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The in-flight catering services market size is estimated to grow at a CAGR of 7.81% between 2022 and 2027. The market size is forecast to increase by USD 6,809.7 million. The growth of the market depends on several factors, such as the increase in air passenger traffic globally, the expansion of existing aircraft fleets the launch of new airlines, and the growing expectations among air passengers.
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). It also includes an in-depth analysis of drivers, trends, and challenges.
In-flight Catering Services Market Forecast 2023-2027
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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. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
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.
Moreover, to sustain the market positions and to gain a competitive advantage in the market, airlines are trying to offer innovative services and quality food so as to satisfy the tastes and varied choices of passengers. 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 global in-flight catering services 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 global in-flight catering services 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 global in-flight catering services market during the forecast period.
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 5,232.29 million in 2017 and continued to grow until 2021. 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 gorwth in the market during the forecast period.
Based on product, 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 global in-flight catering services 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.
The outbreak of the COVID-19 pandemic in 2020 adversely affected overall economic growth in APAC. However, the lockdown restrictions were lifted in 2021 owing to the large-scale COVID-19 vaccination drives conducted across the region, which led to the resumption of air travel and a rise in the number of air passengers. Moreover, in-flight catering continued to be available on commercial flights, which increased the demand from 2021 for inflight catering services throughout the region. This scenario is expected to continue and drive the growth of the regional in-flight catering services 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 in-flight catering services 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.
In-flight Catering Services 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 6,809.7 million |
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 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 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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