The catering equipment market, as defined by this report, covers any machinery, equipment, furniture, utensils and accessories used by caterers and foodservice operators to store, prepare, cook, display and serve food. Included are sales of catering equipment to non-traditional catering sites such as shops, garage forecourts and other venues.

In 2001, the value of catering equipment sales in the UK was estimated at £576m at manufacturers' selling prices (msp). While sales are linked closely to trends in the catering market, a high growth rate does not necessarily translate into similar growth in catering equipment sales. Investment by caterers is often concentrated on front-of-house designs and formats, while for many smaller catering operators, cost is often the key influence when purchasing catering equipment.

The three main sectors of the market are cooking equipment, food handling equipment and food preparation equipment. Also important are sales of refrigeration equipment, while the 'other' catering equipment sector includes bar and counter equipment, cutlery, tableware and other equipment. Cooking equipment and the 'other' catering equipment sector have experienced the strongest growth in the past 5 years, but an important area has been the developing market for smaller, often counter-top, equipment in non-traditional catering sites.

Catering equipment sales have benefited particularly from the growing popularity of eating-out and the increased penetration of the corporate and institutional catering market by contract caterers. Changes in pub ownership and the opening up of more family restaurants has helped equipment sales in this market, while the major fast food chains continue to expand outlet numbers. Outlet growth is an important element in the catering industry as product life cycles for catering equipment are becoming longer and many existing outlets are replacing equipment less frequently. Some recent cutbacks in expansion plans by caterers represent unwelcome news for the catering equipment market.

This market is a highly fragmented one, particularly in the area of distribution, where many companies operate in local or regional markets. Manufacturing is becoming more concentrated and penetration by US companies in the market is increasing. However, there are still only a limited number of large players and no single company has a major share of the market. There are also only a limited number of companies operating in all the core catering equipment sectors, but there are many other companies with a strong presence in specific equipment areas (such as warewashing equipment, ovens or refrigeration equipment). 2002 to 2004 will be an uncertain time for the catering equipment market, as caterers remain cautious about their investment plans. Key Note is forecasting only limited growth for the equipment market over this period.