Growing trend of dining out in restaurants and cafes, and rising disposable purchasing power are the factors driving the global foodservice market during the forecast period.
According to TechSci Research report, “Global Foodservice Market By Type (Dining Service (Hotels, Restaurants), QSR (Quick Service Restaurants), PBCL (Pubs, Bars, Cafe and Lounges), and Others), By Ownership (Independent Outlets vs. Chained Outlets), By Region, Competition, Forecast & Opportunities, 2026”, the global foodservice market is anticipated to grow from USD3093.96 billion in 2020 to USD3978.83 billion in 2026 at a CAGR of 4.72%. The growth is expected as the companies are rearranging their operations to recover the loss that occurred because of COVID-19, which led to the tentative shutdown of commercial activities to maintain the social distancing which resulted in operational challenges and a huge loss to the foodservice industry. However, it is expected that the foodservice market will recover from the loss across the forecast period as it is an unpredicted event, and it could not be defined through the ongoing weakness in the foodservice market or the global economy.
Browse 88 Figures spread through 110 Pages and an in-depth TOC o “Global Foodservice Market”
As the trend for socializing in cafes is increasing among the urban millennials and it is majorly the youngest population which is driving the growth of the chained foodservice market at a much faster pace. Also, the rapid increase in infrastructural development like airports, metro services, hospital facilities, malls, and expressways in emerging countries has given hopes to various chained outlets to increase their market share. Consequently, the growing trend for fast-food and ready to eat items has caused an immense boost to the chained foodservice market.
Moreover, the launch of low-fat drinks, gluten-free products, on-the-go foodservice and online platforms, as well as attractive packaging, are all contributing to the market’s development. Even the factors such as the increasing number of working women, decline in the practice of preparing homemade food, increasing disposable income, improving distribution channels, etc. are also catalyzing the growth of the foodservice market.
The foodservice market deals with both internal as well as external factors to meet the expectations of the target audience, such factors are heavy chef rotations, green packaging and waste reduction, holistic dining experience, menu optimization, and cashless transactions and digitalization. Nowadays people are more demanding, not in just terms of taste of the food or cuisine but are also concerned about the décor, environment, efficiency of the service provider, cost optimization, consistency with the food taste, and the digital mode of transactions.
Many restaurants have recently begun introducing modern technology like tablets on their tabletops to automate the process of ordering food. For example, Chili’s, an American casual dining restaurant chain overhauled its in-store ordering system by adding more than 45000 tablets across its 823 stores. Technology-driven solutions and facilities are becoming more popular in bars and nightclubs. Self-ordering touchscreen kiosks, smartphone applications for personalized orders and fast payment, and digital entertainment such as gaming are all being introduced by companies in the sector.
It is the dining service restaurants, which is the most widespread foodservice model (contributing to the one-third of the food-service market). But it is expected that due to pertaining demand for the fast-food market, it will be the quick service restaurant (QSR) segment that is expected to grow at faster pace than the market of dining service restaurants in the upcoming future market.
The largest market share of the foodservice industry will be dominated by the Asia-Pacific region in the forecast period. This can be attributed to the fact that this region holds the largest portion of the young and millennial population combined with the increase in the number of restaurants, a combination of different culture and cuisine. It is witnessed that there is an increasing preference and demand by the people to eat outside due to which value of services provided by the restaurants gets improvised.
Compass Group PLC, McDonald’s Corporation, Performance Food Group Company, Sodexo Group, Aramark Corporation, Restaurant Brands International Inc., Yum! Brands, Inc., Autogrill S.p.A., Domino’s Pizza, Inc., and Starbucks Corporation are some of the leading players operating in the global foodservice market. Major foodservice companies are expanding their manufacturing bases to meet the rising demand across developing countries in North America, Europe, Asia-Pacific, Middle East & Africa, and South America.
The global foodservice market is competitive with the presence and minimal market share of domestic companies in countries such as China and India. Above all other aspects, the launching of a new product has become the most critical strategy, due to the rapidly changing nature, taste, and preferences of the consumers. Also, businesses have embraced growth through mergers and acquisitions by multinational companies, which has proven to be successful in making their presence stronger.
“The global foodservice market is anticipated to grow over 4.72% CAGR during the next five years due to growing consumer base and increasing disposable income. Moreover, technological up-gradation and growing demand for ready-to-eat foods are further anticipated to positively influence the growth of the market through 2026,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.
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