Food Service Market size is set to grow by USD 28.78 billion from 2024-2028, Increasing demand for food away from home to boost the market growth, Technavio

NEW YORK, June 10, 2024 /PRNewswire/ -- The global food service market  size is estimated to grow by USD 28.78 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 38.57%  during the forecast period. Increasing demand for food away from home is driving market growth, with a trend towards increased snacking and indulgence consumption. However, labor shortages in foodservice sector  poses a challenge. Key market players include Abela and Co. LLC, Aramark, Chick fil A Inc., Compass Group Plc, Dominos Pizza Inc., FOOD and LIFE Co. Ltd., Inspire Brands Inc., Jack in the Box Inc., Jollibee Foods Corp., Little Caesar Enterprises Inc., McDonald Corp., MOS Food Services Inc., Papa Johns International Inc., Performance Food Group Co., Restaurant Brands International Inc., Sodexo SA, Starbucks Corp., Sysco Corp., The Wendys Co., and YUM Brands Inc..

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Key Market Trends Fueling Growth

The food service market in the United States has experienced a shift in consumer preferences, with an increase in snacking and on-the-go eating. This trend is driven by hectic lifestyles and the convenience of snack options. Bakery products, such as doughnuts and bread, have become popular breakfast choices.

Vendors offer healthier snack alternatives, including chicken, lettuce, and green vegetables, using whole wheat or multigrain bread. Despite the preference for healthier options, the demand for premium snacks remains strong, with consumers willing to experiment with new flavors. This trend is expected to continue driving growth in the global food service market. 

The food service market is experiencing significant trends with the rise of online ordering and delivery services. Outlets are utilizing technology to improve efficiency and customer experience. Foods are being customized to cater to various dietary needs and preferences. Brands are focusing on sustainability and local sourcing. Consumers are seeking convenience and affordability.

Delivery times are becoming increasingly important. Quality and hygiene are key concerns. The use of packaging and delivery bags is also a trend. The industry is competitive, with many players vying for market share. Consumers are looking for unique offerings and personalized experiences. The future of food service lies in innovation and adaptability. 

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Market Challenges

• The global food service market may experience hindrances in growth due to labor shortages in the sector. Jobs in the food service industry are often low-paying and lack career advancement opportunities, making them less desirable. In countries like the US and Japan, restaurants face significant labor shortages. Reasons include job insecurity, lack of benefits, and an aging workforce.
• Additionally, the UK food service sector is negatively impacted by Brexit, with many unfilled positions expected during the forecast period. These labor shortages can significantly impact restaurant operations, with Japan reporting a 65.1% shortage of full-time employees in 2022. Consequently, labor shortages are likely to limit the expansion of the global food service market.
• The Food Service industry faces several challenges in delivering optimal customer experiences. One major challenge is ensuring consistency in order processing and delivery. With the increasing use of online ordering systems and delivery apps, food businesses must implement efficient systems to manage orders and maintain accurate inventory levels.
• Another challenge is maintaining food quality and safety. Compliance with regulations and ensuring proper storage, preparation, and handling of food are crucial to maintaining a good reputation and avoiding health hazards. Additionally, competition is fierce, requiring businesses to offer unique menus, competitive pricing, and excellent customer service to stand out. Lastly, keeping up with technological advancements, such as contactless ordering and payment, is essential to remain competitive and meet evolving customer preferences.

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Segment Overview 

1. Service 
• 1.1 Conventional
• 1.2 Centralized
• 1.3 Ready-prepared
• 1.4 Assembly-serve
2. Sector 
• 2.1 Commercial
• 2.2 Non-commercial
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Conventional-  In the Food Service Market, businesses cater to customers' needs by providing quality meals and excellent service. Establishments focus on menu variety, sanitation standards, and efficient operations to ensure customer satisfaction. Competition is strong, so businesses strive to differentiate through pricing strategies, loyalty programs, and unique offerings. Marketing efforts aim to attract and retain customers, while continuous improvement in food quality and service keeps businesses competitive.

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Research Analysis

The Food Service Market encompasses a wide range of establishments, including third-party facilities such as child care centers and institutions. These facilities often require storage, preparation, and serving solutions for meals. Restaurants, hotels, cafés, and quick service establishments are significant consumers in this market. Strategic partnerships between restaurant operators and hotel chains have expanded food service offerings, providing full-service dining experiences and online delivery options.

Food delivery services like Deliveroo have further disrupted the industry, offering convenience and flexibility to consumers. The distribution of food products is a crucial aspect of the food service market, ensuring the timely and efficient delivery of ingredients and finished meals. Overall, the food service market caters to various service types and establishments, providing essential solutions for the food industry.

Market Research Overview

The Food Service Market encompasses a wide range of establishments that prepare and serve food to consumers outside of the home. This includes restaurants, cafeterias, schools, hospitals, and other institutions. The market is driven by various factors such as increasing consumer preferences for convenience and diversity in food choices, growing urbanization, and changing demographic trends.

The market is segmented based on various criteria including type of food service, size of the establishment, and geography. Technological advancements have also played a significant role in the food service industry, with innovations in areas such as online ordering, contactless delivery, and automation streamlining operations and enhancing the customer experience. The future of the food service market looks promising, with continued growth expected due to these trends and others.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Service
• Conventional
• Centralized
• Ready-prepared
• Assembly-serve
• Sector
• Commercial
• Non-commercial
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio