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The global fast food market size is estimated to grow by USD 123.3 billion between 2023 and 2028 exhibiting a CAGR of 3.2%. Market expansion relies on various factors, notably the burgeoning online presence of fast food vendors, driven by shifting consumer preferences and the rising demand for fast-casual dining experiences. With the proliferation of digital platforms and food delivery and the convenience they offer, fast-food vendors are increasingly leveraging online channels to reach and engage with customers. This trend is further fueled by evolving consumer preferences, which prioritize convenience, variety, and healthier options. As a result, the demand for fast-casual food as well as food trucks, characterized by its quick service and elevated dining experience, continues to grow. By capitalizing on these trends and adapting their offerings to meet evolving consumer needs, fast food vendors can sustain market growth and stay competitive in the dynamic food industry landscape.
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In response to lockdown restrictions and changing consumer lifestyles, the market has witnessed a surge in demand for frozen and convenience foods and on-the-go snacks. With supply chain disruptions and labor restraints, full-service restaurants shifted focus to pick-up orders and food delivery services, leveraging food delivery applications like Menulog. Fast-food franchises and quick service restaurants adapted by offering meal kits and ready-to-make breakfast products through online ordering and digital platforms. This dynamic landscape reflects evolving snacking habits and consumer preferences, driving innovation in the snack food industry and cloud kitchen business. 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.
The increasing online presence of fast food companies is notably driving 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.
Additionally, e-commerce companies allow customers to collect information and compare various fast food product varieties and types available. Companies 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 companies will stimulate market growth during the market growth and forecasting period.
The growing number of fast-food outlets is a key trend influencing 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.
Further, 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 market growth analysis period.
Health concerns pertaining to the excessive consumption of fast foods may impede 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.
Besides, 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.
In the market, the National Restaurant Association highlights a shift towards healthy foods and ready-to-eat meals, catering to millennial consumers seeking convenience. Quick service restaurants, coffee shops, and food carts diversify offerings to capture consumer spending with a focus on the delivery segment. Embracing the franchise business model, a variety food service outlets adapt menus to meet evolving tastes and lifestyles. As disposable income rises, the demand for fast food continues to grow, reflecting a dynamic and competitive industry landscape.
The market share growth by the non-vegetarian fast food segment will be significant during the market research and growth 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 459.3 billion in 2018. Various companies offer non-vegetarian fast food products. Moreover, companies 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 companies have contributed to the growth of the segment.
By Region
APAC is estimated to contribute 37% to the growth of the global market during the market forecasting period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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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.
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 market report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market is witnessing a surge in online food ordering and deliveries, driven by shifts in consumer behavior and preferences. Quick service restaurant and fast-casual restaurant categories, like Behrouz Biryani and Mandarin Oak, adapt to meet the demand for ready to eat snacks while addressing concerns about junk food consumption and chronic diseases highlighted by the Centers for Disease Control & Prevention. With diverse product segmentation including pizza/pasta, burgers/sandwiches, and Asian/Latin American cuisines, establishments like Burger King tap into international cuisines to offer novel foods and flavors, catering to a broad audience and enhancing revenue share.
Further, the market is experiencing a notable rise in online food deliveries, reflecting changing preferences within the restaurant and food service industries. Particularly, the fast-casual restaurants respond with offerings of ready-to-eat snacks and seafood options, catering to diverse tastes and dietary preferences, including protein options and sandwich toppings. Sierra Nevada Restaurants and other establishments target the Hispanic population with authentic Mexican food, while Quick Service Restaurants (QSRs) and fast-casual restaurants expand their distribution networks to ensure wider accessibility of favorites like pizzas & pasta, Chinese food, and fried chicken.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.2% |
Market growth 2024-2028 |
USD 123.3 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.06 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 37% |
Key countries |
US, China, Germany, UK, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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., 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. |
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. |
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 Product
7 Market Segmentation by Service Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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