Global Food Service Market Overview, 2023-28

The Global Food Service market is anticipated to cross USD 45 Billion by 2028, increasing from USD 35.81 Billion in 2022, due to changing consumer preferences.

Featured Companies

  • 1. Restaurant Brands International Inc.
  • 2. Domino's
  • 3. Yum! Brands, Inc.,
  • 4. Supermac's
  • 5. Jollibee Foods Corporation
  • 6. Subway IP LLC
  • 7. Compass Group plc
  • 8. Sodexo
  • 9. Aramark corporation
  • More...

The term "food service" describes either the storage, preparation, serving, and clean-up of food intended for consumption in a facility or a formal contract that specifies that meals will be regularly delivered by a third party. Additionally, it covers the distribution of consumable prepared foods, including those that the child care facility prepares on-site and those that it buys from accredited restaurants. Restaurants, motels, cafés, and other eating establishments have steadily increased their creation of new services during the past few years. In order to keep up with the trend of food delivery to homes, restaurant owners, hotel chains, and individual business owners are focusing on expanding their operations in every way imaginable. They are also adding online delivery alternatives. For producers and distributors of food and beverage products, foodservice and away from home channels are important volume generators. Bars, coffee shops, and restaurants are significant consumer touch-points for product discovery and experience in addition to being branding drivers. The effects of Covid-19 will be felt in this market segment as a result of the closing of several restaurants and a decline in sales volume. Small and regional producers are expected to suffer the most (such as retail) due to the lack of variety in comparison to other channels. In order to partially make up for the decrease in revenue, suppliers will hike prices, which will have an impact on chefs and business owners in the food service industry. The capacity that is available on the premises will also be significantly impacted by how the government responds to sanitary situations. Customers will develop a "homebody" mentality and avoid social gatherings in this setting, both for the sake of learning and for the purpose of changing their lifestyles.

According to the research report, “Global Food Service Market Overview, 2023-28” published by Bonafide Research, the market is anticipated to cross USD 5273.15 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 growth of the food service industry has been spurred by the increase in the working population of millennial, who have shifting tastes and changing preferences for ready-to-eat foods. They also have a growing need for personalized and more modern food options. The process of serving food to a visitor or customer in a business is known as food service. It all revolves on the food and drinks that are consumed out from the house. Customers go to food establishments for a variety of purposes, including socializing, celebrating, and trying new tastes and sensations. The preparation and serving of meals to customers who are dining outside the home fall under the purview of the food service industry. All types of eateries, from fine dining to fast food, institutional food operations at facilities like schools and hospitals, as well as other speciality vendors like food truck owners and catering companies, are included in this. These businesses all have the same objective, which is to offer consumers food goods. For instance, McDonald's and Deliveroo have agreed to a new, long-term global strategic partnership in order to deepen their existing relationship and offer customers and McDonald's franchisees the convenience and value of McDelivery through the Deliveroo platform in markets all over the world. The McDelivery Company will grow thanks to the partnership between McDonald's and Deliveroo, which will also highlight both companies' commitment to providing seamless customer experiences. Through this partnership, McDelivery will be more widely available on the Deliveroo platform in new locations while also strengthening the bond between the two businesses in their present markets.

Based on the regions, the global food services market is segmented into North America, Europe, Asia-Pacific, South America and Middle East & Africa. Among them, North America region is expected to experience a consistent growth rate during the forecast period. Food service companies' operating costs are increasing rapidly in countries such as the U.S. and Canada. The rise in labor wages and the price of raw materials is putting significant pressure on the company’s profit margins. Hence, there is a significant drive towards digitization and automation in production and service areas. Digitalization helps restaurants to provide fast services that attract customers to their services. For instance, in 2021, Domino's partnered with Nuro, one of the leading self-driving delivery companies and launched an autonomous pizza delivery system in Houston. Customers can place prepaid orders, and Nuro R2 Robots deliver these products to the consumers. Thus this innovation helped to enhance Domino's productivity and increase its sales. Moreover, the other players also took the opportunity and invested in the North American region, which helped to increase the region's growth in the upcoming times.

The commercial segment held the maximum market share in 2022. A commercial food service facility, such as a fine dining restaurant, strives to deliver an excellent eating experience that broadens consumer understanding of culinary possibilities. Still, if the endeavour does not earn money, it is probably going out of business. The commercial sector includes eating-out/takeaway food service systems, fast-food restaurants, and full-service restaurants. Eateries, cafés, quick food franchises, food trucks, and internet meal ordering are all examples of commercial kitchen supplies. Commercial meal service is often seen as being of excellent quality all around, whether in terms of food quality or comprehensive service quality. At present, non-commercial services are growing; many hospital and business dining areas hire chefs and provide high-quality meals in places designed to enhance the eating experience, such as terraced outdoor dining spaces. Commercial establishments offer a wide array of dining options and culinary experiences, catering to various tastes and preferences. They serve as a hub for gastronomic diversity, providing customers with a range of cuisines, flavours, and dining styles. The ability to offer diverse menus and dining experiences attracts a broad customer base, including local residents, tourists, and business travellers.

The type segment is divided into full-service restaurants, quick-service, institutes, and others. Full-service restaurants include establishments that serve customers with table service in brick-and-mortar and have a full meal menu. They offer menus in multiple selection types, including breakfast, lunch, and dinner. Full-service restaurants with eclectic, high-quality interiors, and high service standards extend their menu, include extensive beverage offerings, and opt for more sophisticated decor and ambiance to attract customers to their restaurants. Moreover, the staff is usually highly trained, and there is often a dress code for patrons to acquire more customers towards their restaurants. Fine dining establishments and casual dining restaurants are the major contributors to this segment. The quick service restaurants are also expected to grow in the market. But it has a limited menu and specializes in selective main entrees such as burgers, pizza, or chicken. Following this, due to a rise in online food ordering throughout the world, online meal delivery and disorganized food services, such as street sellers, are predicted to have a promising expansion. Online food ordering has risen over the past few years, particularly following the COVID-19 epidemic, in nations such as the United States, China, Japan, the United Arab Emirates, and India. As a result, this component has great potential prospects for the expansion of the global food service market.

The Ready Prepared Foodservice System, which involves the preparation of food off-site and then delivering it to consumers or selling it through various retail outlets, is experiencing major growth by the end of the forecast period. Ready prepared meals provide consumers with a convenient dining option. In today's fast-paced world, many people are looking for quick and hassle-free meal solutions. Ready prepared meals eliminate the need for grocery shopping, cooking, and clean-up, making it an attractive option for busy individuals and families. These foodservice systems save time for consumers who would otherwise spend time planning, shopping for ingredients, and cooking. With ready prepared meals, customers can enjoy freshly prepared food without investing the time and effort required for home cooking. Many ready prepared foodservice providers offer a diverse menu, allowing customers to choose from a range of cuisines and dishes. This variety caters to different tastes and dietary preferences, making it appealing to a broad customer base. Additionally, some services allow for customization, enabling customers to select ingredients or portion sizes according to their preferences. Ready prepared foodservice systems prioritize the quality and freshness of their meals. Ingredients are often sourced and prepared with care, and the food is typically delivered or served while it's still fresh and hot. This commitment to quality can make these services an appealing choice for those looking for restaurant-quality meals at home.

Market Drivers
• Sustainability and Environmental Concerns: A significant driver across various industries is the increasing focus on sustainability and environmental concerns. Consumers, governments, and businesses are all becoming more conscious of the environmental impact of their activities. As a result, there is a growing demand for eco-friendly products and practices, such as renewable energy, energy-efficient technologies, and reduced waste. Sustainable sourcing, responsible supply chain management, and circular economy principles are becoming key considerations for businesses aiming to meet the expectations of environmentally aware consumers. This driver is pushing companies to adopt cleaner and more sustainable production methods, while also driving innovation in green technologies and materials.
• Digital Transformation and Remote Work: Digital transformation has become a major driver across many industries, accelerated by the COVID-19 pandemic. The shift toward remote work, e-commerce, and digital communication tools has significantly impacted businesses. This trend has led to a surge in demand for cloud computing, cybersecurity solutions, and remote collaboration technologies. Companies have invested in upgrading their digital infrastructure to adapt to the evolving needs of remote workforces and online customer engagement. Digital transformation is shaping new business models, improving operational efficiency, and fostering innovation, making it a key driver for companies looking to remain competitive in the digital age.

Market Challenges
• Cybersecurity Risks and Data Privacy Concerns: As businesses increasingly rely on digital technologies, they face a growing challenge in the form of cybersecurity risks and data privacy concerns. The rise of cyberattacks, data breaches, and privacy regulations has put organizations under immense pressure to protect sensitive information and maintain the trust of their customers. Addressing these challenges requires significant investments in cybersecurity measures, employee training, and compliance with data protection regulations like GDPR and CCPA. Ensuring the security of customer data and safeguarding against cyber threats remains a top challenge across various industries, especially in the era of remote work and online transactions.
• Global Trade Uncertainty and Supply Chain Disruptions: Uncertainty in global trade relationships and supply chain disruptions continue to challenge businesses in various industries. Factors like trade tensions, geopolitical conflicts, and the impact of the COVID-19 pandemic have disrupted supply chains and caused volatility in international markets. Companies have had to adapt to these uncertainties by diversifying suppliers, considering regionalization of supply chains, and implementing risk mitigation strategies. The ongoing challenges in global trade underscore the importance of agility and adaptability in managing supply chains and responding to shifting market dynamics.

Market Trends
• E-commerce and Online Shopping Evolution: E-commerce and online shopping continue to be dominant trends across various industries. The convenience and accessibility of online retail have led to a shift in consumer behavior, with more people opting to shop online. This trend has prompted businesses to invest in e-commerce platforms, digital marketing, and last-mile delivery solutions. The growth of online marketplaces, subscription services, and direct-to-consumer models are reshaping retail and consumer goods sectors. With increasing consumer expectations for fast, seamless, and personalized online shopping experiences, the trend is expected to continue evolving with advancements in augmented reality (AR) shopping, virtual try-ons, and smart supply chain management.
• Healthcare Digitalization and Telemedicine: The healthcare industry is experiencing a transformative trend in the digitalization of healthcare services and the widespread adoption of telemedicine. Telehealth and remote patient monitoring have become integral components of healthcare delivery, driven by the need for increased accessibility, cost-effectiveness, and patient safety, especially during the COVID-19 pandemic. This trend is shaping the way healthcare providers interact with patients and collaborate among themselves, fostering a more patient-centric approach to healthcare. With the rise of wearables, AI-driven diagnostics, and electronic health records, healthcare digitalization is expected to continue improving patient care, diagnosis, and treatment outcomes while reducing the burden on healthcare systems.

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 November 2022, Fujimak Corporation announced the establishment of its new subsidiary in Santa Ana, California, to promote the company’s sales in North America. This makes it the company’s first subsidiary to be established in this region.
• In July 2022, Ali Group announced that it had completed the acquisition of Welbilt, Inc., allowing the former to expand its geographical footprint as well as its portfolio of advanced and innovative foodservice solutions.
• In July 2022, the Middleby Corporation announced the acquisition of Colussi Ermes, a Pordenone, and Italy-based global manufacturer of automated washing solutions for the food processing business. Colussi Ermes provides washing solutions in many segments, including confectionary, bakery, protein, and fruits & vegetables, and they are known for minimizing water, chemical, and energy use, as well as reducing labor requirements.
• In June 2022, Hoshizaki announced the release of the company’s new refrigerated Pizza Prep models that help maintain ideal temperatures for products, while reducing maintenance and labor. Some of the features include a night/day mode, a one-piece pan rail design to protect the cabinet, optimal airflow in rail for precise and consistent cooling of products, and removable air filters. Eleven models had been launched in 46-inch and 60-inch configurations.

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-wise Food Service market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions covered in the report
• North America
• Europe
• Asia-Pacific
• South America
• Middle-East & 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 Bonafide Research`s industry report?

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

Download Sample

Make this report your own

Have queries/questions regarding a report?

Take advantage of intelligence tailored to your business objective

Manmayi Raval

Manmayi Raval

Research Consultant

Don’t pay for what you don’t need. Save 30%

Customise your report by selecting specific countries or regions

Specify Scope Now
Manmayi Raval

Companies Mentioned

  • Restaurant Brands International Inc.
  • Domino's
  • Yum! Brands, Inc.,
  • Supermac's
  • Jollibee Foods Corporation
  • Subway IP LLC
  • Compass Group plc
  • Sodexo
  • Aramark corporation

Table of Contents

  • Table of Contents
  • 1. Executive Summary
  • 2. Market Dynamics
  • 2.1. Market Drivers & Opportunities
  • 2.2. Market Restraints & Challenges
  • 2.3. Market Trends
  • 2.4. Covid-19 Effect
  • 2.5. Supply chain Analysis
  • 2.6. Policy & Regulatory Framework
  • 2.7. Industry Experts Views
  • 3. Research Methodology
  • 3.1. Secondary Research
  • 3.2. Primary Data Collection
  • 3.3. Market Formation & Validation
  • 3.4. Report Writing, Quality Check & Delivery
  • 4. Market Structure
  • 4.1. Market Considerate
  • 4.2. Assumptions
  • 4.3. Limitations
  • 4.4. Abbreviations
  • 4.5. Sources
  • 4.6. Definitions
  • 5. Economic /Demographic Snapshot
  • 6. Global Food Service Market Outlook
  • 6.1. Market Size By Value
  • 6.2. Market Share By Region
  • 6.3. Market Size and Forecast, By Geography
  • 6.4. Market Size and Forecast, By Sector
  • 6.5. Market Size and Forecast, By system
  • 6.6. Market Size and Forecast, By Types of Restaurants
  • 7. North America Food Service Market Outlook
  • 7.1. Market Size By Value
  • 7.2. Market Share By Country
  • 7.3. Market Size and Forecast, By Sector
  • 7.4. Market Size and Forecast, By system
  • 7.5. Market Size and Forecast, By Types of Restaurants
  • 8. Europe Food Service Market Outlook
  • 8.1. Market Size By Value
  • 8.2. Market Share By Country
  • 8.3. Market Size and Forecast, By Sector
  • 8.4. Market Size and Forecast, By system
  • 8.5. Market Size and Forecast, By Types of Restaurants
  • 9. Asia-Pacific Food Service Market Outlook
  • 9.1. Market Size By Value
  • 9.2. Market Share By Country
  • 9.3. Market Size and Forecast, By Sector
  • 9.4. Market Size and Forecast, By system
  • 9.5. Market Size and Forecast, By Types of Restaurants
  • 10. South America Food Service Market Outlook
  • 10.1. Market Size By Value
  • 10.2. Market Share By Country
  • 10.3. Market Size and Forecast, By Sector
  • 10.4. Market Size and Forecast, By system
  • 10.5. Market Size and Forecast, By Types of Restaurants
  • 11. Middle East & Africa Food Service Market Outlook
  • 11.1. Market Size By Value
  • 11.2. Market Share By Country
  • 11.3. Market Size and Forecast, By Sector
  • 11.4. Market Size and Forecast, By system
  • 11.5. Market Size and Forecast, By Types of Restaurants
  • 12. Competitive Landscape
  • 12.1. Competitive Dashboard
  • 12.2. Business Strategies Adopted by Key Players
  • 12.3. Key Players Market Share Insights and Analysis, 2022
  • 12.4. Key Players Market Positioning Matrix
  • 12.5. Porter's Five Forces
  • 12.6. Company Profile
  • 12.6.1. McDonald's Corporation
  • 12.6.1.1. Company Snapshot
  • 12.6.1.2. Company Overview
  • 12.6.1.3. Financial Highlights
  • 12.6.1.4. Geographic Insights
  • 12.6.1.5. Business Segment & Performance
  • 12.6.1.6. Product Portfolio
  • 12.6.1.7. Key Executives
  • 12.6.1.8. Strategic Moves & Developments
  • 12.6.2. Starbucks Corporation
  • 12.6.3. Restaurant Brands International Inc.
  • 12.6.4. Domino's
  • 12.6.5. Yum! Brands, Inc.,
  • 12.6.6. Supermac's
  • 12.6.7. Jollibee Foods Corporation
  • 12.6.8. Subway IP LLC
  • 12.6.9. Compass Group plc
  • 12.6.10. Sodexo
  • 13. Strategic Recommendations
  • 14. Annexure
  • 14.1. FAQ`s
  • 14.2. Notes
  • 14.3. Related Reports
  • 15. Disclaimer

List of Table
Table 1 : Global Food Service Market Snapshot, By Segmentation (2022 & 2028) (in USD Billion)
Table 2 : Influencing Factors for Food Service Market, 2022
Table 3: Top 10 Counties Economic Snapshot 2020
Table 4: Economic Snapshot of Other Prominent Countries 2020
Table 5: Average Exchange Rates for Converting Foreign Currencies into U.S. Dollars
Table 6: Global Food Service Market Size and Forecast, By Geography (2017 to 2028F) (In USD Billion)
Table 7 : Global Food Service Market Size and Forecast, By Sector (2017 to 2028F) (In USD Billion)
Table 8 : Global Food Service Market Size and Forecast, By system (2017 to 2028F) (In USD Billion)
Table 9 : Global Food Service Market Size and Forecast, By Types of Restaurants (2017 to 2028F) (In USD Billion)
Table 10 : North America Food Service Market Size and Forecast, By Sector (2017 to 2028F) (In USD Billion)
Table 11 : North America Food Service Market Size and Forecast, By system (2017 to 2028F) (In USD Billion)
Table 12 : North America Food Service Market Size and Forecast, By Types of Restaurants (2017 to 2028F) (In USD Billion)
Table 13 : Europe Food Service Market Size and Forecast, By Sector (2017 to 2028F) (In USD Billion)
Table 14 : Europe Food Service Market Size and Forecast, By system (2017 to 2028F) (In USD Billion)
Table 15 : Europe Food Service Market Size and Forecast, By Types of Restaurants (2017 to 2028F) (In USD Billion)
Table 16 : Asia-Pacific Food Service Market Size and Forecast, By Sector (2017 to 2028F) (In USD Billion)
Table 17 : Asia-Pacific Food Service Market Size and Forecast, By system (2017 to 2028F) (In USD Billion)
Table 18 : Asia-Pacific Food Service Market Size and Forecast, By Types of Restaurants (2017 to 2028F) (In USD Billion)
Table 19 : South America Food Service Market Size and Forecast, By Sector (2017 to 2028F) (In USD Billion)
Table 20 : South America Food Service Market Size and Forecast, By system (2017 to 2028F) (In USD Billion)
Table 21 : South America Food Service Market Size and Forecast, By Types of Restaurants (2017 to 2028F) (In USD Billion)
Table 22 : Middle East & Africa Food Service Market Size and Forecast, By Sector (2017 to 2028F) (In USD Billion)
Table 23 : Middle East & Africa Food Service Market Size and Forecast, By system (2017 to 2028F) (In USD Billion)
Table 24 : Middle East & Africa Food Service Market Size and Forecast, By Types of Restaurants (2017 to 2028F) (In USD Billion)

List of Figures
Figure 1: Global Food Service Market Size (USD Billion) By Region, 2022 & 2028
Figure 2: Market attractiveness Index, By Region 2028
Figure 3: Market attractiveness Index, By Segment 2028
Figure 4: Global Food Service Market Size By Value (2017, 2022 & 2028F) (in USD Billion)
Figure 5: Global Food Service Market Share By Region (2022)
Figure 6: North America Food Service Market Size By Value (2017, 2022 & 2028F) (in USD Billion)
Figure 7: North America Food Service Market Share By Country (2022)
Figure 8: Europe Food Service Market Size By Value (2017, 2022 & 2028F) (in USD Billion)
Figure 9: Europe Food Service Market Share By Country (2022)
Figure 10: Asia-Pacific Food Service Market Size By Value (2017, 2022 & 2028F) (in USD Billion)
Figure 11: Asia-Pacific Food Service Market Share By Country (2022)
Figure 12: South America Food Service Market Size By Value (2017, 2022 & 2028F) (in USD Billion)
Figure 13: South America Food Service Market Share By Country (2022)
Figure 14: Middle East & Africa Food Service Market Size By Value (2017, 2022 & 2028F) (in USD Billion)
Figure 15: Middle East & Africa Food Service Market Share By Country (2022)
Figure 16: Competitive Dashboard of top 5 players, 2022
Figure 17: Market Share insights of key players, 2022
Figure 18: Porter's Five Forces of Global Food Service Market

Market Research FAQs

The global food services market refers to the industry that provides prepared food and beverage options to consumers, whether through restaurants, cafeterias, catering services, fast food establishments, food delivery, and various dining experiences. It encompasses a wide range of businesses and services, from fine dining to fast food, and is a critical part of the hospitality and culinary industry.

The food services market can be segmented into various categories, including full-service restaurants, fast food and quick-service restaurants, cafes and coffee shops, food delivery services, catering, and institutional foodservice (e.g., school cafeterias, hospital foodservice). It can also be categorized by cuisine type, price range, and service model.

Major drivers include changing consumer preferences for convenience, diverse and healthier food options, global urbanization, increased disposable income, and technological advancements, which have facilitated online food ordering and delivery.

Challenges include intense competition, fluctuating food costs, regulatory compliance, labor issues, supply chain disruptions, health and safety concerns (e.g., foodborne illnesses), and the impact of economic downturns and external crises, such as the COVID-19 pandemic.

Emerging trends include the rise of alternative proteins and plant-based foods, increased emphasis on sustainability and eco-friendly practices, the adoption of technology for online ordering and delivery, personalized nutrition solutions, and a focus on health and wellness in food offerings.

The COVID-19 pandemic had a significant impact on the food services market, leading to widespread restaurant closures, reduced dine-in traffic, and a surge in demand for takeout and food delivery. The industry adapted by implementing safety measures, adopting contactless technology, and emphasizing online delivery services.
Logo

Global Food Service Market Overview, 2023-28

Contact usWe are friendly and approachable, give us a call.