The global Food Service Industry is presently valued at USD 3,483,539.5 million in 2023. Food service is one of the leading businesses impacting GDP on a global and national scale. Consequently, demand for food services is expected to surge at an average 5.3% CAGR between 2023 and 2033, totaling USD 5,704,966.8 million by 2033.
Key Highlights
| Attribute | Details |
|---|---|
| Food Service Industry Size (2023) | USD 3,483,539.5 million |
| Food Service Industry Projected Size (2033) | USD 5,704,966.8 million |
| Food Service Industry Forecasted Value CAGR (2023 to 2033) | 5.3% |
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Ready-to-eat Food Service Delivery is Reshaping Global Restaurant Market Trends:
The way the entire globe feeds is rapidly shifting. Busy lifestyles have led to a surge in demand for convenient, ready-to-eat options. This includes meal kits, grab-and-go offerings, and delivery services. Products like pasta, bread, and coffee are no longer regarded just as convenience items but have evolved into true premium items in the highly sought-after variations.
A little less than two decades ago, restaurant-quality meal delivery was largely restricted to items like pizza. The Online food delivery & takeaway industry has grown into a global sector worth more than USD 29717.7 million in 2023. With the introduction of user-friendly applications and tech-enabled driver networks, ready-to-eat food distribution has emerged as a prominent market.
The Growing Appetite of Millennials and Gen Z for Healthier Dining Choices:
Consumers are increasingly health-conscious. Healthy eating is a lifestyle preference and affirmation of personal identity for Millennials and Gen Z consumers. Consumer preferences are king, and the restaurant sector is adapting to fulfill them. The range of 'free-from' goods is expanding to meet the demand of consumers who have food intolerances or want to avoid a specific component.
This has given rise to a surge in demand for organic, gluten-free, and plant-based offerings. Restaurant menus need to become more plant-forward if they are to respond to new food service trends, as many consumers prefer healthier diets. Consumers are becoming more knowledgeable and seeking items that are beneficial to their health.
Dark Kitchens are Shaping the Future of Food Service:
Digitalization is entering the food service industry from multiple perspectives. From innovative payment mechanisms to the development of novel forms such as ghost restaurants. Often known as dark kitchens, they offer delivery orders but do not have an actual restaurant or storefront. They take delivery out from the 'front of the house,' enabling businesses to broaden and innovate with little investment pitfalls. Virtual brands, which exist solely in the digital space, have gained traction as well.
The Power of Social Media Collaborations in the Food Service Industry:
The impact of social media on the food industry services cannot be overstated. A study carried out in the United Kingdom in 2021 found that 23% of Millennials and 22% of Gen Z were impacted by social media while ordering food. Restaurants spend money on high-quality, aesthetically attractive photographs and videos of their food, ambiance, and upcoming events.
These photographs are used to attract prospective consumers on Instagram, Pinterest, and Facebook. Social media has altered the way people eat and perceive food, from eating habits to food blogging and influencer advertising. Collaborating with influencers that share their brand values and target audience can prove transformative.
The Billion-dollar Boom of the Food Truck Industry:
With an increase in millennial purchasing, mindful consumerism, and the demand for meals on the go, the food truck concept has grown extremely popular. Food trucks are not a passing craze; they represent a legitimate market that is expected to earn billions of dollars in sales this year. In 2022, the food truck category accounted for around 47% of the mobile food services industry, representing significant restaurant industry growth.
Food Trucks have recently become a popular alternative for first-time restaurateurs because of their affordable investment demands with minute risk. Unlike typical restaurants, which pay for restaurant marketing, food trucks have their adverts plastered all over town owing to the logos painted on their vehicles.
Between 2018 and 2022, the food service industry share reached from USD 2,752,567.8 million to USD 3,314,500 million, registering a 4.8% CAGR. The restaurant business has endured several challenging years. Restaurant owners have had a lot on their plates lately, from pandemic-related closures to supply chain constraints to once-in-a-generation hyperinflation. This year, however, food service management has recovered and increased its total proportion of food and beverage consumption.
Consumer attitude has also improved, and the scrambling necessary in 2023 to contain inflation has diminished to some extent.
| Food Service Industry Size (2018) | USD 2,752,567.8 million |
|---|---|
| Food Service Industry Size (2022) | USD 3,314,500 million |
| Food Service Industry Historical Value CAGR (2018 to 2022) | 4.8% |
The food service industry size is projected to reach from USD 3,483,539.5 million in 2023 to USD 5,704,966.8 million by 2033, exhibiting a 5.3% CAGR. In 2018 and 2019, the overall number of mature delivery markets throughout the world including Australia, Canada, the United Kingdom, and the United States-developed two times to four times. Prior to the pandemic, the United States restaurant sector was increasing at a steady rate.
The ramifications of this shifting global landscape are rapidly establishing the foundations for new frontiers in the food service equipment industry, where the growing influence of disruptive technologies, digitalization, and the pursuit of new holistic customer experiences have begun to impact its key players and their business models.
Fast forward to 2022, the food service industry is back to pre-crisis levels. Delivery sales are expanding at about two times that rate. This exponential expansion persisted in 2022 to such an extent that the above-mentioned markets have grown to four to seven times larger than their size in 2018. Although the increasing population played an integral role, a large portion of the growth occurred against the backdrop of the food service industry.
The increase in experiencing luxury, which is also driving development in the luxury hotel market, contributed to the premium food service equilibrium in 2019. Customers are more interested in investing in exclusive and distinctive experiences rather than just purchasing personal luxury items. Demand for luxury food service is predicted to increase throughout the forecast period, as customers are likely to prioritize experience above possession.
Regional competition between delivery platforms is likely to be an essential battlefield through 2033. Rival systems are projected to continue to compete for consumers, restaurants, and drivers in each market, perhaps leading to additional consolidation during the forecast period.
This competition is expected to go beyond eateries as platforms expand the range of services they provide. Recently, dedicated delivery apps concentrating on certain customers in a niche cuisine type, such as Slice for Pizza and HungryPanda for Chinese, have effectively entered the market.
Principal Consultant
Several food service industry trends are influencing the business requirements of food service companies.
| Leveraging Online Platform | Consumers expect immediate access to their preferred food options precisely when they crave them. They have become exceptionally skilled at maneuvering through digital channels to fulfill their food cravings promptly and conveniently. This phenomenon is taking place within a rapidly evolving on-demand landscape. This shift underscores the food service industry's necessity to adapt to these changing consumer behaviors. |
|---|---|
| Improve Financial Strength | The occurrence of several disease outbreaks has significantly underscored the critical importance of maintaining robust financial stability. This serves as a lifeline for survival during challenging times. It also opens up opportunities for food service industry players actively seeking ways to grow and expand. |
| Strategizing Pricing Approaches, Customer Retention, and Point of Sale (POS) Administration | There is a discernible shift from conventional methods of customer engagement toward the adoption of omnichannel and multichannel programs. This transformation shows how businesses are strategically responding to changing consumer preferences and behaviors. They are using these smart methods to give customers a smooth and connected experience. |
| Overcoming Supply Chain Disruption | Restaurants are currently contending with the dual challenges of supply shortages and price increases. These are exerting considerable pressure on their operations. Furthermore, customers these days have higher expectations for the quality of the food they eat. Restaurants are facing the challenge of managing costs. This is particularly crucial due to disruptions in the supply chain. |
| Focusing on Global Expansion | The food service industry is witnessing a significant shift toward venturing into international markets. This calculated step is taken to gain a direct understanding of consumer preferences for the brand and its distinctive menu offerings. Businesses endeavor to perfect their offerings and customize experiences to cater to a wide range of tastes. This expansion on a global scale is a testament to the dedication to delivering outstanding dining experiences that know no boundaries. |
Between 2023 and 2033, North America is likely to possess a sizable part of the food service solution sector. Restaurant running costs are quickly rising in affluent countries such as the United States and Canada. Companies' profit margins are under severe pressure as labor costs and raw material prices grow. As a result, there is a considerable push toward automation and digitalization in the industrial and service sectors.
For example, Uber Eats announced a 10-year collaboration with the autonomous vehicle company Nuro in September 2022. Starting in September 2022, the firm started testing autonomous food delivery in two areas in California and Texas. In Houston, Domino's has also teamed with Nuro to provide rapid service self-driven delivery cars.
| Country | United States |
|---|---|
| 2022 Value Share in Global Market | 25.5% |
The USA food service industry size is projected to surpass USD 1,995.0 billion by 2033. Fast food consumption in the United States is rising due to a lack of time to prepare food at home and the expansion of food service businesses.
With the proliferation of fast-food restaurants, young people are spending more money on food outside their homes. McDonald's, KFC, Burger King, Taco Bell, and Wendy's are well-known fast food restaurants in the country. These have excellent brand awareness and consumer loyalty.
The United States has one of the highly complicated food-delivery marketplaces, with four active companies at the top—DoorDash, Grubhub, Postmates, and Uber Eats-each controlling a certain substantial metropolitan area. DoorDash was the market leader in San Jose, Houston, Philadelphia, and San Antonio as of May 2021.
The acquisition of Postmates by Uber in 2020 balanced the playing field significantly. As of May 2021, Uber Eats and Postmates topped the market in Los Angeles and New York City. According to the United States Department of Agriculture, food-away-from-home spending accounted for 55% of total food expenditures in 2021, reverting to pre-pandemic levels.
The food and beverage business is the leading industrial sector in the United Kingdom. Greggs PLC received an outstanding rating from the British population, with a 67% favorable attitude, compared to the globally recognized companies of the United Kingdom. Pizza Express, KFC, Pizza Hut, and Costa Coffee were also named among the top five brands in the world in 2022.
People have demonstrated a strong taste for fast food given by overseas fast food franchises, creating an opportunity for American giants to grow their business.
Wendy's, the world's third-leading burger company, announced plans to add 50 new locations between 2022 and 2023. Starbucks revealed plans to invest USD 32.78 million to establish 100 new outlets in the United Kingdom in August 2023 as the corporation anticipates that its food service market growth momentum is going to persist.
| Country | United Kingdom |
|---|---|
| Value CAGR (2023 to 2033) | 4.6% |
| Country | Germany |
|---|---|
| 2022 Value Share in Global Market | 6.9% |
Germany, with a population of over 83 million people, is regarded to have one of the well-off food & beverage consumers. The practice of purchasing food online is expected to grow during the forecast period. As the number of established online platforms grows, existing market participants and new entrants are increasingly servicing clients online.
Companies have launched delivery services and incorporated food service technology improvements that can improve the client experience by making it more convenient. According to the International Trade Administration, the number of internet consumers in Germany is likely to rise from 62.4 million in 2020 to 68.4 million in 2025.
These variables contribute to Germany's food service market share. Low-carb, gluten-free, and vegan alternatives are popular throughout the country. Domino's Pizza Germany released the 'Oh Jacky' Jackfruit Pizza for Veganuary in December 2022 in response to the country's increased desire for plant-based meals.
Given its large customer base, China is a fast-rising country in the food business in the Asia Pacific. Furthermore, the usage of modern technology is booming in the Chinese food business, with operators employing e-menus, online reservations, smartphone ordering, and payment applications.
Coffee consumption in China is rising primarily because of the emerging coffee culture trend, aiding in raising the country's catering industry size. For example, Starbucks Corporation has become a sensation in China, with over 6,000 outlets operating in over 230 cities by 2022.
With multinational food service industry players focused on developing their companies in China, the country is likely to offer fortunate growth prospects for the restaurant industry over the projection period. In January 2022, Starbucks collaborated with China's Meituan to let its consumers buy coffee delivery through the super-app platform. The company's goal is to extend delivery services in China.
| Countries | Value CAGR (2023 to 2033) |
|---|---|
| China | 10.9% |
| India | 4.1% |
| Country | Japan |
|---|---|
| 2022 Value Share in Global Market | 3.9% |
People in India are more eager to discover various cuisines and eating experiences because the country is diverse and has a rich food tradition. As a result, the number of specialist restaurants offering distinctive and novel eating experiences has increased.
Apart from restaurants, various food delivery platforms such as Swiggy, Zomato, and others, as well as independent kitchens such as HolaChef, Frehmenu, and others, have entered the online food delivery services market. This is due to big food service companies like McDonald's, Burger King, and Domino's, among others, expanding their presence in India's cities and profiting from a customer base that is younger.
As of 2022, around 24% of Indians were vegetarian, while around 9% were vegan. As a result, food service players in India are providing vegan meals to appeal to the vegetarian and vegan communities. Many fast-service restaurants are embracing this trend by providing vegan menu options. Vegan options are available at Burger King, Pizza Hut, Taco Bell, and KFC, to name a few.
The market is one of Japan's primary industries, with a high presence of food service reported in places such as Tokyo and Osaka. Food service providers in Japan are incorporating new inventive concepts into their restaurants.
Pronto Corporation, for example, teamed with TechMagic in June 2022 to develop a new food infrastructure using cutting-edge technology. In Japan, an automatic spaghetti robot produces a dinner in 45 seconds. As a result, the tendency to incorporate pioneering technologies into operations is predicted to increase market size.
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The full-service restaurant segment was predominant in the global market, with 32.50% market share in 2022. Full-service restaurants include all sit-down eateries with table service and meals of better quality than quick-service ones. It features both upscale dining and informal eating establishments. Furthermore, the staff is typically well-trained, and there is frequently a dress code for diners in order to attract more visitors to their restaurants.
| Segment | Full-service Restaurants |
|---|---|
| Market Share in 2022 | 32.50% |
Consumers are getting increasingly adventurous in their food selections, seeking fresh and distinctive eating experiences. Full-service restaurants have adapted to this trend by providing a diverse selection of exotic and regional food alternatives, drawing both foodies and adventurous eaters. However, the market for quick-service restaurants is also likely to expand. However, it has a restricted menu and focuses on specific meals such as burgers, pizza, or chicken.
The commercial segment held the maximum market share of 45.50% in 2022. A commercial food service facility, such as a fine dining restaurant, strives to deliver an excellent eating experience that broadens consumer understanding of culinary possibilities.
Still, if the endeavor does not earn money, it is probably going out of business. The commercial sector includes eating-out/takeaway food service systems, fast-food restaurants, and full-service restaurants. Eateries, cafés, quick food franchises, food trucks, and internet meal ordering are all examples of commercial kitchen supplies.
| Segment | Commercial |
|---|---|
| Market Share in 2022 | 45.50% |
Commercial meal service is often seen as being of excellent quality all around, whether in terms of food quality or comprehensive service quality. At present, non-commercial services are growing; many hospital and business dining areas hire chefs and provide high-quality meals in places designed to enhance the eating experience, such as terraced outdoor dining spaces.
In the dynamic food service industry, players employ various strategies to gain a competitive edge. These include menu diversification, emphasizing health-conscious options, adopting online ordering and delivery services, and enhancing customer experience through technology. Pricing strategies, loyalty programs, and sustainable practices also play crucial roles in maintaining competitiveness.
Recent Developments
The food service industry reaches a valuation of USD 3,483,539.5 million in 2023.
The food service industry is anticipated to surpass USD 5,704,966.8 million by 2033, marking a 5.3% CAGR.
The market share of food service industry in the United States is about 25.5%.
The food services industry in India is likely to exhibit a 4.1% CAGR through 2033.
The food service industry is evolving with trends like sustainable sourcing, delivery apps, and experiential dining shaping its future.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Analysis 2018 to 2022 and Forecast 2023 to 2033 5. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 5.1. Full-Service Restaurants 5.2. Quick Service Restaurants 5.3. Institutes 5.4. Others 6. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Service Type 6.1. Commercial 6.2. Institutional 7. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Aramark Corporation 17.2. Compass Group North America 17.3. Doctor’s Associates Inc. 17.4. Seven & I Holdings Co. Ltd. 17.5. Sodexo 17.6. McDonald's (USA) 17.7. Starbucks (USA) 17.8. Yum! Brands, Inc. (USA) 17.9. Darden Restaurants, Inc. (USA) 17.10. Restaurant Brands International Inc. (Canada) 17.11. The Wendy’s Company (USA) 17.12. Bloomin’ Brands, Inc. (USA) 17.13. Papa John's International, Inc. (USA) 17.14. Chipotle Mexican Grill, Inc. (USA) 17.15. Domino's (USA) 18. Assumptions & Acronyms Used 19. Research Methodology
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