Global Food Service Market Research Report, 2028

Any company that prepares and serves meals outside for on-site consumption or takeout delivery is referred to as a food service restaurant. Retailers counter and table servers, and providers are examples of people who work in the food service sector. Due to rising disposable incomes, an increase in the number of working women and the convenience of fast food, the global market for fast food is expanding. In addition to these elements, the expansion of a variety of fast food outlets is becoming increasingly popular in both developed and developing markets around the world, while franchising at establishments like Domino's, McDonald's, and KFC continues to be one of the most common growth methods. The millennial generation is spending more money at quick-service restaurants as a result of their preference for fast cuisine. By fusing the potential for globalization with the strong franchise business model, many multinational corporations may expand their influence in new countries like the Asia Pacific and South America. For instance, SOHO Coffee Co. extended its internet platforms in August 2021 in order to diversify its sales. The U.K. chain's other offerings are being expanded in order to attract more customers and diversify its revenue sources. The market expansion is due, among other things, to the expanding popularity of eating out, the expansion of fast food restaurants, and the rising desire for upscale cuisine. In addition, one of the key reasons propelling the market's expansion is the global food industry's rapid technological progress. Global urbanization, population growth, economic progress, and changing lifestyles are all contributing to the market's expansion. The shifting consumer choices and lifestyles are one of the main market factors. The demand for quick and ready-to-eat meals has increased due to the hectic modern lifestyle and the rise of dual-income homes. The food service business has responded to consumer demand for various and hassle-free dining options by providing a wide variety of cuisines, quick-service options, and delivery services.

According to the research report, “Global Food Service Market Research Report, 2028” published by Actual Market Research, the market is anticipated to cross USD 5270 Billion by 2028, increasing from USD 3191.02 Billion in 2022. The market is expected to grow with 8.95% CAGR by 2023-28. The millennial and Gen Z populations' rapid growth has also had a big impact on the food service industry. These younger generations place a premium on experiences and are open to trying out unusual and cutting-edge gastronomic offers. As a result, themed restaurants, fusion cuisines, and experience eating ideas have become more and more popular within the sector. In addition, the desire for healthier food options has increased as the importance of health and wellness has increased. Food options that are wholesome, organic, and sustainable are becoming more and more in demand. Many food service businesses have responded to this trend by introducing healthier menu options, plant-based substitutes, and transparent sourcing procedures in line with the increased environmental and health consciousness. Also, one of the main factors influencing the expansion of the chained foodservice market is rising consumer awareness of QSRs, together with rising demand for fast food and casual dining. Regarding event type, the Retail category comes out on top, followed by Entertainment, with the proliferation of grocery format having a significant impact. Instead, delivery has experienced double-digit consumption mode growth during the past five years. Chained foodservice providers employ self-service kiosks to improve both cost-effectiveness and service speed, which helps them achieve their main goals. In addition, the growing chained foodservice business is being fuelled by urban Millennial' and younger people's general tendency of mingling in cafés. Additionally, the rapid development of infrastructure in rising countries, including brand-new expressways and airports, has made it possible for numerous coffee shops to open up shop. Rapid-service restaurants in the chained industry have had such consistent growth as a result of consumers' growing preference for fast food and other ready-to-eat (RTE) food items.

Asia Pacific region held the major market share in 2022 due to the new innovation and investment by key players in global food service market.

Rapidly westernizing dining customs and expansion of the tourism sector, particularly in Singapore, Malaysia, Indonesia, and Australia, are driving the demand for food service equipment in the region. Furthermore, restaurants are incorporating multiple cuisines into their menus owing to an increasing number of customers experimenting with new foods and developing a taste for different cuisines. Additionally, the rising consumption of processed foods is expected to create a soaring demand for these appliances in the Asia Pacific region. The need for food service equipment in the area is being driven by the rapidly westernising eating habits and growth of the tourist industry, notably in Singapore, Malaysia, Indonesia, and Australia. Additionally, restaurants are including a variety of cuisines on their menus since more and more patrons are trying new meals and acquiring a taste for other cuisines. In addition, it is anticipated that the Asia Pacific area would experience a surge in demand for these appliances because to the growing consumption of processed foods. The Asian foodservice industry will continue growing in 2023. The revival of tourism in Thailand will be the key contributor to this growth. China, the largest market, will grow in 2023. Diverse menu options, along with innovative localized offerings, will help the growth of restaurant operators. Japan, the second-largest foodservice market in Asia will also grow in the coming years as the country eased the COVID-19 restrictions on bars and restaurants throughout the country in March 2022. On the other hand, as the Australian economy recovers from the pandemic, consumer visits to foodservice outlets will grow. Significant investments by leading players will drive the QSR channel’s growth. In June 2021, McDonald’s Australia announced its plan to invest a hefty amount in the country, to open 100 new stores across the country by 2024. The company plans to focus on drive-thrus, digital capabilities, and deliveries.

The commercial sector's leading position in the food service market can be attributed to its diverse offerings, large customer base, professional management, innovative approach, and social importance.

In 2021, the commercial segment held the largest share of the global food service market. Restaurants that offer full service, fast service, and dining-out/takeaway food service systems are included in the commercial section. Examples of commercial edible services include eateries, cafés, fast food chains, food trucks, and online food ordering. Compared to commercial food service, which has existed in this business from its origin, institute food service is a relatively recent notion. Families are spending more money on hotels, dining out, cafés, and other locations as their discretionary income rises. Major fast-food chains like Domino's, Pizza Hut, KFC, Starbucks, Burger King, Taco Bell, Subway, McDonald's, Wendy's, Papa John's Pizza, and Chipotle Mexican Grill are taking advantage of this opportunity to establish their presence in various international markets given the trend of millennial consumers choosing quick service restaurants. For example, fast food consumption is on the rise because of its affordability, variety, and convenience. Between 30% and 50% of youngsters and college students often eat fast food. Due to these factors, this segment is expected to observe significant growth during the forecast period further boosting the growth of the global food service market.

People are generally comfortable with what they know, and conventional foodservice systems have a long history and tradition.

Conventional foodservice systems, such as restaurants, fast-food chains, and cafeterias, have well-established infrastructure, including physical locations, supply chains, and trained staff. This infrastructure can be difficult to replicate or replace, making it challenging for newer models to compete effectively. The conventional foodservice system is a traditional and well-established approach that has been in use for many years. Its long-standing presence in the market has instilled confidence in both business owners and customers. Restaurants, cafes, and other food establishments have relied on this system to provide consistent and reliable service, leading to a loyal customer base. Moreover, conventional foodservice systems often showcase local and regional cuisines, celebrating the culinary identity of a specific area. These appeals to both locals and tourists, as it allow them to experience the unique flavours and specialties of a particular region. Besides, conventional foodservice systems offer a high level of flexibility and customization. They allow food establishments to create unique menus, accommodate customer preferences, and adapt to changing culinary trends. This flexibility enables businesses to cater to diverse tastes and dietary requirements, enhancing customer satisfaction.

In 2022, the full-service segment held the largest share of the global food service market due to the availability of a large variety of food products on the menu.

Full-service restaurants offer an extensive and diverse range of menu options, catering to a wide variety of tastes and preferences. They typically provide a comprehensive selection of appetizers, main courses, desserts, and beverages, allowing customers to enjoy a complete dining experience in one place. This diversity appeals to a broad customer base, including families, groups, and individuals seeking varied dining choices. Moreover, full-service restaurants often focus on creating a pleasant and inviting ambiance for diners. The atmosphere, including interior design, lighting, and music, is carefully curated to match the restaurant's theme and enhance the dining experience. This attention to detail sets the stage for an enjoyable and relaxing meal, making full-service restaurants popular choices for special occasions and social gatherings. In order to have a wide selection of meal options accessible for each person, families, corporate meetings, and other gatherings typically prefer going to full-service restaurants. In order to draw in more customers, these eateries are constantly expanding their menus. For example, this good of hacks ought to be on the menu (at least, for a limited time). Customers are constantly thinking of new ways to customize their McDonald's meals in order to make them distinctively their own, whether it is by adding Chicken McNuggets to their favorite sandwich or sandwiching a crispy Hash Brown between their Sausage McMuffin with Egg. For the first time ever, McDonald’s is showcasing its inventiveness by placing four of the country's most popular dishes on menus for a brief period of time.

Market Drivers
• Consumer Preferences for Healthy and Sustainable Food: A major driver in the food industry is the shifting consumer preference towards healthier and more sustainable food options. As people become more health-conscious and environmentally aware, they are seeking out products and services that align with their values. This trend has led to increased demand for organic and locally-sourced ingredients, plant-based and alternative protein products, and reduced food waste. It has also driven changes in food labelling and transparency, as consumers want to know more about the sourcing and production methods of the food they consume. As a result, food companies are adjusting their product offerings and supply chains to meet these demands, investing in sustainable agriculture practices, and adopting eco-friendly packaging. This driver not only shapes the food choices available but also influences marketing strategies and the corporate social responsibility initiatives of food businesses.
• Technological Advancements in Food Production and Delivery: Technology is rapidly transforming the food industry, driving innovation in both production and delivery processes. The rise of automation, artificial intelligence, and data analytics is enhancing efficiency and quality control in food manufacturing, reducing production costs, and enabling the development of personalized nutrition solutions. Furthermore, the growth of online food delivery platforms and mobile apps has revolutionized the way consumers order and receive food. Delivery drones, self-driving vehicles, and the use of AI in predicting food preferences are reshaping the food delivery landscape. The ongoing development of blockchain technology is also enhancing transparency and traceability in the food supply chain, ensuring food safety and reducing the risk of contamination outbreaks. These technological advancements are driving changes in business models and consumer behavior, with a focus on convenience, customization, and enhanced food safety.

Market Challenges
• Global Supply Chain Disruptions and Food Security Concerns: The food industry faces significant challenges related to global supply chain disruptions, exacerbated by events like the COVID-19 pandemic and climate change-induced extreme weather events. These disruptions have highlighted vulnerabilities in the complex and interconnected food supply chain, leading to concerns about food security and access to essential nutrients. Supply chain issues have resulted in food shortages, price volatility, and logistical challenges. To address these challenges, businesses are exploring strategies such as diversifying sourcing locations, investing in local and regional supply chains, and implementing better risk management practices. Additionally, there is a growing need for innovative and sustainable agricultural practices to ensure food security in the face of changing environmental conditions.
• Regulatory Changes and Food Safety Concerns: The food industry is subject to a constantly evolving regulatory landscape, which can pose challenges for businesses in terms of compliance and adaptation. Government regulations related to food safety, labelling, and marketing practices are becoming more stringent to protect consumer health and enhance transparency. Businesses must navigate a complex web of regulations, certifications, and standards that can vary from one region to another. This challenge is compounded by increasing consumer demand for clean-label products and greater transparency in the supply chain. Food safety concerns, such as foodborne illnesses and contamination incidents, continue to be a major challenge, as they can lead to public health crises and significant damage to brand reputation. To address these issues, the food industry is investing in advanced quality control and traceability technologies and embracing more proactive safety and risk management measures.

Market Trends
• Rise of Alternative Proteins and Plant-Based Foods: One prominent trend in the food industry is the increasing popularity of alternative proteins and plant-based foods. With a growing global population, concerns about resource-intensive meat production, and a surge in vegetarian and flexitarian diets, there is a rising demand for plant-based meat substitutes, dairy alternatives, and other protein-rich foods derived from sources like soy, peas, and fungi. Companies are investing in research and development to create products that closely mimic the taste and texture of traditional animal-based proteins. This trend has given rise to a thriving market for plant-based products and is expected to continue evolving with more innovative and sustainable protein sources.
• Personalization and Customization of Food Products: Another notable trend is the increasing focus on personalization and customization of food products to meet individual consumer preferences and dietary requirements. Advances in technology, data analytics, and AI are enabling the development of personalized nutrition solutions. These can include tailored meal plans, dietary supplements, and functional foods designed to address specific health concerns or dietary restrictions. Companies are leveraging consumer data to create products and experiences that cater to individual tastes and nutritional needs, offering greater choice and convenience for consumers. This trend is reshaping how food products are developed, marketed, and delivered, with a growing emphasis on providing unique and targeted food experiences.

Covid-19 Impacts
One of the most immediate and visible impacts of the pandemic was the closure of many restaurants and foodservice establishments, especially during the early stages of the outbreak. Lockdowns, social distancing measures, and restrictions on indoor dining led to a significant reduction in revenue for the industry. Many businesses were forced to close permanently, while others struggled to adapt to takeout and delivery models to stay afloat. The pandemic prompted significant changes in consumer dining behaviour. Dine-in traffic dropped, and there was a surge in takeout and food delivery. Many consumers also became more cautious about hygiene and food safety, leading to increased interest in contactless payment options and online ordering. These shifts in behaviour have continued to influence the foodservice landscape. Disruptions in the global supply chain, including shortages of ingredients, packaging materials, and labour, impacted the foodservice industry. Restaurants and foodservice establishments faced challenges in sourcing essential items, leading to menu changes and price fluctuations. In response to the pandemic, the foodservice industry implemented a range of safety and sanitation measures to protect both customers and staff. This included enhanced cleaning protocols, personal protective equipment for employees, social distancing in dining areas, and contactless ordering and payment methods. These changes have become part of the "new normal" for the industry.

Competitive Landscape
The competitive landscape of the foodservice market is dynamic and diverse, characterized by a wide range of players catering to different segments and consumer preferences. Nowadays, foodservice companies are working on menu innovation to offer unique and appealing dishes that cater to evolving consumer preferences. They are introducing new flavors, ingredients, and culinary concepts to attract customers and differentiate themselves from competitors. Besides, many key players are investing in digital transformation initiatives to enhance their online presence, improve customer engagement, and streamline ordering and delivery processes. They are developing user-friendly websites and mobile apps to facilitate easy online ordering and provide personalized offers to customer. Key manufacturers are collaborating with solution providers to build customer-centric equipment addressing food wastage by grocery stores, hypermarkets, and supermarkets. For instance, in 2018, AB Electrolux collaborated with Karmalicious AB, a Sweden-based startup that builds food rescue applications. This collaboration was aimed at introducing a new technologically-advanced refrigerator for grocery stores to minimize food wastage. In 2019, Daikin Industries, Ltd. acquired AHT GROUP GmbH, one of Germany's leading food service manufacturers. This acquisition helped the company to expand its business presence in the European region. Additionally, strategies such as new product launch targeted marketing are being adopted to gain a competitive edge in the market.

Key Developments
• In July 2023, Hoshizaki America announced the expansion of its sales team in the country with three new manufacturers’ representative groups to represent their refrigeration lines. Gabriel Group, Preferred Source, and Elevate Foodservice Group would act as agents in the Midwest, the Northern Texas, and the Northeast territories respectively.
• In February 2023, The Middleby Corporation announced the acquisition of Marco Beverage Systems, a Dublin, Ireland-based designer and manufacturer of energy-efficient beverage dispense solutions. The acquisition would help expand Middleby’s offerings in cold brew dispense and coffee brewers, along with various types of hot, cold, and sparkling water dispensers.
• In February 2023, Vollrath Company announced the revamping of its countertop equipment line, aimed at improving the performance, functionality, and ease of use for customers. New features or updates have been added to hot food merchandizers; fryers; gas equipment such as charbroilers, hot plates, and griddles; and half-size long warmers. Additionally, the company has also updated the visual designing of their models.
• In January 2023, Rancilio Group announced that the Rancilio Specialty RS1 had obtained the Premium Certification from the Italian Espresso Institute (IEI), making it one of the first espresso machines to attain this certification. The RS1 features a multi-boiler system and Advanced Temperature Profiling technology and was tested on the constancy of the extraction temperature, pre-infusion, and steam production.

Considered in this report:
• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• Global Food Service market with its value and forecast along with its segments
• Regional & Country-wise Food Service market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions & Countries covered in the report
• North America (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South Africa)

By Sector
• Commercial
• Non- Commercial

By System
• Conventional Foodservice System
• Centralized Foodservice System
• Ready Prepared Foodservice System
• Assembly-Serve Foodservice System

By Type of Restaurant
• Full service restaurants
• Quick service restaurants
• Institutes
• Other

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Food Service industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

What's Inside a Actual Market Research`s industry report?

Asia-Pacific dominates the market and is the largest and fastest-growing market in the animal growth promoters industry globally

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