The global food service market revenue, valued at USD 3,236.92 billion in 2023, is projected to grow at a compound annual growth rate (CAGR) of 7.78% from 2024 to 2032. It is expected to reach USD 3,486.58 billion in 2024 and USD 6,348.75 billion by 2032. Key factors driving this growth include rising disposable incomes, changing consumer behaviors—especially among millennials—and the growing number of cafes, restaurants, and fast-food chains. Additionally, the increasing popularity of online meal delivery services and a greater demand for processed meals are expected to further fuel the market's expansion over the forecast period.
List of Key Players Profiled in the Market Report
- McDonald's (U.S.)
- Starbucks (U.S.)
- Yum! Brands, Inc. (U.S.)
- Darden Restaurants, Inc. (U.S.)
- Restaurant Brands International Inc. (Canada)
- The Wendy’s Company (U.S.)
- Bloomin’ Brands, Inc. (U.S.)
- Papa John's International, Inc. (U.S.)
- Chipotle Mexican Grill, Inc. (U.S.)
- Domino's (U.S.)
Information Source: https://www.fortunebusinessinsights.com/food-service-market-106277
Segments:
Full-Service Restaurants Segment to Gain Traction Through 2029
The food service market is segmented into quick service restaurants, full-service restaurants, institutions, and other categories. Full-service restaurants hold the largest market share due to the diverse range of food offerings on their menus. The growing popularity of family vacations is driving the expansion of full-service restaurants, which is expected to fuel the segment's growth in the coming years.
Commercial Food Service Segment to Gain Traction Over 2022-2029
The food service market is also divided into commercial and institutional services. The commercial segment is expected to experience significant growth throughout the forecast period, driven by the increasing number of food trucks, food chains, cafes, restaurants, and online food delivery services. This category includes quick-service restaurants, full-service restaurants, and dining-out or takeout services, all of which are expected to contribute to the segment's expansion.
Report Coverage:
The report offers:
- Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
- Comprehensive insights into the regional developments.
- List of major industry players.
- Key strategies adopted by the market players.
- Latest industry developments include product launches, partnerships, mergers, and acquisitions.
Drivers & Restraints:
Expansion of Fast-Food Chains and Quick-Service Restaurants to Foster Growth
The food service market's growth is primarily driven by rising disposable incomes and the increasing number of dual-income households. Key factors propelling the market include the expanding millennial population and the growing popularity of fast-food restaurants. As fast-food chains continue to expand into new and emerging markets, the industry is expected to experience rapid growth in the coming years.
However, future market developments could be somewhat influenced by the lingering effects of the COVID-19 pandemic.
Regional Insights:
North America Food Service Industry Stood at USD 989.0 Billion in 2021
In 2021, North America led the global food service industry, generating over USD 989.0 billion in annual revenue. This dominance is attributed to increased spending on fast food, the growing number of fast-food restaurants, and the rise in dual-income households. The region's large millennial population and rapidly changing lifestyle trends are also expected to continue supporting its market leadership.
From 2022 to 2029, the Asia Pacific region is projected to experience the fastest compound annual growth rate (CAGR), driven by the expanding presence of fast-food outlets and restaurants in Tier-II and Tier-III cities. Meanwhile, the European market is expected to maintain steady growth, fueled by the rise of quick-service restaurants, cafes, pubs, and coffee shops.
Competitive Landscape
Top Players Use Acquisition Techniques to Remain Competitive
During the initial disruptions of the COVID-19 pandemic, most market players were hesitant to enter new, unpredictable markets, fearing potential losses. However, as the effects of the pandemic began to subside, companies started to explore new opportunities. For example, Imperial Dade expanded its reach by operating 91 new distribution locations across the United States following its acquisition of Empire Distributors. This strategy of entering new markets is being adopted by other major industry players as they seek to expand and grow their businesses in the post-pandemic landscape.
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Key Industry Development:
July 2021: With its Food Panda brand, Delivery Hero has reopened its business in Germany, reaching one of the biggest food service marketplaces in Europe.
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