Food Service Market Size, Share, Growth Analysis, By Type(Full-Service Restaurants, Quick-Service Restaurants, And Others), By Service Type, By Region - Industry Forecast 2024-2031

Global Food Service Market size was valued at USD 2323.29 billion in 2022 and is poised to grow from USD 2540.05 billion in 2023 to USD 5194.6 billion by 2031, growing at a CAGR of 10.76% in the forecast period (2024-2031).

The food service sector encompasses the preparation, delivery, and management of meals provided by third parties, including in-house cafeteria services and partnerships with restaurants. Recent years have witnessed significant innovation in this domain, as restaurants, hotels, and cafes enhance their offerings to capture consumer interest. Industry players are increasingly focusing on growth strategies, particularly through the integration of online delivery services to align with the rising demand for at-home dining solutions. A notable example is the new long-term partnership between McDonald's and Deliveroo, aimed at enhancing McDelivery services worldwide. This collaboration not only increases accessibility across new regions but also reinforces their commitment to delivering a seamless customer experience, positioning both companies for continued growth in the competitive food service landscape.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Food Service market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Food Service Market Segmental Analysis

Global Food Service Market is segmented by Restaurant Type, by Category, by Sector and by Region. Based on Restaurant Type, the market is segmented into Street Food, Cafes and Bars, Quick service restaurants, Full service restaurants. Based on Category, the market is segmented into Independent, Chains. Based on Sector, the market is segmented into Commercial, Non-commercial. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.

Driver of the Global Food Service Market

The global food service market is experiencing significant growth driven by a surge in demand for dining outside the home, spurred by socioeconomic changes. Factors such as technological advancements have enabled food service providers and large-scale manufacturers to enhance operational efficiency and safety, with computer systems playing a crucial role. Increased migration, urbanization, and globalization have led to a heightened interest in diverse cuisines. In the U.S., retail and food service sales reached approximately $680.6 billion in June 2022, with an upward growth trend attributed to rising household incomes and the prevalence of dual-income households. Additionally, the popularity of franchising and the quick-service restaurant sector, particularly among millennials, underscores the evolving preferences in food consumption, as evidenced by a notable percentage of consumers using delivery apps for convenience.

Restraints in the Global Food Service Market

The Global Food Service market faces challenges primarily due to shifts in consumer behavior resulting from the COVID-19 pandemic. As millions lost their jobs during the initial outbreak and subsequent lockdowns in 2020, with estimates indicating that 114 million individuals were affected, consumer spending on dining out decreased significantly. Many people began prioritizing health and hygiene, leading to a heightened focus on essential goods rather than discretionary spending like dining. This trend is expected to persist as consumers adopt more cautious financial habits, hence impacting the growth of the food service sector in the foreseeable future.

Market Trends of the Global Food Service Market

The global food service market is experiencing a transformative trend driven by the widespread adoption of e-commerce systems, underpinned by economic growth and increasing disposable incomes. As consumers enjoy greater financial flexibility, reliance on electronic payment methods has surged, enhancing transaction security and convenience. The expansion of delivery networks and a diverse range of service providers have catalyzed this shift, leading to greater consumer adoption of online food services. The COVID-19 pandemic further accelerated this trend, particularly in developing nations, reshaping the interaction between customers and suppliers and solidifying online delivery platforms as a vital component of the modern food service landscape.