In 2014, the non-domestic catering equipment market was
estimated to be worth over £750m, representing a growth of around 4% on 2013.
The market is considered to be mature across all sectors. As a result, there is
limited potential for growth through increased penetration, making the market
subject to performance of the overall economy and food industry.
UK household expenditure on catering services, including
drink, in 2013 was nearly £84bn, which indicates the potential scale of demand
for catering equipment. The catering market struggled during the early part of
the recession, but has experienced a rising trend in expenditure since 2010 and
has proved to be a successful sector, outperforming most other areas of
consumer spending over the last 5 years.
The main factor supporting growth of the catering
equipment market since 2010 has been the overall improvement in the economy and
the strong resilience of the restaurant sector. Innovative concepts and new
restaurant brands, along with an improvement in household spending on eating
out, has helped grow the catering sector - and therefore demand for catering equipment.
Other factors supporting market growth include product
development creating added value features; higher hygiene standards; the
requirement for smaller and more environmentally friendly, sustainable products
in response to tightening legislation; and the development of restaurant and
hotel chains.
Whilst the government remains committed to public sector
cutbacks affecting some demand, the budgets for the NHS remain secure along
with educational catering, which has been singled out and budgeted for future
growth in catering needs including the extension of free school meals.
Cooking equipment is the largest sector and accounts for
over 50% of market value. Refrigeration accounts for around a quarter, with
steel fabrication, warewashing and other products making up the remaining
market value. The leading end user is the hospitality sector, with restaurants,
cafes and bars accounting for around 54% of the market. The remainder is
accounted for by health and education, with a reasonable share, hotels, and
other sectors such as offices, leisure and retail.
Products are largely distributed through specialist
distributors and designers and installers, although there is some direct
delivery, particularly as the internet becomes more widely used. Direct delivery
is more prevalent in the steel fabrication side, where bespoke solutions
dominate.
The outlook for the catering equipment market is good, providing
the UK economy continues to strengthen and the hospitality industry continues
to grow, with the restaurant sector a key factor influencing growth in catering
equipment demand.
“The government has
committed to reducing the level of public sector debt, resulting in reduced levels of expenditure across
many government departments, and this will continue to depress demand for
catering equipment within government departments” said Andrew Hartley,
Director of AMA Research. “But other
sectors continue to show ongoing sustained budgets, for example in healthcare
with education receiving an extra boost of over £1 billion in funding in
2014-15 for the free school meals programme.”
More information can be found on: www.amaresearch.co.uk/catering_equipment_15.html
The ‘Non-Domestic
Catering Equipment Market Report – UK 2015-2019 Analysis’ report is
published by AMA Research, a leading provider of market research and
consultancy services within the construction and home improvement markets. The
report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.
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