Toaster Market Size, Share & Trends, Market Research and Industry Forecast Report, 2019-2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Toaster Market


The global toaster market size was valued at USD 3.2 billion in 2018 and is estimated to register a CAGR of 4.8% over the forecast period. While households are the leading end users of this kitchen appliance, its growing usage in commercial settings, such as coffee shops, hotels, cafes, diners, and restaurants, is a key growth factor. Moreover, a thriving quick-service restaurant industry provides immense opportunity for players. Strengthening purchasing power of consumers across the globe will also benefit market growth.

In recent years, there has been increased focus on energy efficiency. Regulations laid down by various governments, coupled with growing consciousness among consumers, have compelled manufacturers to devise energy-efficient appliances. Toasters are known to consume six times lesser energy than Conventional ovens. Companies are looking to improve this feature by making several upgrades and modifications. The Ecolectric Toaster by Morphy Richards is one of the first energy-efficient toasters in the world, with recycled materials used in the manufacturing of the appliance. Compared to other toasters in the market, this one reportedly uses 30% less energy. An innovative feature of this toaster is the auto-close lid, which retains heat within the appliance itself. This not only speeds the toasting process but also ends up using less energy.

Product innovation is key for players to stay ahead of their competition and expand their reach. Appliances that have technologically advanced features, while at the same time, are user friendly and easy to use, are in high demand. Smart toasters have made an appearance in the market and today, an increasing number of companies have been offering products that can be integrated to the users smartphone and other connected devices. Griffin Technologys Connected Toaster, for instance, uses Bluetooth to connect to a smartphone app. The app tracks, stores, and recalls a users toasting preferences, ensuring the end product is as desired.

The number of slots in a toaster, and the width of each slot, is also important while making a choice, be it for home or commercial use. Cuisinarts Touch to Toast Leverless toaster, for instance, has four slots that are 1.5 inches wide to accommodate a variety of foods, including bagels, sandwiches, pizza, and frozen pretzels. Other additional features that companies have been offering in toasters include digital timers and heat settings, LED display screens, multiple crumb trays, push buttons, sound alerts and alarms, and cancel functions.

Product Insights of Toaster Market

Based on product, the market is segmented into pop-up, oven, and conveyor toasters. Pop-up toasters held the dominant share of 54.9% in 2018 and are the most preferred type among consumers. These appliances consume lesser energy as compared to toasting bread in the oven or stove, which are less efficient. Moreover, these toasters allow automatic heat adjustments and defrost options. Conveyor toasters, on the other hand, are anticipated to be the fastest growing segment in the market, registering a CAGR of close to 6.0% from 2019 to 2025. The product is in great demand at restaurants, hotels, and catering events because of its capacity to handle large volumes of food items.

Application Insights of Toaster Market

On the basis of application, the residential segment held the dominant share in the toaster market in 2018, primarily fueled by surge in working population. With bread being a vital breakfast item for consumers across the globe, the convenience provided by toasters for a quick, easy, and delicious breakfast will continue to be a key factor keeping product demand high in the residential segment. Newer advanced appliances can also perform multiple tasks. For instance, other than toasting bread, toaster ovens can cook pizza, various chicken and fish dishes, and bake cookies and biscuits, too. Consumers are constantly looking for home appliances and kitchen equipment that are user friendly and highly efficient. This has driven manufacturers to introduce innovative, energy-efficient products that cater to evolving consumer demands.

The commercial segment is expected to register the highest CAGR of 6.1% from 2019 to 2025. The segment is strongly influenced by changing industry demand from generic toasters to customized appliances that can suit individual preferences in various application settings at food service establishments. The segment is characterized by introduction of toasters with improved features, ability to perform multiple tasks simultaneously, and toast large batches of bread at a time. Technological advancements for improved efficiency is a key factor driving the segment. Conveyor toasters are some of the most popular appliances used on a commercial scale, especially in catering businesses, buffets, and busy restaurants.

Regional Insights of Toaster Market

In terms of value, Asia Pacific held the largest revenue share of over 40.0% in 2018. The market is driven by growing presence of leading quick service restaurants and fast food retailers that use toasters for quick meals. Bread is one of the quickest and most convenient breakfast meals and with increasing working population in the region, demand for toasters to make easy breakfast items will continue to be steady. Product demand and sales are also fueled by rising purchasing power of consumers, thanks to increasing disposable incomes.

North America is expected to register the highest CAGR of 6.1% over the forecast period, on account of greater adoption of advanced kitchen appliances in the food service industry as well as in homes across U.S. and Canada. Product demand is also driven by high demand for convenient options for breakfast meals from consumers, at home as well as cafes and diners. When it comes to commercial toasters, North America has been a prominent market owing to the strong presence and expansion of coffee shops that also serve a variety of baked bread-based items. Growing awareness about and demand for energy-efficient kitchen appliances among consumers in the region has compelled manufacturers to come up with innovative ideas and this is also a key factor that will continue driving the North America market.

Market Share Insights of Toaster Market

The industry is highly competitive in nature with manufacturers concentrating on new product launches, marketing campaigns, and technological innovations to stay ahead. Some of the key players are The APW Wyott, Hatco, Star Manufacturing International, Waring Commercial, and Toastmaster. With steady demand for toasters from developing markets like China, India, and Brazil, companies are looking to expand in these countries over the coming years.

There has been growing demand for advanced kitchen equipment that can perform various tasks and functions. This avoids the need for multiple equipment, saving cost as well as kitchen space. Keeping this in mind, For instance, Cuisinart introduced the AirFryer Toaster Oven and Digital AirFryer Toaster Oven, which is a full sized toaster with a built-in airfryer. This space-saving appliance does not have to be moved from cupboard to counter each time it has to be used and avoids messy and time-consuming cleanups.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Toaster Market Research Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, this market research report has segmented the global toaster market report on the basis of product, application, and region:

Product Outlook (Revenue, USD Billion, 2019 - 2030)

  
Pop-up Toasters
  
Toaster Oven
  
Conveyor Toasters

Application Outlook (Revenue, USD Billion, 2019 - 2030)

  
Commercial
  
Residential