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The Europe Foodservice Market size is forecast to increase by USD 265.9 million at a CAGR of 6.48% between 2023 and 2028. Market growth hinges on factors like the growing trend of snacking and indulgence consumption, expanding franchise networks of food brands, and evolving consumer lifestyles. These dynamics shape consumer preferences and market demand, reflecting the dynamic landscape of the food industry. With increased snacking habits, franchise expansions, and changing lifestyles, the market anticipates continued growth opportunities for businesses catering to evolving consumer needs. The report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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The market is undergoing rapid digital transformation fueled by technological advancements such as digital menus, online ordering platforms, and contactless payment options to cater to tech-fluent consumers. With a focus on meeting diverse dietary preferences and cultural tastes, the market is embracing plant-based options, vegetarian options, and vegan options while considering health and ethical considerations. To address the evolving landscape, players are leveraging cost sector channels and offering complimentary services. The sector is witnessing significant investment from venture capital firms, driving the growth of cloud kitchens and food tech start-ups offering innovative solutions through smartphone applications. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increased snacking and indulgence consumption are the key factors driving the market. There has been a significant shift in food consumption patterns and preferences, with many consumers opting for snacks and light meals over traditional meals. Consumers often find themselves skipping meals and opting for convenient on-the-go food options. Despite the growing health-consciousness among consumers, there is a steady demand for premium food varieties like premium doughnuts, cakes, cookies, and pastries. Many consumers prefer premium and prepared snacks and are open to experimenting with new flavors. This trend has led to an increased demand for snacking options in cafes and bars across Europe.
Moreover, the rise in snacking and consumption habits in Europe is expected to drive the growth of the market in during the forecast period. This growth is further supported by digital transformation and technological advancements, including the adoption of digital menus, online ordering platforms, and contactless payment options, catering to the needs of tech-fluent consumers. Additionally, there is an increasing focus on dietary preferences, cultural tastes, and health considerations, leading to the emergence of plant-based, vegetarian, and vegan options in the market. Furthermore, the market is witnessing the rise of food tech start-ups and cloud kitchens, supported by venture capital investments and smartphone applications, offering complimentary services to enhance the overall dining experience.
A highly diverse population indulging in ethnic cuisine is the key factor driving the market. Increased immigration is primarily responsible for the growing popularity of spicy foods in Europe. In 2022, 45-50% of first-time asylum seekers were of Asian descent, and 22% were of African descent. This expanding demographic has introduced a wide variety of spicy cuisines to the European population, and the market response has been overwhelmingly favorable.
Furthermore, the high demand for Pan-Asian cuisine, with an emphasis on the lighter-than-Chinese cuisines of Thai, Japanese, and Vietnamese cuisine, is gaining market significance. Consequently, the increasing number of immigrants in Europe are opting for ethnic cuisine, which is expected to drive the growth of the market during the forecast period.
Labor shortages is a significant challenge that affects the market expansion. The jobs that are provided in the foodservice sector are low-paying and may not assure career advancement opportunities, which makes those jobs less attractive. The number of people willing to accept jobs in restaurants and fast-food outlets is declining, which is creating labor shortages in the food service sector. The decrease in the availability of labor is attributed to factors such as fewer teenagers in the workforce and low unemployment rates. Furthermore, people are finding lucrative jobs in various other fields, which further increases the labor shortage at restaurants and fast-food chains.
Further, restaurants in the UK are finding it difficult to recruit experienced employees, and it is expected that there will be many unfilled positions in the food service sector in the UK during the forecast period. Labor shortages adversely affect the operations of restaurants. For instance, in 2023, around 9-10% of UK restaurants registered labor shortages. Thus, labor shortages are likely to restrict the expansion of the market during the forecast period.
The market forecasting 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 market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AmRest Holdings SE: The company offers food services under the brands KFC, Starbucks, Burger King, and Sushi Shop.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The commercial segment is estimated to witness significant growth during the forecast period. Quick-service restaurants (QSRs) include counter services, food courts, takeout services, and delivery establishments. The convenience offered by QSRs is expected to drive the growth of the foodservice market in Europe during the forecast period. The increase in the number of full-service restaurants, the popularity of online catering services, and the introduction of a variety of cuisines on menus are expected to drive the growth of the segment during the forecast period.
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The commercial segment was the largest segment and was valued at USD 521.18 billion in 2018. Further, many players in the foodservice market in Europe, including Aramark, are introducing new products to cater to customers evolving preferences. The company also introduced technologies such as artificial intelligence check-out scanners and self-ordering kiosks to enhance the experience for customers and increase their engagement with the brand. Therefore, all such factors are expected to drive the growth of the commercial segment in the Europe foodservice market during the forecast period.
The market report forecasts market growth by and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The foodservice industry in Western Europe is experiencing dynamic shifts driven by evolving consumer behavior and health considerations. From standard practices in foodservice establishments to catering to diverse sectors like military & civil defense, healthcare, and education, the market is adapting to meet varied needs. Notably, tourism and the rising immigrant population are influencing the landscape, fueling the growth of online food delivery platforms like Deliveroo, Just Eat, and Uber Eats. Quick service restaurants (QSRs) and full-service restaurants (FSRs) are expanding their menus to include trendy options like Arabian appetizers, quinoa bowls, and Poulet tandoori, reflecting changing consumer preferences.
Additionally, in Western Europe, the foodservice industry encompasses various sectors, including welfare & services, which stands as the largest cost sector. The European foodservice industry caters to diverse preferences, with offerings ranging from full service restaurants (FSR) to cafes & bars. The rise of the online food delivery market has seen the emergence of platforms like GrubHub and Glovo, catering to consumers' evolving needs and disposable income. Fast-food chains like McDonald's and Subway continue to thrive, offering favorites like hamburgers and baguettes through e-commerce channels. Meanwhile, the Dutch food service market and Turkey witness unique trends with platforms like Trendyol and Yemeksepeti offering delights like chicken teriyaki and bouillabaisse.
Market Scope |
|
Report Coverage |
Details |
Page number |
143 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.48% |
Market growth 2024-2028 |
USD 265.9 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.45 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AmRest Holdings SE, Compass Group Plc, Costa Group Holdings Ltd., Dominos Pizza Inc., Elior Group SA, gategroup Holding AG, Greggs Plc, Groupe Bertrand, LE DUFF Group, LSG Group, Mitchells and Butlers plc, PizzaExpress Restaurants Ltd., QSR Platform Holding SCA, Restalia Grupo de Eurorestauracion SL, Restaurant Brands International Inc., Sodexo SA, Starbucks Corp., The Restaurant Group PLC, Whitbread PLC., 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 the 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Sector
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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