Mobile Food Services Market by Type, Application and Geography - Forecast and Analysis 2023-2027

Mobile Food Services Market Forecast 2023-2027

The mobile food services (MFS) market size is forecast to increase by USD 15.04 billion at a CAGR of 8.84% between 2022 and 2027. The market's expansion hinges on various factors, notably the increasing preference for convenience foods, driven by busy lifestyles. Additionally, mobile food service outlets offer distinct advantages over traditional brick-and-mortar restaurants, providing flexibility and accessibility to consumers. Moreover, the market benefits from the rise of cost-effective entrepreneurship, enabling individuals to enter the food industry with lower overhead costs and greater agility. These trends collectively contribute to the growth trajectory of the market, reflecting evolving consumer preferences and business models tailored to modern demands.

What will be the Size of the Market During the Forecast Period?

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The food service industry is witnessing dynamic shifts driven by various factors. From the rise of food trucks catering to urban culture to the surge in demand for convenient food services amid busy lifestyles, the landscape is evolving rapidly. Millennials, in particular, are drawn to innovative and gourmet cuisine, influencing the market's direction. Moreover, the industry is adapting to changing consumer preferences, with a focus on sustainable practices and eco-friendly packaging processes. The proliferation of online orders and home delivery options further underscores the industry's responsiveness to modern trends. As the global market expands, collaborations, foreign investments, and a diverse range of food options contribute to its profitability and growth.

Market Segmentation

In the ever-evolving landscape of the food industry, regional and international suppliers play a crucial role in sourcing diverse ingredients and culinary inspirations. The catering business sector caters to various events and occasions, offering a range of culinary experiences. Food stands and trailers provide on-the-go options, reflecting the modern practice of preparing, delivering, and serving food conveniently. Amidst the challenges posed by the recent fatal virus, establishments have adapted with hygiene standards to ensure consumer safety. As social gatherings resume, establishments are innovating with tempting menus to cater to consumers' preferences. The global market of food services continues to expand, driven by the connection between business and end-users, offering diverse options such as full-service restaurants (FSRs) and takeaway options. Amidst these shifts, the profitability of the market hinges on the ability to offer customized and innovative food menus, catering to changing consumer demands and preferences.

By Type

The market share growth by the food segment will be significant during the forecast period. The food segment will grow at a steady rate during the forecast period. The demand for convenience foods is rising with the urbanized population inculcating new habits and trends of developing preferences for international food trends. Evolving lifestyles, changing food preferences, rapid urbanization, and the growing number of nuclear families are also boosting the segment's growth.

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The food segment was valued at USD 13.21 billion in 2017 and continued to grow until 2021. In the US and several European countries, some local and international vendors, such as RBI and YUM! Brands offer donuts, burgers, sandwiches, and pizzas. In APAC and South American countries, the popular foods offered by mobile food service vendors include traditional food items and global food items fused with local spices to appeal to regional consumers. Such factors will boost the demand for food and hence drive the growth of the market in focus during the forecast period.

Market Dynamic and Customer Landscape

In today's gastronomy scene, the food cuisine landscape is rich and diverse, catering to a wide target audience with varying tastes and preferences. However, challenges such as inflation and the impact of recent global events, such as the virus, have reshaped the industry dynamics. Despite these hurdles, the sector continues to thrive, with a plethora of options ranging from traditional meals to gourmet delicacies. The emergence of food delivery segments and mobile stalls has revolutionized how consumers access their favorite dishes, offering convenience and flexibility. Moreover, the industry's adoption of sustainable practices in the packaging process reflects a growing awareness of environmental concerns. As the market evolves, innovation, adaptability, and a focus on consumer satisfaction remain paramount for success. The realm of fast-food facilities and Quick Service Restaurants (QSRs) thrives on principles of efficiency and convenience, catering to the modern consumer's need for budget-friendly and time-saving dining experiences. With pre-defined costs and a dynamic understanding of food dynamics, these establishments offer diverse options to patrons, whether through a traditional dine-in menu, a quick takeaway portion, or convenient at-door services. Our researchers analyzed the data with 2022 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.

Key Market Driver

One of the key factors driving growth in the mobile food services MFS market is the rising demand for convenience foods. Rapid urbanization across the world has increased the disposable incomes of people. The demand for convenient and easy-to-prepare food products has, hence, increased due to rapid urbanization and the high participation of women in the workforce. The expansion of the urban population is inculcating new habits and increasing the preference for international foods. Evolving lifestyles, changing food preferences, rapid urbanization, and the growing number of nuclear families are some factors that are driving the growth of the global fast food industry.

The popularity of mobile food service providers is increasing in many developed and developing countries due to on-the-go foods being widely preferred by the working population of such countries. The growing demand for convenience foods is encouraging vendors to expand their mobile food service offerings in the QSR segment, which is driving the growth of the global market.

Significant Market Trends

The marketing initiative is a MFS market trend that is expected to have a positive impact in the coming years. Vendors operating in the global market are focusing on following integrated marketing communication and using newspapers, magazines, and social media platforms such as YouTube and Facebook to sell their products and services. These communication channels play a key role in the marketing strategy of mobile food service outlets. Some of the commonly used social media platforms and their advantages are Twitter - Twitter provides a platform for vendors to post their upcoming locations and events.

Facebook/ INSTAGRAM Inc. - These platforms have a highly diverse audience pool. YouTube - YouTube can provide a platform for vendors to create informative and entertaining videos about their food trucks and menu items. LinkedIn - This platform helps mobile food service providers to have business-to-business conversations, establish and demonstrate expertise, hiring, and finding appropriate strategic partners and suppliers. Such factors will increase market growth during the forecast period.

Major Market Challenge

The fluctuations in food commodity prices will be a major challenge for the market during the forecast period. Raw materials for processing food like vegetables, sugar, grains, meat, salt, and dairy products are important in the market. Any shortage in the supply of raw materials affects market growth. Adverse weather conditions and natural calamities negatively affect the production of vegetables and grains and are, therefore, the major factors behind the shortage of raw materials. Bad climatic conditions adversely affect crop production, which reduces crop prices globally. Fluctuations in the volume and the price of crops affect each stage of the supply chain. Vendors increase the prices of owing to high manufacturing costs and low profit margins.

However, maintaining a balance between food prices and quality is important for mobile food service providers, as the global market is price-driven. To attract consumers, mobile food service providers must price their products economically, irrespective of the cost of production, which, in turn, affects their profit margins. Such factors will hinder the market growth during the forecast period.

Market Customer Landscape

The 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.

Global Market Customer Landscape

Who are the Major MFS Market Companies?

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.

Chick fil A Inc.: The company offers its food trucks and serves products such as Chick fil A Chicken Sandwich.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• Belgo Holdings LLC
• Chipotle Mexican Grill Inc.
• Cocoa Forte Franchising LLC
• Courageous Bakery and Cafe
• Darden Restaurants Inc.
• Eat Drink Collective
• Kogi BBQ
• KoJa Kitchen LLC
• Lukes Seafood LLC
• McDonald Corp.
• Ms Cheezious
• Phat Cart
• Restaurant Brands International Inc.
• The Grilled Cheeserie
• The Subway Group

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.

Which are the Key Regions for the MFS Market?

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North America is estimated to contribute 42% 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. The market in North America is expected to grow rapidly during the forecast period. The increasing employment rates in fast food outlets indicate the rising number of in the region, which, in turn, indicates the growing demand. Since most consumers are pressed for time, the demand for fast foods, which require less preparation time and are easily available, is increasing. The availability of fast foods at lower prices also encourages consumers to purchase fast foods frequently. Most consumers in the region dine out on most days and purchase fast foods at their office premises; these tendencies will drive the growth of the market in North America. 

Market Analyst Overview

The market is a dynamic sector within the foodservice industry that offers convenient and diverse dining options to consumers on the go. It encompasses various formats such as food trucks, street food vendors, food carts, and mobile catering services. These culinary trucks and mobile kitchens provide on-the-go dining experiences, catering to diverse tastes and preferences. From gourmet food trucks to food truck festivals and pop-up events, the market thrives on innovation and creativity. However, operating in this industry also involves navigating food truck regulations and adhering to mobile food business standards. Despite challenges, the food truck culture continues to grow, supported by food truck associations and a passionate community of vendors and enthusiasts.

Culinary choices have evolved with the rise of the fast food sector and the availability of ready-to-eat and prepared foods. Technology has played a significant role in transforming the food industry, with the emergence of food-based e-commerce apps offering convenient access to a variety of culinary options. While brick-and-mortar stores remain popular, open areas and mobile stalls are gaining traction, offering flexibility and convenience to consumers. However, challenges such as raw material shortages and maintaining hygiene standards persist. Vans and mobile stalls provide a solution to reach consumers in different locations but must adhere to stringent hygiene standards to ensure food safety. As the culinary landscape continues to evolve, finding innovative solutions to overcome these challenges will be crucial for the future of the food industry.

Segment Overview

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. 

• Type Outlook
  • Food
  • Beverages

• Application Outlook
  • Food truck
  • Removable container

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Mobile Food Services Market Scope
Report Coverage	Details
Page number	157
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 8.84%
Market growth 2023-2027	USD 15.04 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	8.45
Regional analysis	North America, APAC, Europe, South America, and Middle East and Africa
Performing market contribution	North America at 42%
Key countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Belgo Holdings LLC, Chick fil A Inc., Chipotle Mexican Grill Inc., Cocoa Forte Franchising LLC, Courageous Bakery and Cafe, Darden Restaurants Inc., Eat Drink Collective, Kogi BBQ, KoJa Kitchen LLC, Lukes Seafood LLC, McDonald Corp., Ms Cheezious, Phat Cart, Restaurant Brands International Inc., The Grilled Cheeserie, The Subway Group, Waffle Bus, World Famous House of Mac, YUM Brands Inc., and Yumbii
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, Market condition analysis for forecast period.
Customization purview	If our market growth analysis 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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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and market trends and analysis and changes in consumer behavior
• Growth of the market across North America, APAC, Europe, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of market vendors

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