Cautiously Holding Steady: IFMA Releases Industry and Segment Forecast for Food-Away-From-Home

CHICAGO, Aug. 6, 2024 /PRNewswire/ -- The International Foodservice Manufacturers Association (IFMA) released its latest 2024 and 2025 Food Away-From-Home (FAFH) Industry and Segment Projections today.

IFMA began the year projecting that the FAFH industry would grow 0.9 percent, on a real basis, in 2024. While holding to this cautious overall-industry projection, the organization acknowledges that recent slowing of consumer store traffic is creating challenges, primarily for restaurants, when planning for future consumer behavior.

Consumers, especially lower income ones, are looking to limit their foodservice spending choices. Yet the industry's on-site segments like colleges & universities and healthcare foodservice remain on track to outpace growth of the overall restaurant segment.

IFMA has revised its overall 2024 price inflation rates down from 5.0% in February to 3.8%, reflecting a slowdown in costs of goods sold by FAFH operators.

The IFMA forecast models were created in conjunction with Datassential, a leading foodservice research firm, and validated by operators from the five IFMA Foodservice Leadership Councils.

"These have been, and we believe, will remain turbulent times for the food-away-from-home ecosystem," said IFMA President & CEO Phil Kafarakis. "IFMA stands ready to provide actionable insights, education, and peer-group networking opportunities for manufacturers, operators, and the supply chain no matter what comes our way. Our forecasts and analysis are made available in detail to our members for them to consult as they plan for the future. We remain committed to bringing reasoned and actionable analysis to the industry."

Some of the key highlights by segment for 2024, with real growth comparisons to 2023, include:

• The total restaurant category – including full-service and limited-service restaurants – is projected to grow 0.5 percent on top of 0.8 percent in 2023. This minimal growth comes from continued demand from higher income consumers for restaurant occasions.
• Quick service restaurants (QSR), which have performed significantly better in recent years than other segments overall, are projected to grow 0.7 percent, while the Fast Casual segment shows bullish growth of 1.3 percent, a positive adjustment compared to the February projection of 0.9 percent.
• Midscale restaurants are the only major restaurant segment where IFMA projects a decline of 0.7 percent. IFMA revised its projection for Casual Dining to flat growth, compared to 0.5 percent in February. This revision reflects the consumer trade down to lower cost occasions.
• Collectively, on-site segments in 2024 are projected to grow 2 percent, largely because their recovery from 2020 was slower than that of restaurants. The College & University and Lodging segments are expected to lead on-site growth at 2.0 and 2.8 percent, respectively. The Business and Industry segment continues its slow recovery, although overall volume is still well below pre-pandemic levels.

With the possibilities of declining energy prices and lower interest rates, IFMA expects consumer-led growth to impact 2025, with real growth reaching 1.0% for the year. The total restaurant category is expected to grow 0.8 percent, while the total on-site category is projected to grow 1.4 percent, on a real basis. Inflation for 2025 is currently projected to be 2.0%. IFMA will update this forecast in late February 2025.

IFMA members can access all projections, including data on the Retail Foodservice category, through the IFMA Scope® portal, which provides an interactive and immersive view of real-time segment and market demographic information to aid in business planning.

About International Foodservice Manufacturers Association (IFMA)

The International Foodservice Manufacturers Association (IFMA) is a trade association founded in 1952. IFMA empowers, nurtures, and connects an inclusive and diverse $1.3 trillion food-away-from-home ecosystem of manufacturers, distributors, operators, and others. By sharing insights, fostering best practices, and developing networking and educational opportunities through events, IFMA informs and instructs its members, and motivates change to improve both individual organizations and the foodservice industry at large. For more information, visit IFMAworld.com.

SOURCE International Foodservice Manufacturers Association (IFMA)