand for food service industry appliances due to their fast-paced nature and high volume of orders. As the number of QSRs expands to meet the increasing consumer preference for convenient dining options, these establishments require cooking equipment capable of handling the large influx of customer orders to ensure operational success.

With rapid growth and expansion of major QSRs, including McDonald, Starbucks, and KFC worldwide, the demand for advanced cooking equipment is on the rise. For instance, McDonald's aims to reach 50,000 restaurants worldwide by 2027 and plans to leverage Google Cloud technology to enhance customer experiences and operations across thousands of its locations globally, starting in 2024. Similarly, Starbucks anticipates having approximately 45,000 stores worldwide by the end of 2025.

Stringent Regulations Concerning Food Safety and Emissions Restrains Commercial Cooking Equipment Market Growth

Stringent regulations concerning food safety and emissions, such as the International Food Standards (IFS) and the Food Safety Modernization Act (FSMA), pose significant challenges for businesses considering investments in new commercial kitchen equipment.

Compliance with these regulations, enforced by governmental agencies and industry associations, necessitates the implementation of specific protocols for handling, storing, and preparing food. Moreover, meeting emissions standards requires additional investments in ventilation and filtration systems, which add complexity and expenses to the equipment setup.

These regulatory requirements, coupled with the financial strain of purchasing compliant equipment and ongoing maintenance costs, impacts the small and medium-sized enterprises (SMEs). Consequently, these regulatory hurdles hinder the adoption of new cooking equipment, limiting market growth and expansion within the food service industry.

Integration of Advanced Technologies in Commercial Cooking Equipment Creates Market Opportunity

The integration of advanced technologies such as smart cooking appliances, IoT-enabled kitchen equipment, and automation solutions is set to drive a surge in demand for professional cooking equipment in the coming years. These technologies enable businesses to enhance their operations, making them more efficient, productive, and sustainable. Smart appliances equipped with intelligent sensors and connectivity features allow for precise monitoring and control, optimizing cooking processes and enhancing food quality.

IoT-enabled equipment enables real-time data monitoring and analysis, empowering kitchen staff to make informed decisions and adjustments for improved performance. Automation solutions streamline repetitive tasks, such as food preparation and cleaning, freeing up time for staff to focus on value-added activities. This integration not only streamlines operations but also reduces energy consumption and minimizes waste, aligning with the growing demand for sustainable practices in the food service industry.

North America Dominates the Commercial Cooking Equipment Market

The rapidly growing demand and consumption of fast food in North America, driven by the fast-paced lifestyles of the consumers and the presence of major QSR companies in this region, is creating a lucrative growth opportunity for the quick service restaurants in North America. For instance, the U.S. is one of the largest consumers of fast food, with average spending of approximately USD 1,200 annually on ready meals, amounting to approximately USD 110 billion nationwide.

As the consumption and demand for fast food continues to increase, the demand for Hospitality cooking appliances is poised to rise at a significant rate in this region. Moreover, with the rising tourism industry, the expansion of hotels and full-service restaurants is growing at a significant rate in countries such as Canada and U.S. Redberry Restaurants, a leading Canadian restaurant franchisee, added 27 new restaurants and renovated 20 others across Canada.

Furthermore, the company aims to build nearly 300 new Burger King and Taco Bell restaurants by 2031. Also, Wyndham Hotels & Resorts, one of the largest hotel franchising companies, expanded its portfolio to include 265 hotels in the U.S. and Canada in 2023. With such rapid expansion of the hospitality industry in this region, the demand for commercial cooking equipment is anticipated to grow at a significant rate in this region.

Asia-Pacific is Expected to Show Steady Growth in the Commercial Cooking Equipment Market

The tourism industry in Asia-Pacific countries such as Japan, South Korea, and India are growing at a significant rate in the recent times. For instance, Japan accommodated 25.06 million tourists, while South Korea registered about 10 million tourists in 2023 from across the globe.

With such rise in the rising of domestic and international tourists visiting Asian countries, the demand for accommodation, dining, and entertainment services in this region is on the rise, boosting the growth of the heavy-duty kitchen equipment market in this region.

Moreover, QSR and FSR companies are growing at a significant rate in the Asia-Pacific region, driven by the growing demand for convenient dining options and experiencing diverse cuisine from across the globe. For instance, IHG, the one of the major global hotel groups, announced to build 24 new hotel projects in various regions of China, including Shanghai, Shenzhen, Nanjing, Kunming, Datong, Rizhao, and Ningde.

These signings span multiple IHG brands, demonstrating the company's continued expansion in the market, where the demand for high-quality hospitality services remains significant. Also, Wendy's, the American fast-food chain, is set to open 200 restaurants in Australia by 2034. This growth in the hospitality industry boosts the overall growth and demand for the market in this region.

Competitive Landscape

Several market players operating in the commercial cooking equipment industry include AB Electrolux, Ali Group SRL, Illinois Tool Works Inc (Vulcan), John Bean Technologies Corp, The Middleby Corporation, Haier Group, Hoshizaki America Inc, Alto-Shaam, Inc, Marmon Foodservice Technologies, and Duke Manufacturing Company among others.

Source: Primary Research, Secondary Research, Next Move Strategy Consulting

These companies are adopting various strategies such as acquisition and product launches to remain dominant in the commercial culinary appliances market.

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