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The foodservice market share is expected to increase by USD 10.13 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 28.15%. The growth of food service market depends upon increasing demand for dining out, fast-food market growth, and rising popularity of mobile foodservice are driving the foodservice industry, creating opportunities for businesses to meet evolving customer needs.
This market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers market segmentation by food service (conventional, centralized, ready-prepared, and assembly-serve), sector (commercial and non-commercial), and geography (APAC, North America, Europe, South America, and Middle East and Africa).
The increasing demand for fast food and packaged food is notably driving the market growth, although factors such as labour shortages in the food service sector may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic's impact on the industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
The global food service industry is experiencing significant growth, driven by the increasing demand for fast food and packaged food services. Mobile food service, which includes trailers, food trucks, carts, and food stands, has emerged as a key contributor to this growth. Mobile food service outlets are proving to be more successful than traditional brick-and-mortar restaurants, primarily because of their lower investment requirements. This trend is fueled by the rising popularity of street food among the urban youth population and the attraction of low initial capital investments.
Countries such as the US, India, Brazil, Thailand, and Indonesia are witnessing a high demand for mobile food services. Recognizing this trend, many established food chains are venturing into the mobile market by launching food trucks. Starbucks, Chick-Fil-A Inc., and White Castle Management Co., among others, are actively experimenting with food trucks to expand their customer base and increase their reach.As a result, the growth of the mobile food service market data is projected to support the overall market growth in the foreseeable future.
One significant market trend that is anticipated to have a positive impact on the industry in the forecast period is the emergence of ghost kitchens. Ghost kitchens are establishments that house the necessary kitchen equipment and facilities for food preparation but lack a dining area. This business model has gained traction due to the growing consumer demand for food delivery services. Furthermore, the rise of online food ordering platforms has led to an increase in the number of online food orders.
In today's digital age, with widespread internet usage and the prevalence of mobile applications, many individuals prefer to order food through online portals and mobile apps. For instance, the global online food delivery market is projected to grow at a compound annual growth rate (CAGR) of approximately 9% from 2019 to 2023. Adopting the ghost kitchen model enables restaurants to reduce their expenses on rent and labour costs. Consequently, the emergence of ghost kitchens is expected to enhance the growth of the global market during the forecast period.
The global foodservice industry faces a significant challenge in the form of labor shortages for food delivery within the sector. According to the US Bureau of Labor Statistics, it is projected that jobs in food service outlets and drinking establishments will increase by 6% between 2014 and 2024. In response to the rising demand for workers, Taco Bell, a subsidiary of Yum! Brands organized hiring parties with free food in July 2018 to attract job candidates. However, despite these efforts, there has been a decline in the number of individuals willing to take up jobs in restaurants and fast-food outlets, leading to labour shortages in the food service sector. Countries like the US and Japan are particularly affected by this acute shortage of labor. The decrease in available labor can be attributed to factors such as a reduced number of teenagers in the workforce and low unemployment rates. These factors have the potential to limit market growth in the coming years.
In addition to labor shortages, this market analysis report also provides insights into other upcoming trends and challenges that will significantly impact market growth. These detailed insights will assist companies in evaluating and formulating growth strategies for the period between 2022 and 2026.
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43% of the market’s growth will originate from APAC during the forecast period. China, Japan, and India are the key markets for food services in APAC. Market growth in this region will be faster than the growth of the market in regions.
The need for convenience is increasing with an increase in the number of busy and time-pressed consumers, which, in turn, is influencing the demand for convenient food options that will facilitate the market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The spread of COVID-19 hampered the steady growth of the regional market in 2020. The market in APAC was adversely impacted owing to the rapid increase in the number of COVID-19 cases. The pandemic affected the workforce, raw material supply, intermediate food products, and trade and logistics, leading to demand-supply volatility and uncertain consumer demand in the regional market in 2020. However, with the introduction of several vaccines in 2021, the market is likely to witness a strong economic recovery in the region during the forecast period.
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The market share growth by the conventional segment will be significant during the forecast period. The use of the conventional foodservice system ensures customers that the food is freshly prepared and customized to their liking. This food service system is used primarily in schools, universities, restaurants, and cafeterias. Food that is prepared using the conventional system may be distributed for service directly to dining rooms or lunch counters. The system offers consumers freshly prepared food and flexible menu options. These advantages are likely to drive the growth of the conventional segment of the global market during the forecast period.
This report provides an accurate prediction of the contribution of all the segments to the growth of the market size and actionable market insights on the post-COVID-19 impact on each segment.
The market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
This statistical study of the market encompasses successful business strategies deployed by the key vendors. The market is fragmented and the vendors are deploying growth strategies such as mergers and acquisitions to compete in the market.
To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
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Foodservice Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2021 |
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Forecast period |
2022-2026 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 28.15% |
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Market Growth 2022-2026 |
USD 10.13 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
27.98 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 43% |
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Key consumer countries |
US, China, Japan, India, and Germany |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
Abela and Co. LLC, Aramark, Chick-fil-A Inc., Compass Group Plc, Dominos Pizza Inc., FOOD and LIFE COMPANIES Ltd., Inspire Brands Inc., Jack in the Box Inc., Jollibee Foods Corp., Little Caesar Enterprises Inc., McDonald Corp., MOS Food Services Inc., Papa Johns International Inc., Performance Food Group Co., Restaurant Brands International Inc., Sodexo SA, Starbucks Co., Sysco Corp., 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, and 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 Five Forces Analysis
5 Market Segmentation by Foodservice System
6 Market Segmentation by Sector
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 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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