United States Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

United States Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The US foodservice market is projected to witness a CAGR of 3.7% during the forecast period, 2021-2026.

After the onset of the COVID -19 pandemic, the consumers in the market have begun to change their dining behavior and practice social distancing, which had affected the revenues of the market studied. As per the survey conducted by the market experts, since the start of the lockdown effort, foot traffic to fast food and casual dining restaurants has decreased by 45% and 67%, respectively.

Increased digitalization of food service is among the primary factors driving the market, as consumers find it comfortable to book prior and make payments online.

Fast food restaurants focusing on organic produce and healthy food are expected to be the focus of the market in the future. In the United States, the demand for organic food is rapidly rising.

However, factors like rising obesity and health awareness among consumers affect market growth, as most fast food products are unhealthy.

Key Market TrendsIncreased Consumer Spending in Quick Service Restaurants (QSR)

Quick service restaurants (QSRs) are fast food restaurants, set apart from full service or table restaurants by their limited menus, minimal table service, and, as their name implies, fast service. QSRs are popular in the United States; it was estimated that there were 194,723 quick-service restaurant franchise establishments in 2018. Quick service restaurants include limited-service eating places, cafeterias, fast-food restaurants, beverage bars, ice cream parlors, pizza-delivery establishments, carryout sandwich shops, and carry out service shops with on-premises baking of doughnuts, cookies, and bagels. Contemplating the ease of food consumption in QSRs has led people in the United States to spend in these restaurants, therefore, driving the country's foodservice market.

Growing Online Food Delivery Services

The online food delivery services by restaurants, as well as various platforms, have surged the foodservice market in the United States. Restaurants and other foodservice providers have been actively engaging in digitalizing their operations. There has been a rise in the number of consumers who prefer to order food online, and the number is expected to grow. The home delivery system, mainly in the case of pizza, has been another primary driver for the market. Online platforms to order food for delivery have been successful concepts due to the ease of choosing food items and convenient payment procedures. Notably, in 2018, more than 70 million consumers in the United States were engaged in ordering food online from restaurants.

Competitive Landscape

The US foodservice market is a highly fragmented market due to the presence of various giant players and local players such as Mcdonald's Corp., Yum! Brands Inc., Starbucks Corp., Inspire Brands, and other companies. The chained consumer foodservice segment is growing rapidly due to the increased investments by international brands. Introducing new exotic flavors and mixes is the strategy adopted by the companies to gain a competitive advantage in the market. According to the latest consumer trend, the introduction of organic food products in the market is likely to raise the prospects of the companies in the same.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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