Global Food Service Market - 2024-2031

Global Food Service Market - 2024-2031

Global Food Service Market reached US$ 2116.92 billion in 2023 and is expected to reach US$ 4513.21 billion by 2031, growing with a CAGR of 9.82% during the forecast period 2024-2031.

Increasing consumer awareness of health and wellness is influencing market dynamics, leading to a growing demand for healthier food options. This trend is prompting food service providers to offer more nutritious menu items, including plant-based alternatives, organic ingredients, and low-calorie options. Market players are also investing in transparent labeling and marketing initiatives to cater to health-conscious consumers.

For instance, on August 30, 2023, Samsung Electronics introduced Samsung Food, an innovative, AI-driven food and recipe platform. It is launching in 104 countries worldwide and available in eight languages, Samsung Food will provide users with extensive culinary experiences, boasting a library of over 160,000 recipes. It acts as a personalized assistant, the platform will assist users in exploring new dishes, devising customized meal plans, and facilitating online ingredient orders.

The expanding middle-class population in countries like China, India, and Southeast Asian nations is creating a significant consumer base for the food service market. With increasing purchasing power and changing dietary preferences, middle-class consumers are driving demand for a diverse range of dining experiences, from traditional eateries to international cuisines and upscale dining establishments. Market players are tapping into this demographic segment by offering affordable yet quality food options tailored to their preferences.

Dynamics

Growing Demand for Convenience and Dining Out

The growing demand for convenience and dining out is a key driver propelling the expansion of the global food service market. As consumers increasingly lead busy lifestyles and prioritize convenience, they are turning to food service establishments for quick and hassle-free meal options. This shift in consumer behavior is driving significant growth in the market as food service providers cater to the evolving preferences and demands of their customers.

The trend of dining out has become increasingly popular across various demographic segments, including millennials, young professionals, families, and seniors. Dining out is seen as a convenient option for busy individuals and also as a social experience and a form of entertainment. Food service establishments capitalize on this trend by offering unique dining experiences, innovative menu offerings, and ambiance that appeal to different consumer segments. This strategic approach helps drive foot traffic and revenue growth in the food service market.

For instance, on February 15, 2023, Travel Food Services, India's premier travel food and retail company, introduced an exciting new F&B destination, Dilli Streat, at Indira Gandhi International Airport. Positioned near the Domestic Departure area, this sprawling 340 sq. mt. space promises to captivate travelers and food enthusiasts alike. Dilli Streat stands out with its distinctive concept, offering a diverse range of cuisines in a manner unparalleled in airport dining experiences. It presents a unique culinary landscape, unlike anything previously seen at any airport.

Rising Influence of Food Delivery Platforms

The rising influence of food delivery platforms is a driving force behind the growth of the global food service market. These platforms, often accessible through mobile applications or websites, connect consumers with a wide range of food options from various restaurants and eateries. The convenience and accessibility offered by food delivery platforms are revolutionizing the way consumers access meals, leading to increased demand and market expansion.

The widespread availability of food delivery platforms is expanding the market reach of food service providers, enabling them to access a larger customer base beyond their immediate geographical locations. Restaurants and eateries can partner with food delivery platforms to reach new customers and increase their sales without the need for significant investments in additional infrastructure efforts. This expanded market access fosters competition and innovation within the food service market, driving improvements in service quality and menu offerings.

For instance, on February 20, 2024, The Kudumbashree Mission launched its online tiffin service, with plans for a pilot launch in Thiruvananthapuram. The project's inauguration is slated to be conducted by the Local Self Government Minister. The initiative aimed to introduce a convenient and affordable option for healthy, home-cooked meals. Initially, the service will be available at the secretariat, with plans to expand to other public offices in the capital. This move is anticipated to curtail waste generation in public offices, as meals will be served in reusable tiffin carriers.

Challenges in Regulatory Compliance

Regulatory compliance encompasses a wide range of regulations and standards related to food safety, hygiene, labeling, allergen management, and more, set forth by various governmental and industry bodies. Non-compliance with these regulations can result in severe consequences for food service establishments, including fines, legal penalties, reputational damage, and even closure. As a result, ensuring compliance with regulatory requirements poses a significant challenge for food service providers, impacting their operations and market competitiveness.

Regulations related to food safety and hygiene standards can vary significantly from one country to another, as well as within different states or provinces within the same country. Navigating this regulatory landscape requires food service providers to stay abreast of the latest requirements and ensure compliance at each location where they operate. This complexity can be particularly daunting for multinational food service chains or those expanding into new markets, adding a layer of operational difficulty and cost.

For instance, the Food Safety and Standards Act (FSSA) of 2006 serves as the primary legislation governing food safety regulations in India. This comprehensive statute replaced the outdated Prevention of Food Adulteration Act of 1954 and consolidated various food-related regulations into a unified framework. Enacted in 2011, the FSSA establishes the regulatory framework for overseeing the manufacturing, storage, distribution, sale, and import of food products to ensure their safety and quality.

Segment Analysis

The global food service market is segmented based on the type of service, sector, type of establishment, and region.

Rising Affordability and Value and Innovations in Quick Service Restaurants

Quick Service Restaurants (QSRs) hold the largest share of the global food service market. QSRs typically offer meals at lower price points compared to full-service restaurants, making them an attractive option for a broad demographic, including families, students, and working professionals. This affordability, combined with the perception of value for money, ensures that QSRs capture a significant portion of the food service market. The market trend towards cost-effective dining options further cements QSRs' leading position.

The QSR market is characterized by continuous menu innovation and the introduction of diverse offerings. From health-conscious items to globally inspired dishes, QSRs are adept at quickly adapting their menus to meet changing consumer tastes and preferences. This adaptability and variety attract a wide customer base, contributing to their dominant food service market share.

Geographical Penetration

Rising urbanization and Changing Lifestyles and Technologies in Asia-Pacific

Rising urbanization and changing lifestyles in the Asia-Pacific region are fueling the demand for convenience, dining out, and food service options. As more people migrate to urban areas and join the workforce, there is a growing preference for quick-service restaurants, and food delivery services that offer convenient and affordable meal solutions. Food service providers are capitalizing on this trend by expanding their presence in urban centers offering innovative dining experiences to attract and retain customers in the competitive market.

The Asia-Pacific region is experiencing significant digitalization and technological advancements in the food service industry, which are transforming the way food is consumed, ordered, and delivered. Food service providers are leveraging digital technologies to enhance the customer experience, optimize operations, and capture market share in the rapidly evolving digital landscape.

For instance, on February 20, 2024, Airport Dimensions, SSP, and Travel Food Services announced a partnership to introduce an exclusive lounge destination for travelers at Hong Kong International Airport (HKIA). Named Kyra, this new lounge will be situated in Terminal 1's Central Concourse and is slated to open its doors in the summer of 2024. This collaborative venture brings together three industry-leading entities, each renowned for their expertise in crafting unparalleled experiences for travelers. Airport Dimensions specializes in the design, development, and operation of lounges and airport experiences tailored to global travelers' needs.

COVID-19 Impact Analysis

The COVID-19 pandemic had a profound impact on the global food service market, disrupting traditional business models, consumer behavior, and market dynamics. The most significant effects of the pandemic on the food service market have been the widespread closures of restaurants, cafes, and other dining establishments due to lockdowns, social distancing measures, and restrictions on indoor dining. These closures resulted in a sharp decline in revenue for food service providers, leading to financial losses and business closures across the market.

With dine-in options restricted or limited, food service providers have increasingly relied on digital channels, mobile apps, and third-party delivery platforms to reach consumers and facilitate transactions. This digital transformation has led to the emergence of new business models, such as virtual kitchens, ghost kitchens, and cloud kitchens, which cater specifically to delivery and takeout orders.

Russia-Ukraine War Impact Analysis

Disruptions in the supply chain due to the conflict led to shortages of key ingredients and commodities. As a result, many food service businesses faced challenges in sourcing essential items, leading to increased costs and decreased profitability. The geopolitical tensions between Russia and Ukraine caused fluctuations in commodity prices. These price fluctuations created uncertainty for food service operators, making it difficult for them to forecast costs accurately and plan their menus and pricing strategies effectively.

In addition to supply chain disruptions and price volatility, consumer behavior was also impacted by the Russia-Ukraine war. Concerns over the stability of the global economy and potential food shortages led to changes in consumer spending patterns. Many consumers became more cautious with their discretionary spending, leading to a decline in dining out and a preference for home-cooked meals or more affordable dining options.

By Type of Service
• Quick Service Restaurants
• Full-Service Restaurants
• Cafés and Bars
• Others

By Sector
• Commercial
• Non-commercial

By Type of Establishment
• Independent Outlets
• Chain Restaurants
• Franchises

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• On April 29, 2024, Chinese on-demand local services company Meituan introduced its international food-delivery platform, KeeTa, in Riyadh, Saudi Arabia. This marks the company's inaugural venture into an overseas market, occurring against the backdrop of a deceleration in domestic growth. The launch in Riyadh, recognized as one of the most affluent cities in the Middle East, underscores Meituan's overarching strategy to pursue growth prospects abroad amid escalating competition within China's market and a downturn in local consumption.
• On January 25, 2024, Swiggy, the online food ordering and delivery platform, launched its expansion into Lakshadweep, the Indian island recently highlighted by a visit from Prime Minister Narendra Modi. The company disclosed its plans to commence food delivery services specifically on Lakshadweep's Agatti island.
• On May 23, 2024, Restaurateur Alex Xu introduced the latest addition to Chinatown London's Shaftesbury Avenue: Kung Fu Burger restaurant. This venture marks his fourth concept within the venue. It is drawing inspiration from the burgeoning street food culture in the East and Southeast Asia (ESEA) region, Kung Fu Burger will pay homage to the dynamic and diverse food scene. Through its offerings of authentic Chinese burgers, the restaurant aims to capture the vibrancy and excitement of Chinatown London.

Competitive Landscape

The major global players in the food service market include Food Service Company, Compass Group India, Sodexo, US FOODS, INC., Saval Foodservice, Shamrock Foods, Food Services, Inc., Gordon Food Service, A & A Food Service, and Creed Foodservice.

Why Purchase the Report?
• To visualize the global food service market segmentation based on the type of service, sector, type of establishment, and region, as well as understand critical commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous global food service market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of critical products of all the major players.

The global food service market report would provide approximately 62 tables, 52 figures, and 213 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies