Our in-depth analysis of the cook processors market includes the following segments:
By Cooking Mode
By Distribution Channel
On the basis of regional analysis, the cook processors market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
North America is expected to have largest market share on the back of high disposable income amongst consumers in the region, especially in the USA. Furthermore, growing demand for smart and advanced appliances amongst the consumers in the region is expected to support the growth of the market in the region.
The cook processor market is further classified on the basis of region as follows:
The cook processors market is observing vibrant growth on account of growing demand for smart kitchen appliances amongst working class of people owing to shortage of time that they like to spent on cooking. Furthermore, rising disposable income combined with growing concerns for food hygiene habits, demand for healthy snacks and health and fitness of individuals, are some of the notable factors that are expected to boost the growth of the cook processors market.
The market is anticipated to record robust CAGR throughout the forecast period, i.e. 2020-2027. The cook processors market is segmented by end-user into commercial and residential, out of which, residential segment is anticipated to hold largest market share on account of growing labor force population around the globe and their increasing work time, which is affecting the time they spend in cooking their meals. According to a statistical report by the Bureau of Labor Statistics, U.S. Department of Labor, full time employed persons averaged worked 9.5 hours of work time on weekdays and 5.4 hours of weekend days during the year 2018. Furthermore, rising living standards of people and shifting demand towards advanced appliances from traditional ones owing to their numerous benefits, is anticipated to fuel the growth of this segment.
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Rising Need For Advanced Appliances Amongst Consumers
There is a shift in demand amongst consumers for advanced electronic appliances, owing to rising household disposable incomes and higher living standards. According to OECD, household disposable income in the United States grew from 31,111 USD/capita in 2002 to 50,203 USD/capita in 2017. Furthermore, appliances such as cook processors are designed to maintain greater food hygiene habits. Consumers who are conscious of their health and physical fitness are shifting towards appliances, such as cook processors, so as to enjoy these benefits and maintain a healthy lifestyle.
Growing Penetration of IoT Devices
The total installed base of IoT connected devices is projected to expand in big size in the upcoming years. Growing internet utilization amongst users worldwide is contributing to the growth of increasing penetration of IoT connected devices globally. Few automated cook processors are smart IoT devices that operate on the basis of recipes supplied by online vendors, which is further synchronized with the cook processor using an app installed in the smartphone device. The method is used as the base for cooking any item on the automated cook processors, thereby making cooking processes simple and easy for the user of the cooker, who can follow the guidelines and make food using these cook processors without much trouble. The growing penetration of IoT devices, combined with utility user interface processes, all of these factor is estimated to boost the demand for cook processors.
Growing Upper Middle Income Economies’ GDP and Population Density
There is a steady growth in the GDP and population density of upper middle income economies, which is also held responsible for increasing the purchasing power of buyers. According to The World Bank, GDP of upper middle income economies increased from 192.85 (current USD) in 1960 to 9200.45 (current USD) in 2018. Furthermore, the population density of the upper middle income economies increased from 20.34 (people per square km of land area) in 1961 to 45.47 (people per square km of land area) in 2018. All of these factors are anticipated to fuel the growth of the cook processors market.
High product prices of cook processors is anticipated to hinder the growth of the cook processors market. Automated residential cook processors which are also smart appliances, are placed with a premium pricing model, owing to the products’ superior build quality and its features. Cook processors meant for commercial utilization are also positioned with high product cost owing to their size and purpose of mass production.
There is a skeptical attitude amongst consumers about the product pertaining to their purpose of utilization that might hinder the growth of the market. Furthermore, lack of awareness about the product amongst the mass is also estimated to act as a barrier to the growth of the cook processors market during the forecast period.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.