Foodservice Market in the US to grow by USD 204.8 Billion from 2024-2028, driven by increased snacking and indulgence consumption, with AI powering market evolution - Technavio

NEW YORK, Oct. 21, 2024 /PRNewswire/ -- Report on how AI is driving market transformation - The Foodservice Market in US size is estimated to grow by USD 204.8 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  4.4%  during the forecast period.Increased snacking and indulgence consumption is driving market growth, with a trend towards highly diverse population indulging in ethnic cuisine. However, rising competition from unorganized fast food sector  poses a challenge - Key market players include American Dairy Queen Corp., Chick fil A Inc., CKE Restaurants Holdings Inc., Dominos Pizza Inc., Inspire Brands Inc., Jack in the Box Inc., Marcos Franchising LLC, McDonald Corp., MTY Food Group Inc., Papa Johns International Inc., Penn Station Inc., Pret A Manger, Raising Canes Restaurants LLC, Restaurant Brands International Inc., Shamrock Foods Co., Starbucks Corp., Sysco Corp., The Subway Group, The Wendys Co., Wingstop Inc., and YUM Brands Inc.. Continue Reading

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Foodservice Market In US Scope
Report Coverage	Details
Base year	2023
Historic period	2018 - 2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 4.4%
Market growth 2024-2028	USD 204.8 billion
Market structure	Fragmented
YoY growth 2022-2023 (%)	5.8
Regional analysis	US
Performing market contribution	North America at 100%
Key countries	US
Key companies profiled	American Dairy Queen Corp., Chick fil A Inc., CKE Restaurants Holdings Inc., Dominos Pizza Inc., Inspire Brands Inc., Jack in the Box Inc., Marcos Franchising LLC, McDonald Corp., MTY Food Group Inc., Papa Johns International Inc., Penn Station Inc., Pret A Manger, Raising Canes Restaurants LLC, Restaurant Brands International Inc., Shamrock Foods Co., Starbucks Corp., Sysco Corp., The Subway Group, The Wendys Co., Wingstop Inc., and YUM Brands Inc.

Market Driver

The foodservice industry in the US is experiencing a notable trend with the rising popularity of ethnic cuisine. This trend is primarily driven by the increasing number of immigrants, particularly from East and Southeast Asian countries and populations, as well as the Indian subcontinent. With approximately 22 million Asian Americans residing in the US, the market has responded favorably to the introduction of a diverse range of spicy cuisines. The high demand for Pan-Asian cuisine, including Thai, Japanese, and Vietnamese, is particularly significant. Sushi restaurants have seen significant growth in major cities such as Los Angeles, Chicago, and San Francisco, where per capita disposable incomes are above the national average. The expanding demographic is expected to continue driving the growth of the foodservice market in the US during the forecast period. 

The Foodservice industry in the US is experiencing significant trends in various sectors. Home delivery systems through online platforms are on the rise, allowing customers to order their favorite food items with ease. Payment procedures are becoming more digital, making transactions faster and more convenient. Dining behavior is shifting towards self-service and fast food, with chained consumer foodservice and fast-food restaurants leading the way. Organic produce and healthy food options are gaining popularity, as consumers prioritize wellness. Independent consumer foodservice establishments like cafeterias, carryout sandwich shops, and beverage bars, are also thriving. Virtual and ghost kitchens are emerging, offering cost-effective solutions for food preparation and delivery. Consumption behaviors are changing, with veganism and raw materials becoming more mainstream. Travel and tourism, hotels, and universities are significant markets for foodservice. Fast food consumption, obesity, diabetes, cardiovascular disease, high blood pressure, overweight, and unhealthy products remain concerns, driving the need for sugar reduction and healthier offerings. Coffee shops continue to be a staple in the industry, providing essential beverages and a social gathering place. Food bars, canteens, vending machines, and on-premises baking are also essential components of the Foodservice industry. 

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 Market Challenges

• The unorganized fast food sector in the US, comprised of vendors selling from carts and trucks, is experiencing significant growth. This trend poses a challenge to the foodservice market, as these vendors offer affordable fast food options that cater to price-conscious consumers. With various income levels and consumer segments in urban areas, the demand for affordable fast food is increasing. As a result, an influx of entrepreneurs is entering the market, leading to a potential negative impact on the foodservice industry's growth during the forecast period.
• The US foodservice market faces several challenges in today's dynamic consumer landscape. Traditional favorites like hot dogs and grilled cheese sandwiches compete with street foods and international dishes, such as burritos, chilaquiles, and poke bowls. Leading operators must adapt to digital trends, including e-commerce channel penetration and online ordering, payments, and booking. On-premise dining experiences coexist with cloud kitchen outlets and takeaway, catering to consumers' fast lifestyles. Chef-driven dining-out restaurants, featuring professionally trained chefs and celebrity chefs, prioritize taste and health-conscious menus. Consumers' food consumption habits shift towards millennial populations and non-traditional, different ingredients, and tastes. Foodservice providers digitalize operations to meet these demands, offering real-time food service, limited-service restaurants, commercial spaces, and packaged food service. Fast food items, like burgers, pizzas, sausages, meatballs, and fried chicken, remain popular. Foodservice providers must cater to these trends while maintaining affordability and convenience.

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Segment Overview 

This foodservice market in US report extensively covers market segmentation by  

1. Type 

• 1.1 Fast foodservice
• 1.2 Restaurant
• 1.3 Cafes and bars
• 1.4 Delivery and takeaway
• 1.5 Others

Solution 

• 2.1 Conventional
• 2.2 Centralized
• 2.3 Ready-prepared
• 2.4 Assembly-serve

Sector 

• 3.1 Commercial
• 3.2 Non-commercial

Geography 

• 4.1 North America

1.1 Fast foodservice-  The Foodservice Market in the US is a significant sector, serving meals to various establishments such as schools, hospitals, and businesses. It's a large and diverse industry, with key players offering solutions like catering services, vending machines, and food delivery. Market size and growth are influenced by factors like consumer preferences, economic conditions, and technological advancements. Companies focus on innovation, quality, and efficiency to meet customer demands and stay competitive.

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Research Analysis

The Foodservice Market in the US is experiencing a significant shift towards healthier and dietary-specific options, with vegan, low-sugar, and gluten-free menus becoming increasingly popular among consumers. Full-service restaurants are responding by offering nutritional diets and expanding their menus to include vegan pancakes and waffles. Online booking and payment systems are becoming standard for reservations and transactions, streamlining the dining experience. Catering services, packaged food service, real-time food service, and virtual kitchens are also gaining traction in the industry. Foodservice encompasses a wide range of establishments, from full-service restaurants and quick-service restaurants to limited-service restaurants, food bars, canteens, university canteens, catering, vending machines, hotels, and more. The Foodservice Industry continues to evolve, meeting the changing needs and preferences of consumers.

Market Research Overview

The Foodservice Market in the US is experiencing a significant shift towards vegan, low-sugar, and gluten-free options as consumers prioritize taste and health-conscious choices. Fast food brands and full service restaurants are adapting to these trends, offering nutritional diets that cater to various dietary needs. Pancakes and waffles are being reinvented with alternative ingredients, while cafes & bars serve specialty tea and coffee. Digital ordering is on the rise, with international cuisines and street foods gaining popularity. Leading operators are leveraging digital platforms for online booking, payments, and catering services. Cloud kitchen outlets and real-time food service are becoming more common, with an average order value of USD20-30. Chef-driven dining-out restaurants, featuring professionally trained chefs and celebrity chefs, continue to attract consumers. The millennial population's fast lifestyle and food consumption habits are driving the growth of non-traditional foodservice providers, who are digitalizing their operations and offering home delivery systems through online platforms. Foodservice providers are sourcing organic produce and healthy food options, with fast food items like burgers, pizzas, sausages, meatballs, and chicken being reimagined with healthier ingredients. Self-service restaurants, independent consumer foodservice, chained consumer foodservice, cafeterias, limited-service eating places, ice cream parlors, beverage bars, carryout sandwich shops, and on-premises baking are all part of this dynamic industry. Food consumption habits continue to evolve, with consumers seeking new tastes and ingredients, and foodservice providers responding to meet their demands.

Table of Contents:

1 Executive Summary2 Market Landscape3 Market Sizing4 Historic Market Size5 Five Forces Analysis6 Market Segmentation

• Type
• Fast Foodservice
• Restaurant
• Cafes And Bars
• Delivery And Takeaway
• Others
• Solution
• Conventional
• Centralized
• Ready-prepared
• Assembly-serve
• Sector
• Commercial
• Non-commercial
• Geography
• North America

7 Customer Landscape8 Geographic Landscape9 Drivers, Challenges, and Trends10 Company Landscape11 Company Analysis12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio ResearchJesse MaidaMedia & Marketing ExecutiveUS: +1 844 364 1100UK: +44 203 893 3200Email: [email protected]Website: www.technavio.com/

SOURCE Technavio

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