The global food service market revenue was valued at USD 3,236.92 billion in 2023 and is projected to grow to USD 3,486.58 billion in 2024, reaching USD 6,348.75 billion by 2032 at a CAGR of 7.78% during the forecast period.
In the United States, the food service market is set to witness significant growth, with an estimated value of USD 1,767.54 billion by 2030. Additionally, by 2032, the U.S. market size is expected to reach USD 1.71 billion, driven by the proliferation of fast-food chains and increased consumer spending on quick-service food options.
Food service establishments include businesses that prepare and provide food for on-site dining, takeaway, and delivery. This broad sector encompasses food service retailers, counter and table service operators, and food service providers. The global market’s growth is fueled by rising fast-food consumption, supported by factors such as higher household incomes, an increase in working women, and the convenience offered by fast-food establishments.
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List of Key Players Profiled in the Market Report
- McDonald's (U.S.)
- Starbucks (U.S.)
- Yum! Brands, Inc. (U.S.)
- Darden Restaurants, Inc. (U.S.)
- Restaurant Brands International Inc. (Canada)
- The Wendy’s Company (U.S.)
- Bloomin’ Brands, Inc. (U.S.)
- Papa John's International, Inc. (U.S.)
- Chipotle Mexican Grill, Inc. (U.S.)
- Domino's (U.S.)
Segmentation:
Full-Service Restaurants Drive Growth Through 2029
The food service market is segmented into quick-service restaurants, full-service restaurants, institutions, and other categories. Among these, full-service restaurants lead the market due to their extensive and varied menu offerings. The growing trend of family vacations and group dining is driving the growth of this segment, which is expected to maintain its upward trajectory in the coming years.
Commercial Food Service Segment Set for Significant Growth by 2029
The market is further categorized into commercial and institutional services. The commercial food service segment is anticipated to experience robust growth, fueled by the increasing number of food trucks, food chains, cafes, restaurants, and online food delivery platforms. This segment, which includes quick-service and full-service restaurants as well as dining-out and takeout services, is driving significant market expansion.
Report Coverage:
- Analysis of key market drivers, restraints, opportunities, and challenges.
- Insights into regional market trends and developments.
- Profiles of major industry players and their strategies.
- Updates on product launches, partnerships, mergers, and acquisitions.
Drivers & Restraints:
Expansion of Fast-Food Chains and Quick-Service Restaurants Propels Growth
The market is primarily driven by rising disposable incomes and the prevalence of dual-income households. Contributing factors include a growing millennial population and the expanding footprint of fast-food chains in emerging markets. These trends are expected to sustain strong growth in the food service sector.
However, challenges such as lingering impacts from the COVID-19 pandemic may pose risks to market growth.
Regional Insights:
North America Leads with USD 989.0 Billion Revenue in 2021
North America emerged as the largest regional market in 2021, generating over USD 989.0 billion in revenue. Factors such as increased spending on fast food, the proliferation of fast-food outlets, and dual-income households contribute to this dominance. The region’s millennial population and shifting lifestyle preferences are expected to maintain its leading position.
Asia Pacific: Fastest Growing Market Through 2029
The Asia Pacific region is projected to register the highest CAGR from 2022 to 2029, driven by the growing presence of fast-food outlets and restaurants in Tier-II and Tier-III cities.
Europe: Steady Growth Expected
Europe is poised for stable growth, supported by the rise of quick-service restaurants, cafes, pubs, and coffee shops.
Competitive Landscape:
Acquisitions Drive Market Expansion
In the post-pandemic period, acquisitions have become a key growth strategy for market players aiming to expand their reach. For instance, Imperial Dade strengthened its U.S. presence by acquiring Empire Distributors, resulting in 91 new distribution locations. Similar acquisition strategies are being adopted by leading companies to capitalize on new opportunities.
Key Industry Development:
July 2021: Delivery Hero, through its Food Panda brand, relaunched operations in Germany, tapping into one of Europe's largest food service markets.
