Technavio, a leading provider of market research reports, has released its latest study on Foodservice Market. This report offers a comprehensive analysis of the current market trends, emerging opportunities, and key challenges. The food services industry is experiencing a significant shift towards ethnic cuisines, fueled by the influx of immigrants into Europe and Europeans' expanding culinary horizons. In 2021, around 2-2.5 million immigrants arrived in Europe, marking a 15-20% increase from the prior year. Of these newcomers, 45-50% were of Asian descent, while 22% were of African descent. This demographic expansion has brought about a diverse range of spicy cuisines, which have garnered a favorable market response. Immigrant populations have introduced European consumers to new and exciting flavors, contributing to the growth and innovation within the foodservice market.
The global foodservice market size is estimated to grow by USD 169.17 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 4.69% 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, labor shortages in foodservice sector poses a challenge. Key companies in the market include AmRest Holdings SE, Compass Group Plc, Costa Group Holdings Ltd., Dominos Pizza Inc., Elior Group SA, gategroup Holding AG, Greggs Plc, Groupe Bertrand, LE DUFF Group, LSG Group, Mitchells and Butlers plc, PizzaExpress Restaurants Ltd., QSR Platform Holding SCA, Restalia Grupo de Eurorestauracion SL, Restaurant Brands International Inc., Sodexo SA, Starbucks Corp., The Restaurant Group PLC, Whitbread PLC., and YUM Brands Inc..
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Major Findings
Increased snacking and indulgence are driving market growth. The European market includes various segments like cafes, bars, cloud kitchens, and restaurants. Consumption patterns have shifted, with many opting for snacks and light meals instead of traditional meals. This trend is especially strong in Europe, where snack preferences have risen over the past decade. The fast-paced lifestyle encourages on-the-go eating, boosting demand for standalone food outlets. Bakery items, such as doughnuts and rolls, have become popular breakfast choices.
To meet the demand, companies are offering healthier options, like doughnut sandwiches filled with chicken and greens. Additionally, food tech startups and apps are transforming the food service industry, providing convenience and personalized choices. Vintage bars remain popular, particularly in travel and tourism, attracting both locals and immigrants.
Labor shortages in the food service sector pose significant challenges to market growth across various segments, including cafes, bars, and restaurants. Low wages and limited career advancement make these jobs less appealing, particularly in the UK.
The Foodservice Market in Europe is a segment of the larger Global Hotels, Resorts, and Cruise Lines Market, according to Technavio. This market encompasses businesses involved in the operation of hotels, resorts, and cruise ships, encompassing entities such as travel agencies, tour operators, and related services. Technavio determines the size of the Global Hotels, Resorts, and Cruise Lines Market by aggregating the revenues of companies in the casino and gaming sector, as well as those in the hotels, resorts, and cruise lines industry. The expansion of the Global Hotels, Resorts, and Cruise Lines Market is anticipated to be fueled by the burgeoning Travel and Tourism Industry, which is experiencing modest growth.
The Foodservice Market is experiencing significant growth, fueled by the Increased snacking and indulgence consumption. Businesses are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.
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The foodservice market in the UK experiences significant growth due to consumers' increasingly hectic lifestyles and urbanization. This trend is further fueled by the diverse population, leading to a high demand for international cuisines and convenient dining options like takeaway, delivery, and grab-and-go meals. Digital advancements, such as online food delivery platforms, mobile apps, and digital ordering systems, facilitate consumer access to restaurant meals, driving revenue growth. Restaurants employ digital marketing strategies and loyalty programs to engage customers, boost brand awareness, and foster repeat business.
The foodservice market encompasses a diverse range of establishments, including fine dining restaurants, full-service restaurants, and sustainable practices advocates. Mobile applications have become essential tools for customers to order from standalone food outlets, chained outlets, quick service restaurants, and cloud kitchens. Sustainable practices are increasingly important in the foodservice industry, with many establishments adopting eco-friendly methods in their operations. Food chain operators and restaurant owners in the fast-food industry are also embracing technology, with mobile food services and food trucks offering convenient options for consumers. Catering services are another significant segment of the foodservice market, providing culinary heritage experiences for various events and leisure activities. Bars and cafes complete the landscape of the foodservice market, offering unique experiences and contributing to the vibrant and dynamic industry.
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