- The Global Food Service Market was valued at USD 2607.1 Billion in 2021
- It is anticipated to reach USD 4255.2 Billion by 2028
- A CAGR of 7.25% is anticipated over the forecast period
Food service include several businesses, associations, and services that purchase food from farmers, store it in facilities and afterwards distribute it to retailers, convenience stores, supermarkets, cafeterias, government assistance programs, and other organizations. The food service system coordinates shipments, keeps meticulous records of food orders, and manages customers.
Food is delivered from suppliers, processors, and manufacturers to food service providers such as grocery stores, cooks, food and beverage managers, hospitals, cafeterias, restaurants, nursing homes, and more through the Food Service process. Food distributors also buy directly from manufacturers and often sell directly to food service operators. In the 1940s, food distribution in the United States was largely dependent on small, local farms, but it rapidly expanded to become a massive corporation in the 1960s.
The development of chain stores, wholesale cooperatives, and supermarkets were three economic developments that enabled for the growing food distribution between 1910 and 1960. Food distribution can also include goods such as dishes, containers, cookware, and utensils that aid in food consumption. Since most food distributors are self-contained, it's simple for manufacturers and producers to establish a supply chain by simply hiring a distributor who can meet their particular requirements.
The foodservice industry experienced a severe downturn in 2020 due to the COVID-19 pandemic. Nonetheless, with the pandemic abating, the industry experienced a significant recovery in 2021, with Western Europe and Asia recording the highest absolute increase in value.
Some of the key players for global Food Service Market are
North America is expected to dominate the global food service market owing to its leading food processing industry and increased use online food deliveries due to the rising influence of Western culture, more number of working women and habits in countries in the region and also the success of several dominating key companies in this region.
For instance; according to International Journal of Environmental Research and Public Health; in 2018 USA has recorded food prepared away-from-home accounted for over about 50% of total food expenditure. Traditionally, this food may have been purchased through ‘conventional’ modes of order whereby customers would visit food outlets in person or contact food outlets directly to place orders before collection or delivery.
Asia Pacific region is expected to witness the fastest growth in the global Food Service market. The increased disposable income particularly in developing countries, longer work and commute times, increased broadband penetration and improved security of electronic payments as well as an increased number of retailers with an online presence are some of the major factors fostering the growth of Food Service market in this region.
For instance; according to British Food Journal, over 70% of urban Indians eat take-out food once a month or more regularly. In Asia Pacific regions in every three days, McDonald's and Dico's open a new location. Domestic and Asian fast-food chains such as Malan Noodle, Yonghe King, New Asia, and Yoshinoya have been expanding at a slower rate. The number of businesses in the sector has increased, as has their size due to increased demand of food services distributions.
Increasing preference for ready-to-eat foods which includes snack foods, confectionary products, cold beverages, meat and meat products, and frozen meals is one of the major factors driving the market growth. The demand towards ready-to-eat foods tends to require a good distribution food service market to deliver the food to the customer at right time and place.
For instance; according to International Journal of Management, Technology and Engineering, most customers choose ready-to-eat food because it saves time and allows them to consume it at any time and from any place. In their weekly diet routine, ready-to-eat food is eaten on two to three days (42.9%). Consumers expect more organic, balanced, and nutritive ready-to-eat food types (51.6%).
Growing demand for online food ordering services is also fostering the market growth. Customers increasingly prefer online food ordering services by using various apps and websites. Online food ordering has many benefits such as a time-consuming process, ease of payment, convenient way to order the food and good accessibility with food dealer. As a result, the growing popularity of online food ordering services increases the requirement of food within the proper timings.
The Food Service can ensure deliveries of the online food orders rapidly and more convenient for customers. For instance; according to Journal of Sustainability, young adults around the world are rapidly accepting and embracing online food services. According to a 2019 survey of 1000 university students in Nanjing (China), at least 71.45% of them had used online food delivery for at least two years, and 85.1 percent had used it more than once a week.
The increasing trend of online ordering and advancements in technology are also driving the growth of the Food Service Market. With the help of these technologies, customers can easily access the menus and prices of food items, and can also place orders securely and conveniently. As a result, customers always prefer online ordering rather than visiting restaurants.
In conclusion, the rapid growth of the Food Service Market is attributed to the increasing working age population, availability of food items, technological advancements, and safe home delivery facilities. These factors will continue to drive the growth of the market in the upcoming years.
- April, 19th 2021; Performance Food Group Co., which owns Vistar, has become the exclusive distributor for Church's Chicken in the U.S. Performance Food Group has scheduled to begin taking over distribution for regions still serviced by other providers beginning in June, and will continue to be the provider going forward through the rest of 2021 through 2026. The additional value and economies of scale of Performance Food Group could deliver on a nationwide level; it became clear they were the right partner for helping Vistar to meet the goals as continued growth and expanding in the future. The relationship between the companies will be organized under Performance Food Group's customized division, which specializes in tailor-made distribution services for restaurants.
- In May 2022, McDonald's partnered with the food delivery system, Deliveroo, with a goal to boost Mcdonald's delivery growth.
|Historical data||2016 - 2021|
|Forecast Period||2022 - 2029|
|Market Size in 2021:||USD 2607.1 Billion|
|Base year considered||2020|
|Forecast Period CAGR %:||
|Market Size Expected in 2028:||USD 4255.2 Billion|
|Tables, Charts & Figures:||175|
|Key Players/Companies||Compass Group, Starbucks Corporation, McDonald’s Corporation, Performance Food Group, Darden Restaurants, Yum Brands, Zensho Holdings, Autogrill, Chipotle Mexican Grill, Domino’s, Restaurant Brands International, AVI Food Systems Inc., Ameriqual, Aramark, Atlas Food Systems and Services, Auntie Anne’s Inc., Flying Food Group, Labatt Food Service, Lyons Food Service, Oxford Foods LLC, Nestle SA, Mondelez International Inc., General Mills Inc., The Hershey Co., Sysco Corporation, others|
|Segments Covered||By Service, By Sector, By System, By Structure, By Application, By Distribution Channel|
|Regional Analysis||North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa|
We are always looking to hire talented individuals with equal and extraordinary proportions of industry expertise, problem solving ability and inclination interested? please email us email@example.comJOIN US
BrandEssence® Market Research and Consulting Pvt ltd.
124, City Road, London EC1V 2NX
© Copyright 2023-24 BrandEssence® Market Research and Consulting Pvt ltd. All Rights Reserved | Designed by BrandEssence®