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The in-flight catering services market size is estimated to grow by USD 6.80 billion at a CAGR of 7.81% between 2022 and 2027. Market growth is influenced by several key factors, including the global increase in air passenger traffic, the expansion of existing aircraft fleets, the launch of new airlines, and the rising expectations of air passengers. These factors are driving demand for aircraft and related services, creating opportunities for growth in the aviation industry. Additionally, increasing disposable incomes and changing travel preferences are contributing to the growth of air travel, particularly in emerging markets. Furthermore, advancements in aircraft technology and infrastructure are enhancing the overall travel experience, further fueling the growth of the market. As the industry continues to evolve, companies are focusing on innovation and customer satisfaction to stay competitive in the market.
It also includes an in-depth analysis of drivers, trends, and challenges.
Market Forecast 2023-2027
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This report extensively covers market segmentation by product (food and beverages), type (economy class, business class, and first class), and geography (APAC, Europe, North America, Middle East and Africa, and South America).
The food segment will account for a major share of the market's growth during the forecast period. The food segment is expected to witness a steady growth rate during the forecast period. The food served in an aircraft varies in quality and quantity across different airlines and classes of travel. During the period of regulation of ticket prices in the domestic US market, food was the primary means by which airlines differentiated themselves.
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The food segment was valued at USD 5.23 billion in 2017. The food segment in the global in-flight catering services market consists of a wide range of products such as meals, breakfast items, pre-packed meals, fresh snacks, and fruits. Alternative food options for passengers who are on restricted diets will also be provided by caterers, such as lactose-free or gluten-free meals, which can be ordered in advance. Such factors will increase segment growth in the market during the forecast period.
Based on type, the market has been segmented into economy class, business class, and first class. Economy class was the leading segment in the global in-flight catering services market, owing to the lower price of economy class air tickets. The growth of the segment is linked to increasing consumer interest in short- to medium-distance economy tickets during holidays. Moreover, the growth in air traffic has driven consumer preference for low-cost carriers (LCCs) and ultra-low-cost carriers (ULCCs). This has resulted in an increase in the number of economy-class seats by LLCs and ULCCs to accommodate more passengers per trip while ensuring fuel savings due to the lightweight design of modern commercial aircraft. The need for inflight catering on an economy class flight is also increasing, because of the growing commercial aviation sector. This, in turn, will drive the growth of the economy class segment of the market during the forecast period.
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APAC is estimated to contribute 35% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. In this region, people are increasingly spending on recreational activities and international vacations. Travelers from China are expected to opt for destinations in Asia in the next decade, and there will be a rise in travel to North America and Europe.
Moreover, in terms of flight frequency, South Korea ranks first place in APAC in terms of the frequency of flights between Seoul and Jeju Island, which is a popular honeymoon destination. The regional market for in-flight catering services is thus driven by such a surge in tourism. Thus, the outsourcing industry indirectly influences the in-flight catering services market in the region during the forercast period.
Non-stop flights and long haul flights are key segments in the in-flight catering services market. Catering services include on-board meals managed through IT management systems and inventory management systems to ensure efficiency. The industry relies on lean manufacturing and just-in-time manufacturing principles to meet demands. Commercial kitchens cater to various airline classes and are managed by specialized airline caterers. Supply chain management is crucial to meet safety regulations for commercial aeroplanes and cater to the diverse consumer lifestyles of domestic and international passengers. Innovative services like the aircraft meal ordering system enhance the passenger experience, especially for full-service carriers and premium cabin passengers. Special attention is given to providing regionally appropriate meals and meeting special dietary needs with options like continental meal alternatives. Contract renewals are based on factors such as food safety and customer satisfaction. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Several changes in the behavior of customers and preferences have occurred within the aviation industry over the last few years. Generous baggage allowances, high-quality food, and punctual services have emerged as some of the prominent buying criteria for airline passengers. According to JD Power, mobile phone users expect uninterrupted connectivity, and airlines find it a challenge to stay updated with the technologies that can meet this objective.
Airlines are indeed focusing on offering innovative services and quality food to sustain their market positions and gain a competitive edge. This includes efforts to cater to the tastes and varied choices of passengers, particularly in areas such as on-board meals, pre-ordered meal offerings, and enhancing the overall passenger experience, especially for premium cabin passengers. These efforts often involve collaboration with airline caterers and the implementation of aircraft meal ordering systems. Also, major airlines offer diverse wine lists that pair well with their respective food programs. Thus, growing customer expectations will drive the growth of the market during the forecast period.
According to the portal for the recruitment of cabin crew, PaddleYourOwnKanoo, the MOD function in smartphones helps connect to a plug-and-play Wi-Fi router, which is unlike the onboard communications system used by passengers. MOD smartphones are devoid of SIM cards and are built in a way that allows only the user to order meals through the meal-ordering app while other applications are blocked.
Moreover, the crew members of Emirates use such smartphones to take food and beverage orders from business class passengers. This technology has proven to be efficient as it saves a great deal of time and ensures that orders are correct and there is no error. Thus, the rising trend of MODs will drive the growth of the market during the forecast period.
The lack of space in aircraft is a major challenge for serving quality food; only a limited type of standardized food items can be served in an aircraft, especially small aisle aircraft, because of the severe lack of space. The provision of meals on aircraft gives rise to many food hygiene problems as there is a limited place to store the leftovers and other waste products, such as discarded packaging.
However, galley space and sanitary facilities on flights are very limited; food storage and preparation take place in aircraft galleys, which mostly have very limited space and equipment. The meals are stored on board in a narrow-body aircraft by use of dried ice placed inside the luggage compartment. Thus, the lack of space in aircraft will hinder the growth of the market during the forecast period.
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.
AAS Catering Co. Ltd. - The company offers in-flight catering services to Thai Airways, ensuring passengers enjoy delicious meals that reflect the airline's identity.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Air Arabia PJSC, AIR France, Amber Green Corp., ANA Catering Service Co. Ltd., Brahims Holdings Berhad, Deutsche Lufthansa AG, DO and CO Aktiengesellschaft, EGYPTAIR AIRLINES CO., Flying Food Group LLC, Frankenberg GmbH, gategroup Holding AG, KLM Catering Services Schiphol bv, Newrest Group International SAS, Qatar Airways Group Q.C.S.C., Saudi Airlines Catering Co., Singapore Airlines Ltd., Sojitz Corp., The Emirates Group, and Universal Weather and Aviation Inc.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The 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.
The market is influenced by consumer lifestyle trends and urbanization, shaping the meal segment preferences. It caters to various needs, including those of bakery and confectionery enthusiasts and travelers in premium economy, leisure, and business classes. Airlines are segmented by size, with offerings for large, medium, and small airlines, as well as specific services for the first-class segment. Growing demand for healthy and organic meals drives the need for airline partnerships and customized meals. Cold chain management and HACCP tracking ensure food safety, while production management and in-flight catering automation enhance efficiency. Cultural backgrounds influence meal choices, with a focus on providing wholesome meals. Contract renewals are based on factors such as consumer readiness and price increases.
Furthermore, leisure and business travel are key drivers in the market, catering to passengers in large, medium, and small airlines, as well as those in the first-class segment. The demand for healthy meals is increasing among both domestic and international passengers, leading to innovations in catering management. Continental meal alternatives are being offered to cater to diverse dietary needs. Contract renewals are crucial for service providers, especially amidst price increases. Additionally, the integration of in-seat IFE systems enhances the overall passenger experience, contributing to the competitiveness of airlines in the market.
Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.81% |
Market growth 2023-2027 |
USD 6.80 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.07 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 35% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AAS Catering Co. Ltd., Air Arabia PJSC, AIR France, Amber Green Corp., ANA Catering Service Co. Ltd., Brahims Holdings Berhad, Deutsche Lufthansa AG, DO and CO Aktiengesellschaft, EGYPTAIR AIRLINES CO., Flying Food Group LLC, Frankenberg GmbH, gategroup Holding AG, KLM Catering Services Schiphol bv, Newrest Group International SAS, Qatar Airways Group Q.C.S.C., Saudi Airlines Catering Co., Singapore Airlines Ltd., Sojitz Corp., The Emirates Group, and Universal Weather and Aviation Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, 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. |
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. |
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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 Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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