USD 32.19 billion
In-Flight Catering Services Market Size, Share, Growth Analysis, By Airline Class(Economy, Premium Economy, Business), By Flight Type(Full-Service Carriers, Low-Cost Carriers and Other), By Food Type(Meals, Bakery & Confectionery, Beverages, and Other), By Airlines(Large Airlines, Medium Airlines, Small Airlines), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG20S2013 |
Region:
Global |
Published Date: March, 2024
Pages:
202
|Tables:
117
|Figures:
77
In-Flight Catering Services Market Insights
Global In-Flight Catering Services Market size was valued at USD 32.19 billion in 2022 and is poised to grow from USD 33.61 billion in 2023 to USD 47.43 billion by 2031, growing at a CAGR of 4.4% during the forecast period (2024-2031).
The Global In-Flight Catering Services Market operates at the intersection of two pivotal industries: aviation and food services. It involves the provision of meals, snacks, and beverages to passengers during flights, ensuring a satisfying and enjoyable culinary experience at 30,000 feet. The market's significance stems from its role in enhancing passenger satisfaction, contributing to airline brand differentiation, and even impacting the overall perception of travel. The purpose of the in-flight catering services market is to meet the dietary preferences and expectations of passengers while they are on board an aircraft. As passengers embark on journeys that vary in duration, it becomes essential for airlines to offer diverse and appetizing food options to cater to a wide range of tastes, dietary restrictions, and cultural preferences. A well-executed in-flight catering service can not only elevate passenger satisfaction but also contribute to building a positive brand image for airlines.
The demand for in-flight catering services is driven primarily by the growing global airline industry, which has witnessed a surge in air travel due to increased disposable income, business travel, and tourism. Airline companies aim to provide a differentiated and luxurious experience to passengers, and high-quality catering services are integral to achieving this goal. Moreover, as airlines compete to attract and retain customers, offering exceptional in-flight dining experiences has become a key differentiating factor. Despite its potential, the in-flight catering services market faces some challenges. One notable constraint is the need to ensure food safety and quality during transportation and storage. Stricter regulations and the need to accommodate different dietary requirements can increase operational complexities. Additionally, cost considerations and the need for efficient supply chain management pose challenges to maintaining profitability.
Several challenges impact the in-flight catering services market. These include managing diverse dietary restrictions, cultural preferences, and religious considerations. Adapting to these variations while ensuring food safety and quality standards can be demanding. Moreover, fluctuating fuel costs and economic uncertainties can impact airlines' budgets, potentially leading to budget cuts in catering services. The evolving preferences of modern travelers present a significant opportunity for innovation and growth in the in-flight catering services market. Catering companies can capitalize on the trend of health-conscious eating by offering nutritious and customizable meal options. Furthermore, the integration of technology and data analytics can enhance menu personalization and streamline operations, resulting in more efficient cost management.
US In-Flight Catering Services Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
economy
Fastest Growth
economy
Growth Rate
4.4% CAGR
Global In-Flight Catering Services Market ($ Bn)
Country Share for Asia Pacific Region (%)
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In-Flight Catering Services Market Segmental Analysis
Global In-Flight Catering Services Market is segmented by Airline Class, By Flight Type, By Food Type, By Airlines and Region.Based on Airline Class, the market can be segmented into Economy, Premium Economy, Business. Based on Flight Type, the market can be segmented Full-Service Carriers, Low-Cost Carriers and Other. Based on Food Type, the market is segmented into Meals, Bakery & Confectionery, Beverages, and Other . Based on Airlines, the market is segmented in to Large Airlines, Medium Airlines, Small Airlines. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
In-Flight Catering Services Market Analysis by Airline Class
In 2021, the economy segment stood out by capturing the largest share of revenue, surpassing 55.0%. This robust growth of the segment can be attributed to the rising inclination of consumers towards opting for economy class travel, especially for short- to medium-distance vacations. The surge in disposable income and an expanding middle-class demographic across the Asia-Pacific region have notably stimulated the demand for economy class aircraft seating, thereby influencing the market dynamics. Moreover, the availability of cost-effective meal options is poised to act as a catalyst for the growth of this segment.
Furthermore, the premium economy segment is projected to exhibit the most impressive growth rate throughout the forecast period. The vigorous economic growth observed in emerging economies across the globe has led to an increased preference among leisure travelers for premium economy class. This preference is particularly notable for longer-haul flights, reflecting the extended travel times associated with such journeys. As a result, the premium economy segment is expected to experience significant expansion within the in-flight catering services market, driven by the demand surge attributed to extended travel distances and durations.
In-Flight Catering Services Market Analysis by F&B Type
In 2021, the meal segment took the lead by securing a substantial share of revenue, exceeding 50.0%. This prominence is attributed to the rise of ready-to-eat meal options tailored for travelers and an escalating demand for catering services, especially on extended nonstop flights. These factors play a pivotal role in propelling growth within the segment. Major players in the in-flight catering domain are proactively addressing the culinary preferences of culturally diverse passengers, underscoring their commitment to passenger satisfaction. Moreover, the increasing desire among passengers for health-conscious and nourishing meals, coupled with their willingness to invest more in such offerings, is anticipated to be a key driver of growth over the coming eight years.
Simultaneously, the bakery and confectionery segment is projected to showcase the highest Compound Annual Growth Rate (CAGR) of 7.9% from 2022 to 2030. This surge is attributed to the growing passenger inclination towards healthy beverages like juices, coffee, and tea, particularly on short-haul flights. The provision of an extensive range of beverage choices, encompassing juices and diverse alcoholic options, further contributes to the sector's expansion. Additionally, some airlines are enhancing customer satisfaction by introducing customized drink options provided by attentive flight attendants. These efforts collectively contribute to the burgeoning growth of the bakery and confectionery segment within the in-flight catering services market.
Global In-Flight Catering Services Market By Airline Class
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In-Flight Catering Services Market Regional Insights
In 2021, the Asia Pacific region commanded the largest share of revenue, exceeding 30.0%. This ascendancy can be attributed to several contributing factors that collectively fueled regional growth. These include the expansion of international travel and tourism, the swift pace of urbanization, a rising standard of living that aligns with the pursuit of aspirational travel experiences, and a resurgence in discretionary spending. Furthermore, the burgeoning presence of airline operators within the region is poised to create substantial growth opportunities for providers of in-flight catering services. Notably, the Asia Pacific region is projected to witness the most rapid growth, primarily fueled by notable increases in both international air travel and tourism across developing countries such as China, India, and Vietnam.
Meanwhile, Europe is anticipated to exhibit a noteworthy Compound Annual Growth Rate (CAGR) of 7.4% throughout the forecast period. This expansion can be attributed to the influx of legacy carriers entering the low-cost flight market, a development that is expected to augment the demand for in-flight catering services on such flights. Furthermore, key factors that are projected to foster significant growth prospects in the coming years encompass the increasing willingness of travelers to invest in healthy and organic meal options, as well as collaborations between airlines and food professionals possessing real-world culinary expertise. The expansion of the airline fleet and the addition of new routes by major operators are also set to play a pivotal role in stimulating growth within the European in-flight catering services market.
Global In-Flight Catering Services Market By Region
- Largest
- Fastest
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In-Flight Catering Services Market Dynamics
In-Flight Catering Services Market Drivers
Resumption of Air Travel
- As the world gradually emerged from the impacts of the COVID-19 pandemic, air travel witnessed a resurgence in 2022. The reopening of borders and relaxation of travel restrictions led to an uptick in passenger demand, thereby necessitating the provision of in-flight catering services to meet the needs of travelers. Airlines such as Emirates, Qatar Airways, and Delta Air Lines adjusted their catering services to cater to evolving passenger preferences in this post-pandemic landscape.
Evolving Culinary Preferences
- Airlines in 2022 continued to adapt their catering offerings to cater to a diverse range of culinary preferences. For instance, several airlines introduced plant-based and vegan meal options to meet the demands of health-conscious and environmentally-aware passengers. This shift towards offering healthier and sustainable meal choices reflects the industry's responsiveness to evolving consumer preferences.
In-Flight Catering Services Market Restraints
Supply Chain Disruptions
- The ongoing disruptions in global supply chains, a consequence of the pandemic and other factors, posed challenges to the in-flight catering services market in 2022. Shortages of certain food items and ingredients affected the ability of catering companies to deliver the desired range and quality of meals. This situation led to adjustments in menu offerings and operational strategies to ensure the availability of suitable catering options for passengers.
Operational Constraints
- While air travel resumed, the industry faced operational challenges in 2022 due to fluctuating passenger volumes and evolving health regulations. Airlines had to manage operational uncertainties, including last-minute flight cancellations or capacity adjustments, impacting the planning and provisioning of in-flight catering services.
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In-Flight Catering Services Market Competitive Landscape
The Global In-Flight Catering Services Market is characterized by a mix of established players and regional catering service providers striving to deliver innovative and tailored solutions to meet the evolving demands of the aviation industry. Major players in this sector, including companies like LSG Group, Gate Gourmet, and DO & CO, have garnered prominence due to their extensive networks, operational capabilities, and diverse menu offerings that cater to a wide range of passenger preferences. These industry giants continuously focus on enhancing the quality and variety of in-flight meals, often collaborating with renowned chefs to curate distinctive dining experiences at altitude. Moreover, the trend towards personalization has driven the integration of advanced technologies to enable passengers to customize their meal choices in advance, ensuring an individualized and convenient journey.
In-Flight Catering Services Market Top Player’s Company Profiles
- LSG Group (Germany)
- Gate Gourmet (Switzerland)
- DO & CO (Austria)
- SATS Ltd. (Singapore)
- dnata (United Arab Emirates)
- Emirates Flight Catering (United Arab Emirates)
- Flying Food Group (US)
- Newrest Group International (France)
- Cathay Pacific Catering Services (Hong Kong)
- Sky Chefs, Inc. (US)
- Air Culinaire Worldwide (US)
- Journey Group Plc (UK)
- AS Airline Services (Finland)
- Lufthansa Catering Group (Germany)
- Goddard Catering Group (US)
- Swissport International AG (Switzerland)
- Jetfinity (Ireland)
- On Air Dining (UK)
- Aerofood ACS (Indonesia)
- Air Fayre (UK)
In-Flight Catering Services Market Recent Developments
- In May 2023, SATS, a leading in-flight catering company in Asia, announced that it would be investing $500 million in a new facility in Singapore. The facility is expected to be completed in 2026 and will create 2,000 new jobs.
- In April 2023, Emirates Flight Catering, the in-flight catering arm of Emirates Airlines, announced that it would be opening a new facility in Paris. The facility is expected to be completed in 2024 and will serve airlines flying to and from Europe.
- In March 2023, Newrest, a global in-flight catering company, announced that it had acquired Gate Gourmet's operations in Africa. The acquisition will give Newrest a major foothold in the African market.
In-Flight Catering Services Key Market Trends
- Personalization and Technology Integration: In 2022, the trend of personalization continued to gain traction in the in-flight catering sector. Airlines leveraged technology to gather and analyze passenger data, allowing for more tailored catering experiences. Passengers were given the option to pre-select their meals based on dietary preferences, allergies, or cultural choices. This integration of technology-enhanced passenger satisfaction and reduced food wastage.
- Sustainable Practices: Sustainability remained a significant trend in 2022. Airlines increasingly focused on reducing food waste and minimizing the environmental impact of in-flight catering operations. Initiatives included minimizing single-use plastics, sourcing locally-produced ingredients, and exploring compostable packaging options. This trend aligned with growing passenger awareness and expectations regarding environmentally friendly practices.
In-Flight Catering Services 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 by smeans of Primary Exploratory Research backed by robust Secondary Desk research.
According to our analyses, The Global In-Flight Catering Services Market is expected to experience significant growth during the forecast period from 2022 to 2030. Asia Pacific emerged as the dominant region in terms of market influence and revenue share. This dominance can be attributed to a confluence of factors that have propelled the region's position in the industry. Europe stands out as the region with the fastest-growing trajectory within the global in-flight catering services market. This growth momentum can be attributed to several pivotal factors that have combined to create a favorable environment for market expansion. The market is characterized by a variety of services and offerings, catering to diverse passenger preferences and airline requirements. These services include meals, beverages, snacks, and special dietary options. Customization and personalization of in-flight meals are becoming increasingly important to meet the specific needs and preferences of passengers. In terms of food options, there is a growing demand for healthier and more diverse choices. Airlines are focusing on offering fresh, organic, and locally sourced ingredients, as well as providing options for special diets such as vegetarian, vegan, gluten-free, and halal meals. This trend is driven by the increasing awareness of health and wellness among travelers. Challenges in the in-flight catering services market include strict food safety regulations, logistics management, and maintaining food quality and consistency across different flight routes and destinations. Additionally, cost pressures and the need to optimize operational efficiency pose challenges to market players. Key trends in the market include the use of advanced technology for food production and delivery, such as automation and robotics, to improve efficiency and enhance the dining experience. Moreover, there is a growing focus on sustainability and reducing food waste by implementing innovative packaging solutions and portion control measures.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 32.19 billion |
| Market size value in 2031 | USD 47.43 billion |
| Growth Rate | 4.4% |
| 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 In-Flight Catering Services 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 In-Flight Catering Services 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 In-Flight Catering Services 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 In-Flight Catering Services 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 In-Flight Catering Services Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the In-Flight Catering Services 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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