From the period of 2022 to 2028, the Global Food Service Market is expected to reach USD 4,431.5 Billion in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 9.80%.
Food Service includes the preparation, serving, and sale of ready-to-eat foods and beverages, as well as the in-house or external supply of catering services to public or private end users. The growth of the Food Service business has been fueled by the rise of the millennial working population, as well as altering appetites for ready-to-eat foods and changing taste preferences. The Global Food Service Market research report provides a thorough examination of the market. Furthermore, restaurant owners, hotel chains, and individual proprietors have been working hard to expand their services in any manner possible, including allowing online delivery and responding to the recent trend of food delivery to homes.
Key Highlights from the Report
- Based on Type, the market is segmented into Full-Service Restaurants, Quick Service Restaurants, Institutes, and Others. The full-service restaurants segment dominates the industry with the largest Food Service Market shares due to the availability of a wide range of food goods on the menu. Families, corporate meetings, and social groups choose to eat at full-service restaurants because they offer a diverse menu. As family outings become more common, the number of full-service restaurants is growing. In addition to food, the number of full-service restaurants that sell alcohol is on the rise.
- The market is divided into two types of services: commercial and institutional. The commercial Food Service Market is predicted to have a high share due to the large number of restaurants operating on a business basis around the world. The commercial market includes full-service restaurants, quick-service restaurants, and eating out/takeaway Food Service systems. Restaurants, cafes, fast food shops, food chains, food trucks, and online food ordering are examples of commercial edible services.
- Asia Pacific is the fastest regional segment in terms of growth. Growing urbanization and the expansion of the middle class in the Asia Pacific area are driving this industry's sales growth. The Asian Food Service industry is fragmented and dominated by small-to-medium businesses. The diverse cuisines and consumer consumption trends in this region are heavily influenced by regional variation. Furthermore, fine dining, high-end businesses, and food ordering/delivery applications are growing increasingly popular, particularly among white-collar employees and students.
Increased Demand for Food Services at the Universal Level Boosts Market Growth
Food Service and institutional catering services have evolved in response to changes in socioeconomic conditions, as there is a much higher need for lunch/dinners consumed outside the home. Scientific and technological advancements have also aided caterers and mass food producers in streamlining their operations, increasing efficiency, and improving safety. Furthermore, the usage of computers has made a significant contribution. The desire for numerous cuisines has increased as a result of increased migration, urbanization, and globalization, as well as more exposure to various cuisines. Advertisements for ethnic cuisine and an increasing willingness among locals to taste new meals in places including corporate offices, government offices, educational institutions, entertainment centers, hospitals, and transportation hubs have increased demand for these things.
Market Growth Will be Fueled by Increased Spending on Food Consumed Outside the Home
Consumers are being enticed to consume more outside food by rising household income and the rise of dual-income households in the majority of regions. Apart from these causes, the rapid expansion of various-format stores is gaining appeal in both developed and developing countries around the world, and franchising remains one of the most popular growth techniques. Because the majority of millennials like fast food, their spending on quick service restaurants is expanding at a faster rate than their expenditure on traditional family eateries. Many international quick-service and hotel brands are extending their presence in foreign markets, owing to the appeal of fast food among the young population. These variables are beginning to emerge as important drivers of market growth.