Food Service Market to Grow by USD 53.71 Trillion from 2025-2029, Increasing Demand for Food Away from Home Boosts the Market, Report on How AI is Driving Market Transformation - Technavio

NEW YORK, Feb. 4, 2025 /PRNewswire/ -- Report with the AI impact on market trends - The global food service marketsize is estimated to grow by USD 53.71 trillion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of over47.5% during the forecast period. Increasing demand for food away from homeis driving market growth,with a trend towardsincreased snacking and indulgence consumption.However,labor shortages in foodservice sector poses a challenge. Key market players include Abela and Co. LLC, Aramark, Chick fil A Inc., Compass Group Plc, Dominos Pizza Inc., FOOD and LIFE Co. Ltd., Inspire Brands Inc., Jack in the Box Inc., Jollibee Foods Corp., Little Caesar Enterprises Inc., McDonald Corp., MOS Food Services Inc., Papa Johns International Inc., Performance Food Group Co., Restaurant Brands International Inc., Sodexo SA, Starbucks Corp., Sysco Corp., The Wendys Co., and YUM Brands Inc..

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Market Driver

The food service market is witnessing significant trends with the rise of third-party delivery services like Deliveroo and strategic partnerships between restaurant operators and hotel chains, independent business owners, and food delivery platforms. Urban areas and population growth in Tier 2 cities are driving the demand for food service establishments. Technology and science are transforming the industry with online ordering systems, e-commerce platforms, and digitization. Consumer lifestyles are changing, with an increase in working women, veganism food trend, and fast food consumption. The restaurant industry is adapting with vegan fast food options, food courts, and food malls in shopping malls. Productivity and safety are key concerns, with the use of computers and punctuality of delivery. The hospitality market, including hotels, cafes, and restaurants, is experiencing financial growth due to rising incomes, high aspiration levels, and tourist spending. Quality of food and hygiene are essential, with the use of plastic packaging a topic of debate. The HRI sector is also impacted by border closures and dine-in restrictions. The food service market is diverse, with full-service restaurants, quick service restaurants, institutes, retailers, and providers catering to various cuisines and consumer preferences. The industry is embracing technology to improve productivity and efficiency while maintaining safety and hygiene standards.

The food service market in the United States has witnessed notable changes in consumer eating habits and preferences over the past decade. With hectic lifestyles leading to an increase in snacking and on-the-go meals, the demand for convenient food options. Bakery products, such as doughnuts, bread, rolls, pies, and other similar items, have gained popularity as breakfast choices. In response, vendors like Compass have introduced healthy snack alternatives, such as doughnut sandwiches made with nutritious ingredients like chicken, lettuce, and green vegetables. These options cater to consumers seeking balanced and nutritious meals despite their busy schedules.

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Market Challenges

• The food service market encompasses various sectors including third-party delivery services, child care centers, restaurants, hotels, cafes, and more. Restaurant operators, hotel chains, and independent business owners face challenges in storage, preparation, serving, and cleanup. Urban areas with high population density and increasing urbanization require strategic partnerships with food delivery services like Deliveroo and McDelivery. The rise of online delivery options and e-commerce systems have transformed the industry, impacting food consumption patterns, particularly among working women and those following vegan diets. The veganism food trend and vegan fast food are gaining popularity. Digitization and productivity are key, with the use of computers and online ordering systems essential for financial growth. Challenges include ensuring safety, hygiene, and timely delivery. The hospitality market, including the HRI sector and tourist spending, also influences the industry. Quality of food, plastic packaging, and punctuality are crucial factors. The market is diverse, with offerings ranging from fine dining establishments to quick service restaurants, and cuisines from around the world. The future of the food service industry lies in adapting to changing consumer lifestyles, foreign investment, and rising incomes.
• The food service market is experiencing labor shortages in several countries due to the unattractiveness of jobs in the sector. These positions often offer low wages and limited opportunities for career advancement. As a result, the number of people applying for jobs in restaurants and fast-food outlets is decreasing. In the US and Japan, for instance, restaurants are grappling with severe labor shortages. The lack of job security and absence of benefits like sick leave and health insurance are major reasons for this trend. Consequently, the food service market's growth may be impeded during the forecast period due to these labor shortages.

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Segment Overview

This food service market report extensively covers market segmentation by

• Service
• Conventional
• Centralized
• Ready-prepared
• Assembly-serve
• Sector
• Commercial
• Non-commercial
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

1.1Conventional- The conventional food service system is a time-tested approach for preparing and serving food on the same premises. This method ensures customers receive freshly prepared meals customized to their preferences. Food is kept in heated or chilled conditions until served, maintaining quality and freshness. The conventional system is widely used in schools, universities, restaurants, and cafeterias. Skilled labor is employed to create menus offering flexibility. Consumer demand for freshly prepared food in dining establishments fuels the conventional food service market's growth. This system's advantages, such as quality and customization, are expected to drive its expansion throughout the forecast period.

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Research Analysis

The Food Service Market encompasses a wide range of establishments and services, including third-party providers, child care centers, restaurants, hotels, cafs, and more. The market involves the storage, preparation, serving, and cleanup of food, as well as the distribution and delivery of meals. Restaurant operators and hotel chains are significant consumers of food service, with varying service types such as full-service and quick-service restaurants. Online delivery options have revolutionized the industry, with companies like Deliveroo and strategic partnerships like McDelivery offering convenient food delivery solutions. Institutes and other organizations also contribute to the market, making it a diverse and dynamic industry.

Market Research Overview

The food service market encompasses a wide range of establishments and services, including third-party providers for storage, preparation, and serving in various facilities such as child care centers, restaurants, hotels, cafes, and more. Distribution plays a crucial role in ensuring timely delivery of ingredients and finished meals. Urban areas with high population density and rising incomes have fueled the growth of the food service industry, driven by changing consumer lifestyles, digitization, and the increasing popularity of online delivery options. The rise of food delivery services like Deliveroo and strategic partnerships between restaurants and delivery platforms have further disrupted the industry. The trend towards veganism and plant-based diets has led to the growth of vegan fast food and the expansion of food courts and malls. The hospitality sector, including hotels and tourist spending, also contributes significantly to the food service market. Quality, safety, productivity, and punctuality of delivery are key concerns for consumers, while e-commerce systems and financial growth have transformed the way food is ordered and consumed out-of-home. Small businesses and franchising continue to be significant players in the industry, with employment opportunities and health and hygiene regulations shaping the landscape. The food service market is influenced by various factors such as urbanization, migration, employment, technology, and foreign investment. The rise of fast food consumption, working women, and the increasing popularity of casual dining establishments have also shaped the industry. The market caters to a diverse range of cuisines, from burgers and pizza to fine dining and specialty beverages, and continues to evolve with the changing needs and preferences of consumers.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Service
• Conventional
• Centralized
• Ready-prepared
• Assembly-serve
• Sector
• Commercial
• Non-commercial
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio