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The global food service market size surpassed USD 2,323.29 billion in 2021. The market valuation is slated to increase from USD 2,540.05 billion in 2022 to USD 5,194.60 billion by 2029 at a CAGR of 10.76% during 2022-2029. Fortune Business Insights™ presents this information in its report titled “Food Service Market Size, Share & COVID-19 Impact Analysis, By Type (Full Service Restaurants, Quick Service Restaurants, Institutes, and Others), By Service Type (Commercial and Institutional), and Regional Forecast, 2022-2029”.
Growth can be attributed to the rising disposable incomes of consumers, evolving lifestyles of consumers, particularly millennials, and the rising number of cafes, restaurants, and fast-food chains. Growing spending on non-homemade foods and a rise in online food deliveries will augment the market growth during the forecast period.
Lockdowns and Travel Restrictions Caused 31.5% Decline in Market Revenue
The global food service industry witnessed a massive 31.5% decline in 2020, as major markets such as Asia Pacific, North America, and Europe were affected significantly. Across all major countries, fast-food joints, cafes, restaurants, and hotels were shut down to limit the spread of the COVID-19 outbreak. Additionally, the declining tourism activity owing to travel restrictions and lockdowns led to a negative demand trend. Even as restrictions were lifted, only limited services such as takeaways and online food deliveries were functional. On account of these factors, the market growth was hampered during COVID-19.
McDonald’s Eyes Metaverse Entry with New Virtual Restaurant Service
In February 2022, McDonald’s, an international fast-food giant, unveiled a new range of fancy offerings that combine the physical and virtual worlds with its signature flavors, announcing its big entry into the booming metaverse sector. The America-based fast-food chain said it plans to roll out a new virtual restaurant that features both virtual and actual goods. Food items would also be home delivered, McDonald’s confirmed. As it gears up for this project, the firm reportedly filed several trademark applications.
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Increasing Millennial Population and Growing Incomes to Surge the Service Demand
Increasing dual-income households and disposable income levels of consumers are driving the global food service market growth. As the number of millennials continues to expand, fast-food chains are becoming more and more popular. Consumers, especially the younger generations, are increasingly spending on food prepared outside. The industry is poised for a period of rapid growth and development as fast-food outlets expand their presence across new and emerging markets.
Leading Players Adopt Acquisition Strategies to Stay Competitive
Due to disruptions created by the COVID-19 pandemic, the majority of market players weren’t ready to risk their businesses and making losses by entering volatile markets. However, as the impacts of COVID-19 began subsiding, companies were seen expanding their businesses across new markets. For instance, Imperial Dade acquired Empire Distributors to operate 91 new distribution centers across the U.S. Similar strategies are being adopted by major players as they eye new markets for expansion and business growth.
Notable Industry Development:
List of Key Players Profiled in the Report
Further Report Findings
Table of Segmentation
Value (USD Billion)
By Service Type