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The fast food market is estimated to grow at a CAGR of 3.28% between 2022 and 2027. The size of the market is forecasted to increase by USD 123.43 billion. The growth of the market depends on serval factors, including the increasing online presence of fast food vendors, changing consumer preferences, and the growing demand for fast-casual food.
This report extensively covers market segmentation by product (non-vegetarian fast food and vegetarian fast food), service type (eat-in, take away, home delivery, and others), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing online presence of fast food vendors is notably driving the market growth, although factors such as health concerns pertaining to the excessive consumption of fast foods may impede the market growth. Our researchers analyzed the data with 2022 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.
Key Fast Food Market Driver
The increasing online presence of fast food vendors is notably driving the fast food market growth. The increasing penetration of smartphones, coupled with the rising accessibility of the Internet, is promoting the sale of fast food online. E-commerce platforms enable consumers to choose from a wide range of brands. Brand-owned online formats and pure-play e-retailers are among the various types of e-commerce portals that offer fast food.
E-commerce vendors allow customers to collect information and compare various fast food product varieties and types available. Vendors are motivated to offer fast food through online platforms, as it gives them easy access to the market and reduces their overhead costs by eliminating the need to rent or lease retail premises and hire workers. Therefore, the increasing online presence of fast food vendors will stimulate market growth during the forecast period.
Significant Fast Food Market Trend
The growing number of fast-food outlets is a key trend influencing the fast-food market growth. The influx of people into urban areas and a substantially large white-collar demographic segment have led to an increase in the number of food service outlets. Varied tastes and preferences for different types of food and beverages, such as fresh baked goods and hot beverages, have further led to the emergence of fast-food outlets and QSRs. Moreover, the growing popularity of malls and shopping centres has encouraged many new players to invest substantially in the distribution of fast food through these centres.
The growth in infrastructure, such as new airports and highways in developing countries, provides scope for major fast-food chains to establish new outlets. Many major fast food outlets are setting up their franchises in developing countries such as India and China. For instance, Dunkin' Brands Group Inc. has a tie-up with Jubilant FoodWorks to operate Dunkin' Donuts-branded franchisee stores in India. Thus, the growing number of stores and retail outlets is expected to propel the growth of the market during the forecast period.
Major Fast Food Market Challenge
Health concerns pertaining to the excessive consumption of fast foods may impede the fast food market growth. The consumption of fast food can lead to various health issues such as obesity, diabetes, and others. Research studies have found a direct correlation between fast food consumption and health issues. Such studies discourage many consumers from eating fast food, which will hinder the growth of the market during the forecast period.
The rising occurrence of health issues associated with food habits and lifestyle has made consumers more conscious about the food items that they consume. The rising awareness among consumers about the high number of calories and few micronutrients persuades them to avoid consuming fast food. This, in turn, is likely to restrain the market growth.
The market share growth by the non-vegetarian fast food segment will be significant during the forecast period. Non-vegetarian fast food products are gaining popularity among the working population. Some such on-the-go fast food products popular in the global market are non-vegetarian wraps, burgers, sandwiches, and pops.
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The non-vegetarian fast food segment showed a gradual increase in the market share of USD 447.02 billion in 2017 and continued to grow by 2021. Various vendors offer non-vegetarian fast food products. Moreover, vendors are focusing on sauces and spices with these products. To attract consumers, various fast food outlets focus on offering innovative items on their non-vegetarian menus. Such efforts by vendors have contributed to the growth of the segment.
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APAC is estimated to account for 34% of 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.
The lifestyles of consumers in APAC are changing, with the increasing rate of employment and income levels. As a result, the demand for convenient food options is increasing. Rapid urbanization is also increasing the dependency on fast food. China, Japan, and India are the key contributing countries in the fast food market in APAC. The market is also driven by the expansion of global players in the region through organic and inorganic organizational expansion. For instance, Dunkin' Brands Group Inc. and JAB Holding Co. Sarl have extensively established their franchises, namely, Dunkin' Donuts Group Inc. and Krispy Kreme Doughnuts, respectively, among fast food retailers in India. The above-mentioned factors are expected to contribute to the growth of the market in APAC during the forecast period.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The outbreak of the COVID-19 pandemic disrupted the fast food industry. However, after the lockdowns were lifted, fast food vendors started their dine-in services. The vendors also took steps to make dining safe for their customers by following social distancing and hygiene practices, such as sanitization, the use of disposable plates and glasses, and others. These factors are anticipated to boost the growth of the market in APAC during the forecast period.
The 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.
Global Fast Food Market Customer Landscape
Vendors 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.
American Dairy Queen Corp. - The company offers fast foods such as burgers and sandwiches, chicken baskets, and snacks.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
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 report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Fast Food Market Scope |
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Report Coverage |
Details |
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Page number |
170 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.28% |
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Market growth 2023-2027 |
USD 123.43 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
2.6 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 34% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
American Dairy Queen Corp., Chipotle Mexican Grill Inc., Corporativo Bimbo SA de CV, Dominos Pizza Inc., Doughnut Time Ltd., Focus Brands LLC, Glory Hole Doughnuts, Inspire Brands Inc., JAB Holding Co. Sarl, Jack in the Box Inc., Jimmy Johns Franchisor SPV LLC, McDonald Corp., Papa Johns International Inc., Penn Station Inc., Pita Pit Ltd., Restaurant Brands International Inc., Starbucks Corp., The Subway Group, The Wendys Co., and YUM Brands Inc. |
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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. |
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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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Service Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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