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The US foodservice market size is estimated to grow by USD 2.36 billion at a CAGR of 30.32% between 2023 and 2028. Market growth is contingent upon various factors, notably the surge in snacking and indulgence consumption. As consumer preferences lean towards convenient and enjoyable eating experiences, the demand for snacks and indulgent treats continues to rise steadily. Concurrently, there's an increasing trend towards allergen-free dining, driven by heightened awareness of dietary restrictions and food sensitivities. This necessitates the availability of allergen-free options across dining establishments and packaged food offerings to cater to a broader consumer base. Furthermore, the evolving lifestyles of consumers, characterized by busier schedules and diverse dietary preferences, play a pivotal role in shaping market dynamics. These lifestyle changes influence purchasing behaviors, driving demand for convenient, healthy, and customizable food options. By understanding and adapting to these shifting consumer preferences, businesses can capitalize on emerging opportunities in the snacking, allergen-free, and convenience food segments, fostering market growth and innovation.
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The market is experiencing a dynamic shift, driven by evolving consumer preferences towards nutritional diets such as vegan, low-sugar, and gluten-free options. From full service restaurants to quick-service restaurants and limited-service restaurants establishments, the demand for diverse menu offerings is reshaping the industry. Embracing digitalization of food service market has become imperative, with features like online booking, online payments, and real-time food service enhancing customer convenience. Additionally, catering services are expanding beyond traditional models to include packaged food service and special food service restaurant catering to specific dietary needs. 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.
The changing lifestyles of consumers are the key factor driving market growth. Changing lifestyles leave consumers with very little time to prepare food. Consumers are also able to receive home deliveries from food service establishments. The working population also demands foods that require minimal preparation. Consequently, they are seeking more ready-to-eat (RTE) and convenience foods.
In addition, fast food chains, cafes, and QSRs are favored for their selection of foods on the go. In the US, drive-thru outlets have always been in high demand. A stable economy results in higher employment rates, but it also causes people to adopt hectic lifestyles and choose convenience foods. This is expected to fuel the market during the forecast period.
A highly diverse population indulging in ethnic cuisine is the primary trend shaping market growth. Increased immigration is primarily responsible for the growing popularity of spicy foods in the U.S. The Asian American population is the fastest-growing racial or ethnic group in the United States. Approximately 22 million Asians living in the United States have ancestry from East and Southeast Asian countries or populations, as well as the Indian subcontinent.
Moreover, an expanding demographic has introduced a wide variety of spicy cuisines to the American palate, and the market response has been overwhelmingly favorable. 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 the US are opting for ethnic cuisine, which is expected to drive the growth of the market during the forecast period.
Rising competition from the unorganized fast food sector is a challenge that affects market growth. The expansion of the unorganized fast food industry poses a threat to the prominent players. Nationwide, the number of unorganized fast nutrition players, such as those who sell from street carts and trucks, is growing exponentially. These vendors offer a variety of fast food items at reasonable prices, which is preferred by price-conscious customers.
Moreover, various consumer categories (based on income levels) exist in urban areas of the US, and many entrepreneurs are opening fast meals restaurants to meet the demand. This segment's growth is anticipated to increase in the future, which is expected to impede the market during the forecast period.
The market research and growth report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. The market forecast report focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth 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.
The market forecasting 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 fast foodservice segment is estimated to witness significant growth during the forecast period. Fast foodservice restaurants provide quick service and frequently have a drive-through option. Numerous market participants are opening new stores in different locations and introducing novel and diverse food options to their menus. The swift service provided by restaurants makes them a favorite among consumers who are pressed for time.
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The fast foodservice segment was the largest segment and was valued at USD 100.15 million in 2018. 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 addition, market players in the US offer sauces and spices alongside non-vegetarian fast food items. Doctors Associates LLC, for instance, offers a Buffalo Chicken Subway Sandwich with Frank's RedHot sauce. Thus, such efforts by vendors have contributed to the growth of the segment. Therefore, such factors are expected to drive the growth of the fast food service segment during the forecast period.
The market research report provides comprehensive data, with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
Europe Foodservice Market: The Europe Foodservice Market size is forecast to increase by USD 265.9 million at a CAGR of 6.48% between 2023 and 2028.
Foodservice Market in Australia: The foodservice market's growth momentum in Australia will accelerate at a CAGR of 11.64% and the market share will increase to USD 30.48 billion from 2021 to 2026.
In the market, university canteens, hotels, and virtual kitchens are also embracing this trend, catering to a wide range of preferences. Food bars and canteens are incorporating healthier options, while vending machines are stocking up on plant-based snacks in the full-service restaurant. As the food service industry continues to innovate, the integration of technology and a focus on diverse dietary needs are driving growth and reshaping the dining experience. Further, the market is a vibrant landscape encompassing diverse segments catering to various tastes and preferences. From fast food brands serving up classics like pancakes, waffles, and toast, to cafes & bars offering specialty tea and coffee, the industry caters to a wide array of cravings.
Additionally, quick service restaurant outlets are leveraging digital ordering to enhance efficiency, while cloud kitchen outlets capitalize on the rising trend of online platforms for home delivery. International cuisines are gaining popularity, alongside street foods like hot dogs and grilled cheese sandwiches. Leading operators focus on chef-driven dining, tapping into the expertise of professionally trained chefs and celebrity chefs to create taste and health-conscious menus. Popular dishes range from burritos to poke bowls, reflecting evolving consumption behaviors towards healthy options.
However, challenges such as obesity and diabetes prompt a shift towards national salt and sugar reduction initiatives, driving demand for organic produce and healthy food options. As millennial populations embrace a fast lifestyle, the industry adapts with ready-to-eat foods and non-traditional ingredients to meet their needs. Overall, digitalizing operations and understanding evolving dining behaviors are key for foodservice providers navigating this dynamic market.
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Market Scope |
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Report Coverage |
Details |
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Page number |
153 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 30.32% |
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Market growth 2024-2028 |
USD 2.37 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
29.73 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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., 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., YUM Brands Inc., and Penn Station Inc. |
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Market dynamics |
Parent market analysis, market growth analysis 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. |
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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. |
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 Type
7 Market Segmentation by Solution
8 Market Segmentation by Sector
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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