In-Flight Catering Service Market Trends

In-flight Catering Services Market Overview

In-flight Catering Services Market Size was valued at USD 15.5 billion in 2021. The in-flight catering services market industry is projected to grow from USD 16.9 Billion in 2022 to USD 31.6 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 9.3% during the forecast period (2024 - 2030). The rise in offering customized and organic meals to the travelers in flight are the key market drivers enhancing the in-flight catering services market growth

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

In-flight Catering Services Market Trends

• Rising adoption of in-flight catering services to boost the market growth

Due to increased in-flight catering automation and advancements in catering management, airlines are offering a great passenger experience. An example of a tailored service that airlines are always pursuing is pre-ordered meal offerings. American Airlines expanded the availability of its pre-ordered meal service to premium cabin passengers on domestic American Eagle flights in February 2020. The company wants to provide meals to customers that are regionally appropriate. This is then anticipated to propel the market's expansion.

Businesses are also embracing an unique trend that helps them fulfil their clients' special dietary needs and improves customer satisfaction: offering continental meal alternatives. The majority of in-flight catering service providers and airline caterers are aiming to enhance their supply chain management (SCM) in order to generate high-quality products while effectively managing their in-flight catering operations. For instance, Newrest and American Airlines renewed their contract for in-flight catering in June 2021. The teams are able to deliver the highest level of food safety thanks to the company's in-flight catering standards, which include end-to-end cold chain management and HACCP tracking of food production.

To improve and boost the effectiveness of the processes and systems, the major market participants are adopting cutting-edge categories and systems from the production management sector. IT management systems, inventory management systems, lean manufacturing, and just-in-time manufacturing are some of the most important instruments used by catering providers to improve their offers. Airlines all across the world, including Virgin America, Air New Zealand, FlyDubai, and Japan Airlines, provide digitally enabled food and beverage services. By using the in-seat IFE system, passengers can place orders through these businesses. Every flight attendant servicing business class on Emirates just received meal ordering devices. Therefore, such factors are anticipated to enhance the in-flight catering services market CAGR worldwide in recent years.

However, the rise in long-haul and non-stop flights, mainly as a result of an increase in both leisure and business travel, has increased passenger demand are other factors driving the growth of the in-flight catering services market revenue.

In-flight Catering Services Aircraft Class Insights

The in-flight catering services market segmentation, based on aircraft class, includes first class, business class, premium economy class, and economy class. The economy class segment held the mainstream share in 2021 contributing to around ~48% in respect to the  In-flight Catering Services market revenue. The economy class portion is assessed to keep up with its strength over the figure time frame is attributable to the rising interest from arising nations combined with bigger volumes of travelers liking to go in the class.

In-flight Catering Services Flight Type InsightsFigure 2:  In-flight Catering Services Market, by Flight Type, 2021 & 2030 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The  in-flight catering services market segmentation, based on flight type, includes industrial full service and low cost. Over 70% of the market's revenue in 2021 came from the full-service carrier category, which is predicted to maintain its dominance throughout the forecast period. As long-haul or international flights are often operated by full-service carriers, the growing demand for international travel is anticipated to spur sector expansion. Full-service carriers provide passengers a choice between business class and economy class, as well as premium economy and first class on some flights in an effort to promote market expansion. Besides, the low cost category witnessed the fastest growth in the in-flight catering services market growth.

In-flight Catering Services Catering Type Insights

The  in-flight catering services market segmentation, based on catering type, includes bakery & confectionary, meals, beverages and others. In 2021, the dinner sector had the highest revenue share—more than 50.0%. One of the main drivers of growth is the introduction of prepared meals for travelers and the increased demand for catering services on lengthy continuous flights. The largest in-flight catering providers are making efforts to serve meals to travelers from a variety of cultural backgrounds. Over the next eight years, development is anticipated to be aided by increased passenger demand for wholesome meals and consumer readiness to pay a higher price for them. Besides, the bakery and confectionary category witnessed the fastest growth in the in-flight catering services market growth.

In-flight Catering Services Regional Insights

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The region with the highest revenue share in 2021—more than 30.0%—was Asia Pacific. Boom in foreign travel and tourism, fast urbanisation, a rising level of living to go along with aspirational travel, and a comeback in discretionary spending are all factors that contribute to the regional growth. Additionally, there will likely be major expansion potential for in-flight catering providers due to the region's growing number of airline operators. It is projected that the region will expand at the quickest rate, mostly as a result of significant growth in both international air travel and tourism in developing nations like China, India, and Vietnam.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  In-flight Catering Services MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe in-flight catering services market accounts for the second-largest market share. As more legacy carriers enter the low-cost market in the region, it is expected that demand for in-flight food services on low-cost flights would rise. The increased propensity of travellers to spend money on buying healthy and organic meals and airline partnership with food professionals with practical knowledge are additional variables anticipated to offer considerable growth potential in the upcoming years. Growth is also predicted to be boosted by the leading operators' addition of new routes and expansion of their airline fleet. Further, the Germany in-flight catering services market held the highest market share, and the UK in-flight catering services market is the fastest-growing market in the European region.

The North America In-flight Catering Services Market is expected to grow at the fastest CAGR from 2022 to 2030. Each state in North America has a significantly different diet. The United States and Canada, the two largest nations in North America, have very different eating patterns from one another. The Quebec area of Canada consumes food differently from the other provinces. More variation exists within the continent's smaller nations. Therefore, carriers must plan and stock their food supplies in accordance with their routes and the area they are working in. Moreover, United States in-flight catering services market held the largest market share, and the Canada in-flight catering services market was the fastest-growing market in the Asia-Pacific region.

In-flight Catering Services Key Market Players & Competitive Insights

Major market players are investing heavily in R&D to enhance their product lines, which will help the in-flight catering services market grow even more. In-flight Catering Services Market participants are expected to take a range of strategic initiatives to enhance their  footprint, with key market developments such as new contractual agreements, product launches, increased investments, mergers and acquisitions, and collaboration with other organizations. Competitors in the in-flight catering services industry must offer cost-effective products and services to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturers adopt in the  in-flight catering services industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, in-flight catering services industry has provided medicine with some of the most significant benefits. The in-flight catering services market major player such as SATS, Servair, Egypt Air In-Flight Services, Goddard Catering and others are working on expanding the market demand by investing in research and development activities.

SATS offers food and gateway services throughout Asia. Airline catering, food distribution and logistics, industrial catering, and linen and laundry services are all included in SATS's food offerings. Airfreight, baggage and ramp handling, passenger services, aviation security, cargo, warehousing, perishables handling, cruise handling, and terminal management are all included in its gateway services.

Also, leading international provider of flight and travel services is dnata. The business, which was founded in 1959, provides high-quality and secure ground handling, freight, travel, catering, and retail services in 36 nations on six continents.  In August 2022, one of the biggest providers of air and travel services worldwide, dnata, has expanded its long-standing relationship with GOL Airlines (GOL), a well-known low-cost airline in Brazil. With the contract's extension, dnata will continue to offer the airline a variety of passenger, ramp, and baggage services, providing a seamless airport experience for more than 19 million travellers.

Key Companies in the in-flight catering services market include

• SATS


•  Servair


• Egypt Air In-Flight Services


• Goddard Catering


• Air Culinaire


• Emirates Flight Catering


• dnata


• Do & Co


• Compass Group


• Gate Gourmet among others

In-flight Catering Services Industry Developments

For Instance, In March 2022 Newrest announced that the company began providing hot meal services on two-class flights of Air Transat from various countries across Europe like Belgium, England, France, the Netherlands, Portugal, and Spain.

For Instance, In November 2021 the Indian low-cost carrier IndiGo announced that it was resuming its meal services that had been suspended since the COVID-19 pandemic. The airline's announcement came after the Indian Civil Aviation Ministry allowed airlines to resume in-flight meal services on all domestic flights.

In-flight Catering Services Market Segmentation:

In-flight Catering Aircraft Class Outlook

• First Class


• Business Class


• Premium Economy Class


• Economy Class

In-flight Catering Services Flight Type Outlook

• Full Service


• Low Cost

In-flight Catering Services Catering Type Outlook

• Bakery & Confectionary


• Meals


• Beverages


• Others

In-flight Catering Services Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America