Trends and drivers
Favorable structural growth drivers in Electrolux Professional’s end-markets are expected to drive long-term sustainable growth opportunities in the company’s target markets. We believe the following factors will be key drivers of growth in the global food, beverage, and laundry equipment industries:
The post-pandemic new normal
• Health and hygiene are top-of-mind for consumers everywhere.
• Greater flexibility is required within the hotel and restaurant sector.
• Drive-throughs, take-away, home-deliveries, and outdoor serving call for new digital tools.
• More user-friendly equipment, machines that are easier to clean, hygienic surfaces, and new materials will be required.
• There is a post-pandemic shortage of labor in the hospitality industry. This is accelerating the automatization and digitalization trend as there is a need to ensure high productivity with fewer employees.
The growing population leads to an increased number of potential end-customers, demand for out-of-home food and beverage consumption, and other application areas for professional equipment.
Increasing workforce participation
The increase in workforce participation and the extension of the working age means that the time for household chores, such as cooking and cleaning has decreased.
Increased urbanization drives demand for out-of-home consumption, especially out-of-home dining. Urbanization also increases the proportion of white-collar jobs, which means more people require external food, beverage, and laundry services to save time and space. In addition, urbanization leads to increased traffic in public places, such as shopping centers and train stations, resulting in increased demand for fast-food and beverages.
Global digitalization is affecting the way we work and interact, and is changing the eco-system of our customers’ business. An increased demand for connected solutions, process optimization, and efficiency will be driven by new technologies, demanding future investments, strategic focus, and knowledge.
Growing disposable household income
A higher disposable income allows more people to spend more money on leisure activities such as out-of-home dining, and less time on household chores, creating an increased demand for out of home, professional services.
Climate change and effective use of resources
Climate change and a shortage of water, energy, and other resources creates a need for sustainability and energy efficiency in all parts of society. Since energy cost is a significant part of the total cost of ownership, energy efficiency in professional solutions is central to any investment decision.
Further Key growth drivers for Food, Beverage and Laundry segments in our industry is described in the Annual Report 2021 on pages 33-43.