The global commercial beverage dispenser market is one of the fastest-growing products in the commercial kitchen and food service equipment market. The impact of technology, preference for on-the-go solutions, and varietal preferences have supported the growth of the segment over the years. The industry, which witnessed a downfall in 2020, owing to the COVID-19 pandemic, is expected to bounce back in the first half of 2021 with advances and enhancements. North America, APAC, and Europe were prominent markets in 2019.
The global expansion of QSR chains and restaurants has further expanded the usage of dispensers through the upselling concept. The emergence of coworking spaces to reduce the cost and productivity has further stimulated beverage dispensers to be a crucial component. In the busy and active world, self-service machines are highly preferred by consumers to save time and ensure better and consistent services. Dispensers turn out to be profitable and energy-efficient appliances that could potentially replace laborers and prevent additional expenses.
- The convenience store segment is expected to reach revenues of over $1.5 billion by 2025. Convenience store retailers choose the best beverage dispensers with low maintenance, high return on investment, and high convenience aspects.
- The frozen beverage segment is likely to grow at the highest CAGR of over 7% as the beverage is expected to provide 20% higher profit margins.
- The countertop segment is expected to observe an incremental growth of $1.49 billion by 2025. The growth is on account of low replacement costs and minimum repairs.
- The stainless steel segment is projected to observe a revenue share of over $4.5 billion by 2025. This growth is on account of the material’s preference for its durability, flexibility, and prolonged service life.
COMMERCIAL BEVERAGE DISPENSER MARKET SEGMENTATION
This research report includes a detailed segmentation by dispenser type, technology, material, beverage type, end-users, and geography.
INSIGHTS BY DISPENSER TYPE
Countertop dispensers dominated the commercial beverage dispenser market share with over 60% shares in 2019. The segment is expected to dominant its significance during the forecast period. The high contribution can be attributed to the wide availability in manual, automatic, and semi-automatic modes of operations. Multiple unit installations, economical, smaller footprint, consistent drink quality, options for 360-degree merchandising, portability are some of the factors influencing the adoption rate. With minimal cleaning efforts, which lead to minimum repairs and replacement costs, the segment is likely to grow.
Drop-in dispenser also has the advantage of accommodating a greater number of cups with higher downpour than a countertop version. Therefore, they are preferred in movie theatres, shopping malls, restaurants, and other dining areas. Drop-ins are usually preferred as an alternative for countertop versions in commercial spaces where the demand for downpour quantity is high. They are ideal for hot and cold beverages, which provide flexibility in adoption. The adoption is quite less common in APAC, which poses growth opportunities for the next five years.
INSIGHTS BY TECHNOLOGY
The automatic segment is expected to be the fastest-growing segment during the forecast period. Features such as highly appealing LED lightings, touch screens, premium choice of beverages, optimum downpour quality are facilitating the growth momentum for the segment. The semi-automatic segment was the largest revenue contributor in 2019, which is expected to pose an absolute growth of 42% during the period 2020–2025. Affordability, wide availability, ease of operations, higher market reach, and minimum knowledge for operation are expected to drive the growth of the segment. Manual beverage dispensers are expected to grow at a CAGR of over 5% during the period 2019–2025. Despite the gradual replacement by automatic and semi-automatic models, the segment is expected to sustain in the competitive market as it offers a huge opportunity for differentiation with a nostalgic approach.
INSIGHTS BY MATERIAL
The stainless-steel category is by far the largest segment in the industry, which is highly preferred for its durability. Features such as heavy-duty and harmless reactions with the beverage have supported the segment’s growth over the years. The type is also highly preferred for its flexible design aspects, which offer an elegant look and attractive appearance. It is the primary material choice for drop-ins and countertops that act as a major backbone for its revenue generation.
Glass and acrylic beverage dispensers with polycarbonate or polyurethane materials have been utilized only by a considerable number of vendors. They tend to enhance the appearance of the dispenser by providing a premium look, which ensures a sense of trust and confidence among consumers. This type of material is also highly beneficial from the retailer perspective with timely refilling and replacements without ingredient shortages.
INSIGHTS BY BEVERAGE TYPE
The hot beverages segment has wide adoption in sectors such as hospitality, restaurants, movie halls, convenience stores, QSRs, amusement parks, and shopping malls. Hot beverages are consumed by consumers belonging to all age groups, which the scope further. Vendors are also targeting upcoming co-working spaces and shopping malls, and movie halls, which are undergoing renovations, to expand the penetration rate. The introduction of intelligent energy-saving and expandability options, IoT features for remote assistance, more canister options can highly influence the buying decision among store owners.
Innovative and attractive graphic doors with LED display can drive more consumers toward commercial cold dispensers. The consumption of cold brew coffee has increased by over 320% since 2016. Further, cold brew options have been increased by over 600% in the last five years, which validates the growth potential for cold brewing machines.
Fountain beverage dispensers are expected to sustain their dominance during the forecast period. The craze for fizziness and sparkling beverages is here to stay that supports the growth of dispensers as well. Automation can be a gamechanger in the domain category where drinks are consumed across age groups. APAC and Middle East & Africa were the major revenue generators in 2019.
INSIGHTS BY END-USERS
While convenience stores continue to dominate, the momentum has gained pace in cinema halls, shopping malls, institutions, tourist spots, and at airports. Vendors are highly recommended to customize their offerings based on demographic behavior, geography, personal preferences, and foot traffic. The growing number of ghosts or virtual kitchens, food trucks, and online delivery platforms has supported the growth of dispensers in the QSR segment.
The educational and institutional segment is considered as one of the underpenetrated segments, which has a high scope for expansion. The scope in schools and colleges in APAC and Latin America is likely to increase significantly in the next five years. The concept of flexible working spaces is surging in growing economies, which can serve as a profitable space for maximizing consumer touchpoints. The demand for hot beverages in the segment with automated technology is expected to remain steady.
INSIGHTS BY GEOGRAPHY
North America is one of the significant markets for beverage dispensers, with the US accounts for more than 75% of the revenue generation in 2019. The demand for flexibility in beverage consumption, growth in technology, and rise in demand for frozen beverages are expected to fuel the demand for beverage dispensers in the region. Carbonated soft drinks tend to be more popular among baby boomers, especially consumers aged between 30–44 years and 45-60 years. In Canada, the scope for expansion in the restaurant industry is prominent where consumers seek varietal and convenient solutions. The rise in wages can be more significant in cities such as Ontario, British Colombia, and Alberta, where the demand is expected to be prominent in the coming years.
APAC region was the second-largest market despite its lower penetration rate compared to its potential of adoption. Countries like China, Japan, South Korea act as major drivers for revenue generation in the region. The region is the fastest-growing market with an estimated CAGR of 7% during the forecast period which is also expected to reach revenues of $2 billion by 2025.
INSIGHTS BY VENDORS
The commercial beverage dispenser market is highly competitive with a significant number of vendors in the landscape. The key players are also eyeing at market expansion strategies to gain a global footprint through mergers and acquisitions. However, differentiation for technology, design, energy efficiency, and IOT embedment are more effective that vendors implement to sustain in the competitive market. As sustainability and eco-friendly products are on the rise, environment-friendly disposable cups can be a major attribute towards the add on features. Similarly, energy efficiency and low power consuming machines are preferred for their cost-cutting advantage.
The commercial beverage dispenser market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
By Dispenser Type
- Drop Ins
- Stainless Steel
- Glass & Acrylic
By Beverage Type
- Soft Serve
- Convenience Stores
- QSR & Restaurants
- Educational Institutions
- Recreational Centers
- North America
- South Korea
- Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia