Foodservice Channel Market Size was valued at USD 785.2 Billion in 2022. The Foodservice Channel industry is projected to grow from USD 989.3 Billion in 2023 to USD 6285.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 26.00% during the forecast period (2023 - 2032). Increasing demand for food delivery services and the changing consumer preferences toward online ordering with many food delivery companies are expected to be a significant market driver for the Foodservice Channel.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for foodservice channel is being driven by the increased snacking and indulgence consumption and the growing trend towards health-conscious eating. Over the past decade, consumer food habits in the United States have undergone a significant shift, with a notable inclination towards snacks and light meals. Busy lifestyles often lead individuals to skip traditional meals, opting instead for on-the-go food choices, including bakery items like doughnuts. The increasing preference for fast food among American consumers is reflected in the 16.23% increase in the average order value for quick-service restaurants over the study period. In 2022, popular fast-food items, including burgers, pizzas, sausages, and meatballs, were priced at USD 8.75, USD 16, USD 8.5, and USD 9.8, respectively. The rising popularity of chicken has prompted American restaurant chains to diversify their menu offerings, with 21% of consumers increasing their taste for chicken in 2021. Vendors like Compass are responding to changing preferences by offering healthier snack options such as doughnut sandwiches with ingredients like chicken and lettuce, indicating a shift towards more nutritious choices.
Despite a growing trend towards health-conscious eating, there remains a steady demand for premium food varieties such as doughnuts, cakes, and pastries, suggesting a consumer willingness to experiment with flavors. This shift in preferences has led to increased snacking at cafes and bars. Cappuccino, Americano, and latte are among the most popular drinks in the region. For example, 64% of American adults currently consume coffee daily, and in 2021, more than 150 million Americans consumed about 400 million cups of coffee per day, totaling over 140 billion cups annually. As a result, it is anticipated that throughout the projection period, demand for the Foodservice Channel Market will increase due to the increased snacking and indulgence consumption and the growing trend towards health-conscious eating. Thus, driving the Foodservice Channel Industry revenue.
The Foodservice Channel Market segmentation, based on Channel includes Accommodation, Leisure, Mobile Operators, Pubs, Clubs, & Bars, Restaurants, Retail, Travel, and Workplace. The restaurants segment dominated the market, accounting for 58% of market revenue (455.4 Billion). The increase in the presence of IT businesses has contributed to the younger generation having greater disposable income, leading to an upsurge in demand for restaurants. A significant portion of customers favors establishments that offer both food and alcohol. The allure of the restaurant's ambiance facilitates socializing for patrons.
Figure 1: Foodservice Channel Market, by Channel, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The anticipated expansion of the service channel market in North America can be attributed to several key factors. In 2022, the United States witnessed the highest average order value among full-service restaurants, reaching USD 39, surpassing other types of food service establishments. There is a notable upward trend in chef-driven dining-out restaurants, with professionally trained and celebrity chefs seeking to capitalize on the growth opportunities presented by the Full-Service Restaurant (FSR) sector. These chefs contribute to the industry by offering more innovative menus and exclusive recipes to cater to the evolving preferences of the increasingly taste and health-conscious millennial demographic. Popular dishes from FSR cuisines include Burritos, priced at USD 10, Chilaquiles at USD 13.5, and poke bowls at USD 17.95.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: FOODSERVICE CHANNEL MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Foodservice Channel Market accounts for the second-largest market share as In 2022, food service establishments in Turkey were primarily led by cafes and bars, with quick-service restaurants (QSRs) and full-service restaurants (FSRs) following closely behind. This growth can be attributed to the rising popularity of vintage bars, nightclubs, and cafes, along with the demand for Turkish alcoholic beverages and a diverse array of Arabian appetizers. Consequently, the number of outlets increased from 72,634 in 2020 to 73,142 in 2022. Further, the German market of foodservice channel held the largest market share, and the UK Foodservice Channel was the fastest-growing market in the European region
The Asia-Pacific Foodservice Channel Market is expected to grow at the fastest CAGR from 2023 to 2032. In 2022, Indians, on average, spent USD 4.70 per order on takeaway food delivery. The popularity of online meal ordering and delivery services witnessed significant growth, particularly in the aftermath of the pandemic. Key players in this domain, such as Swiggy, Zomato, and Uber Eats, have played a pivotal role in driving industry expansion. Cloud kitchens in India offer popular dishes like Jeera Rice and Paratha, both priced at an average of USD 1.51 per 300 grams. Notably, in 2022, the cost of these widely favored dishes was set at 50% of the average order value. Asian cuisine secured a market share exceeding 50% in India during the same year. Moreover, China’s Foodservice Channel held the largest market share, and the Indian market of Foodservice Channel was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Foodservice Channel market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Foodservice Channel industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the service channel industry to benefit clients and increase the market sector. In recent years, the Foodservice Channel industry has offered some of the most significant advantages to the hospitality and culinary sector. Major players in the Foodservice Channel Market, including Chick-fil-A Inc., Compass Group Plc, Dominos Pizza Inc., FOOD and LIFE Co. Ltd., Inspire Brands Inc., Jack in the Box Inc., Jollibee Foods Corp., Little Caesar Enterprises Inc., McDonald Corp., MOS Food Services Inc are attempting to increase market demand by investing in research and development operations.
McDonald's Corp is a leading food service retail chain operator, known for operating and franchising McDonald's restaurants globally, offering a locally relevant menu of food and beverages. The diverse menu includes items such as hamburgers, cheeseburgers, chicken sandwiches, nuggets, wraps, salads, French fries, shakes, desserts, soft serve cones, pies, and a range of beverages, including coffee. Additionally, breakfast options like McGriddles, Sausage McMuffin with Egg, and Egg McMuffin are available. McDonald's operates in various regions worldwide, including North America, South America, Europe, Asia, Oceania, and Africa, with its headquarters located in Chicago, Illinois, USA. In March 2023, McDonald's France introduced a limited-time offer, replacing traditional potato fries with vegetable fries made from beets, carrots, and parsnips.
Domino's Pizza Inc., a renowned pizza restaurant chain, specializes in pizza delivery, carryout, and dine-in services through its network of restaurants. The company offers a diverse menu, including a variety of pizzas with different crusts and sizes, pasta dishes, chicken wings, boneless chicken, oven-baked sandwiches, bread side items, soft drinks, and desserts. Domino's caters to tastes by providing various toppings based on country and culture. Operating through a combination of company-owned and franchise stores, Domino's has a significant presence in the US and international markets such as India, the UK, Japan, Mexico, Australia, Turkey, Canada, South Korea, China, and France. The company's headquarters are located in Ann Arbor, Michigan, USA.
Foodservice Channel Industry Developments
March 2023: In March 2023, MMG Group, the owner and operator of McDonald's restaurants in northern and eastern India, revealed its intention to invest between USD 47.8 million and USD 73.1 million over the next three years. The investment is earmarked for the reimagining of existing outlets and the establishment of new ones
August 2023: In August 2023, the coffee shop chain Starbucks unveiled its strategy to allocate USD 32.78 million for the opening of 100 new outlets across the United Kingdom in 2023. This move reflects the company's anticipation of sustained growth momentum.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 785.2 Billion |
| Market Size 2023 | USD 989.3 Billion |
| Market Size 2032 | USD 6285.1 Billion |
| Compound Annual Growth Rate (CAGR) | 26.00% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Channels, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Chick-fil-A Inc., Compass Group Plc, Domino Pizza Inc., FOOD and LIFE Co. Ltd., Inspire Brands Inc., Jack in the Box Inc., Jollibee Foods Corp., Little Caesar Enterprises Inc., McDonald Corp., MOS Food Services Inc |
| Key Market Opportunities | The exposure to diverse cultures has led consumers worldwide to explore different cuisines |
| Key Market Dynamics | The increased snacking and indulgence consumption |
Frequently Asked Questions (FAQ) :
The Foodservice Channel Market size was valued at USD 785.2 Billion in 2022.
The Foodservice Channel Market is projected to grow at a CAGR of 26.00% during the forecast period, 2023-2032.
North America had the largest share of the market
The key players in the market are Chick-fil-A Inc., Compass Group Plc, Domino Pizza Inc., FOOD and LIFE Co. Ltd., Inspire Brands Inc., Jack in the Box Inc., Jollibee Foods Corp., Little Caesar Enterprises Inc., McDonald Corp., MOS Food Services Inc
The Restaurants segment dominated the market in 2022.
Senior Research Analyst I have a bachelor's degree in mechanical engineering and an mba. i have more than two years of expertise in the retail, food, and beverage, chemical, and material industries, and hence have developed a sound cross-domain expertise. a firm believer in lifelong learning and sharing of knowledge. having a proclivity for hatching ideas and trying to absorb as much information as possible in a short amount of time. introducing corporates to the data and insight, which enables them to move from probability to possibility, has been my key areas of interest.
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