In-Flight Catering Services Market Forecasts to 2030 - Global Analysis By Food Type, Flight Type, Catering Service, Aircraft Class, Flight Duration, Provider Type, Service Type and By Geography

According to Stratistics MRC, the Global In-Flight Catering Service Market is accounted for $18.8 billion in 2023 and is expected to reach $39.7 billion by 2030 growing at a CAGR of 11.2% during the forecast period. Airlines both domestically and abroad can order food from flight catering businesses. A service trolley used by an airline is used to deliver the food to the customers. Depending on the region or nation, the menu may change, but it often consists of meat, fish, salad or vegetables, a small bread roll, and a dessert. To draw passengers and maintain market dominance, airlines offer a variety of in-flight goods, loyalty programmes, and onboard food services. Some airlines have changed their cabin configurations, either by getting rid of first class or adding premium economy.

According to the International Civil Aviation Organization, there has been a dramatic growth in the aviation industry over the last two decades with passenger the number of passengers rising from 1.467 billion in 1998 to 3.979 billion in 2017.

Market Dynamics:

Driver:

• Demand for high-quality catering equipment is rising.

• The demand for airline food services is increasing as domestic and international air travel numbers rise. When travelling, consumers want healthy cuisine and now choose to order meals in advance through online booking services. This has motivated caterers and airlines to collaborate to develop effective in-flight food management systems. The market is therefore being driven by the rise in demand for high-quality catering equipment and wholesome in-flight cuisine.

Restraint:

• Stringent regulations reduce affordability.

• The sector may be challenged by strict standards and laws that make purchasing in-flight culinary services less affordable. These rules may cover things like requirements for airport security, food safety and hygiene standards, and other things that caterers must follow in order to offer their services. As a result, catering businesses might need to figure out how to strike a compromise between following the law and keeping expenses low for their customers.

Opportunity:

• The use of in-flight culinary services is growing.

• Airlines are providing excellent customer service as a result of increased automation in in-flight dining and improvements in catering management. Pre-ordered food options are an illustration of the type of personalised service that airlines constantly strive to provide. Customers should receive meals that are appropriate for their location, according to the business. Leading airlines all over the world are using cutting-edge technologies to enhance their in-flight catering offerings while also delivering new food selections that appeal to customer preferences, further increasing service demand.

Threat:

• High cost of airline meals.

• The cost of operating an airport store and other factors contribute to the high cost of airline meals. Retailers must cover increased operating expenses and higher rent. The location of airports is rather outside of the city's core. Businesses must therefore pay a portion of employees daily travel expenses and pay them more than usual in order to get the workforce to the airport. All of this increases the business's operating expenses and pushes up product prices.

COVID-19 Impact:

• The COVID-19 epidemic has significantly disrupted the supply chain for the entire aviation industry worldwide. In order to prevent the pandemic from spreading further, the governments of the bulk of the countries chose to impose a state of lockdown, place limitations on citizen mobility, and temporarily halt international trade and travel. These actions had a detrimental impact on both the global aviation and tourism industries.

• The bakery & confectionery segment is expected to be the largest during the forecast period

• The bakery & confectionery segment is expected to be the largest during the forecast period. One of the primary factors propelling the category is the rising passenger interest in nutritious juices, coffee, and tea, typically on short-haul flights. Another element encouraging the segment's growth is the broad variety of beverages available to passengers, including juices and other alcoholic beverages. In order to improve customer happiness, certain airlines' flight attendants have started offering personalised drinks.

• The full-service carriers segment is expected to have the highest CAGR during the forecast period

• The full-service carriers segment is expected to have the highest CAGR during the forecast period. As long-haul or international flights are often operated by full-service carriers, the growing demand for international travel is anticipated to spur sector expansion. Full-service carriers provide passengers a choice between business class and economy class, as well as premium economy and first class on some flights in an effort to promote market expansion.

Region with largest share:

North America is projected to hold the largest market share during the forecast period, owing to the presence of the largest airline catering companies. The increase in international travel and tourism, swift urbanisation, a rising level of living to support aspirational travel, and a recovery in discretionary expenditure are all elements supporting the expansion of the region. Additionally, it is anticipated that the region's growing airline operator base will provide in-flight food companies significant growth prospects.

Region with highest CAGR:

Asia Pacific is projected to hold the highest CAGR over the forecast period, due to the increase in disposable income in developing countries. Boom in international travel and tourism, rapid urbanization, a rising standard of living to match aspirational travel, and a return of discretionary expenditure are all elements that contribute to the regional boom. According to forecasts, the region would grow at the fastest rate, mostly as a result of considerable increases in both international air travel and tourism in developing countries like China, India, and Vietnam.

Key players in the market:

Some of the key players in In-Flight Catering Service market include: Cathay Pacific Catering Services Ltd, Flying Food Group, Servair SA, Gategroup, LSG Sky Chefs, GS Ground Services, SATS Ltd, Gate Group, Journey Group PLC, The Emirates Group, Newrest Group Services SAS and Dnata

Key Developments:

• In August 2022, Dnata extended its partnership with GOL Airlines, an air and travel service provider, to strengthen the partnership and offer customers the best catering experience.

• In June 2022, LSG Sky Chefs announced its contract extension with United Airlines for offering on-board catering services. LSG Sky Chefs signed a three-year contract with United Parcel Service to expand its services and business to cater to the needs of customers

Food Types Covered:

• Bakery & Confectionary
• Beverages
• Breakfast
• Main Course
• Starters & Platters
• Desserts
• Other Food Types

Flight Types Covered:

• Low-cost Carriers
• Full-service Carriers
• Other Flight Types

Catering Services Covered:

• Small Caterers
• Outsource
• Traditional Airlines
• In house
• Hotel
• Other Catering Services

Aircraft Classes Covered:

• Economy Class
• Business Class
• First Class

Flight Durations Covered:

• Short Haul
• Long Haul

Provider Types Covered:

• Complete Solution Providers
• Culinary & On-Board Supplies Providers
• Culinary Only Providers

Service Types Covered:

• Economy Service
• Premium Service

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 2021, 2022, 2023, 2026, and 2030
• 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)
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• 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