Asia-Pacific Inflight Catering - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Asia-Pacific Inflight Catering Market size is estimated at USD 5.64 billion in 2024, and is expected to reach USD 7.60 billion by 2029, growing at a CAGR of 6.15% during the forecast period (2024-2029).

The COVID-19 pandemic resulted in the governments of several countries imposing travel restrictions and lockdown measures, which affected the business travel and tourism sectors in the region. Although the situation improved by the end of 2020, the pandemic affected the commercial aircraft demand from the end-users over the short term. The orders and flights witnessed a decline in 2020. As flight activity increased in 2021 compared to 2020, the demand for new flights increased.

The rising emphasis on customer-centric food menus is currently driving the Asia-Pacific inflight catering market, as most airlines are adding new items to their menus to provide better quality food to passengers by keeping their preferences in mind.

With the increasing air travel in this region, the induction of new destinations and new long-haul flights may create future opportunities for the Asia-Pacific inflight catering market.

Asia Pacific Inflight Catering Services Market Trends

Hybrid and Other Flight Types Segment May Experience the Highest Growth

The Asia-Pacific market's hybrid and other flight types segments are expected to witness the highest CAGR during the forecast period. This segment includes the catering provided in hybrid business model airlines, charter jets, and private jets. Though the revenues are currently the least from the segment, the high anticipated growth of the segment is primarily due to the increasing preference toward hybrid carriers and their increasing penetration in the region's market. These hybrid carriers blend low-cost carrier traits with full-service carriers to maximize profit.

New hybrid airlines are starting operations in this region to cater to the rising international passenger traffic. During 2017-2021, about 15 long-haul low-cost airlines were launched globally, out of which AirAsia X, Jin Air, and Lion Air, among others, are the prominent hybrid airlines in the Asia-Pacific. Bamboo Airlines, the new Vietnamese hybrid airline, started operations in January 2019. Similarly, Air Premia, an airline based in South Korea, has started its operations. The introduction of new airlines in this model is expected to be the driving factor for the market.

However, due to the slow growth of the economy in Asia-Pacific, the private jet charter market in the region is still in its infancy and is anticipated to continue its gradual growth in the future.

Inflight Catering Market in India May Experience the Highest Growth

The Indian inflight catering market is expected to grow at the highest rate during the forecast period, owing to the growing aviation market in the country. The boom in air travel in India is adding a new dimension to the inflight catering services business. Around 20 million people availed of domestic airline services, and around 10 million passengers used international airline services. With an expected increase in traffic, of 20%, over the next two years, the inflight meal business is poised to register significant growth. Besides, the entry of domestic airlines into intercontinental routes is expected to create competition among caterers, forcing them to be innovative. Vistara is offering a "Chef On-board" program in partnership with the airline's caterers, Taj SATS Air Catering Limited. According to the company, Chef On-Board is an innovative and first-of-its-kind initiative in India, where chefs will take direct and instant customer feedback on the new menu introduced across the network. Such efforts to enhance the inflight catering experience may help the growth of the players in the country.

Nevertheless, the largest inflight catering market in the region currently belongs to China due to the high aviation activity in the country. In order to cater to the growing aviation demand, airlines in China are procuring new aircraft and introducing new routes. In order to maintain their competitiveness, Chinese airlines are re-designing their inflight menus to increase their profitability while maintaining food quality. In the Chinese market, due to the high competition in the airline market and low-profit growth of small- and medium-sized air carriers from additional supporting services, airlines have been dropping the idea of providing complimentary inflight meals to economy-class passengers, which is expected to reduce the growth of the market during the forecast period.

Asia Pacific Inflight Catering Services Industry Overview

The Asia-Pacific inflight catering market is moderately consolidated. LSG Sky Chefs, Gategroup, Sats Ltd, Cathay Pacific Catering Services (HK) Ltd, and Emirates Group are some prominent players with a strong presence in the Asia-Pacific inflight catering industry.

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