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The Global Food Service Market size is estimated to grow by USD 13,612.51 million, accelerating at a CAGR of 28.35% between 2023 and 2027.
Our food service market report offers in-depth analysis of market drivers, trends, opportunities, challenges, and restraints, with segmentation by Service (conventional, centralized, ready-prepared, and assembly-serve), Sector (commercial and non-commercial), and Geography (APAC, North America, Europe, South America, and Middle East and Africa). Additionally, Technavio provides valuable insights through value chain analysis, parent market analysis, Porter’s Five analysis, vendor analysis, and COVID-19 impact data. The report also includes a thorough analysis of historical market data from 2017 to 2022.
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In 2020, the foodservice industry grappled with substantial disruptions caused by COVID-19. Nationwide lockdowns compelled the closure of food vendors, particularly for dine-in services, resulting in a negative impact due to reduced consumer demand. However, in 2021, extensive government vaccination campaigns brought stability. As lockdowns lifted, food vendors resumed dine-in services, and the increasing demand from various end users like schools, restaurants, and airlines is propelling the foodservice industry growth. Consequently, market expansion is anticipated during the forecast period.
The increasing demand for food away from home is a major driver boosting the food service market growth. The upward trend in food away from home (FAFH) consumption is driven by several factors, including higher incomes, an increasing number of employed women, the presence of affordable fast-food options, and enhanced advertising by large food service chains. As household incomes rise, consumers allocate more spending to leisure and dining, with FAFH considered a form of leisure for affluent individuals.
Weekday meals are often consumed outside the home by various demographics, including business professionals and students. The global exposure to diverse cultures has led consumers worldwide to explore different cuisines, presenting growth opportunities for FAFH. Consequently, these factors are anticipated to boost demand for food services and propel the growth of the global food service market in the forecast period.
The increased snacking and indulgence consumption is one of the major food service market trends growth. Consumer food habits have shifted significantly, with a growing preference for snacks and light meals, notably in the United States over the past decade. Busy lifestyles often lead to skipping meals and opting for on-the-go food, including bakery items like doughnuts. Vendors like Compass offer healthy snack options such as doughnut sandwiches with ingredients like chicken and lettuce, suggesting a shift towards more nutritious choices.
Despite a rising health-conscious trend, there's a steady demand for premium food varieties such as doughnuts, cakes, and pastries, indicating a consumer willingness to experiment with flavors. This change in preferences has resulted in increased snacking at cafes and bars. Overall, the surge in snacking and indulgent consumption is expected to drive the growth of the global food service market in the forecast period.
The labor shortages in the food service sector are a major challenge hindering the food service industry. Anticipated labor shortages in the food service sector worldwide are poised to impede the growth of the global food service market. The sector's low-paying jobs, lacking clear career advancement paths, have become less appealing, resulting in a declining workforce. Countries like the US and Japan are experiencing acute shortages, attributed to factors like inadequate job security, absence of benefits such as sick leave and health insurance, and reduced availability of labor, with fewer teenagers in the workforce and low unemployment rates.
Brexit is compounding issues in the UK, making it challenging for restaurants to recruit experienced staff. These shortages adversely impact restaurant operations, as evident in Japan, where the labor shortage in 2022 reached 65.1% in the restaurant industry, according to Statista. Consequently, labor shortages are expected to curtail the growth of the global food service market in the forecast period.
The conventional segments are estimated to witness significant growth during the forecast period. The conventional food service system is a traditional system that is used by most vendors. In a typical service system ingredients are assembled, prepared, and delivered to each other's premises. The use of the conventional food service system ensures customers that the food is freshly prepared and customized to their liking. Depending on the nature of the food, it is maintained in a heated or chilled state and served to customers.
Food Service Market
By Service
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The conventional segment was the largest segment and was valued at USD 745.14 million in 2017. The conventional food service system is driven by the high quality of food as the preparation is done on the premises. The demand for traditional food systems further increases as consumers prefer fresh foodstuffs at restaurants, schools, and canteens. Therefore, all such factors are expected to drive the growth of the conventional segment in the global foodservice market during the forecast period.
APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Food Service Market
By APAC
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In 2022, APAC dominated the global food service market and is projected to surpass overall market growth from 2023 to 2027, maintaining its leading position. Changing consumer lifestyles in APAC, driven by increased employment and income levels, are boosting the demand for convenient food options. Urbanization is intensifying reliance on fast food due to time constraints, while the evolving eating habits of working women further contribute to the region's foodservice market growth.
Key countries like China, Japan, Australia, India, New Zealand, Thailand, and Indonesia are experiencing substantial growth in their foodservice sectors. China plays a pivotal role as a major revenue contributor, while Japan sees increased sales in hotels, restaurants, and institutions, fueled by growing inbound tourism. Australia and New Zealand witnessed the expansion of fast-food businesses.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Chick fil A Inc., Compass Group Plc, Dominos Pizza Inc., FOOD and LIFE Co. Ltd., Inspire Brands Inc., Jack in the Box Inc., Jollibee Foods Corp., Little Caesar Enterprises Inc., McDonald Corp., MOS Food Services Inc., Papa Johns International Inc., Performance Food Group Co., Restaurant Brands International Inc., Sodexo SA.
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
The foodservice market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Foodservice Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2018 - 2022 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 28.35% |
Market growth 2023-2027 |
USD 13,612.51 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
27.77 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 43% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Abela and Co. LLC, Aramark, Chick fil A Inc., Compass Group Plc, Dominos Pizza Inc., FOOD and LIFE Co. Ltd., Inspire Brands Inc., Jack in the Box Inc., Jollibee Foods Corp., Little Caesar Enterprises Inc., McDonald Corp., MOS Food Services Inc., Papa Johns International Inc., Performance Food Group Co., Restaurant Brands International Inc., Sodexo SA, Starbucks Corp., Sysco Corp., The Wendys Co., and YUM Brands Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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