The global food service market was valued at USD 3,236.92 billion in 2023 and is projected to grow from USD 3,486.58 billion in 2024 to USD 6,348.75 billion by 2032, reflecting a compound annual growth rate (CAGR) of 7.78% during the period from 2024 to 2032. This growth is driven by several factors, including increasing disposable incomes, changing consumer lifestyles—especially among millennials—and the expanding number of cafes, restaurants, and fast-food chains. Additionally, a growing preference for non-homemade foods and the rise of online food delivery services are expected to further boost market growth throughout the forecast period.
Information Source: https://www.fortunebusinessinsights.com/food-service-market-106277
Segments:
By Type, Full Service Restaurants Segment to Gain Traction through 2029
The food service market is segmented by type into quick service restaurants, full service restaurants, institutions, and others. The full service restaurants segment holds the largest market share, primarily due to the extensive variety of food items offered on their menus. The increasing trend of family outings is contributing to a rise in the number of full service restaurants, which is expected to drive significant growth in this segment.
By Service Type, Commercial Food Service Segment to Gain Traction over 2022-2029
The food service market is divided into two service types: commercial and institutional. The commercial segment is expected to experience significant growth during the forecast period, driven by the increasing number of food chains, food trucks, cafes, restaurants, and online food orders. This segment encompasses quick service restaurants, full service restaurants, and dining out or takeaway services.
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 growth of the food service market is primarily fueled by an increase in dual-income households and rising disposable incomes. The expanding millennial population and the growing popularity of fast-food chains are pivotal factors propelling the market forward. As fast-food outlets extend their reach into new and emerging markets, the industry is expected to witness rapid growth in the coming years.
However, the lingering after-effects of the COVID-19 pandemic may influence market trends to some degree in the future.
Regional Insights:
North America Food Service Industry Stood at USD 989.0 Billion in 2021
In 2021, North America led the global food service market with over USD 989.0 billion in annual revenue. This dominance can be attributed to the increasing number of dual-income households, higher spending on fast foods, and a growing number of fast-food chains. Additionally, the region's large millennial population and rapidly changing lifestyle trends are expected to further positively influence the market.
The Asia Pacific region is projected to achieve the highest compound annual growth rate (CAGR) from 2022 to 2029, driven by the expanding number of restaurants and fast-food establishments in Tier-II and Tier-III cities. Meanwhile, the European market is anticipated to exhibit steady growth, fueled by the rise of quick-service restaurants, cafes, pubs, and coffee shops.
Competitive Landscape
Leading Players Adopt Acquisition Strategies to Stay Competitive
Most market players were initially hesitant to risk their businesses and incur losses by entering volatile markets amid the disruptions caused by the COVID-19 pandemic. However, as the effects of the pandemic began to wane, companies started to expand into new markets. For example, Imperial Dade acquired Empire Distributors, enabling them to operate 91 new distribution centers across the U.S. Major players in the industry are adopting similar strategies, targeting new markets for expansion and business growth.
Key Industry Development:
July 2021: Delivery Hero has re-launched its operations in Germany through its Food Panda brand, tapping into one of Europe's largest food service markets.
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.)
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