The world foodservice industry is expected to reach almost $992 billion in 2014, according to Datamonitor, with a volume of over 586 billion transactions. This represents more than 18% growth in five years. Cafés and restaurants represent the leading market segment at over 50% of overall industry value. Regionally, Asia-Pacific holds almost 43% of the world foodservice industry market share.
Food demand is rising in tandem with the global population. Increasing urbanization and a general exodus from rural areas to urban areas is causing a change in lifestyle trends, particularly surround eating habits. With increasing numbers of people working in office environments and growing family households with two parents in the workforce, time to prepare food at home is limited. Consumers under time constraints are opting to eat outside in cafés and restaurants, with price-conscious consumers often turning to fast-food options such as mobile trucks and street stalls.
Key Market Segments
- The world restaurant industry generated nearly $1.6 trillion in revenue in 2010, reports MarketLine. Marked growth is expected to slow to 3% yearly through 2015 to almost $1.8 trillion by the close of 2015. The restaurant market segment covers sales of food, soft drinks and alcoholic drinks through cafés, restaurants, catering businesses, drinking places and fast-food retail outlets.
- The world fast-food industry is expected to generate almost $240 billion in 2014, according to MarketLine, representing a 19% increase over five years. The market is predicted to reach a volume of almost 249 billion transactions in 2014. Quick-service restaurants represent the leading market segment, with 71% of overall market value. The Americas represent almost half of the global market share.
- The global mobile food services industry is expected to surpass $2.5 billion by 2017, reports Global Industry Analysts. Street stalls represent the market’s largest outlet segment for consumer foodservice. Market drivers include demand for quick, inexpensive and convenient food, with evolving consumer tastes open to an array of new cuisines. Consumers looking for cheaper alternatives to sit-in restaurants due to the world recession are responding to the less-expensive option of food trucks. Similarly, chefs and entrepreneurs without the necessary start-up capital to open restaurants are able to offer their food services in mobile form. The US, EU and Asia-Pacific combine to dominate the market.
Regional Market Share
- The US fast food industry is expected to record yearly growth of 4% through 2014, according to RNCOS. The US remains one of the world’s dominant nations in the global fast-food market even during the economic recession. The market is driven by a growing young population and an expanding middle class with rising disposable income. Fast-food sector growth is outpacing restaurant industry growth in the US, with leading companies invested heavily in promoting their products to further fuel expansion. Burgers represent the largest market segment, followed by other products such as pizza, pasta, sandwiches and snacks.
- The EU foodservice market generated total revenue of over $146 billion in 2009, according to MarketLine. Yearly market growth was at almost 5% for the four preceding years.
The global foodservice sector continues to feel the pressures of the economic recession, unstable food and energy prices, a fragile housing sector, and depleted consumer confidence. Industry players continue to focus on brand differentiation and value-added products to attract consumers.
Fast food outlets are revamping their menus to diversify their product offerings and respond to growing demand for healthy eating options due to growing awareness of heart disease and diabetes. Other outlets, like grocery stores and restaurants, are trying to encroach on the fast food market by offering take-away options to customers. Ethnic cuisine demand will continue to grow, providing a huge market for Asian fast food, with sushi and Chinese food proving particularly popular.