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The Global Food Service Market size is estimated to grow by USD 13.61 million, accelerating at a CAGR of 28.35% between 2023 and 2027. The market is witnessing significant growth driven by various factors. With an increasing demand for food away from home and the rapid expansion of the fast-food market, the industry is experiencing a surge in mobile foodservice options. Moreover, the trend towards increased snacking and indulgence consumption is fueling demand for convenient food options. Strategic alliances among key players are also contributing to market growth. However, challenges such as labor shortages and stringent government regulations pose obstacles to the industry's expansion. 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 market encompasses a wide range of services and operations. From third-party delivery services like Deliveroo to full-service restaurants and quick-service restaurants (QSRs), the market covers various service types. Food preparation, serving, and cleanup are integral parts of foodservice operations in facilities such as child care centers, hotels, and cafes. Additionally, strategic partnerships between restaurant operators and online delivery options like McDelivery are shaping the industry landscape. With a focus on storage, distribution, and efficient operations, the global market caters to the diverse needs of institutes and consumers alike.
The market encompasses a wide range of facilities, including child care centers, restaurants, hotels, and cafés. Third-party services play a significant role in the preparation, serving, and cleanup processes of these establishments. Strategic partnerships between restaurant operators and hotel chains have expanded the reach of foodservice offerings, with online delivery options becoming increasingly popular. The delivery services like Deliveroo have disrupted traditional full-service restaurants and quick service restaurants by providing convenience and flexibility to consumers. Institutes also contribute to the foodservice market through their service type offerings, such as catering and vending services. The distribution of these products is a crucial aspect of the foodservice industry, ensuring the freshness and quality of ingredients for various foodservice establishments.
The increasing demand for food away from home is a major driver boosting the market growth. The consumption of Food Away from Home (FAFH) has been on the rise due to several factors. Increased household income enables consumers to spend more on leisure activities, such as dining out. Women's employment outside the home also contributes to FAFH consumption, as they often have meals outside their homes during the week. Additionally, the presence of affordable and convenient fast-food outlets, such as those offering burgers, pizza, and chicken, attract consumers. Fine dining establishments and casual dining restaurants cater to various preferences, with some offering limited menus for quicker service. Overall, FAFH has become a common choice for breakfast, lunch, and dinner options.
The increased snacking and indulgence consumption is one of the major market trends growth. The consumption of Foodservice industry offerings, particularly snacks and light meals, has seen a notable rise in the United States over the last decade. Busy lifestyles have led to an increase in the number of consumers opting for on-the-go eating, often skipping traditional meals. Breakfast choices have evolved, with bakery items like doughnuts, bread, rolls, and pies gaining popularity. Vendors such as Compass provide healthier alternatives, like doughnut sandwiches made with nutritious ingredients. The trend extends to lunch and dinner, with fine dining establishments and casual dining restaurants offering a mix of limited menus and popular items, such as burgers and pizza, alongside chicken dishes with green vegetables as primary components.
The labor shortages in the food service sector are a major challenge hindering the growth of the industry. The global foodservice market, encompassing breakfast, lunch, and dinner options in fine dining establishments and casual dining restaurants, is experiencing labor shortages. Jobs in this sector, including those at burger, pizza, and chicken outlets, are often low-paying and lack career advancement opportunities. Consequently, the number of applicants for these positions is decreasing. Factors contributing to this trend include job insecurity and limited access to benefits such as sick leave and health insurance. This labor shortage is particularly prevalent in countries like the US and Japan.
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.
Customer Landscape
Our market report offers an in-depth analysis of market drivers, trends, opportunities, challenges, and restraints, with segmentation by 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 market encompasses various establishments, including restaurants, retailers, and providers, that prepare and serve food to consumers. With increasing Internet penetration, online ordering systems have become popular, particularly among small businesses and the restaurant industry. Digitization has transformed the sector, enabling fast-food consumption for working women and catering to vegan diets as part of the food trend. Franchising and border closures have impacted the market, with a shift towards dine-in and specialty beverages like proprietary coffee blends. Out-of-home food consumption is on the rise due to changing consumer lifestyles, foreign investment, and rising incomes. Tier 2 cities and multi-brand outlets have emerged in the F&B landscape, along with lifestyle areas and food courts in shopping malls. The market includes fast food, full meal menus, and specialty beverages, with a focus on quality, punctuality of delivery, and reducing plastic packaging. The hospitality market and tourist spending continue to influence the sector. Foreign exporters play a significant role in the HRI sector, offering a diverse range of options.
The conventional segment is estimated to witness significant growth during the forecast period. The conventional system is a traditional system that is used by most vendors. In a typical service system ingredients are assembled, prepared, and delivered to each other's premises. The use of the conventional food service system ensures customers that the food is freshly prepared and customized to their liking. Depending on the nature of the food, it is maintained in a heated or chilled state and served to customers.
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The conventional segment was the largest segment and was valued at USD 745.14 million in 2017. The conventional service system is driven by the high quality of food as the preparation is done on the premises. The demand for traditional food systems further increases as consumers prefer fresh foodstuffs at restaurants, schools, and canteens. Therefore, all such factors are expected to drive the growth of the conventional segment in the global foodservice market during the forecast period.
APAC is estimated to contribute 43% 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.
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In 2022, APAC dominated the global market and is projected to surpass overall market growth from 2023 to 2027, maintaining its leading position. Changing consumer lifestyles in APAC, driven by increased employment and income levels, are boosting the demand for convenient options. Urbanization is intensifying reliance on fast food due to time constraints, while the evolving eating habits of working women further contribute to the region's foodservice market growth.
In the Foodservice Market of APAC, the region led global consumption in 2022. With increasing internet penetration and online ordering systems, small businesses and restaurant industries are embracing digitization. The changing lifestyle of consumers, driven by rising incomes, high aspiration levels, and a young population, is influencing the demand for convenient food options. Urbanization and the rise of working women have boosted fast-food consumption. Franchising and border closures have impacted the industry, with a shift towards dine-in and takeaway. Veganism as a food trend is gaining popularity, leading to the growth of vegan fast food, food courts, and food malls in shopping malls and lifestyle areas. Specialty beverages, proprietary coffee blends, and out-of-home food consumption are also on the rise. The hospitality market, including the HRI sector, benefits from tourist spending, with a focus on quality food and punctuality of delivery. Plastic packaging remains a concern, with a growing emphasis on sustainable options.
This market analysis and report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Chick fil A Inc., Compass Group Plc, Dominos Pizza Inc., FOOD and LIFE Co. Ltd., Inspire Brands Inc., Jack in the Box Inc., Jollibee Foods Corp., Little Caesar Enterprises Inc., McDonald Corp., MOSFood Services Inc., Papa Johns International Inc., PerformanceFood Group Co., Restaurant Brands International Inc., Sodexo SA.
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.
Foodservice marketing refers to the promotion and sale of food and beverages to businesses and organizations, rather than directly to consumers. This market is a significant segment of the food industry, with various players offering a range of products and services. Foodservice providers cater to different sectors, including educational institutions, healthcare facilities, corporate offices, and hospitality industries. They offer various solutions, such as meal planning, menu development, food delivery, and equipment supply. The foodservice market is driven by several factors, including increasing demand for convenience food, growing awareness of healthy eating, and technological advancements in food production and delivery. In the market, a strategic partnership with third party delivery services like McDelivery expand the reach of full-service restaurant and quick service restaurant beyond traditional facility, providing storage and delivery solutions even to non-traditional venues like child care center.
Additionally, the market is influenced by demographic trends, such as an aging population and changing consumer preferences. Foodservice providers employ various marketing strategies to reach their target audience. These strategies include digital marketing, social media advertising, and partnerships with industry associations and influencers. They also focus on delivering high-quality products and services to build customer loyalty and differentiate themselves from competitors. In conclusion, the foodservice marketing landscape is dynamic and competitive, with players constantly innovating to meet the evolving needs of their customers. The market is expected to grow in the coming years, driven by factors such as changing consumer preferences and technological advancements.
The market research and growth 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.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2018 - 2022 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 28.35% |
Market growth 2023-2027 |
USD 13.61 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
27.77 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 43% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Abela and Co. LLC, Aramark, Chick fil A Inc., Compass Group Plc, Dominos Pizza Inc., FOODand LIFE Co. Ltd., Inspire Brands Inc., Jack in the Box Inc., JollibeeFoods Corp., Little Caesar Enterprises Inc., McDonald Corp., MOSFood Services Inc., Papa Johns International Inc., PerformanceFood Group Co., Restaurant Brands International Inc., Sodexo SA, Starbucks Corp., Sysco Corp., The Wendys Co., and YUM Brands Inc. |
Market dynamics |
Parent market trends and analysis, Market growth and trends and 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 market 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 Service
7 Market Segmentation by Sector
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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