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The catering equipment market, as defined by this
report, encompasses machinery, equipment, furniture, utensils and accessories
used by caterers and foodservice operators to store, prepare, cook, display and
serve food. In 1999, the value of catering equipment sales in the UK was
estimated at £546m, an increase of 2.6 percent on the previous year. In the
5-year period between 1994 and 1999, sales at current prices increased by
16.6 percent. Annual sales growth was strongest in the mid-1990s, when many caterers
invested in new machinery after the recession. Year-on-year growth since 1997
has been more modest, with the strongest growth coming from sales of smaller,
budget-priced equipment, and intense supplier competition weakening
prices.
The three core sectors of the market are cooking equipment (26 percent of
total sales in 1999), food handling equipment (25 percent) and food preparation
equipment (21 percent). Also important are sales of refrigeration equipment (17 percent) and
other sectors are bar and counter equipment (6 percent), and tableware and other
equipment (5 percent). A comparison of catering equipment sales and total turnover in
the UK catering market suggests that 1.3 percent of catering turnover is spent on
catering equipment each year.
Catering equipment sales have benefited from
the growing popularity of eating out and the current buoyancy in the hotel
market. The restaurants sector has been one of the fastest growing sectors in
the hospitality industry, with an increase in the number of branded chains
boosting equipment sales. Changes in pub ownership and the opening of more
family restaurants has helped equipment sales in this sector, while the major
fast food chains continue to expand outlet numbers. Many of the new outlets in
the fast food sector have been smaller than traditional sites and equipment
demands are changing to smaller options and more flexible machines. Outlet
growth has been important, since the product life cycles for catering equipment
are becoming longer and many existing outlets are replacing equipment less
frequently.
The supply of catering equipment is still dominated by many
small manufacturers, distributors, and importers. The industry is becoming more
concentrated but few companies have a turnover of £20m per annum or more
and the market leaders have only a small share of the overall market. There are
also specialist suppliers taking a significant share of specific equipment
markets. Major electronic companies such as Zanussi and Panasonic have moved
into the market and import penetration is increasing.
The market is forecast
to increase modestly in the next few years, with sales forecast to reach
£557m in the year 2000 and £584m in 2004. The strongest growth will
be in the small, budget-priced sector as more outlets start to serve food.
Industry consolidation is likely to increase as smaller players struggle to
maintain sales and margins.
Text © 2000 Key Note
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Last updated by Jacob van Eldik 20th February 2000