The global food service market size crossed USD 3,236.92 billion in 2023. The market value is projected to rise from USD 3,486.58 billion in 2024 to USD 6,348.75 billion by 2032 at a CAGR of 7.78% during 2024-2032. Growth can be attributed to the rising disposable incomes of consumers, evolving lifestyles of consumers, particularly millennials, and the rising number of cafes, restaurants, and fast-food chains. Growing spending on non-homemade foods and a rise in online food deliveries will augment the market growth during the forecast period.
Information Source: https://www.fortunebusinessinsights.com/food-service-market-106277
Segments:
By Type, Full Service Restaurants Segment to Gain Traction through 2029
On the basis of type, the market is segmented into quick service restaurants, full service restaurants, institutes, and others. Among these, the full service restaurants segment holds the major market share owing to the wide availability of food items on the menu. Due to the rising trend of family outings, the number of such restaurants is increasing, which will provide significant momentum to the segment growth.
By Service Type, Commercial Food Service Segment to Gain Traction over 2022-2029
In terms of service type, the market is bifurcated into commercial and institutional. Out of these, the commercial segment is slated to generate monumental traction throughout the forecast period, led by the rising number of food chains, food trucks, cafes, restaurants, and online food orders. This segment includes quick service restaurants, full service restaurants, and dining out/takeaway services.
Report Coverage:
The report offers:
- Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
- Comprehensive insights into the regional developments.
- List of major industry players.
- Key strategies adopted by the market players.
- Latest industry developments include product launches, partnerships, mergers, and acquisitions.
Drivers & Restraints:
Expansion of Fast-Food Chains and Quick-Service Restaurants to Foster Growth
The food service market growth is primarily driven by the rise in dual-income households and disposable incomes. Expanding millennial population base and growing popularity of fast-food chains will prove to be a pivotal factor driving the market forward. As fast-food outlets expand their presence across new and emerging markets, the industry will experience rapid growth in the coming years.
However, the after-effects of the COVID-19 pandemic could impact market trends to some extent in the future.
Regional Insights:
North America Food Service Industry Stood at USD 989.0 Billion in 2021
With more than USD 989.0 billion in annual revenue, North America dominated the global food service market share during 2021. The dominance of this region is attributable to the growing number of dual working households, increased spending on fast foods, and subsequently rising number of fast-food chains. A large millennial population base and rapidly shifting lifestyle trends will positively influence the market in this region.
The market in Asia Pacific is expected to grow at the highest CAGR over 2022-2029, led by growing number of restaurants and fast-food joints across Tier-II and Tier-III cities. Meanwhile, the European market will exhibit steady growth owing to rise in quick-service restaurants, cafes, pubs, and coffee shops.
Competitive Landscape
Leading Players Adopt Acquisition Strategies to Stay Competitive
The majority of market players weren’t ready to risk their businesses and making losses by entering into volatile markets due to disruptions created by the COVID-19 pandemic. However, as the impacts of COVID-19 began subsiding, companies were seen expanding their businesses across new markets. For instance, Imperial Dade acquired Empire Distributors to operate 91 new distribution centers across the U.S. Similar strategies are being adopted by major players as they eye new markets for expansion and business growth.
Key Industry Development:
July 2021: Delivery Hero re-launched its operations via its Food Panda brand in Germany, which is one of Europe’s largest food service industry.
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.)
