Italy Foodservice Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Italy Foodservice Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Italian foodservice market is estimated to witness a CAGR of 1.24% during the forecast period (2022-2027).

According to USDA, Italy’s consumer food service was severely impacted by COVID-19 lockdown and restrictions in 2020, causing a 33 percent decline in sales value compared to 2019. However, to earn revenue during the crisis and to maintain market share, many food service players offered delivery services (mainly pizza, gelato, and Asian restaurants), leading to a food delivery boom and a rise in partnerships with third-party delivery companies.

Continuous growth in brand franchising, increased demand for healthier and quality food, and booming digital commercialization are a few factors augmenting the foodservice market in Italy. Further, supplemented by active tourism, Italy remains the third largest foodservice market in Europe. Lombardy, Lazio, and Campania account for the country’s highest number of food service establishments.

Cafes and Bars are one of the largest growing segments in the market, with the ever-increasing preferences for coffee, soft drinks, and alcoholic beverages. Furthermore, the cafes offering affordable food products ranging from cold to hot meals increase consumers' willingness to spend. Many companies are investing in launching their outlets in the country. For instance, in 2022, the giant player, Starbucks Coffee Company, opened its first drive-thru in Italy at Erbusco in the northern Lombardia region. With the growing urbanization and improved lifestyle, Italians increasingly prefer wine over other alcoholic drinks, uplifting the business of wine bars in the country.

The increasing frequency of Italians eating out is majorly benefitting the country's foodservice sector. According to FIPE, around 36 million Italians ate out in 2020, accounting for 35.3% of the country's total revenue generated by food consumption. The majority comprised 32 million consumers eating lunch out on weekdays, while the number of people dining out for dinner remained around 2 million. Italy holds more catering enterprises per square km when compared to any other country in the world, portraying a flourishing foodservice market in the country.

Italy's foodservice market is highly fragmented due to the country's prevalence of several small-scale players. American-style fast food chains and salad bars are gaining popularity in the Italian market. This move towards more convenient dining has led Italian importers to seek U.S. food products adapted to self-service eateries. Impacted by western cuisine, the Italian market is holding a prominent share in the chain outlets, such as McDonald's, Burger King, and Yum! Brands RSC. Moreover, the country has significant local and regional brands, such as Gruppo Sebeto, Lagardère Food Services SRL, and CAMST.

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