PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1209797
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1209797
Food Service Market Forecasts to 2028 - Global Analysis By Type, Service Type, System and Geography
According to Stratistics MRC, the Global Food Service Market is accounted for $2880.1 billion in 2022 and is expected to reach $4039.4 billion by 2028 growing at a CAGR of 5.8% during the forecast period. The sale of prepared meals and drinks for immediate consumption, takeout, and home delivery is referred to as foodservice. Commercial establishments, which include fast-food restaurants, catering, nightclubs, and recreational outlets, are divided into two sectors that provide foodservice. Non-commercial establishments, such as restaurants operating inside of institutions like hospitals, schools, and military bases.
The food service industry can be divided into conventional and nonconventional systems based on how the components are put together, cooked, and served. The manufacture of food is centralised under this method, and it is subsequently delivered to the kitchens at various places. Both ready prepared systems where the food is made on site and kept cold or frozen until needed and assembly-serve systems where pre-made meals are bought, stored, put together, and supplied to the customer.
According to the National Restaurant Association of India (NRAI), 25% of restaurants closed shop completely in FY21, resulting in over 2.3 million jobs lost.
Market Dynamics:
Driver:
Increased presence of the food services institutions
The rise in the trend of eating out has led to changes in the food service industry. The use of cutting-edge methods and tools has also aided food service providers in raising production and streamlining operations to improve overall effectiveness. The rapid urbanisation and migration have exposed consumers to a wide variety of cuisines. Additionally, this industry has expanded as a result of the rise in ethnic cuisine ads and consumer interest in other cuisines. The creation of new business types that cater to the food needs of institutions including corporate offices, nursing homes, orphanages, and hospitals is further aided by the emergence of these businesses.
Restraint:
Negative impacts of online food delivery
Customers are reluctant to adopt online food ordering because of some of its drawbacks. There are some hiccups with meal delivery in addition to all the other advantages. One issue, for instance, is that when ordering meals online, the quality of the food that is delivered is frequently poorer than the quality of the meal in a restaurant. Home delivery apps also struggle when there is a lot of network load. Additionally, food from delivery services is sometimes bundled in plastic, which is typically less appetising than the food that is properly arranged on your plate in a restaurant.
Opportunity:
Increased expenditure on dining out
The increase in dual-income households and rising restaurant spending has contributed to the expansion of the global market. Additionally, both developing and developed regions have become more popular with the quick spread of diverse food service establishments. The millennial generation's increased propensity for fast food consumption habits has led to an increase in their spending at quick service restaurants, including franchises. Along with rising domestic consumer spending, tourists' expenditures on lodging and dining also help to fuel the expansion of numerous regional economies. In order to draw tourists from particular nations, hotels and restaurants are introducing a variety of new cuisine varieties in local marketplaces as the tourism sector has grown over the past few years.
Threat:
Change in customer taste and high cost of ingredients
The challenge for businesses in this area is adapting to changing consumer preferences. People's preferences alter over time, so it's critical for businesses to monitor what's trending and modify their menus as necessary. It can be challenging to maintain reasonable costs while maintaining the quality of the items; this calls for careful negotiation and balancing between vendors or suppliers. The price of ingredients and supplies is another issue because they have the power to make or break a company. To continue to be profitable, businesses must carefully manage their resources and keep abreast of market developments. The labour costs involved in operating a food service company are another expense that can be challenging to handle without adequate preparation.
COVID-19 Impact
The COVID-19 outbreak posed exceptional difficulties for the entire food service supply chain. The COVID-19 had an impact on consumer demand as well as farm production, food processing, food service, transportation, and logistics. The availability of seasonal employees for planting and harvesting in the fruit and vegetable industry has been limited in several countries due to limits on people's mobility. Quarantine regulations and backlogs in border inspections have an impact on the fruits and vegetable industry as well. As a result, the preparation of meals in restaurants, catering services, and hotel services was impacted by the paucity of raw ingredients.
The full service restaurants segment is expected to be the largest during the forecast period
The full service restaurants segment is estimated to have a lucrative growth. The term "full service restaurants" refers to sit-down venues that offer a full meal menu and provide table service to guests. Breakfast, lunch, and dinner may all be options on their menus, which come in various selection categories. The two types of restaurants that contribute most to this segment are fine dining establishments and casual dining eateries.
The commercial segment is expected to have the highest CAGR during the forecast period
The commercial segment is anticipated to witness the fastest CAGR growth during the forecast period. The eating out/takeaway edible service systems, quick service restaurants, and full service restaurants are all included in the commercial section. Examples of commercial edible services include eateries, cafes, fast food chains, food trucks, and online food ordering. The commercial food service sector has existed from the beginning of the industry. Families are having more discretionary income, thus customers are spending more money at hotels, restaurants, cafes, and other establishments.
Region with highest share:
Europe is projected to hold the largest market share during the forecast period. Europe is a major player in the worldwide market, and the hospitality sector is quite important there. Additionally, there are many career opportunities in the hotel sector for visitors to Europe. The expanding trend of eating out and a busier lifestyle, which boosts demand for prepared food items, are contributing factors to the expansion of the European food service business.
Region with highest CAGR:
North America is projected to have the highest CAGR over the forecast period, owing to the rising operating costs of food service businesses. The profit margins of the companies are under a lot of pressure due to the increase in labour costs and the cost of raw materials. As a result, there is a strong push for automation and digitization in the industrial and service sectors. One of the top self-driving delivery start-ups, Nuro, collaborated with Domino's to build an autonomous pizza delivery system in Houston. Prepaid orders from customers are accepted, and Nuro R2 Robots then deliver the goods to the recipients.
Key players in the market
Some of the key players profiled in the Food Service Market include Starbucks, Yum! Brands, Inc., Restaurant Brands International Inc., McDonald's, The Wendy's Company, Bloomin' Brands, Inc., Domino's, Chipotle Mexican Grill, Inc., Papa John's International, Inc., Darden Restaurants, Inc., Aramark Corporation, Compass Group, Seven & I Holdings Co. Ltd. and Sodexo.
Key Developments:
In May 2022, Outback Steakhouse restaurants planned to launch new restaurants with a modernized look on its dining space. The company launched three new restaurants in Fort Worth, Steele Creek, and Polaris, respectively.
In May 2022, Domino's launched a new product offering named paratha pizza for consumers in India. This fusion dish is available in three flavors, cheese paratha pizza, paneer paratha pizza, and chicken keema paratha pizza.
In March 2022, Starbucks Corporation partnered with one of the leading companies in South East Asia, Grab. It aimed to improve its consumer service through this partnership by serving consumers in the Philippines, Thailand, Singapore, Malaysia, Indonesia, and Vietnam.
In August 2021, Quick service restaurant, Pizza Hut partnered with Hindustan Unilever to add the FMCG firm's Kwality Wall's ice cream and desserts to its dine-in and delivery and takeaway menu in India. With this partnership, Pizza Hut expects to increase its average order value by 10% for orders that have Kwality Wall's ice cream and desserts
In April 2020, In the wake of COVID-19, Domino's Pizza partnered with ITC Foods and launched Domino's Essentials. This service was made available for consumers first in Bengaluru and then in Noida, Mumbai, Kolkata, Chennai, and Hyderabad. This partnership between a QSR and an FMCG company aimed to serve the community by ensuring an uninterrupted supply of essential items without them having to step outside the safety of their homes.
Types Covered:
- Quick Service Restaurants
- Full Service Restaurants
- Street food
- Cafes and bars
- Limited Service Restaurants
- Special Food Services Restaurants
- Institutes
- Other Types
Service Types Covered:
- Commercial
- Institutional
- Other Service Types
Systems Covered:
- Conventional Foodservice System
- Centralized Foodservice System
- Ready Prepared Foodservice System
- Assembly-Serve Foodservice System
- Other Systems
Regions Covered:
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- UK
- Italy
- France
- Spain
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia
- New Zealand
- South Korea
- Rest of Asia Pacific
- South America
- Argentina
- Brazil
- Chile
- Rest of South America
- Middle East & Africa
- Saudi Arabia
- UAE
- Qatar
- South Africa
- Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
- Company Profiling
- Comprehensive profiling of additional market players (up to 3)
- SWOT Analysis of key players (up to 3)
- Regional Segmentation
- Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
- Competitive Benchmarking
- Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
- 2.1 Abstract
- 2.2 Stake Holders
- 2.3 Research Scope
- 2.4 Research Methodology
- 2.4.1 Data Mining
- 2.4.2 Data Analysis
- 2.4.3 Data Validation
- 2.4.4 Research Approach
- 2.5 Research Sources
- 2.5.1 Primary Research Sources
- 2.5.2 Secondary Research Sources
- 2.5.3 Assumptions
3 Market Trend Analysis
- 3.1 Introduction
- 3.2 Drivers
- 3.3 Restraints
- 3.4 Opportunities
- 3.5 Threats
- 3.6 Emerging Markets
- 3.7 Impact of Covid-19
4 Porters Five Force Analysis
- 4.1 Bargaining power of suppliers
- 4.2 Bargaining power of buyers
- 4.3 Threat of substitutes
- 4.4 Threat of new entrants
- 4.5 Competitive rivalry
5 Global Food Service Market, By Type
- 5.1 Introduction
- 5.2 Quick Service Restaurants
- 5.3 Full Service Restaurants
- 5.4 Street food
- 5.5 Cafes and bars
- 5.6 Limited Service Restaurants
- 5.7 Special Food Services Restaurants
- 5.8 Institutes
- 5.9 Other Types
6 Global Food Service Market, By Service Type
- 6.1 Introduction
- 6.2 Commercial
- 6.3 Institutional
- 6.4 Other Service Types
7 Global Food Service Market, By System
- 7.1 Introduction
- 7.2 Conventional Foodservice System
- 7.3 Centralized Foodservice System
- 7.4 Ready Prepared Foodservice System
- 7.5 Assembly-Serve Foodservice System
- 7.6 Other Systems
8 Global Food Service Market, By Geography
- 8.1 Introduction
- 8.2 North America
- 8.2.1 US
- 8.2.2 Canada
- 8.2.3 Mexico
- 8.3 Europe
- 8.3.1 Germany
- 8.3.2 UK
- 8.3.3 Italy
- 8.3.4 France
- 8.3.5 Spain
- 8.3.6 Rest of Europe
- 8.4 Asia Pacific
- 8.4.1 Japan
- 8.4.2 China
- 8.4.3 India
- 8.4.4 Australia
- 8.4.5 New Zealand
- 8.4.6 South Korea
- 8.4.7 Rest of Asia Pacific
- 8.5 South America
- 8.5.1 Argentina
- 8.5.2 Brazil
- 8.5.3 Chile
- 8.5.4 Rest of South America
- 8.6 Middle East & Africa
- 8.6.1 Saudi Arabia
- 8.6.2 UAE
- 8.6.3 Qatar
- 8.6.4 South Africa
- 8.6.5 Rest of Middle East & Africa
9 Key Developments
- 9.1 Agreements, Partnerships, Collaborations and Joint Ventures
- 9.2 Acquisitions & Mergers
- 9.3 New Product Launch
- 9.4 Expansions
- 9.5 Other Key Strategies
10 Company Profiling
- 10.1 Starbucks
- 10.2 Yum! Brands, Inc.
- 10.3 Restaurant Brands International Inc.
- 10.4 McDonald's
- 10.5 The Wendy's Company
- 10.6 Bloomin' Brands, Inc.
- 10.7 Domino's
- 10.8 Chipotle Mexican Grill, Inc.
- 10.9 Papa John's International, Inc.
- 10.10 Darden Restaurants, Inc.
- 10.11 Aramark Corporation
- 10.12 Compass Group
- 10.13 Seven & I Holdings Co. Ltd.
- 10.14 Sodexo
List of Tables
- Table 1 Global Food Service Market Outlook, By Region (2020-2028) ($MN)
- Table 2 Global Food Service Market Outlook, By Type (2020-2028) ($MN)
- Table 3 Global Food Service Market Outlook, By Quick Service Restaurants (2020-2028) ($MN)
- Table 4 Global Food Service Market Outlook, By Full Service Restaurants (2020-2028) ($MN)
- Table 5 Global Food Service Market Outlook, By Street food (2020-2028) ($MN)
- Table 6 Global Food Service Market Outlook, By Cafes and bars (2020-2028) ($MN)
- Table 7 Global Food Service Market Outlook, By Limited Service Restaurants (2020-2028) ($MN)
- Table 8 Global Food Service Market Outlook, By Special Food Services Restaurants (2020-2028) ($MN)
- Table 9 Global Food Service Market Outlook, By Institutes (2020-2028) ($MN)
- Table 10 Global Food Service Market Outlook, By Other Types (2020-2028) ($MN)
- Table 11 Global Food Service Market Outlook, By Service Type (2020-2028) ($MN)
- Table 12 Global Food Service Market Outlook, By Commercial (2020-2028) ($MN)
- Table 13 Global Food Service Market Outlook, By Institutional (2020-2028) ($MN)
- Table 14 Global Food Service Market Outlook, By Other Service Types (2020-2028) ($MN)
- Table 15 Global Food Service Market Outlook, By System (2020-2028) ($MN)
- Table 16 Global Food Service Market Outlook, By Conventional Foodservice System (2020-2028) ($MN)
- Table 17 Global Food Service Market Outlook, By Centralized Foodservice System (2020-2028) ($MN)
- Table 18 Global Food Service Market Outlook, By Ready Prepared Foodservice System (2020-2028) ($MN)
- Table 19 Global Food Service Market Outlook, By Assembly-Serve Foodservice System (2020-2028) ($MN)
- Table 20 Global Food Service Market Outlook, By Other Systems (2020-2028) ($MN)
- Table 21 North America Food Service Market Outlook, By Country (2020-2028) ($MN)
- Table 22 North America Food Service Market Outlook, By Type (2020-2028) ($MN)
- Table 23 North America Food Service Market Outlook, By Quick Service Restaurants (2020-2028) ($MN)
- Table 24 North America Food Service Market Outlook, By Full Service Restaurants (2020-2028) ($MN)
- Table 25 North America Food Service Market Outlook, By Street food (2020-2028) ($MN)
- Table 26 North America Food Service Market Outlook, By Cafes and bars (2020-2028) ($MN)
- Table 27 North America Food Service Market Outlook, By Limited Service Restaurants (2020-2028) ($MN)
- Table 28 North America Food Service Market Outlook, By Special Food Services Restaurants (2020-2028) ($MN)
- Table 29 North America Food Service Market Outlook, By Institutes (2020-2028) ($MN)
- Table 30 North America Food Service Market Outlook, By Other Types (2020-2028) ($MN)
- Table 31 North America Food Service Market Outlook, By Service Type (2020-2028) ($MN)
- Table 32 North America Food Service Market Outlook, By Commercial (2020-2028) ($MN)
- Table 33 North America Food Service Market Outlook, By Institutional (2020-2028) ($MN)
- Table 34 North America Food Service Market Outlook, By Other Service Types (2020-2028) ($MN)
- Table 35 North America Food Service Market Outlook, By System (2020-2028) ($MN)
- Table 36 North America Food Service Market Outlook, By Conventional Foodservice System (2020-2028) ($MN)
- Table 37 North America Food Service Market Outlook, By Centralized Foodservice System (2020-2028) ($MN)
- Table 38 North America Food Service Market Outlook, By Ready Prepared Foodservice System (2020-2028) ($MN)
- Table 39 North America Food Service Market Outlook, By Assembly-Serve Foodservice System (2020-2028) ($MN)
- Table 40 North America Food Service Market Outlook, By Other Systems (2020-2028) ($MN)
- Table 41 Europe Food Service Market Outlook, By Country (2020-2028) ($MN)
- Table 42 Europe Food Service Market Outlook, By Type (2020-2028) ($MN)
- Table 43 Europe Food Service Market Outlook, By Quick Service Restaurants (2020-2028) ($MN)
- Table 44 Europe Food Service Market Outlook, By Full Service Restaurants (2020-2028) ($MN)
- Table 45 Europe Food Service Market Outlook, By Street food (2020-2028) ($MN)
- Table 46 Europe Food Service Market Outlook, By Cafes and bars (2020-2028) ($MN)
- Table 47 Europe Food Service Market Outlook, By Limited Service Restaurants (2020-2028) ($MN)
- Table 48 Europe Food Service Market Outlook, By Special Food Services Restaurants (2020-2028) ($MN)
- Table 49 Europe Food Service Market Outlook, By Institutes (2020-2028) ($MN)
- Table 50 Europe Food Service Market Outlook, By Other Types (2020-2028) ($MN)
- Table 51 Europe Food Service Market Outlook, By Service Type (2020-2028) ($MN)
- Table 52 Europe Food Service Market Outlook, By Commercial (2020-2028) ($MN)
- Table 53 Europe Food Service Market Outlook, By Institutional (2020-2028) ($MN)
- Table 54 Europe Food Service Market Outlook, By Other Service Types (2020-2028) ($MN)
- Table 55 Europe Food Service Market Outlook, By System (2020-2028) ($MN)
- Table 56 Europe Food Service Market Outlook, By Conventional Foodservice System (2020-2028) ($MN)
- Table 57 Europe Food Service Market Outlook, By Centralized Foodservice System (2020-2028) ($MN)
- Table 58 Europe Food Service Market Outlook, By Ready Prepared Foodservice System (2020-2028) ($MN)
- Table 59 Europe Food Service Market Outlook, By Assembly-Serve Foodservice System (2020-2028) ($MN)
- Table 60 Europe Food Service Market Outlook, By Other Systems (2020-2028) ($MN)
- Table 61 Asia Pacific Food Service Market Outlook, By Country (2020-2028) ($MN)
- Table 62 Asia Pacific Food Service Market Outlook, By Type (2020-2028) ($MN)
- Table 63 Asia Pacific Food Service Market Outlook, By Quick Service Restaurants (2020-2028) ($MN)
- Table 64 Asia Pacific Food Service Market Outlook, By Full Service Restaurants (2020-2028) ($MN)
- Table 65 Asia Pacific Food Service Market Outlook, By Street food (2020-2028) ($MN)
- Table 66 Asia Pacific Food Service Market Outlook, By Cafes and bars (2020-2028) ($MN)
- Table 67 Asia Pacific Food Service Market Outlook, By Limited Service Restaurants (2020-2028) ($MN)
- Table 68 Asia Pacific Food Service Market Outlook, By Special Food Services Restaurants (2020-2028) ($MN)
- Table 69 Asia Pacific Food Service Market Outlook, By Institutes (2020-2028) ($MN)
- Table 70 Asia Pacific Food Service Market Outlook, By Other Types (2020-2028) ($MN)
- Table 71 Asia Pacific Food Service Market Outlook, By Service Type (2020-2028) ($MN)
- Table 72 Asia Pacific Food Service Market Outlook, By Commercial (2020-2028) ($MN)
- Table 73 Asia Pacific Food Service Market Outlook, By Institutional (2020-2028) ($MN)
- Table 74 Asia Pacific Food Service Market Outlook, By Other Service Types (2020-2028) ($MN)
- Table 75 Asia Pacific Food Service Market Outlook, By System (2020-2028) ($MN)
- Table 76 Asia Pacific Food Service Market Outlook, By Conventional Foodservice System (2020-2028) ($MN)
- Table 77 Asia Pacific Food Service Market Outlook, By Centralized Foodservice System (2020-2028) ($MN)
- Table 78 Asia Pacific Food Service Market Outlook, By Ready Prepared Foodservice System (2020-2028) ($MN)
- Table 79 Asia Pacific Food Service Market Outlook, By Assembly-Serve Foodservice System (2020-2028) ($MN)
- Table 80 Asia Pacific Food Service Market Outlook, By Other Systems (2020-2028) ($MN)
- Table 81 South America Food Service Market Outlook, By Country (2020-2028) ($MN)
- Table 82 South America Food Service Market Outlook, By Type (2020-2028) ($MN)
- Table 83 South America Food Service Market Outlook, By Quick Service Restaurants (2020-2028) ($MN)
- Table 84 South America Food Service Market Outlook, By Full Service Restaurants (2020-2028) ($MN)
- Table 85 South America Food Service Market Outlook, By Street food (2020-2028) ($MN)
- Table 86 South America Food Service Market Outlook, By Cafes and bars (2020-2028) ($MN)
- Table 87 South America Food Service Market Outlook, By Limited Service Restaurants (2020-2028) ($MN)
- Table 88 South America Food Service Market Outlook, By Special Food Services Restaurants (2020-2028) ($MN)
- Table 89 South America Food Service Market Outlook, By Institutes (2020-2028) ($MN)
- Table 90 South America Food Service Market Outlook, By Other Types (2020-2028) ($MN)
- Table 91 South America Food Service Market Outlook, By Service Type (2020-2028) ($MN)
- Table 92 South America Food Service Market Outlook, By Commercial (2020-2028) ($MN)
- Table 93 South America Food Service Market Outlook, By Institutional (2020-2028) ($MN)
- Table 94 South America Food Service Market Outlook, By Other Service Types (2020-2028) ($MN)
- Table 95 South America Food Service Market Outlook, By System (2020-2028) ($MN)
- Table 96 South America Food Service Market Outlook, By Conventional Foodservice System (2020-2028) ($MN)
- Table 97 South America Food Service Market Outlook, By Centralized Foodservice System (2020-2028) ($MN)
- Table 98 South America Food Service Market Outlook, By Ready Prepared Foodservice System (2020-2028) ($MN)
- Table 99 South America Food Service Market Outlook, By Assembly-Serve Foodservice System (2020-2028) ($MN)
- Table 100 South America Food Service Market Outlook, By Other Systems (2020-2028) ($MN)
- Table 101 Middle East & Africa Food Service Market Outlook, By Country (2020-2028) ($MN)
- Table 102 Middle East & Africa Food Service Market Outlook, By Type (2020-2028) ($MN)
- Table 103 Middle East & Africa Food Service Market Outlook, By Quick Service Restaurants (2020-2028) ($MN)
- Table 104 Middle East & Africa Food Service Market Outlook, By Full Service Restaurants (2020-2028) ($MN)
- Table 105 Middle East & Africa Food Service Market Outlook, By Street food (2020-2028) ($MN)
- Table 106 Middle East & Africa Food Service Market Outlook, By Cafes and bars (2020-2028) ($MN)
- Table 107 Middle East & Africa Food Service Market Outlook, By Limited Service Restaurants (2020-2028) ($MN)
- Table 108 Middle East & Africa Food Service Market Outlook, By Special Food Services Restaurants (2020-2028) ($MN)
- Table 109 Middle East & Africa Food Service Market Outlook, By Institutes (2020-2028) ($MN)
- Table 110 Middle East & Africa Food Service Market Outlook, By Other Types (2020-2028) ($MN)
- Table 111 Middle East & Africa Food Service Market Outlook, By Service Type (2020-2028) ($MN)
- Table 112 Middle East & Africa Food Service Market Outlook, By Commercial (2020-2028) ($MN)
- Table 113 Middle East & Africa Food Service Market Outlook, By Institutional (2020-2028) ($MN)
- Table 114 Middle East & Africa Food Service Market Outlook, By Other Service Types (2020-2028) ($MN)
- Table 115 Middle East & Africa Food Service Market Outlook, By System (2020-2028) ($MN)
- Table 116 Middle East & Africa Food Service Market Outlook, By Conventional Foodservice System (2020-2028) ($MN)
- Table 117 Middle East & Africa Food Service Market Outlook, By Centralized Foodservice System (2020-2028) ($MN)
- Table 118 Middle East & Africa Food Service Market Outlook, By Ready Prepared Foodservice System (2020-2028) ($MN)
- Table 119 Middle East & Africa Food Service Market Outlook, By Assembly-Serve Foodservice System (2020-2028) ($MN)
- Table 120 Middle East & Africa Food Service Market Outlook, By Other Systems (2020-2028) ($MN)
