Recessionary declines were kept low as people looked to internet sales for deals
Los Angeles, CA (PRWEB) July 09, 2012
The Online Commercial Cooking Equipment Sales industry supplies ovens, deep fryers, food warmers and related food preparation equipment to establishments with professional kitchens. Because industry demand is primarily generated from restaurants, bars and accommodations, activity within these respective industries drives revenue growth for cooking equipment suppliers. “During the recession, consumers cut back on discretionary spending like travel, eating out and entertainment,” says IBISWorld industry analyst Nikoleta Panteva. “As such, demand from downstream buyers weakened.” In 2008 and 2009, in particular, revenue for the Hotels and Motels industry (IBISWorld report 72111) declined 3.0% and 9.4%, respectively. As a result, revenue for online commercial cooking equipment distributors fell 1.0% and 1.9%, respectively, in those years.
Downstream demand, fueled by the slow return of consumer spending and increasing investment in non-residential construction, has begun to rebound, translating to growth for the industry. In 2012, IBISWorld expects industry players to experience revenue growth of 2.0% to $1.6 billion. “Despite overall decline, increasing use of the internet has been a boon for the industry as buyers turned to this platform in search of deals,” says Panteva. As such, industry revenue declines were minimal, even during the height of the recession, leading to average annual growth of 0.3% over the past five years. The Online Commercial Cooking Equipment Sales industry has a low level of market share concentration because companies operate in an extremely large market, which typically decreases concentration levels. The industry comprises many small-scale operators that do not account for a significant share of the market and the majority of operators employs fewer than 10 people.
The future continues to promise hope for the Online Commercial Cooking Equipment Sales industry. Driven by strong growth in downstream demand from restaurants, drinking establishments and hotels, industry revenue is forecast to grow over the five years to 2017. Commercial construction will also provide a slew of new professional kitchens, which will need to be furnished with food-preparation equipment. Furthermore, the ongoing shift to sourcing via the internet will offer an additional boost for the industry's participants, and brick-and-mortar establishments will become less of a threat. Still, the increasingly saturated online space will intensify internal competition, limiting the number of industry operators over the next five years. For more information, visit IBISWorld’s Online Commercial Cooking Equipment Sales in the US industry report page.
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IBISWorld industry Report Key Topics
This industry sells commercial cooking equipment over the internet to restaurants, hotels and municipal establishments. The products sold in this industry include ovens, refrigerators and deep fryers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.