Food Service Market Size was valued at USD 2721.5 Billion in 2023. The food service industry is projected to grow from USD 3034.47 Billion in 2024 to USD 7249.067 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.50% during the forecast period (2024 - 2032). Major market drivers boosting the expansion of the food service industry include the millennial generation's increasing number in the workforce, their shifting tastes and preferences for ready-to-eat meals, and their increasing need for more innovative and customized meal alternatives.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
In both established and emerging nations, the popularity of retail and dining malls has grown quickly. Shopping centers are becoming more common in tier 2 and tier 3 cities, having previously primarily been found in metro areas. Shopping for multiple brands under one roof is a habitual preference for customers. By creating specialized, multi-branded food courts, malls, and halls under one roof, the business is capitalizing on the consumer's urge to have everything under one roof. Developing F&B and leisure spaces, such as standalone food booths and kiosks, is becoming a more important emphasis of new shopping center additions and developments. Furthermore, the market is heavily dependent on the integration of technology in food and beverage products. By providing specialty beverages and unique coffee blends to a wider audience, Starbucks and Dunkin' Donuts have significantly enlarged the function and reach of traditional coffee shops. For instance, Starbucks originally spelled customers' names incorrectly as part of their marketing strategy in an effort to increase social media posts about it and draw in new business. Many customers flocked to Starbucks to experience the uproar this revelation caused on social media. The businesses are introducing new items into the market, finding important areas for research and development, and increasing productivity all of which will contribute to the market's continued expansion in the future years.
Over the past few years, the vegan diet has become more and more popular. The main reason for adopting a vegan diet is health. Customers' demand for vegan options for burgers, sandwiches, and bread is evident in the fast food industry as well, reflecting the growing veganism food trend. In addition, industry participants strive to attract clients that require vegan meals to satisfy their requirements. For instance, Yum! Brands, Inc. and Beyond Meat Inc. formed a strategic alliance in February 2021 to market their plant-based chicken products in the United States. For a brief period, customers could purchase products like Beyond Fried Chicken at Taco Bell, KFC, and Pizza Hut locations. Furthermore, in the UK, other major competitors in the market, such McDonald's and KFC, introduced their vegan burgers. With the introduction of vegan chicken nuggets in the UK market, Burger King made a move toward being vegan. The industry provides significant prospects for market expansion over the projection period because so many well-known market companies are taking the lead in launching vegan fast food.
The main drivers of consumers' increased consumption of food and drink outside from home are shifting consumer habits and rising affluence in developing nations. Additionally, families are increasingly going out to eat or getting coffee and snacks delivered from outside due to the increase in the number of working women. This element raises foot traffic at the café outlet, boosting restaurant sales and favorably influencing market expansion. Many multinational quick-service and hotel businesses are growing their footprint in international markets, partly due to the youth demographic's penchant for fast food. The sector is growing because of factors like foreign investment, rising earnings, high aspirations, a younger population, more tourists, and shifting consumer purchasing patterns. The growing demand for numerous regional ethnic foods is creating more opportunities for international food exporters to satisfy the HRI sector. These elements are beginning to show up as key drivers of the market's expansion. Thus, driving the food service market revenue.
The food service market segmentation, based on type includes Full-Service Restaurants, Quick Service Restaurants, Institutes and Others. The full-service restaurants segment dominated the market. Full-service restaurants are physical eateries that offer a complete menu and table service for patrons. They provide breakfast, lunch, and dinner menus available in a variety of selection types. In order to draw customers in, full-service restaurants with sophisticated, yet eclectic, furnishings and excellent standards of service also tend to provide a wider variety of drinks, a more elaborate menu, and an environment that is more refined.
The food service market segmentation, based on service type, includes Commercial and Institutional. The commercial category generated the most income. A fine dining restaurant is an example of a commercial food service establishment that strives to offer a sophisticated dining experience that broadens the customer's awareness of culinary possibilities. However, if the venture is not profitable, it will most likely close. When it comes to both the food and the overall quality of the service, commercial meal service is often thought to be of the highest caliber.
Figure 1: Food Service Market, by Service Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American food service market area will dominate this market because of its dominant position in the food processing industry, the growing popularity of online meal delivery due to the growing influence of Western culture, the increased number of working women and their habits in the member countries, and the prosperity of a number of important, dominant enterprises in the region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: SMART HEALTHCARE MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe food service market accounts for the second-largest market share. The growing popularity of eating out and a busy lifestyle, which raises the need for prepared foods, are factors contributing to the European industry's rise. In terms of convenience, regional production, health and wellbeing, and Asian and ethnic cuisines, Germany leads the European foodservice industry. Further, the German food service market held the largest market share, and the UK food service market was the fastest growing market in the European region.
The Asia-Pacific Food Service Market is expected to grow at the fastest CAGR from 2023 to 2032. The region's food service market is expanding due to several factors, including rising disposable income, especially in developing nations, longer work and commute times, higher broadband penetration, improved electronic payment security, and a rise in the number of online retailers. Moreover, China’s food service market held the largest market share, and the Indian food service market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the food service market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, food service industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the food service industry to benefit clients and increase the market sector. In recent years, the food service industry has offered some of the most significant advantages to medicine. Major players in the food service market are attempting to increase market demand by investing in research and development operations includes McDonald's (Illinois - United States), Hilton Worldwide (Virginia - U.S.), Starbucks (Washington - U.S.), Marriott International (Maryland - U.S.), KFC (Kentucky - U.S.), Burger King (Florida - U.S.), Subway (Connecticut - U.S.), Pizza Hut (Texas - U.S.), Hyatt Hotels Corporation (Illinois - U.S.), Domino's (Michigan - U.S.) and others.
A worldwide leader in the hospitality industry is Hyatt Hotels Corp. (Hyatt). In addition to developing and owning hotels and resorts, the corporation also oversees franchises. Many food and beverage options as well as a range of services are provided by the restaurants and bars found inside hotels. The majority of the company's hotels are found in high-density areas such suburban, urban, airport, and resort and conference locations. Europe, North America, and Asia are all home to its business. The US state of Illinois, home to Hyatt's headquarters, is Chicago.
Marriott International Inc. is a hospitality service provider that manages restaurants and lodging facilities. Under several upscale, exclusive, and premium brand names, it manages, franchises, and grants licenses for hotels, homes, and timeshare properties. Marriott provides travel and hotel packages, reservations for hotels, timeshare holidays, lodging, and vehicle rentals. Additionally, it runs reward initiatives like Marriott Bonvoy. North America, Africa, the Middle East, Europe, Asia-Pacific, the Caribbean, and Latin America are all regions where the corporation operates. The US headquarters of Marriott are located in Bethesda, Maryland.
Food Service Industry Developments
March 2023: The MMG Group, the company that owns and runs McDonald's restaurants in northern and eastern India, declared that it will open new locations and reinvest between USD 47.8 and USD 73.1 million over the course of the following three years.
May 2022: Outback Steakhouse plans to open additional locations in the US with updated dining areas. In Steele Creek, Polaris, and Fort Worth, the company opened three new eateries.
May 2022: The acquisition of Firehouse Restaurant Group Inc. was disclosed by Restaurant Brands International Inc. It was anticipated that the deal will cost approximately $1 billion USD in total. The firm wanted to include Firehouse Subs in its collection of recognizable quick service restaurant brands.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 2721.5 Billion |
| Market Size 2024 | USD 3034.47 Billion |
| Market Size 2032 | USD 7249.067 Billion |
| Compound Annual Growth Rate (CAGR) | 11.50% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Service Type, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | McDonald's (Illinois - United States), Hilton Worldwide (Virginia - U.S.), Starbucks (Washington - U.S.), Marriott International (Maryland - U.S.), KFC (Kentucky - U.S.), Burger King (Florida - U.S.), Subway (Connecticut - U.S.), Pizza Hut (Texas - U.S.), Hyatt Hotels Corporation (Illinois - U.S.), Domino's (Michigan - U.S.), and Others |
| Key Market Opportunities | Growing collaboration with bloggers and food influencers to promote company more widely |
| Key Market Dynamics | Rising desire for food consumed outside the house.Increased demand in plant-based, vegetarian, and vegan protein choices |
Food Service Market Highlights:
Frequently Asked Questions (FAQ) :
The food service market size was valued at USD 2721.5 Billion in 2023.
The market is projected to grow at a CAGR of 11.50% during the forecast period, 2024-2032.
North America had the largest share in the market.
The key players in the market are McDonald's (Illinois - United States), Hilton Worldwide (Virginia - U.S.), Starbucks (Washington - U.S.), Marriott International (Maryland - U.S.), KFC (Kentucky - U.S.), Burger King (Florida - U.S.), Subway (Connecticut - U.S.), Pizza Hut (Texas - U.S.), Hyatt Hotels Corporation (Illinois - U.S.), Domino's (Michigan - U.S.), and others.
The full-service restaurants category dominated the market in 2023.
The commercial category had the largest share in the market.
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Research Analyst Harshita post graduate mba in business administration from welingkar institute, mumbai and 5 years of experience in the field of product market research. as a research analyst, i have cross-domain experience in packaging, and industrial automation & equipment. i am currently looking after the research process of packaging, logistics & transportation, and industrial automation & equipment at market research future reports. my responsibilities at the organization involve handling syndicate and custom reports as well as responding to client inquiries, and organize, co-ordinate with a group of 5 to 6 persons to manage all workflows.
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