Food Service offers many advantages which includes stay on top of industry trends, reach more customers, drive incremental orders, boost online visibility, cash from tips, be cost-effective, free or discounted food, customer service skills, money handling skills, offer convenience that customers expect, manage operations easier with merchant tools are fostering growth in the global Food Service market.
Covid-19 Impact & Market Status
The pandemic had an impact on the labour force, the availability of raw materials, intermediate food products, trade, and logistics, which resulted in a volatile demand-supply situation and unsure consumer demand in the local market in 2020. However, the market is anticipated to have a robust economic recovery in the region during the projected period because to the introduction of various vaccines in 2021.
Business Segment Rule the Market Growth
The highest market share belonged to the business sector. One of the reasons for the increased proportion of the commercial category is the increase in the number of restaurants, cafés, dine-out venues, etc. that provide a distinctive experience, food menu, taste, and cuisines that add to the value provided by these services. The younger generation now prefers to go to these locations to socialize, communicate, and pass time, which has boosted the market share of the commercial segment.
Conventional Segment will Dominate the Market Growth
During the projection period, the Conventional will hold the highest market share. The delivery of conventional meals in various offices, schools, restaurants, etc. can be blamed for the higher share. People who live outside of their hometowns and have access to food delivery services nonetheless choose conventional food for their daily meals.
Asia-Pacific Region to Holds the Market Growth
Asia Pacific will hold the largest portion of the market. The region's higher percentage of young people and millennials, along with an increase in restaurants, the blending of various cultures and cuisines, a rise in the population's preference for eating out, and an increase in the value of the services offered to customers by restaurants and other food establishments, have all contributed to an increase in food services, with Asia-Pacific making the largest contribution among other regions.
There is a growing need for a diversity of cuisines and typical ethnic dishes due to rising migration, urbanization, globalization, travel abroad, tourism, exposure to different cuisines and commercials, as well as rising local interest in trying out new foods.
Due to the growing working class, which is made up of the millennial population, commercial venues like cafes and restaurants have become more popular as places to mingle and spend time with varied and innovative food consumption. The acceptance of a fast lifestyle and the elimination of home cooking as a routine household activity has raised the demand for ready-to-eat dishes that are unconventional and a combination of many components with various flavors.
Forecasting the needs for food production in the food service industry with accuracy and dependability can assist manage labour and food expenses. Reduced over- and under-production of menu items should reduce scheduled labour and production time and maximize the usage of equipment. Each food service system has unique traits and behavioral patterns. It is discussed how to create, set up, manage, and assess a forecasting system. Two important inputs are a cycle menu and historical data repositories. Due to the difficulty in categorizing multi-restricted diets, forecasting demand for menu items is more accurate than that for diet categories. By defining policies and processes and carrying out regular subjective and objective evaluations, control over the system is kept in check.
There has been a significant increase in ready-to-eat meals as a result of people's shifting lifestyles. The demand for innovative services also rises as a result of the changing behaviors of individuals. In this regard, a variety of food delivery services, including eateries, cafes, motels, and eating establishments, provide consumers with cutting-edge Food Service Markets.
The COVID-19 pandemic epidemic had an impact on a number of global enterprises. Food production is not an exception. Thus, numerous industry participants provide fresh and inventive business strategies, such as online meal ordering platforms, to address the issue relating to the food industry. In order to boost productivity, these platforms provide food dishes online while taking all necessary safety procedures. Since the pandemic's start, many people in the workforce have become attracted by internet shopping, from groceries to meal delivery. Thus, during the anticipated year, the massive expansion of online meal ordering platforms will contribute to the growth of the food service market.
Over the course of the anticipated years, the Food Service Market has grown more quickly due to rising demand for packaged and ready-to-eat foods, rapid population increase, and rising desire for newer food options. The quick increase in online food ordering services following the COVID-19 outbreak also significantly contributes to the expansion of the food service market. The Food Service market share is expected to increase to USD 5000.0 billion by 2029 and it is anticipated to accelerate at a CAGR of 10.17%.
The term "food service" describes the provision of meals to the general public, including catering services. Such services are offered by numerous businesses in the catering industry. Meal services, commonly known as the catering sector or business, offer both packaged and on-demand food services. Restaurants of all types, including fast food/quick service, full-service, limited-service, and special food service restaurants, are included in the food service sector.
Forecasting the needs for food production in the food service industry with accuracy and dependability can assist manage labour and food expenses. Reduced over- and under-production of menu items should reduce scheduled labour and production time and maximize the usage of equipment. Each food service system has unique traits and behavioral patterns. It is discussed how to create, set up, manage, and assess a forecasting system. Two important inputs are a cycle menu and historical data repositories. Due to the difficulty in categorizing multi-restricted diets, forecasting demand for menu items is more accurate than that for diet categories. By defining policies and processes and carrying out regular subjective and objective evaluations, control over the system is kept in check.
The growth of the food service business has been significantly accelerated by the introduction of home delivery services, as well as the increase in food alternatives and menu items. However, the ready-to-eat segment's processed and artificial ingredients, as well as concerns about health and unwholesome food, have hampered market expansion.
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The major companies ranking on top in Food Service Market- Aramark Corporation, Doctor’s Associates Inc., Domino’s, Compass Group North America, McDonald’s Corp., Seven & I Holdings Co. Ltd., Sodexo, Restaurant Brands International, Starbucks Corporation, and Yum! Brands Inc. are among all the well-established and emerging players.
Innovation in the Global Food Service Market: a Snapshot
- In July 2022, Starbucks may introduce masala chai and filter coffee in India, first for the largest global coffee giant that is updating its menu to appeal to customers with Indianized and more reasonably priced options. Street-style freshly made sandwiches, milkshakes, small-bites munchies, and a cup for beverages could be on the menu.
- In July 2022, McDonald's Corporation grew its enterprise by opening a new eatery in Gujarat's Ekta Nagar. Additionally, the particular location doubles as India's only drive-thru restaurant.
- In May 2022, Domino's India introduced paratha pizza in 1500 of its locations around India.
Food Service Market Scope
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2029 |
| Study Period | 2018-2029 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2029 | USD 5000.0 billion |
| Growth Rate | CAGR of 10.17% during 2021-2029 |
| Segment Covered | Sector, System, xRegions |
| Regions Covered | North America, Europe, Asia Pacific, Middle East and Africa, South America |
| Key Players Profiled | Aramark Corporation, Doctor’s Associates Inc., Domino’s, Compass Group North America, McDonald’s Corp., Seven & I Holdings Co. Ltd., Sodexo, Restaurant Brands International, Starbucks Corporation & among others. |
Key Segments of the Global Food Service Market
Sector Overview, 2019-2029 (USD Billion)
- Commercial
- Non-Commercial
System Overview, 2019-2029 (USD Billion)
- Conventional
- Centralized
- Ready-Prepared
- Assembly-Serve
Regional Overview, 2019-2029 (USD Billion)
North America
- U.S
- Canada
Europe
- Germany
- France
- UK
- Rest of Europe
Asia Pacific
- China
- India
- Japan
- Rest of Asia Pacific
South America
- Mexico
- Brazil
- Rest of South America
Middle East and South Africa
- UAE
- South Africa
Frequently Asked Questions (FAQ) :
The market value of food service market in 2029 was USD 5000.0 billion.
The food service market is growing at a CAGR of 10.17% over the forecast period.
The top companies that hold the market share in food service market are Aramark Corporation, Doctor’s Associates Inc., Domino’s, Compass Group North America, McDonald’s Corp., Seven & I Holdings Co. Ltd., Sodexo, Restaurant Brands International, Starbucks Corporation & among others.