Foodservice Market to grow at a CAGR of 4.97% during 2024-2028
The Foodservice Market is expected to grow at a CAGR of 4.97% during 2023 and 2028. During this period, the market is also expected to show a growth of USD 28.19 billion. In the foodservice market, virtual restaurants and ghost kitchens have emerged as innovative business models, eliminating the need for conventional brick-and-mortar dining spaces. This results in substantial cost savings, as there is no requirement for renting or owning physical locations, maintaining dining areas, or employing front-of-house staff. The surge in popularity of food delivery apps and online ordering platforms has fueled a significant demand for delivery and takeaway options. Virtual restaurants and ghost kitchens, which focus solely on preparing food for off-premise consumption, are ideally situated to capitalize on this trend. These business models offer lucrative opportunities for chefs, restaurateurs, and food entrepreneurs in the UK, with lower barriers to entry compared to traditional restaurants. Consequently, individuals are able to introduce new food concepts through virtual kitchens and brands more effortlessly, catering to the expanding market for delivery-only options.
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Technavio analysts predict that the Fast foodservice subsegment will lead the Type segment during 2024 and 2028 The fast food sector holds a significant market share in the UK foodservice industry, characterized by its quick-service dining options and convenience. This segment caters to the demands of time-pressed individuals, commuters, and families, providing affordable, ready-to-eat meals. The growth of this sector is noteworthy, with fast food continuing to shape the dining landscape in the UK. Its appeal lies in its affordability, making it an accessible dining choice for a diverse consumer base, including students, young professionals, and budget-conscious families. Fast food's convenience and competitively priced offerings have solidified its position as a prominent player in the UK foodservice market.
Here are the various ways based on which the market is segmented:
There are several factors that are causing the market to flourish rise of food delivery apps and online ordering platforms
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The foodservice market encompasses a wide range of establishments, from fast-food chains and quick-service restaurants to cafes, full-service restaurants, hotels, and even child care centers. One trend that has gained significant traction in recent years is the focus on specialty beverages, with shopping malls and food courts offering an array of options from vegan lattes to nitro cold brew. As health and wellness become increasingly important to consumers, many foodservice providers are adapting to offer more plant-based and vegan options. Fast food consumption is shifting towards healthier choices, with kitchen equipment like sous-vide cookers and food technology enabling restaurants to offer nutritious meals that are still convenient and affordable. Data analytics is also playing a key role in the foodservice industry, helping retailers optimize their menus, streamline operations, and improve the customer experience. Online ordering systems and e-commerce platforms are becoming essential tools for quick-service restaurants and fast-food chains, allowing customers to order and pay for their meals from the comfort of their own homes. In summary, the foodservice market is undergoing significant changes as consumers demand healthier, more convenient, and more personalized options. Specialty beverages, vegan diet, data analytics, and kitchen equipment are just a few of the trends shaping this dynamic industry.
According to Technavio, the Foodservice Market in the UK is a segment of the global Hotels, Restaurants, and Leisure Market. This market encompasses businesses involved in the operation of hotels, resorts, and cruise ships, as well as travel agencies, tour operators, and related services. The overall size of the global Hotels, Restaurants, and Leisure Industry is determined by the consolidated revenue generated by companies in the sectors of casinos and gaming, hotels, restaurants and leisure, leisure facilities, and restaurants. The expansion of the global Hotels, Restaurants, and Leisure Market is anticipated to be fueled by the burgeoning Travel and Tourism Industry. Despite exhibiting a moderate growth rate, the Travel and Tourism Market is a significant driver for the Foodservice Market due to the increasing demand for dining options during travel experiences.
The Foodservice Market is experiencing significant growth, fueled by the rise of food delivery apps and online ordering platforms. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.
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