Food Service Market to Grow at a CAGR of 7.78% over 2024 to 2032; Growing Spending on Food Consumed Out of Home to Propel Market Growth

The global food service market size was valued at USD 3,236.92 billion in 2023. The market is anticipated to expand from USD 3,486.58 billion in 2024 to USD 6,348.75 billion by 2032, exhibiting a CAGR of 7.78% during the forecast period. Fortune Business Insights™ presents this information in its report titled “Food Service Market Size, Share & Industry Analysis, By Type (Full Service Restaurants, Quick Service Restaurants, Institutes, and Others), By Restaurant Type (Chained, and Independent), By Service Type (Dine-In, Takeaway, and Delivery), and Regional Forecast, 2024-2032”.

Involving retailers, servers, and providers, food service establishments prepare and distribute food for on-premise consumption, takeaway, and delivery.  The adoption of robotics and AI in food service, showcased by unmanned cafes and cooking robots, has emerged as a cornerstone for business optimization. By leveraging these technologies, restaurant owners are streamlining operations, minimizing costs, and contributing to the industry's overall growth. 

Early in the COVID-19 era, changes in consumer behavior toward restaurants were evident, as lockdowns and dine-in restrictions restricted the dine-in experience. Consumer hesitation, fueled by concerns about COVID-19 transmission, led to a significant downturn in the market, with industry sales dropping by almost 30% in 2020.

Bain Capital Signed an Agreement with Fogo de Chao to Boost the Expansion of Restaurant Chain

In August 2023, Fogo de Chao and Bain Capital had entered into an agreement wherein Bain acquired Fogo de Chao. The objective of Bain Capital was to expedite the expansion of the restaurant chain through this acquisition.

Increased Spending on Food Consumed Out of Home to Propel Market Growth

Transforming consumer lifestyles, coupled with a rise in employed women, drive families to increasingly choose dining out or ordering food. This shift in behavior, influenced by convenience, is a key factor spurring the food service market growth. Moreover, the widespread popularity of fast food, especially among the youth, propels the global expansion of international quick-service and hotel brands. This trend creates opportunities for foreign food exporters, acting as a crucial driver for the sustained growth of the market.

However, long-distance transportation often leads to a decline in food quality, posing a challenge to customer satisfaction and hindering market growth.

Key Industry Participants Focus on Aesthetically Pleasing Food Products to Strengthen their Market Position

The industry is booming with increased demand for innovative and aesthetically pleasing food products. Major players regularly update offerings, including new products such as Domino's Paratha Pizza for Indian consumers in May 2022, driving market growth.

List of Key Players Mentioned in the Report:

• McDonald’s (U.S.)


• Starbucks (U.S.)


• Restaurant Brands International Inc. (Canada)


• Costa Limited (U.K.)


• Tim Hortons (Canada)


• Dominos (U.S.)


• KFC Corporation (U.S.)


• Supermac’s (Ireland)


• Jollibee (Philippines)


• Baskin Robbins (U.S.)

Key Industry Development:

• January 2024- Restaurant Brands International finalized the acquisition of all shares of Carrols Restaurant Group in an all-cash deal. Carrols, Burger King's largest U.S. franchisee, operated over 1,000 Burger King units and more than 50 Popeyes units across 23 states in the U.S.

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/food-service-market-106277

Further Report Findings

• Asia Pacific secured the largest food service market share in 2023 and is touted to witness the highest growth rate during the study period. The surge in quick-service restaurants, known for their efficient preparation and service, significantly contributes to the market's momentum. Furthermore, the increasing adoption of cloud kitchens, particularly in appealing to millennial consumers, adds substantial impetus to the growth trajectory in the Asia Pacific region.


• The U.S. holds the largest food service market in North America, home to global giants such as Starbucks and McDonald’s. The widespread consumer appeal for fast-food items fuels the easy expansion of these chains, contributing to regional growth.


• In terms of restaurant type, chained restaurant type is poised to grow with the highest CAGR over the forecast period. Chained restaurants ensure consistency in menu offerings and food quality across locations, appealing to consumers seeking standardized dining experiences, thereby fueling segment growth.

Table of Segmentation