Since 2016, the commercial kitchen (commercial kitchen) category has continued to show significant growth on Amazon Business. The increase from 2019 to now far exceeds that of the same period last year. Meanwhile, sellers who took the lead quickly poured into this category. As of May 2019, the number of new ASINs in the commercial kitchen equipment category alone had reached about 10 times the number of new ASINs created in the same period last year. Amazon's low minimum order volume, high-quality delivery time, door-to-door delivery service, transparent prices, and one-stop product selection and procurement experience have solved many pain points in offline commercial kitchen procurement, and have become the preferred procurement channel for more and more enterprise buyers.
This special article will analyze global market trends in this category, popular products from the three major US, Japanese, and European sites, and compliance considerations for all sellers.

People take food for granted, and any seller who has gone down to the kitchen is no stranger to the category of kitchen utensils (Kitchen). However, commercial kitchen (commercial kitchen) products do not address the needs of the food at home (food at home) scenario, but rather the needs of the food away from home (food away from home) scenario.

Simply put, a commercial kitchen is a type of product purchased by a hotel, restaurant, or other organization or enterprise that provides catering services to its customers. Some products in this category, such as kitchen storage, cutlery, pots, cutlery, utensils, etc., will appear in both personal kitchens and commercial kitchens. Other products, such as some large-scale commercial kitchen equipment, such as commercial double door refrigerators, ovens, and fryers, will only be found in commercial kitchens.

The strong demand for commercial kitchenware products is closely related to the prosperity of the global restaurant market and the popularity of food away from home (food away from home).
The US is the world's largest food and beverage market. The food and beverage market reached 825 billion US dollars in 2018. For every 100 yuan Americans spend, 4 yuan is spent on eating out and buying food services.

First, with the continuous development of urbanization, more and more urban people are eating out. In the US in 1955, spending on food away from home (food away from home) was only 25% of household food expenses; in 2017, that proportion rose to 48%. Second, the recovery of the US economy has allowed the Restaurant Industry Sentiment Index (Resturant Performance Index) to grow positively for more than 40 months. Finally, the mainstream of the US restaurant industry is small restaurants. 28% of restaurants will go out of business or change owners in the first year of operation. 60% of restaurants will go out of business or change owners within four years. Since the second-hand market is underdeveloped, most new stores will buy commercial kitchenware again. In 2017, the procurement volume of commercial kitchenware across the US reached 30 billion US dollars.

The UK and France are two of the biggest markets in the restaurant industry. In 2015, businesses in the UK and France each generated tens of billions of euros in revenue. In 2016, the value of the consumer food service market in Western Europe increased to 100 billion euros, and the value of the Eastern European market also reached 10 billion euros.

In 2016, the total value of the Japanese restaurant industry surpassed the 100 billion dollar mark. The overall scale of the restaurant industry is expected to continue to grow due to the local dining-out culture and the rapid development of the Japanese travel industry. Dine out is the culture of eating out, mainly for social and work purposes, and is an important part of Japanese culture.

As of 2018, the purchasing volume of customers from the catering industry on Amazon Business was the second-fastest growing among the 14 vertical industries, and the annual growth rate remained in the three digits. Customers who buy commercial food come not only from the restaurant industry, but also from other industries such as government, healthcare, and education (such as hotels, Airbnb, supermarket cooked food bars, schools, or government cafeterias). In terms of numbers, the scale of Amazon's commercial kitchen category has already surpassed several billion dollars, and has maintained a compound annual growth rate of double digits for many years.

The restaurant industry's rapid increase in procurement volume on Amazon Business is no accident, but because Amazon Business has solved their procurement pain points.

The North American restaurant industry is dominated by small to medium sized restaurants. Small to medium sized restaurants put restaurant owners at a disadvantage when purchasing and lack bargaining power. In order to meet the minimum order quantity, multiple orders had to be placed, leading to inventory backlog and capital consumption.
Purchasing on Amazon Business solved this pain point with the small minimum order quantity and the Amazon Logistics (FBA) 2-day delivery and door-to-door logistics experience, allowing them to use and order as they go, optimizing the supply chain and saving on delivery costs.

At the same time, because of the small scale and the restaurant's poor resilience to risks, the owner pays special attention to controlling operating costs. During procurement, he usually does extensive research and personal efforts, and the Internet can naturally meet this demand. In the US, Amazon is the most widely used online channel by restaurant owners: 45% of restaurant owners mentioned using Amazon to research products before purchasing. Among them, 23% of restaurant owners specifically mentioned Amazon Business. Transparent and competitive prices, combined with detailed product descriptions and numerous customer reviews, allow them to compare and carefully select from multiple sources.

On Amazon, restaurant owners can find a huge selection of products, from kitchen equipment, tableware, and tableware, to waiter clothing and children's chairs, with many brands; they can make one-stop purchases, eliminating the steps of going offline to find suppliers in different categories to make purchases.

Today, hundreds of thousands of customers from the hotel and catering industry purchase commercial food categories every day on Amazon US. In order to facilitate procurement for corporate and institutional buyers, Amazon Business has developed an independent web page (www.amazonhome/restaurantstore) specifically for buyers. The homepage not only has categories that customers in the food industry often buy, click on the Equipment & Supplies page, but you can also browse many of America's top brands. Click on a brand to see the brand's products listed on Amazon.

For sellers interested in commercial cooking, you can go to Amazon and the brand's independent website to learn more about their products and gain a more comprehensive understanding of US market trends. At the same time, many of the foundries for these brands are in China. It is also a good strategy for sellers to find these “invisible champions” and cooperate with these foundries to provide customers with first-class, cost-effective products.

Domestically, the amount of online purchases for commercial cooking has grown from hundreds of millions a few years ago to several billion today. Meanwhile, in the US, the share of online transactions, whether through a vertical commercial kitchen platform or through Amazon Business, has gone from single digits ten years ago to close to 20%. It can be seen from this that the shift in commercial kitchen procurement from offline to online is a historical trend, and it is also a huge commercial outlet.

In addition to the above historical trends, Amazon's fresh delivery layout will also benefit commercial kitchen category sales. In 2017, Amazon acquired Whole Foods (Whole Foods), which has more than 500 stores in the US and the UK, and also launched the Amazon Fresh project, a door-to-door delivery service for fresh products. Customers with an Amazon membership can join by paying an additional $14.99 per month to order fresh products on Amazon, have them delivered by offline Whole Foods stores, or pick them up at the store. Amazon's layout in the field of fresh food delivery will attract more restaurant owners to this platform and drive their purchases in the commercial kitchen category.

After reading this, many sellers may want to know more about this category. Let's first review the categories of commercial cooking. As mentioned at the beginning of this article, some commercial kitchen options, such as kitchen storage, cutlery, cutlery, and utensils, will not only overlap between personal kitchens and commercial kitchens. However, other products, such as some large-scale commercial kitchen equipment, only appear in commercial catering scenarios, and sellers rarely interact with each other on a daily basis. Let's first introduce this type of product below.

On Amazon, products unique to commercial cooking are mainly placed in the Industrial, Scientific & Commercial (Industrial & Scientific) category. The main products under the jurisdiction include three major equipment: refrigeration equipment, stainless steel equipment, and food processing equipment. Next, we will explain each category in detail.

Commercial refrigeration equipment is an indispensable product for every organization or enterprise that provides food services. The main products of commercial refrigeration equipment include commercial refrigerators (commercial refrigerators), ice machines (ice machines), commercial freezers (commercial freezers), and display freezers (display freezers).

Currently, on Amazon in the US, ice makers have the largest market volume among refrigeration equipment, followed by commercial refrigerators. Nearly half of the refrigeration equipment imported by the US comes from China, yet in the US and Asia, the low share of sellers in Greater China indicates that China's supply chain advantage has not been exploited.
First, because of the high unit price and strong specialty of this type of product, few trader-type sellers will get involved. Second, many factories are also located in regions where the cross-border e-commerce atmosphere is relatively underdeveloped, such as Boxing in Binzhou, Shandong, known as the “Chinese Kitchen Capital.”
Also, in this category, the share of third-party sellers far exceeds that of self-operated sellers. Because of its large size, the proportion of FBA sellers is very low. However, in recent years, FBA shipments have also become an upward trend in this category. Many sellers new to this category will use FBA shipping to get better traffic and conversions.
This type of product has certain certification requirements in the US market. Charged products involve ETL certification. In addition, since they are food-related, they also need to obtain NSF certification and ETL sanitation certification. Other states have additional subsidies for using refrigerators with the “Energy Star” logo. Therefore, sellers with the above certifications must be fully displayed at the front desk to obtain more orders from corporate customers.

The unit price of refrigeration equipment is high, the level of professionalism is high, and the after-sales requirements are high. However, at present, the three sellers on Amazon are growing rapidly and there are few sellers. Combined with the large market size and domestic supply chain, it is a “high threshold” blue ocean category for Chinese sellers. Trader sellers need to find factories familiar with the US market and carry out in-depth cooperation.

Stainless steel equipment mainly includes stainless steel commercial work tables (commercial work tables) and sinks (commercial restaurant sinks).

The preparation table looks bulky, but it can be folded into a flat package. So more than half of the FBA sellers are there. There are many sizes of dining tables. Most of them can be raised and lowered according to the user's height. They are equipped with casters, and require the customer to assemble and adjust after purchase. Third-party sellers of this type of product also account for far more than their own businesses. Sink products are mainly single and triple compartments on Amazon. This is because US regulations require every restaurant to have a standard three-compartment sink, one for washing hands, one for dishwashing/washing dishes, and one for pouring waste water. If sinks that do not comply with the regulations are randomly checked, the restaurant will be ordered to rectify. Because of their direct contact with food, stainless steel products require NSF food grade certification.

The unit price, professionalism, and after-sales requirements for stainless steel products are lower than refrigeration equipment. There are fewer certifications required, and the threshold is relatively low. Some Chinese sellers have already entered.

Food processing equipment includes commercial deep fryers (commercial deep fryers), ovens (commercial griddle/commercial charbroilers), steaming equipment (steaming equipment), cooking equipment (commercial gas/electric range, pot stoves), commercial meat slicers (commercial mixers/slicers) ).

Americans prefer frying and frying in their eating habits, so frying pans, barbecues, etc. are essential staple products in many restaurants. Fryers, barbecues, and cooktop equipment generally come in two types: gas and liquefied gas. The degree of stability of the flame and the degree of heat resistance of the part that comes into contact with the flame are dimensions that customers will consider when purchasing.

The unit price and after-sales requirements of food processing equipment products are lower than refrigeration equipment and higher than stainless steel equipment. However, the quality of its products is relatively stable. Currently, there is little competition on Amazon, and there are few Chinese sellers, but there are many domestic export factories to the US, so traders are recommended to enter.

tips

The three devices described above all involve after-sales. Uploading detailed instructions at the front desk, communicating via video, and leaving after-sales contact information on the instructions included in the box are all highly recommended. At the same time, due to the heavy weight of the product, it is recommended that sellers conduct a crash-box test before shipping to reduce cargo damage and poor customer reviews due to transportation.

At the Ningbo Seller Summit last year, the product of a 2018 new seller specializing in commercial cooking won the “Most Favored Brand by Overseas Institutional Consumers” award, and became the 2018 Top 5 New Seller in the Industrial Research and Commercial Classification!

In addition to the three major equipment, options for commercial cooking also include: drink/drink/coffee equipment (such as beer dispensers, cold/hot water machines, coffee machines, milkshake machines, juicers, ice cream machines, etc.); furniture for restaurant use only (such as baby seats/bar chairs/cigarette butters collector/patio furniture/queuing barriers, etc.); restaurant display products (such as buffet ornaments/LED display bracks/display racks, etc.); food storage and handling products (such as food storage/baking trays/takeout bins, etc.) Meal prep carts, etc.); and commercial cleaning products (such as baby changing tables/ hand sanitizer dispenser, etc.).
There are actually a lot of products here that we can't imagine. For example, Check Minder, also known as Order Holder. The waiter uses this product to sort out the order so that the chef in the back kitchen can understand the content and order of the order.

Take Figure 1 in the figure above as an example. A local retailer in the US has a reference price of $80-100 for this product. Compared with the purchase price of a domestic factory, I believe it is possible to obtain a good profit margin.

In personal kitchens, there are also many commercial kitchen options. We have selected the top five subcategories in terms of category size and simply analyzed prices, the proportion of third-party sellers/self-employed businesses, and the off-peak season situation. What needs to be emphasized here is that in each category, we also include products that have received multiple bulk orders in the past 5 months (more than 200 items in a single order) in the table, indicating that customers who buy such products have a habit of buying in bulk. Sellers who sell these products, don't forget to add volume discounts to your products to make your offer stand out from the competition.

Here I would like to introduce you to two rapidly growing products. One is stainless steel straws, and the other is disposable tableware. The best model of stainless steel straws sold on Amazon is 4 straight straws, 4 curved straws and 2 brushes. The reason why this product's performance exploded was inseparable from the US government's “plastic ban.”
For example, starting July 1 of last year, Seattle became the first city in the US to ban retailers from using plastic straws. New York City later announced that in 2020, it will enact a city-wide law banning the use of plastic straws. Following that, Starbucks also announced that they would gradually stop using plastic straws.
Disposable tableware is also experiencing rapid growth in the US. This is related to America's “bombshell” culture, as well as the rapid development of freeze/frozen fast food in the US. Many Americans are gradually getting used to buying this type of food, and at the same time, they always keep disposable tableware at home to eat frozen/refrigerated food, eliminating the hassle of washing dishes.

Dining out is one of the most popular leisure activities in Europe, which has led to a booming restaurant industry. These include restaurants, cafes, bars, takeout, food delivery, contract catering, cafeterias, and other food vendors. Currently, quite a few related categories have appeared on Amazon.

Includes kitchen sinks, kitchen faucets, kitchen sink accessories, and water dispensers.

Includes microwave ovens, toasters, blenders and food processors, kettles and toasters, kitchen scales, frying pans, coffee makers, juicers, slow cookers, professional equipment, and sandwich toasters and panini presses.

Large household appliances include ovens, dishwashers, and fridge-freezers.

Includes cutlery, cookware, kitchen utensils, kitchen storage and storage facilities, baking pans, and coffee, tea, and espresso

This includes tables, storage trolleys, chairs, kitchen components, service trolleys, and benches

Includes napkins, baking pans, take-out containers, butcher paper, and pan tail blender.

This includes disposable items, barware, food and dish delivery, range hoods, work benches, menu and inspection displays, food preparation equipment, restaurant furniture, gloves and steam tables, and drains.

Next, we will focus on the top 5 European sites and introduce each site's featured products.

In the UK, we can see that with the popularity of takeout apps, the food and beverage takeout industry is several times higher than the overall dine-out market, so takeout-related plastic food packaging containers, disposable tableware gloves, etc. will be very welcome.

The French restaurant industry is well-developed, there are many restaurants, and competition is fierce. Using the “no one has anything” specialty business as the main marketing method, many street-front restaurants and restaurants in Paris and Lyon have prominent exterior decorations and prominent signs. Restaurant decoration is an elegant, noble or trendy environment as a means of attracting customers, so we can see that French websites are very popular for products related to restaurant decoration art.

German people love coffee, as the poet Peter Eittenberg once said: “I'm not at home, I'm in a cafe; not in a cafe, I'm on my way to a cafe. ” “Meet at a coffee shop” has become a popular way to socialize in Germany. Fully automatic coffee machines and related products are very popular in the German market.

While Italy is a gathering place for luxury brands from all over the world, it has also created the country's exquisite and elegant atmosphere, so people can enjoy a wonderful time in a luxurious and laid-back environment, so all kinds of exquisite tableware and napkins are very popular in the market.

Spain is rich in sparkling wine, and the locals like to drink sparkling drinks, so machines such as soft drink machines are very popular in the local area.

European compliance requirements

• CE certification is a requirement and standard of EU law for the safety of products freely circulating in the EU market. Different types of kitchen products can be CE marked only if it is confirmed that they meet the corresponding EU directives and applicable standards. For example, kitchen appliances such as microwave ovens and electric ovens must comply with CE LVD Directive 2014/35/EU, and the standard EN 60335-XX is applicable.
• Under European law, although there are no mandatory food safety certification requirements. However, it is important to note that there are restrictions on sales of blade products in the UK, including kitchen knives, and AVD delivery must be applied before permission to be sold can be obtained. For specific requirements, search “AVD” on the Seller Central Help page for detailed requirements.

Kitchen supplies and tableware mainly include: cookware, lunch boxes and water bottles, water filters and softeners, kitchen utensils and accessories, kitchen storage and reserves, sink supplies, kitchen storage containers, coffee, tea and espresso, kettles and table utensils.

Tableware, glassware and tableware mainly include: cups, mugs and plates, chopsticks, tableware and cocktail decorations, glassware and drinkware, disposable tableware, plates, Japanese dishes, Hachiko and large bowls, dinner tableware, regular bowls, rice bowls, and soup bowls.

Japanese compliance requirements

Japan's Food Sanitation Law has corresponding requirements for food and tableware and containers that come into direct contact with food. The requirements include that products must not contain toxic and harmful substances that cause harm to humans, and that corresponding inspection standards are set for different products. Importers can only import and sell products into Japan if they have passed the inspection and inspection. Japan's Ministry of Health, Labor, and Welfare will also control various products according to corresponding standards.