Foodservice Market size in UK is set to grow by USD 28.19 billion from 2024-2028, Rise of food delivery apps and online ordering platforms to boost the market growth, Technavio

NEW YORK, June 13, 2024 /PRNewswire/ -- The foodservice market size in UK is estimated to grow by USD 28.19 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 4.97% during the forecast period. Rise of food delivery apps and online ordering platforms is driving market growth, with a trend towards virtual restaurants and ghost kitchens gaining traction. However, labor shortages in foodservice sector poses a challenge. Key market players include Bid Corp. Ltd., Compass Group Plc, Cooperatie Koninklijke Cosun UA, Creed Foodservice, Elior Group SA, Greggs Plc, Hannah Food Service, JJ Food Service Ltd., JMP Foodservice, Kitwave Group plc, McDonald Corp., Mitchells and Butlers plc, MKG Foods, Nandos Group, Nestle SA, PepsiCo Inc., PizzaExpress Restaurants Ltd., The Coca Cola Co., The Restaurant Group PLC, and Whitbread PLC.

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Key Market Trends Fueling Growth

Virtual restaurants and ghost kitchens in the UK foodservice market offer cost savings by eliminating the need for physical dining spaces. With the growing popularity of food delivery apps and online ordering, these businesses focus solely on preparing food for off-premise consumption. Lower entry barriers enable new food concepts to emerge, catering to changing consumer preferences for diverse cuisines and healthier options. Technological advancements further support their growth, making virtual restaurants and ghost kitchens key players in the UK foodservice market. 

The foodservice industry is experiencing significant trends, with a focus on convenience and delivery. Consumers want quick and easy meals, leading to the growth of food delivery services and meal kit programs. Technology plays a key role, with contactless ordering and payment systems becoming increasingly popular. Sustainability is also a trend, with many businesses adopting eco-friendly practices and sourcing local ingredients.

Another trend is customization, with consumers seeking personalized meal options. Finally, convenience stores and gas stations are expanding their food offerings to cater to the growing demand for on-the-go meals. Overall, the foodservice market is evolving to meet the changing needs and preferences of consumers. 

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Market Challenges

• The foodservice market in the UK faces challenges due to labor shortages. Low-paying jobs with limited career advancement opportunities make the sector less appealing. Declining workforce numbers result from job insecurity and lack of benefits like sick leave and health insurance. These issues hinder businesses from filling open positions, leading to understaffing, increased workloads, and decreased service quality and efficiency. Consequently, longer wait times, decreased customer satisfaction, and negative revenue impacts are likely during the forecast period.
• In the foodservice market, several challenges exist for businesses. One major challenge is the increasing cost of ingredients, particularly for perishable items like fruits and vegetables. Another challenge is the need to cater to various dietary restrictions and preferences, such as gluten-free, vegan, and organic options. Technology plays a role in addressing these challenges, with tools like inventory management systems and online ordering platforms helping to streamline operations and reduce waste.
• Additionally, competition is fierce, requiring businesses to offer high-quality food and excellent customer service to stand out. Consumer expectations for convenience and fast delivery also add to the complexity of the foodservice industry. Overall, businesses must adapt to these challenges to thrive in the foodservice market.

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Segment Overview 

1. Type 
• 1.1 Fast foodservice
• 1.2 Cafes and bars
• 1.3 Restaurants
• 1.4 Delivery and takeaway
• 1.5 Others
2. Application 
• 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 Europe

1.1 Fast foodservice- The UK foodservice market's fastest-growing segment is fast food. Fast food establishments provide quick, affordable dining options, making them popular among busy individuals, commuters, and families. With a wide range of menu choices, including burgers, fries, pizza, sandwiches, and salads, fast food caters to diverse tastes. International chains like McDonald's offer consistency and reliability, while customization options cater to specific dietary needs. Due to convenience, affordability, and evolving lifestyles, fast food's dominance in the UK foodservice market is expected to continue.

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Research Analysis

The Foodservice Market encompasses various sectors including child care centers, restaurants, hotels, and retailers. Within the restaurant industry, there are full-service and quick-service establishments. E-commerce and online ordering systems have significantly impacted the industry, enabling consumers to purchase food from the comfort of their homes.

Health and wellness trends have led to an increase in demand for plant-based options such as vegan diet, and food technology innovations like sous-vide cooking and advanced kitchen equipment. Data analytics play a crucial role in optimizing operations and enhancing customer experience. Shopping malls house cafes and specialty beverage outlets, adding to the market's diversity. Fast food consumption continues to be a significant contributor to the market, with fast food restaurants catering to diverse palates and dietary preferences.

Market Research Overview

The Foodservice Market encompasses a broad spectrum of businesses that provide food and drinks to consumers outside of their homes. This includes restaurants, cafeterias, schools, hospitals, and other institutions. The market is characterized by its diversity, with various cuisines, price points, and service models catering to different consumer preferences and needs.

The Foodservice industry is a significant contributor to the global economy, generating substantial revenue and employment opportunities. Key trends in the market include the increasing popularity of healthy and sustainable food options, the adoption of technology to enhance the customer experience, and the growing demand for convenience and customization. The market is also subject to various regulations and challenges, such as food safety concerns, labor costs, and supply chain complexities.

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
• Cafes And Bars
• Restaurants
• Delivery And Takeaway
• Others
• Application
• Conventional
• Centralized
• Ready Prepared
• Assembly Serve
• Sector
• Commercial
• Non-commercial
• Geography
• Europe

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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