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The US foodservice market size is forecast to increase by USD 204.8 billion at a CAGR of 4.4% between 2023 and 2028. The market is experiencing significant growth, driven by several key trends. Firstly, the increased prevalence of snacks and indulgence consumption continues to fuel market expansion. Secondly, the highly diverse population is fueling demand for ethnic cuisine, leading to innovation and diversification in the market. Lastly, rising competition from the unorganized fast food sector is pushing established players to improve product offerings and pricing strategies to maintain market share. These factors, among others, are shaping the growth trajectory of the US foodservice market.
The market in the US is experiencing significant growth due to changing consumer preferences towards healthier and specialized dietary options. Full service restaurants are responding by offering vegan, low-sugar, and gluten-free menus to cater to consumers seeking nutritional diets. Pancake and waffle houses are also jumping on the bandwagon, providing vegan food options made from alternative ingredients. Technological advancements are transforming the foodservice industry, with online booking and payment systems becoming increasingly popular. Real-time food service and virtual kitchens are gaining traction, allowing for quicker and more efficient order fulfillment. Catering services, packaged food service, and vending machines are also seeing growth in the market.
Universities are investing in canteens that offer a variety of food options, including food bars and limited-service restaurants. Hotels are also focusing on providing diverse food items to meet the demands of their guests. Quick-service restaurants are adapting to the trend by offering customizable menus and nutritional information. The foodservice industry as a whole is evolving to meet the changing needs of consumers, ensuring a diverse and innovative market.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The Fast foodservice segment is estimated to witness significant growth during the forecast period. The availability of non-vegetarian food products in a variety of fast food types, such as pizzas, burgers, subways, and sandwiches, is anticipated to significantly drive the segment's growth. In the dynamic foodservice market of the US, consumers continue to seek convenient and diverse dining options. Online booking and payment systems are increasingly popular, enabling consumers to easily order food from catering services and limit-service restaurants. Commercial spaces, including offices and universities, are integrating real-time food service, allowing for quick and efficient food consumption. Millennial populations, with their fast lifestyle, are driving the trend towards non-traditional food items and different tastes. Foodservice providers are digitalizing their operations, enabling consumers to order food online for home delivery via various platforms. The dining behavior of consumers is evolving, with a growing preference for organic produce, healthy food, and self-service restaurants.
Fast food chains are responding by introducing vegetarian options, such as McDonald's Vegetable Deluxe, to cater to this demand. The market encompasses a range of establishments, including independent consumer foodservice, chained consumer foodservice, cafeterias, limited-service eating places, fast-food restaurants, ice cream parlors, beverage bars, carryout sandwich shops, and on-premises baking. Despite the convenience offered by online ordering and delivery, the market may face challenges due to increasing competition and changing consumer preferences.
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The Fast foodservice segment was valued at USD 355.40 billion in 2018 and showed a gradual increase during the forecast period.
Our market 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.
The increased snacking and indulgence consumption is the key driver of the market. The food service industry in the US has witnessed a notable evolution in consumption behaviors, with an increasing preference for snacks and light meals over traditional meals. Additionally, meat snacks, snack mixes, and fruit-based options also gained popularity. Children in the US consume an average of three or more snacks daily, with each additional snack linked to a 9% increase in caloric intake. Food service establishments, including food bars, canteens, university canteens, vending machines, hotels, virtual kitchens, and ghost kitchens, have responded to these changing trends by offering a wider variety of snack options.
However, concerns regarding the health implications of these consumption patterns persist. Obesity, diabetes, cardiovascular disease, and high blood pressure are on the rise, with unhealthy products, such as fast food and fried foods, contributing significantly to these health issues. In response, there is a growing demand for sugar reduction and healthier alternatives, including raw materials, veganism, and raw foods. The travel and tourism industry has also influenced food service trends, with coffee shops, bakeries, and K-Cup pods becoming increasingly popular. Consumers are seeking convenience and affordability, leading to the rise of fast food chains and the proliferation of vending machines. Despite these trends, there is a growing awareness of the health risks associated with unhealthy food choices, and consumers are increasingly seeking out healthier alternatives. Overall, the food service industry in the US must adapt to these changing trends while addressing the health concerns associated with unhealthy food choices.
The highly diverse population indulging in ethnic cuisine is the upcoming trend in the market. The food service industry in the US is witnessing a significant shift in consumer preferences towards ethnic cuisines, fueled by the increasing multicultural population and the growing adventurousness of American palates. According to the US Census Bureau, the Asian American population is the fastest-growing racial or ethnic group in the country, with approximately 22 million people having origins from East and Southeast Asian countries or populations, as well as the Indian subcontinent. This demographic expansion has led to an influx of diverse spicy cuisines, which have gained immense popularity among Americans. Moreover, foodservice establishments are innovating to cater to various dietary trends, such as veganism and sugar reduction.
Furthermore, food bars, canteens, and vending machines in universities, hotels, and workplaces are offering healthier options, including raw materials for preparing meals. Virtual kitchens and ghost kitchens are also gaining traction, allowing foodservice providers to offer delivery-only menus, focusing on specific cuisines or dietary needs. Travel and tourism have also influenced consumption behaviors, with an increasing number of Americans trying new foods during their travels. Fast food consumption continues to be a concern due to its association with obesity, diabetes, cardiovascular disease, and high blood pressure. Fast food chains are responding by offering healthier options and reducing the amount of sugar, salt, and unhealthy fats in their menus. Coffee shops and bakeries are experimenting with K-Cup pods, offering a wider variety of flavors and healthier options. The beverage industry is also focusing on reducing sugar content in drinks, offering sugar-free and low-calorie options. Overall, the food service industry is adapting to meet the changing needs and preferences of consumers, ensuring a diverse and healthier food landscape.
The rising competition from unorganized fast food sector is a key challenge affecting the market growth. The Foodservice industry in the US is witnessing significant competition from the unorganized segment, particularly in the fast food sector. The proliferation of food bars, canteens, and vending machines, including those in universities, caters to a diverse consumer base with varying income levels. However, the emergence of unorganized fast food vendors, such as those operating from street carts and trucks, is posing a threat to the organized foodservice market. These vendors offer affordable fast food options, including fried and dry foods, beverages, and even vegan and raw material-based products. Consumption behaviors, particularly in the travel and tourism sector, continue to influence market trends.
While fast food consumption remains popular, there is a growing demand for healthier options due to rising concerns over obesity, diabetes, cardiovascular disease, and high blood pressure. As a result, the market is witnessing the emergence of virtual and ghost kitchens, coffee shops, bakeries, and even sugar reduction initiatives. However, the growth of the unorganized fast food sector could negatively impact the US 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.
American Dairy Queen Corp. - The company offers food services and products that include hamburgers, chicken nuggets, fresh made salads, fries, and different sides.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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 market in the US is witnessing a significant shift towards healthier and more diverse food options. Vegan, low-sugar, and gluten-free diets are gaining popularity, leading to an increase in demand for plant-based dishes and specialty tea and coffee. Fast food brands and full service restaurants are responding to this trend by introducing new vegan and nutritional dishes, such as vegan pancakes, waffles, and toast. Cafes & bars are also capitalizing on this trend, offering specialty tea, coffee, and gluten-free baked goods. Digital ordering is becoming increasingly important in the foodservice industry, with leading operators investing in digital platforms to enhance the on-premise eating experience.
Furthermore, cloud kitchen outlets are also gaining traction, allowing for the production and delivery of fast food items, such as burgers, pizzas, sausages, meatballs, and fried chicken, directly to consumers. International cuisines, including street foods like hot dogs, grilled cheese sandwiches, burritos, chilaquiles, and poke bowls, are also gaining popularity. The average order value is expected to increase as consumers are willing to pay more for taste and health-conscious dishes prepared by professionally trained chefs, including celebrity chefs. The e-commerce channel penetration is also expected to increase, with takeaway and delivery becoming more common for fast food items.
Market Scope |
|
Report Coverage |
Details |
Page number |
156 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.4% |
Market growth 2024-2028 |
USD 204.8 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.8 |
Key companies profiled |
American Dairy Queen Corp., Chick fil A Inc., CKE Restaurants Holdings Inc., Dominos Pizza Inc., Inspire Brands Inc., Jack in the Box Inc., Marcos Franchising LLC, McDonald Corp., MTY Food Group Inc., Papa Johns International Inc., Penn Station Inc., Pret A Manger, Raising Canes Restaurants LLC, Restaurant Brands International Inc., Shamrock Foods Co., Starbucks Corp., Sysco Corp., The Subway Group, The Wendys Co., Wingstop Inc., and YUM Brands Inc. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles,market forecast , 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 market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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 Type
7 Market Segmentation by Solution
8 Market Segmentation by Sector
9 Customer Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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