The research “Catering services, equipment, machines and accessories: a sector of excellence” has shown that lifestyle is at least as important as hospitality in driving forth the industry. This is the main feature of the Italian catering services industry to emerge from the research promoted by HostMilano and conducted in September 2017 by Magda Antonioli Corigliano, Director of the Master in Economics of Tourism at Bocconi University, and Sara Bricchi, MET Researcher at Bocconi. The research analyses the role of hospitality, from the tourism and agro-food component through to the luxury segment, and it starts with the state of the art for catering, bakery, confectionery and gelato services in Italy by focusing on certain essential components, like machinery and equipment, where Italian excellence is more evident.
In 2016 global trade of machines, equipment and accessories for catering, bakery, confectionery and ice-cream amounted to 45.2 billion euro. In the last twenty years the sector has been growing constantly and for the three-year period 2017/2019 the forecast is for a further increase of 5.4% per annum. The most significant product categories by volume are pots and pans (13.4 billion, 29.7%) and kitchens, hobs and electrical ovens (9 billion, 20%). The areas with the highest level of growth in the last seven years have been mixers, fruit and vegetable juice extractors (+10.6% per annum), electromechanical equipment (+10.4% per annum) and cooking appliances burning liquid and solid fuels (+10.2% per annum) (Source: calculations based on Ulisse data for Fiera Milano, 2017).
Italy is the third largest global exporter, with a market share of 7.2% in 2016, behind China (39.3%) and Germany (7.8%). However, the growth rate in Italy (+2.4% between 2000 and 2016) is the lowest after Belgium, but it should be noted that while other Countries are focused on volumes, Italy is focused on high quality exports, where Germany remains the leader.
The main markets are the US (that represents on its own 16.5% of the total), followed by Germany (8.0%), France (4.9%) and the UK (4.5%). Except for Hong Kong, all the main importing countries experienced an increase between 2000 and 2016, with the highest growth rates recorded by China (+14.8% per annum), Russia (+11.2% per annum) and Poland (+10.3% per annum), and forecasts suggest this growth is set to continue in the near future (Source: calculations based on Ulisse data for Fiera Milano, 2017).
With regard to price brackets, in the past decade there has been a reduction in the low and medium-low price bracket with an increase in the medium, medium-high and high price brackets that has benefited Italy as it mainly competes in the premium-price bracket. With regard to markets that should be the focus for Italian exports, the importing countries that offer the best combination of a demand for quality products and high volumes, are Canada, France, Germany, Japan and the UK. Australia, Belgium, China, South Korea, Poland, Sweden and Switzerland are instead niche markets, that are still characterised by high quality imports, but where, given the more limited volumes, it will be more complicated to improve market share (Source: calculations based on Ulisse data for Fiera Milano, 2017).
In these sectors the total value of production from Italian companies is estimated to be approximately 4 billion euro and has been growing constantly since 2014 (at an average annual growth rate of +1.9%). Moreover, all segments have experienced an increase, compared to 2016 and in terms of the annual growth rate. The segment that is growing most quickly is espresso coffee machines (+4.2%), followed by professional refrigeration equipment (+2.2%) and machines and equipment for the confectionery industry (+2.1%).
The average use of industrial capacity is approximately 81%, with peaks of 94% for the confectionery industry and industrial refrigeration systems. The total workforce in these sectors in Italy is 17,436, which represents a slight increase over the period in question (+0.3% per annum).Total investments scheduled for 2017 amount to approximately 97.5 million euro, and have increased constantly in the last three-year period (annual growth rate of +3.4%). The sector with the highest increase is that for coffee machines (annual growth rate of +6.8%), while the biggest sectors in absolute terms are professional refrigeration equipment (27.8 million euro) and machines and ovens for bread, biscuits, confectionery and pizza (18.5 million euro). (Source: calculations based on ANIMA Assofoodtec data, 2016/2017).
Thanks to its exports Italy has a trade surplus of approximately 2.2 billion euro, with a good level of penetration in the majority of markets. The main end markets are France (437 million euro, market share of 19.7%), Germany (361 million, 10%), UK (189 million, 9.3%), Spain (162 million, 16.7%), US (153 million, 2.1%). (Source: calculations based on Ulisse data for Fiera Milano, 2017).
The total value of Italian exports in 2017 is estimated to be 2.639 billion euro and has been growing constantly since 2014 (annual growth rate: +2.15%). Moreover, all segments have grown, compared to 2016 and in terms of the annual growth rate.
The segment where exports have grown at the most significant rate is machines for espresso coffee (annual growth rate: +4.5%), followed by professional refrigeration equipment (annual growth rate: +3.1%). Professional refrigeration equipment is the segment with the highest trade surplus, followed by machines and ovens for bread, biscuits, confectionery and pizza and machines for coffee, which is also the sector where the trade surplus has grown most in the past 5 years (with an annual growth rate of: +8.6%). (Source: calculations based on ANIMA Assofoodtec data, 2016/2017).
The main export region for the macro-sector is the European Union with peaks of 65.5% for professional refrigeration equipment and 59% for household articles. The Asian market is the main market after the EU, particularly for machines for the confectionery industry (29.1%) and machines for espresso coffee (29.2%). North America is currently a secondary market (as it only makes up between 2.3% and 10.1%), but it has experienced growth for virtually all segments. Africa and South America are potentially very important markets in the future, especially for certain mereceological categories like machines for pasta factories and ovens.
Italy is also a major end market: Italian imports have grown in the last three-year period at an average annual rate of 1.4%). The household articles segment has achieved the highest volumes (approximately 396 million), while machines for the confectionery industry and machines and ovens for bread, biscuits, confectionery and pizza have enjoyed the highest increase (with +19.3% and +12.3% per annum respectively). Thanks also to the lack of customs duties, the European Union was the main market in terms of imports, followed by Asia.
Focusing on merceological areas, machines and ovens for bread, biscuits, confectionery and pizza account for 9.5% of volumes in the macro sector, with 705 million euro in 2017 (+2.13%). Exports (455 million, +2.51%) absorb 65% of production volumes, which also underlines the strength of domestic demand. The main end markets are France (60.3 million), United States (47.5 million), Germany (32.5 million) and UK (29.4 million).
Machines for pasta factories and food extrusion represent 3.6% of production (265 million, +1.67%). Approximately 74% is exported (196 million, +1.45%), in particular towards the US (28.5 million), France (11.8 million) and Algeria (10.6 million).
Machines and systems for the confectionery industry represent 1.8% of value of production (132 million euro, +2.09%), but there is a trade surplus (+79 million in 2016) in this segment and an export percentage of approximately 92% (121.5 million, +1.49%).
Machines for espresso coffee account for 6.2% of production (465 million euro, +4.23%), of which 73% is exported (338 million, +4.45%). The main export markets are the US (42.9 million), Germany (37.8 million), UK (32.1 million) and Australia (30.3 million).
Meat mincers and similar make up 2.9% of the sector (216 million euro, +1.50%) with 61% exported (132.5 million, +1.47%).
Professional refrigeration equipment makes up 13.5% of volume (1.007 billion euro, +2.23%) with exports (578 million) increasing constantly in the last three-year period (+3.08% per annum) and accounting for 57% of production. The main export markets include France (129.7 million), Germany (75.8 million) and the UK (47.1 million).
Ice-cream machines make up 4.4% of production with 325 million euro (+0.55%), 74% of which is exported (245 million euro, +0.64%).
With 11.8% of the sector’s production, household articles amount to 882 million euro (+0.87%), 66% of which is exported, mainly towards France (105.6 million), Germany (99.1 million), US (55.8 million) and Switzerland (45.2 million). Exports have increased slightly (+0.93% per annum), for a total of 579 million. (Source: calculations based on ANIMA Assofoodtec data, 2016/2017).
Italy’s main competitors are China in terms of volumes and Germany for premium price products.
