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The United Kingdom (UK) Foodservice Market size is forecast to increase by USD 53.68 billion, at a CAGR of 6.64% between 2023 and 2028. Several pivotal factors propel market growth, notably the ascent of meal delivery apps and online ordering platforms, catering to the evolving preferences of modern consumers. Moreover, there's a burgeoning demand for allergen-free dining options, reflecting heightened health consciousness among customers. Concurrently, changing consumer lifestyles, characterized by increased urbanization and busier schedules, further stimulate market expansion. Together, these dynamics shape the market landscape, prompting industry players to innovate and adapt to meet the diverse needs of consumers, thereby driving sustained growth and development within the sector. The report provides market size, historical data spanning from 2018 - 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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In the market, diverse sectors like child care centers, e-commerce, and retailers leverage advancements in food technology and health and wellness trends. Sous-vide cooking and modern kitchen equipment streamline operations, while data analytics optimize customer experiences. From traditional fast-food chains to cozy cafes, counter and table servers cater to varied preferences, including the rising demand for vegan diets. This extends to shopping malls, where specialty beverages complement the evolving landscape of foodservice offerings. Our researchers analyzed the data with 2023 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.
The rise of food delivery apps and online ordering platforms is the key factor driving the market. Food delivery apps and online ordering platforms offer customers unprecedented convenience by allowing them to browse menus, place orders, and arrange for delivery or pickup from their favorite fast food consumption through fast food restaurants with just a few taps on their smartphones or computers. Further, by partnering with food delivery apps and online ordering system, restaurants can reach a broader customer base beyond their physical location. This expanded reach allows hotels to tap into new geographies, attract more customers, and increase their overall sales volume.
Furthermore, the popularity of food delivery apps and online ordering platforms reflects changing consumer preferences, with customer relationship management (CRM) tools. Full-service restaurants, and quick-service restaurants that embrace these platforms can better meet the needs of modern consumers and stay competitive in a rapidly evolving market. Thus, food delivery apps and online ordering platforms have become integral parts of the market, which will boost market growth during the forecast period.
Virtual restaurants and ghost kitchens gaining traction is the primary trend shaping the market. Virtual restaurants and ghost kitchens operate without the need for traditional brick-and-mortar dining spaces. This significantly reduces overhead costs associated with renting or owning physical locations, maintaining dining areas, and hiring front-of-house staff. With the rise of meals delivery apps and online ordering platforms, there has been a surge in demand for delivery and takeaway options. Virtual restaurants and ghost kitchens are well-positioned to capitalize on this trend by focusing exclusively on preparing for off-premise consumption. Further, operating a traditional restaurant in the UK can be expensive due to high rents, labor costs, and other overhead expenses.
Additionally, virtual restaurants and ghost kitchens were able to adapt quickly to these changing preferences, experimenting with new concepts, menus, and cuisines without the constraints of a physical location. Consequently, virtual restaurants and ghost kitchens are booming in the UK due to their ability to meet the increasing demand for delivery and takeaway services, lower overhead costs, adaptation to changing consumer preferences, technological advancements, and entrepreneurial opportunities, which will fuel market growth during the forecast period.
Labor shortages is a major challenge that affects the market expansion. The jobs that are provided in the foodservice sector are low-paying and may not assure career advancement opportunities, which makes those jobs less attractive. The number of people willing to accept jobs in restaurants and outlets is declining, which is creating labor shortages. Some of the main reasons for such labor shortages are the lack of job security and the lack of access to benefits such as sick leave and health insurance that are common in other industries.
Furthermore, labor shortages make it difficult for meals service businesses to fill open positions, leading to understaffing, increased workloads for existing employees, and challenges in maintaining service quality and efficiency. This can result in longer wait times, decreased customer satisfaction, and, ultimately, a negative impact on revenue and growth. Labor shortages adversely affect the operations of restaurants. Thus, labor shortages in may impede market growth during the forecast period.
The market forecasting 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 market growth analysis strategies.
Customer Landscape
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.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The fast foodservice segment is estimated to witness significant growth during the forecast period. Fast food is a major segment in the foodservice market in United Kingdom (UK) in terms of sales. Fast food establishments offer quick-service dining options that are convenient, affordable, and often ready to eat. This segment of the United Kingdom (UK) foodservice market has grown significantly over the years and continues to play a prominent role in the dining landscape of the UK.
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The fast foodservice segment was the largest segment and was valued at USD 53.41 billion in 2018. Additionally, many international fast-food chains, such as McDonalds, have a strong presence in the UK market, offering familiar brands and menu items that appeal to consumers who enjoy consistency and reliability. Fast food chains increasingly offer customization options, allowing customers to personalize their orders to meet their specific dietary preferences, such as vegetarian, vegan, gluten-free, or low-calorie choices. Consequently, due to convenience, affordability, variety, accessibility, and changing lifestyles, fast food remains a major segment of the foodservice market in United Kingdom (UK), which will drive the growth of the segment and the market during the forecast period.
The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is a dynamic landscape encompassing various sectors and trends to meet diverse consumer demands. From traditional full-service dining establishments to fast-casual concepts and themed restaurants, the industry embraces innovation in food preparation and delivery. Emphasis on food safety and hygiene standards alongside sustainable options reflects consumer preferences for health-conscious and locally sourced ingredients. With the rise of online food ordering and delivery platforms, off-premises dining has surged, complementing takeout orders and loyalty programs. Additionally, the market caters to dietary preferences, offering plant-based, vegetarian, and meatless alternatives while providing allergen information. From cafes to institutional food service, the market continues to evolve to meet the needs of diverse industries and consumer lifestyles.
Furthermore, the market is a diverse and dynamic industry catering to a wide range of needs and preferences. From child care center to catering services and food trucks, it encompasses various restaurant formats and culinary experiences. Embracing innovative food preparation and automation, it integrates kitchen technology to offer sustainable, nutritious, and locally sourced meals. With a focus on culinary diversity, fusion cuisine, and international flavors, the market thrives on creativity and variety. It caters to healthy mind and body with plant-based vegan diet and vegetarian options, available across cafes and coffee shops, healthcare food service, and education food service, and government and military food service. From online food delivery platforms to limited service restaurants, the foodservice industry continues to evolve to meet the diverse dietary needs and preferences of consumers.
United Kingdom (UK) Foodservice Market Scope |
|
Report Coverage |
Details |
Page number |
151 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.64% |
Market Growth 2024-2028 |
USD 53.68 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.61 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Bid Corp. Ltd., Compass Group Plc, Cooperatie Koninklijke Cosun UA, Creed Foodservice, Elior Group SA, Greggs Plc, Hannah Food Service, JJ Food Service Ltd., JMP Foodservice, Kitwave Group plc, McDonald Corp., Mitchells and Butlers plc, MKG Foods, Nandos Group, Nestle SA, PepsiCo Inc., PizzaExpress Restaurants Ltd., The Coca Cola Co., The Restaurant Group PLC, and Whitbread PLC |
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, 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. |
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 Type
7 Market Segmentation by Application
8 Market Segmentation by Sector
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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