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The US foodservice market size is estimated to grow by USD 2.36 billion at a CAGR of 30.32% between 2023 and 2028. Food consumption trends have evolved, with many opting for snacks over traditional meals, particularly in the United States. In North America, various snack categories have emerged, including nuts, finger foods, and potato-based snacks. Children consume multiple snacks daily, with each additional snack contributing to their energy intake. The demand for on-the-go bakery products like doughnuts has surged, with vendors offering healthier alternatives like doughnut sandwiches. Despite a preference for healthier options, the popularity of premium snacks like doughnuts and pastries persists, driving growth in the US foodservice market.
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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 changing lifestyles of consumers are the key factor driving market growth. Changing lifestyles leave consumers with very little time to prepare food. Consumers are also able to receive home deliveries from foodservice establishments. The working population also demands foods that require minimal preparation. Consequently, they are seeking more ready-to-eat (RTE) and convenience foods.
In addition, fast food chains, cafes, and QSRs are favored for their selection of foods on the go. In the US, drive-thru outlets have always been in high demand. A stable economy results in higher employment rates, but it also causes people to adopt hectic lifestyles and choose convenience foods. This is expected to fuel the market during the forecast period.
A highly diverse population indulging in ethnic cuisine is the primary trend shaping market growth. Increased immigration is primarily responsible for the growing popularity of spicy foods in the U.S. The Asian American population is the fastest-growing racial or ethnic group in the United States. Approximately 22 million Asians living in the United States have ancestry from East and Southeast Asian countries or populations, as well as the Indian subcontinent.
Moreover, an expanding demographic has introduced a wide variety of spicy cuisines to the American palate, and the market response has been overwhelmingly favorable. The high demand for Pan-Asian cuisine, with an emphasis on the lighter-than-Chinese cuisines of Thai, Japanese, and Vietnamese cuisine, is gaining market significance. Consequently, the increasing number of immigrants in the US are opting for ethnic cuisine, which is expected to drive the growth of the market during the forecast period.
Rising competition from the unorganized fast food sector is a challenge that affects market growth. The expansion of the unorganized fast food industry poses a threat to the prominent players. Nationwide, the number of unorganized fast food players, such as those who sell from street carts and trucks, is growing exponentially. These vendors offer a variety of fast food items at reasonable prices, which is preferred by price-conscious customers.
Moreover, various consumer categories (based on income levels) exist in urban areas of the US, and many entrepreneurs are opening fast food restaurants to meet the demand. This segment's growth is anticipated to increase in the future, which is expected to impede the market during the forecast period.
The market research and growth 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 market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth 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 forecasting 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 foodservice restaurants provide quick service and frequently have a drive-through option. Numerous market participants are opening new stores in different locations and introducing novel and diverse food options to their menus. The swift service provided by restaurants makes them a favorite among consumers who are pressed for time.
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The fast foodservice segment was the largest segment and was valued at USD 100.15 million in 2018. The availability of non-vegetarian food products in a variety of fast food types, such as pizzas, burgers, subways, and sandwiches, is anticipated to significantly drive the segment's growth. In addition, market players in the US offer sauces and spices alongside non-vegetarian fast food items. Doctors Associates LLC, for instance, offers a Buffalo Chicken Subway Sandwich with Frank's RedHot sauce. Thus, such efforts by vendors have contributed to the growth of the segment. Therefore, such factors are expected to drive the growth of the fast food service segment during the forecast period.
The US foodservice industry encompasses a diverse landscape of food bars, university canteens, catering services, vending machines, hotels, and renowned chains like McDonald's, KFC, Taco Bell, and Olive Garden. This dynamic market is influenced by global trade dynamics, political environments, and macroeconomic factors. Technological advancements and digitalization have spurred innovation and digital transformations across food service outlets, catering to changing consumption behaviors driven by a young population with a shortage of time.
With real personal disposable income on the rise, hotels and quick-service restaurants remain popular among millennial consumers. However, health concerns persist regarding excessive consumption of fried and unhealthy foods, contributing to obesity, diabetes, and cardiovascular diseases. Initiatives like the National Salt and Sugar Reduction Initiative aim to address diet-related diseases. The market encompasses various segments including full-service and quick-service restaurants, coffee shops, bakeries, virtual and ghost kitchens, and online food delivery platforms catering to diverse tastes ranging from North American to Indian cuisine. Despite health concerns, quick-service giants like McDonald's, Taco Bell, and Burger King continue to dominate alongside a growing trend towards healthier alternatives and e-commerce channels.
The market growth analysis report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Foodservice Market In US Scope |
|
Report Coverage |
Details |
Page number |
153 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 30.32% |
Market growth 2024-2028 |
USD 2,365.2 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
29.73 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
American Dairy Queen Corp., Chick fil A Inc., CKE Restaurants Holdings Inc., Dominos Pizza Inc., Inspire Brands Inc., Jack in the Box Inc., Marcos Franchising LLC, McDonald Corp., MTY Food Group Inc., Papa Johns International Inc., Pret A Manger, Raising Canes Restaurants LLC, Restaurant Brands International Inc., Shamrock Foods Co., Starbucks Corp., Sysco Corp., The Subway Group, The Wendys Co., Wingstop Inc., YUM Brands Inc., and Penn Station 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, Market condition analysis for 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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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 Solution
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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