Commercial Milkshake Machines Market: Top 3 Drivers by Technavio

Technavio has published a new report on the global commercial milkshake machines market from 2017-2021. (Graphic: Business Wire)

LONDON--()--Technavio market research analysts forecast the global commercial milkshake machines market to grow at a CAGR of more than 7% during the forecast period, according to their latest report.

The market study covers the present scenario and growth prospects of the global commercial milkshake machines market for 2017-2021. The report also lists multiple spindles and single spindle as the two major product segments of the commercial milkshake machines market. In 2016, the multiple spindles segment accounted for the largest market share in the market.

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Technavio analysts highlight the following three market drivers that are contributing to the growth of the global commercial milkshake machines market:

  • High profit margins from milkshakes
  • Growing preference for new flavors of milkshakes
  • Increase in number of end-users

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High profit margins from milkshakes

Milkshakes, on an average, account for profit margins in the range 50%-70%. The average selling price of a cup of milkshake with different ingredients such as milk, ice cream, syrups, sugar, cookies, nuts, chocolate, coffee, and others generally ranges from USD 2 to USD 5, while the cost of production is less than USD 1. A small foodservice establishment can earn close to USD 50,000 per year from selling milkshakes if it sells at least 50 servings per day, and is open seven days a week and 12 months a year. This translates to a daily profit of around USD 135.

According to Manu Gupta, a lead analyst at Technavio for food service research, “Such high profit margins encourage many end-users in the milkshake segment to invest in improved models of commercial milkshake machines. These models help ensure consistent and superior quality of output, which enables end-users to achieve high profit margins.”

Growing preference for new flavors of milkshakes

Due to the growing preference for milkshakes, many foodservice establishments are introducing milkshakes in new flavors. For instance, in February 2017, McDonald's added Chocolate Shamrock Shakes, which contain mint and chocolate, and Shamrock Chocolate Chip Frappe to its menu. In April 2017, Burger King added FROOT LOOPS Shake to its menu. Burger King in the past had also added milkshakes like Gingerbread Cookie, Pumpkin Spice Oreo, and Red Velvet Oreo to its menu for a limited period.

“Beverage consumption is increasing significantly worldwide. Healthy beverages such as milkshakes, protein shakes, frozen drinks, malted milkshakes, fruit smoothies, juices, and others are also gaining popularity due to their many health benefits. Milkshakes are popular because of the unique taste and presence of milk. The demand for new equipment will increase with end-users focusing on expanding their product offerings,” says Manu.

Increase in number of end-users

The various end-users that serve milkshakes include restaurants specially QSR, cafés, ice cream parlors, and juice centers. During the forecast period, these end-users, mainly QSR, are expected to expand significantly. Some of the large chains in the QSR segment that serve milkshakes along with food items are McDonald's, Chick-fil-A, Burger King, Dairy Queen, and Wendy's.

In 2016, the total restaurant count for McDonald's increased by over 370 globally. In February 2017, Wendy's announced its plans to open close to 1,000 new restaurants by the end of 2020 globally. Such expansions by end-users are likely to result in a simultaneous increase in demand for and sales of commercial milkshake machines.

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Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200

Release Summary

Technavio market research analysts forecast the global commercial milkshake machines market to grow at a CAGR of more than 7% from 2017-2021.


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200