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The Global Fast Food Market size is estimated to grow by USD 123.43 billion accelerating at a CAGR of 3.28% between 2023 and 2027.
Our report offers in-depth analysis of market drivers, trends, opportunities, challenges, and restraints, with 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). 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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The COVID-19 pandemic significantly impacted the fast food industry as nationwide lockdowns forced closures, especially for dine-in services. In H1 2020, 83% of restaurants in India remained closed, with 10% permanently shutting down, and an additional 30% expected not to reopen. However, since 2021, most countries lifted lockdowns, allowing fast food vendors to resume dine-in services. These vendors have implemented innovative safety measures like sanitization, disposable plates, and glasses. The lifting of restrictions and improved hygiene practices are expected to drive market growth during the forecast period.
The increasing online presence of fast food vendors is a key factor driving the fast food market growth. The growing prevalence of smartphones and widespread Internet access is driving the online sale of fast food. Various e-commerce platforms, including brand-owned formats and pure-play e-retailers like Zomato and Uber Eats, provide consumers with a diverse range of fast food options. Companies like Domino's Pizza and McDonald's have their dedicated apps and online portals for convenient ordering.
Online platforms offer personalized shopping assistance, allowing customers to explore different fast food varieties, toppings, and ingredients. Vendors are inclined towards online sales to enhance market reach, reduce overhead costs associated with physical premises, and simplify the ordering process for consumers. This trend is expected to fuel market growth in the forecast period.
The growing number of fast-food outlets is a key trend shaping the fast food market. The count of fast-food restaurants in the US rose from 195,980 in 2021 to 197,163 in 2022, reflecting the popularity of socializing at these establishments, especially among urban youth. The urban influx and a significant white-collar demographic have spurred the growth of food service outlets, catering to diverse preferences like fresh baked goods and hot beverages.
Leading chains like Krispy Kreme Doughnuts and Dunkin' Brands are expanding globally, including in emerging economies, leveraging the appeal of malls and shopping centers. Infrastructure developments, such as new airports and highways in developing countries, provide opportunities for fast-food chains to establish outlets, with the growing travel culture further boosting consumption. Notably, major fast-food players are strategically expanding into countries like India and China, fostering the market's growth in the forecast period.
The health concerns pertaining to the excessive consumption of fast foods is a key challenge hindering the market growth. Concerns about the health impacts of fast food consumption are growing, with potential links to issues like obesity and diabetes. The increasing global obesity rate, attributed to changing food habits and lifestyles, is a significant concern. Studies indicate that excessive fast food or junk food consumption is associated with various health problems.
For example, a 2021 study in the International Journal of Dermatology linked dairy, chocolate, high-fat foods, and high-glycemic index items to acne breakouts. Another 2020 study in the Journal of Affective Disorders found that fast food and sugary drinks increased the likelihood of mental health issues in Chinese middle school students. Such research establishing connections between fast food and health problems discourages consumers, hindering market growth. Growing health awareness prompts consumers to avoid fast food due to its high calorie content and low micronutrient levels, posing a significant challenge to the global fast food market.
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.
Fast Food Market
By Product
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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.
APAC is estimated to contribute 34% 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.
Fast Food Market
By APAC
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With rising income levels and urbanization in APAC, fast food is becoming increasingly popular due to its convenience, especially among busy and time-pressed consumers. The region sees high frequencies of eating out, with China, Japan, and India being top contributors to the fast-food market. Asian fast food, particularly fried chicken, is in high demand, and the market is witnessing growth due to diverse food habits and preferences. Global players like Dunkin' Brands Group Inc. and JAB Holding Co. Sarl are expanding their franchises in APAC, adapting to local tastes. Franchises offer a pathway for vendors to reach consumers effectively, leading to brand awareness and growth. Fast-food vendors are investing in franchise stores and outlets, contributing to the market's expansion in the region.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
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., YUM Brands Inc.
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 fast food market 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.
Fast Food Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2022 |
Historic period |
2018 - 2022 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.28% |
Market growth 2023-2027 |
USD 123.43 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.6 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 34% |
Key countries |
US, China, Japan, Germany, and UK |
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. 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. |
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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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
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