Foodservice Market in the US to Grow by USD 204.8 Billion (2024-2028), Driven by Increased Snacking and Indulgence Consumption, with AI Impacting Market Trends - Technavio

NEW YORK, Nov. 19, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape - The foodservice market in us  size is estimated to grow by USD 204.8 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  4.4%  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, rising competition from unorganized fast food sector  poses a challenge.Key market players include American Dairy Queen Corp., Chick fil A Inc., CKE Restaurants Holdings Inc., Dominos Pizza Inc., Inspire Brands Inc., Jack in the Box Inc., Marcos Franchising LLC, McDonald Corp., MTY Food Group Inc., Papa Johns International Inc., Penn Station Inc., Pret A Manger, Raising Canes Restaurants LLC, Restaurant Brands International Inc., Shamrock Foods Co., Starbucks Corp., Sysco Corp., The Subway Group, The Wendys Co., Wingstop Inc., and YUM Brands Inc..

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Key Market Trends Fueling Growth

The Foodservice Market in the US is experiencing significant trends, with consumers increasingly seeking vegan, low-sugar, and gluten-free options. Fast food brands and full service restaurants are responding by offering nutritional diets, including pancakes, waffles, and toast at cafes & bars. Specialty tea, coffee, and tea consumption are also popular. Digital ordering is on the rise, with international cuisines and street foods like burritos, chilaquiles, and poke bowls available through leading operators' digital platforms. Cloud kitchen outlets and on-premise eating experiences are also trending. Average order value is increasing with chef-driven dining-out restaurants featuring professionally trained chefs and celebrity chefs. Taste and health-conscious consumers are ordering online for home delivery or takeaway, with fast food items like burgers, pizzas, sausages, and chicken available on e-commerce channels. Consumption behaviors of millennial populations, with their fast lifestyle and preference for home-cooking, are driving the foodservice industry to digitalize operations. Food bars, canteens, vending machines, and hotels are also part of this dynamic market. Virtual and ghost kitchens offer real-time food service through limited-service restaurants and commercial spaces. Foodservice providers are focusing on organic produce, healthy food, and reducing unhealthy products, addressing concerns related to obesity, diabetes, cardiovascular disease, and high blood pressure. Self Service Restaurant, Independent Consumer Foodservice, and Chained Consumer Foodservice cater to various segments, with cafeterias, limited-service eating places, ice cream parlors, beverage bars, carryout sandwich shops, and on-premises baking. Food consumption continues to evolve, with foodservice providers adapting to meet the changing needs and preferences of consumers.

The foodservice industry in the US is experiencing a significant trend towards ethnic cuisine, with the increasing immigration population being a major driving factor. Approximately 22 million Americans have ancestry from East and Southeast Asian countries or populations, as well as the Indian subcontinent. This demographic expansion has introduced a diverse range of spicy cuisines to the American market, which has garnered a positive response from consumers. The popularity of ethnic cuisine is expected to continue growing, offering opportunities for foodservice businesses to cater to this market segment.

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Market Challenges

• The Foodservice Market in the US is facing several challenges in 2023. Consumers are increasingly demanding vegan, low-sugar, and gluten-free options. Fast food brands and full service restaurants are responding by offering nutritional diets and expanding menus to include pancakes, waffles, and toast. Cafes & bars are focusing on specialty tea, coffee, and digital ordering. International cuisines and street foods like burritos, chilaquiles, and poke bowls are gaining popularity. Leading operators are digitalizing their operations, allowing consumers to order food online and use home delivery systems. Fast food items like burgers, pizzas, sausages, meatballs, and chicken are still in demand, but there's a growing trend towards healthier options. Consumers want taste and health-conscious dishes, and are using online booking, online payments, and catering services. Foodservice providers are offering real-time food service through cloud kitchen outlets and virtual kitchens. The average order value is increasing, with chef-driven dining-out restaurants and professionally trained chefs, including celebrity chefs, gaining popularity. Consumption behaviors of millennial populations, who have a fast lifestyle, are influencing foodservice trends. Home-cooking is also becoming more popular, with non-traditional ingredients and different tastes in demand. The Foodservice industry is adapting to these trends, with food consumption habits continuing to evolve. Food bars, canteens, universities, hotels, and vending machines are all part of the landscape. The industry is also addressing health concerns, with a focus on organic produce and healthy food. Obesity, diabetes, cardiovascular disease, high blood pressure, and overweight are all factors driving the need for sugar reduction and healthier options. In conclusion, the Foodservice Market in the US is undergoing significant changes, with consumers demanding more options for vegan, low-sugar, and gluten-free food. Digital ordering and home delivery are becoming the norm, and there's a growing trend towards healthier options and international cuisines. Foodservice providers are responding by digitalizing their operations and offering real-time food service through cloud kitchens and virtual kitchens. The industry is also addressing health concerns and adapting to changing consumption behaviors.
• The unorganized fast food sector in the US, comprised of vendors selling from carts and trucks, is experiencing significant growth. This trend poses a challenge to the foodservice market, as these vendors offer affordable fast food options that cater to price-conscious consumers. The presence of various income-based consumer segments in urban areas has led to an increase in the number of fast food entrepreneurs. This segment's growth is projected to continue, potentially hindering the expansion of the organized foodservice market in the US during the forecast period.

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Segment Overview 

This foodservice market in US report extensively covers market segmentation by

1. Type 
• 1.1 Fast foodservice
• 1.2 Restaurant
• 1.3 Cafes and bars
• 1.4 Delivery and takeaway
• 1.5 Others
2. Solution 
• 2.1 Conventional
• 2.2 Centralized
• 2.3 Ready-prepared
• 2.4 Assembly-serve
3. Sector 
• 3.1 Commercial
• 3.2 Non-commercial
4. Geography 
• 4.1 North America

1.1 Fast foodservice-  Fast foodservice markets in the US are experiencing growth due to the convenience and diversity they offer. Numerous fast food vendors are expanding their presence by opening new stores and introducing novel food options, including vegetarian burgers. These vegetarian options cater to health-conscious consumers who require quick meals on the go. However, the rise of online food ordering applications and third-party delivery services may hinder market growth. Non-vegetarian fast food, such as burgers, sandwiches, and pizzas, remains popular among the working population. Vendors like Subway, Chick-fil-A, Dominos Pizza, and Inspire Brands offer a range of non-vegetarian options with high protein content and convenient delivery services. These strategies contribute to the growth of the fast foodservice segment in the US. Chick-fil-A ensures efficient restaurant operations, Dominos delivers pizza and pasta swiftly, and Inspire Brands provides a diverse portfolio of franchises. Marcos Franchising offers delivery, carryout, and dine-in services. These vendors' efforts have significantly driven the growth of the fast foodservice segment in the US.

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Research Analysis

The Foodservice Market in the US is experiencing significant growth as consumers increasingly demand vegan, low-sugar, and gluten-free options. Full-service restaurants are responding by offering nutritional menus with pancakes and waffles made from alternative ingredients. Online booking and payment systems are becoming standard for reservations and ordering. Foodservice providers offer catering services, packaged food solutions, and real-time delivery for businesses and events. Quick-service and limited-service restaurants, food bars, canteens, universities, hotels, and vending machines also cater to various dietary needs. Virtual kitchens and foodservice technology are revolutionizing the industry, providing efficient and convenient solutions for consumers. The Foodservice Industry continues to evolve, meeting the diverse needs of consumers while maintaining high-quality food offerings.

Market Research Overview

The Foodservice Market in the US is experiencing a significant shift towards vegan, low-sugar, and gluten-free options as consumers prioritize taste and health-conscious choices. Fast food brands and full service restaurants are adapting to these trends, offering nutritional diets and innovative menus. Pancakes, waffles, and toast are popular items at cafes & bars, which also serve specialty tea, coffee, and other beverages. Digital ordering platforms and international cuisines, including street foods like hot dogs and grilled cheese sandwiches, are gaining popularity. Leading operators are leveraging digital platforms for online booking, payments, and catering services, while cloud kitchen outlets and virtual kitchens offer real-time food service. The average order value continues to rise as consumers explore chef-driven dining-out restaurants featuring professionally trained chefs and celebrity chefs. The Foodservice industry is digitalizing operations, allowing consumers to order food online for home delivery or takeaway, and experimenting with non-traditional ingredients and tastes through foodservice providers. The industry is also addressing health concerns, offering organic produce and healthy food options, and reducing sugar in fast food items, beverages, and snacks. Consumption behaviors are evolving, with millennial populations and fast lifestyles driving the demand for convenience and on-premise eating experiences. Travel and tourism are also influencing food consumption habits, as consumers explore new tastes and cuisines. Foodservice providers are expanding their offerings to include self-service restaurants, independent consumer foodservice, chained consumer foodservice, cafeterias, limited-service eating places, ice cream parlors, beverage bars, carryout sandwich shops, on-premises baking, and vending machines. The industry is also exploring new concepts like food bars, canteens, universities canteens, hotels, virtual kitchens, and ghost kitchens to meet the evolving needs and preferences of consumers. However, challenges remain, including obesity, diabetes, cardiovascular disease, high blood pressure, overweight, and unhealthy products. The industry must continue to innovate and adapt to meet the changing needs and expectations of consumers while addressing these health concerns.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Fast Foodservice
• Restaurant
• Cafes And Bars
• Delivery And Takeaway
• Others
• Solution
• Conventional
• Centralized
• Ready-prepared
• Assembly-serve
• Sector
• Commercial
• Non-commercial
• Geography
• North America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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