USD 2323.29 billion
Food Service Market Size, Share, Growth Analysis, By Type(Full-Service Restaurants, Quick-Service Restaurants, And Others), By Service Type(Commercial and Non-Commercial), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG25Q2005 |
Region:
Global |
Published Date: February, 2024
Pages:
157
|Tables:
61
|Figures:
75
Food Service Market Insights
Food Service Market size was valued at USD 2323.29 billion in 2019 and is poised to grow from USD 2540.05 billion in 2023 to USD 5194.6 billion by 2031, growing at a CAGR of 10.76% in the forecast period (2024-2031).
Food service refers to either a formal contract that stipulates those meals will be routinely provided by a third party or the storage, preparation, serving and cleanup of food meant for consumption in a facility. It also covers the distribution of consumable prepared foods, including those that the child care center prepares on site and that it purchases from authorized restaurants. Over the past several years, there has been a steady increase in the innovation of new services offered at restaurants, hotels, cafés, and other places where people go to eat. Restaurant operators, hotel chains, and independent business owners are concentrating on growing their businesses in every manner possible, adding online delivery options, and catching up with the trend of food delivery to homes.
For example, in order to expand their current relationship and provide customers and McDonald's franchisees the convenience and value of McDelivery through the Deliveroo platform in markets across the world, McDonald's and Deliveroo have come to an agreement on a new, long-term worldwide strategic partnership. The collaboration between McDonald's and Deliveroo will help the McDelivery company expand and promote both businesses' dedication to a seamless customer experience. Through this alliance, McDelivery will be made more accessible through the Deliveroo platform in new areas while also solidifying the relationship between the two firms in their current territories.
US Food Service Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Full-Service Restaurant
Fastest Growth
Full-service Restaurant
Growth Rate
10.76% CAGR
Global Food Service Market, 2021-2028 ($ Bn)
Country Share for North America Region- 2021 (%)
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Food Service Market Segmental Analysis
Global food service market is segmented based on the type, service type, and region. Based on the type, the market is segmented as full-service restaurants, quick-service restaurants, and others. Based on service type, the market is segmented into commercial and Non-Commercial. Based on Region it is categorized into North America, Europe, Asia-Pacific, Latin America, and MEA.
Food Service Market Analysis by Type
In 2021, the full-service segment held the largest share of the global food service market. This was, due to the availability of a large variety of food products on the menu, the full-service restaurant category now holds the highest market share. In order to have a wide selection of meal options accessible for each person, families, corporate meetings, and other gatherings typically prefer going to full-service restaurants. In order to draw in more customers, these eateries are constantly expanding their menus. For example, this good of hacks ought to be on the menu (at least, for a limited time). Customers are constantly thinking of new ways to customize their McDonald's meals in order to make them distinctively their own, whether it be by adding Chicken McNuggets to their favorite sandwich or sandwiching a crispy Hash Brown between their Sausage McMuffin with Egg. For the first time ever, McDonald’s is showcasing its inventiveness by placing four of the country's most popular dishes on menus for a brief period of time.
Following this, due to a rise in online food ordering throughout the world, online meal delivery and disorganized food services, such as street sellers, are predicted to have a promising expansion. Online food ordering has risen over the past few years, particularly following the COVID-19 epidemic, in nations such as the United States, China, Japan, the United Arab Emirates, and India. As a result, this component has great potential prospects for the expansion of the global food service market.
For example, in order to advance their current arrangement and provide McDonald's customers and franchisees with the convenience and value of McDelivery in markets throughout the world, McDonald's and DoorDash have come to an agreement on a new, long-term worldwide strategic collaboration. The collaboration between McDonald's and DoorDash will help the McDelivery company develop and improve both businesses' dedication to innovation. DoorDash will be a preferred and trusted partner in completing these orders in thousands of McDonald's restaurants in the U.S. and across the world as McDonald's increases the number of customers who can request delivery straight through the McDonald's app.
Food Service Market Analysis by Service Type
In 2021, the commercial segment held the largest share of the global food service market. Restaurants that offer full service, fast service, and dining-out/takeaway food service systems are included in the commercial section. Examples of commercial edible services include eateries, cafés, fast food chains, food trucks, and online food ordering. Compared to commercial food service, which has existed in this business from its origin, institute food service is a relatively recent notion. Families are spending more money on hotels, dining out, cafés, and other locations as their discretionary income rises. As statistics suggest, comparing the third quarter of 2021 to the same period last year, India Inc.'s employment is up 14%. The hiring rate rose by 14% in the most recent quarter. But when taking a broader view, it is anticipated that job cuts will rise by more than 50% over the previous year.
Major fast-food chains like Domino's, Pizza Hut, KFC, Starbucks, Burger King, Taco Bell, Subway, McDonald's, Wendy's, Papa John's Pizza, and Chipotle Mexican Grill are taking advantage of this opportunity to establish their presence in various international markets given the trend of millennial consumers choosing quick service restaurants. For example, fast food consumption is on the rise because of its affordability, variety, and convenience. Between 30% and 50% of youngsters and college students often eat fast food. Due to these factors, this segment is expected to observe significant growth during the forecast period further boosting the growth of the global food service market.
Global Food Service Market By type , 2021(%)
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Food Service Market Regional Insights
In 2021, the largest share for the food service industry was held by North America. The area is one of the greatest markets in this business due to a rising number of homes with two working adults, a rise in disposable income, the existence of fast-food chains, and regional economic growth in general. Data suggests that real median wages for full-time, year-round employees rose 6.9 percent from 2019 estimates in 2020. Men working full-time, year-round saw an increase in median wages of 5.6 percent and 6.5 percent ($61,417) and ($50,982), respectively.
Following this, the projection period is likely to have the highest growth rate in the Asia-Pacific region. The rise of the middle class and rising urbanization in the Asia Pacific area are driving this industry's sales growth. For example, many Indian cities in 2018 have a population of between 300,000 and 1 million people. There are just five urban areas with a population of 20 million or more, compared to 120 medium-sized cities of a similar size. Up to 2030, India's seven major cities will continue to grow. The population of Delhi, the capital of India, is expected to rise by roughly a third over the course of the next ten years, to 38.9 million people. There are 461 million people living in urban areas. This number is increasing by 2.3% annually. Cities are predicted to contribute 75% of India's national revenue by 2031. This rise in urbanization will boost the growth of the global food service industry during the forecast period.
In comparison to the other areas, Europe is anticipated to see consistent development. Restaurants, specialty coffee shops, hotels and resorts, quick-service restaurants, amusement parks, pubs, staff catering, education, health care, custodial (police, fire stations, and prisons), and welfare (meals on wheels, daycare centers, and other similar institutions) are some of the major food service institutions in Europe. The presence of a large number of food service outlets in the region will help in maintaining its share during the forecast period in the global food service market.
Global Food Service Market By Geography, 2021 - 2028
- Largest
- Fastest
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Food Service Market Dynamics
Food Service Market Driver
- Due to the increased demand for lunch and dinners eaten outside the house, food service and institutional catering services have changed as a result of socioeconomic developments. The advent of science and technology has also assisted caterers and large-scale food manufacturers to organize their operations, increasing productivity, and enhancing safety. Additionally, the usage of computers has made a significant contribution. The desire for numerous cuisines has grown as a result of rising migration, urbanization, and globalization as well as more exposure to different cuisines.
- According to preliminary estimates, June 2022 retail and food services sales in the United States were $680.6 billion, an increase of 1.0 percent (0.5 percent) from the previous month and 8.4 percent (0.7 percent) over June 2021. These sales were adjusted for seasonal variation, holiday, and trading-day differences, but not for price changes. Total sales increased by 8.1% (0.5%) from April 2022 to June 2022 compared to the same time last year. The percentage change from April 2022 to May 2022 was reduced from 0.3 percent (0.5 percent) to 0.1 percent (0.3 percent).
- The main reasons encouraging people to eat more food from outside are household income growth and the increase of dual-income households in the majority of areas. For example, more than 50% of households in the United States have two incomes. According to the most recent data for the entire country, 53.3 percent of households had two incomes, up from 51.9 percent in 2010. In addition to these elements, franchising continues to be one of the most common development methods while the rapid expansion of outlets in a variety of formats is gaining appeal in both developed and developing markets worldwide. Due to the fact that the majority of millennials like fast food, they spend more money at quick-service restaurants than they do at conventional family eateries. For example, according to a Times of India poll, 81 percent of Indian customers use delivery apps to purchase food because they find them convenient.
Food Service Market Restraint
- This market is primarily driven by consumer expenditure on meals eaten outside of the house. But several people have lost their employment as a result of the COVID-19 outbreak that began in 2020. Over the course of 2020, the COVID-19 outbreak and the ensuing lockdown resulted in the loss of work for 114 million individuals. Each state's labor market measures, as well as those for important economic sectors and demographic groups, were dramatically impacted by the COVID-19 pandemic.
- In 2020, the majority of the consumer group placed a larger emphasis on health and hygiene items as more customers lost their employment. As individuals spend their savings and earn money wisely in the following years, this trend is anticipated to last for a longer period of time. This can prove to be a hindrance to the growth of the global food service industry.
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Food Service Market Competitive Landscape
The food service industry is relatively fragmented, with a high level of competition. The prominent players operating in the market are constantly adopting various growth strategies to stay afloat in the market. Product launches, innovations, mergers, and acquisitions, collaborations and partnerships, and intensive R&D are some of the growth strategies that are adopted by these key players to thrive in the competitive market. For example, NBA Africa and KFC Africa today signed a marketing alliance via which they would work together on many campaigns. As a result of the collaboration, KFC Africa and NBA Africa will roll out co-branded product campaigns, limited-edition giveaways of merchandise, and limited-edition KFC x NBA promotions. Basketball fans will have the chance to win tickets to NBA games in person in the United States as well as free access to NBA League Pass, the league's premium live game subscription service, as well as other prizes. The key market players are also constantly focused on R&D to supply industries with the most efficient and cost-effective solutions.
Top Players in the Global Food Service Market
- McDonald's
- Subway
- Compass Group
- Sodexo
- Aramark
- Elior Group
- Sysco Corporation
- Marriott International
- Yum! Brands Inc.
- Domino's Pizza Inc.
- Restaurant Brands International Inc.
- Whitbread PLC
- Starbucks Corporation
- Brinker International Inc.
- Darden Restaurants Inc.
- Bloomin' Brands Inc.
- Chipotle Mexican Grill Inc.
- Papa John's International Inc.
- Wendy's Company
- Dunkin' Brands Group Inc.
Recent Developments in Food Service Industry
- In June 2022, all eyes are on KFC when the fried chicken business unveiled a cutting-edge eating tool that actually makes all of your favorite KFC dishes finger-lickin' scrumptious. KFC's latest ergonomic and culinary tableware innovation, the Finger Spork, will make family supper more enjoyable.
- In March 2022, in order to offer McDonald's customers and franchisees the convenience and value of McDelivery in markets all over the world, McDonald's Corporation and Just Eat Takeaway.com N.V. have decided to form a new, long-term global strategic partnership. This partnership will build on their current local agreements. The collaboration between McDonald's and Just Eat Takeaway.com will help the McDelivery company expand while also enhancing its operational advantages.
Food Service Key Market Trends
- The global spread of e-commerce systems is being fueled by financial growth, rising disposable income, rising food consumption, and rising internet penetration. Now that consumers have more discretionary cash, electronic payment methods are more reliable, and the number of providers and the size of their delivery networks is occasionally growing, consumers are adopting online services more and more. The way customers and suppliers engage has altered as a result of the rise of online delivery platforms and the acceptance of these services by consumers in developing nations, particularly during COVID pandemics.
- The online ordering system has been more important among small businesses and the restaurant industry during the COVID-19 era. Online ordering is replacing conventional ordering in the age of digitization because it is simple, error-free, rapid, and entirely transparent. This industry is anticipated to see significant growth as a result of the introduction of this trend over the course of the forecast period, and it is anticipated to provide several chances for new market entrants to expand.
Food Service Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global food service market Analysis report, in terms of type, the full-service segment held the largest share in the food service industry in 2021, this was due to the availability of a large variety of food products on the menu. Based on service type, the commercial segment held the largest share in the market in 2021 due to families spending more money on hotels, dining out, cafés, and other locations as their discretionary income rise. By region, the North American region held the largest share in the food service market in 2021, this is due to a rising number of homes with two working adults, a rise in disposable income, the existence of fast-food chains, and regional economic growth.
| Report Metric | Details |
|---|---|
| Market size value in 2019 | USD 2323.29 billion |
| Market size value in 2031 | USD 5194.6 billion |
| Growth Rate | 10.76% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Food Service Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Food Service Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Food Service Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Food Service Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Food Service Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Food Service Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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