Executive Summary

The UK catering equipment market was valued at £555m in 1997. This represents an increase of 4.9% on the 1996 market value and follows increases of 6.2% in both 1995 and 1996. After struggling during the recession, the catering equipment market generated real market growth between 1995 and 1997.

The largest sectors of the market are cooking equipment, accounting for an estimated 28% of all sales in 1997, followed by food handling equipment (25%), and food preparation equipment (20%). Other key sectors are refrigeration equipment (18%), bar equipment (6%), and servery and tableware (3%).

The importance of overseas suppliers is also reflected in the major companies supplying the UK market. The two leading suppliers are Hobart Manufacturing Ltd and H&K Rugby Ltd, with value market shares of 10% and 6% respectively. Both these companies are owned by US parents and a range of other overseas suppliers, led by companies such as Electrolux, Panasonic, Miele, Meiko, and the Swiss-based Winterhalter Gastronom Ltd. Leading UK suppliers include ABE Catering Equipment, part of the Associated British Engineering group, and Lincat.

Concentration is increasing in the catering trade and investment in new outlets, new catering concepts, and refurbished outlets by the major players such as McDonald's, Burger King, KFC, Pizza Hut, Whitbread, Allied Domecq, Granada and Bass has boosted catering equipment sales. However, the majority of sales are still directed at small, often local, businesses. The result is a market which is primarily driven by price and a thriving second-hand and reconditioned machines sector. Outside the larger catering equipment companies, there are numerous small, local suppliers and distributors serving these small caterers.

The catering market is forecast to experience further healthy growth over the next few years and, as the major players continue to expand their outlets, the catering equipment market should continue to benefit. Technological developments and the growth of new markets, such as the market for smaller, mobile equipment best suited to the new non-traditional catering sites, will also benefit sales. Key Note is forecasting an increase in sales of 17.3% at current prices between 1997 and the year 2001, producing a market valued at £651m in 2001.

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