Food Services and Drinking Places Market

Food Services and Drinking Places Market Size (2023-2028):

The Global Food Services and Drinking Places Market was worth US$ 2,535.09 billion in 2022 and is anticipated to reach a valuation of US$ 4986.56 billion by 2028 and is predicted to register a CAGR of 9.8% during 2023-2028.

MARKET OVERVIEW:

Food and drink service industries offer meals, snacks, and beverages by preparing, presenting, and serving the offerings to the customers. It includes different sectors like quick and full services restaurants, casual dining restaurants, cafes and coffee shops, bars, clubs, nightclubs, catering services, canteens, and more.

These industries contribute a distinguishable amount to the economy and directly provide good shares for the Food Services and Drinking Places Market.

MARKET DRIVERS:

Change in Consumer Preferences - The COVID-19 pandemic significantly impacted consumer needs that changed the segmentation of the Food Services and Drinking Places market. Changes in hygiene standards and modes of ordering services make the change in market trends. Currently, marketplaces for food delivery and takeaway are soaring, and this change in trend will continue to influence the operational activities and dining experience over the years.

Innovation - Rising technology advancement in the industry acts as a driving factor for market demand. Industries are focusing on the different innovations in terms of technology and services offered. Present key players are moving toward sustainability, fusion food, and drinks with a variety of options. One such innovation in technology is augmented reality (AR) menus and restaurant tours.

MARKET RESTRAINTS:

The Food Services and Drinking Place market has several competitors where key players account for the major share of the market. Constant innovation and adoption to the market, always accompanied by cost and time, helps to have a good market share. The share of labor cost in overall operational cost is significantly higher due to increased minimum wage laws and labor shortages in some regions that limit the growth of the market opportunities.

More frequent changes in consumer preferences towards food and drinking that include an increase in the health consciousness and change in economic conditions of consumers affecting the purchasing pattern contributing to the negative impact on the Food Services and Drinking Places Market as industries require continuous upgradation of services within a short time of period.

The Food Services and Drinking Places market has various regulatory challenges regarding food safety laws, health and safety regulations, and labor laws and norms. Changing according to these changes in regulations can lead to time-consuming and expensive that are hindering market expansion.

An unexpected pandemic would primarily affect the food industry, which can lead to a great loss for the market, where such loss has been observed during the recent COVID-19 pandemic and during economic recessions or inflations.

MARKET OPPORTUNITIES:

According to reports, many young people prefer jobs in Food Services and Drinking places. The upgrading nature and creativity of young people working in this industry help the Food Services and Drinking Places Market to have growth opportunities in the coming years. The rise in income and increased preference for dining out due to the increased interest in single-person living supported the demand for Food Services and Drinking Places Market. Apart from the increased spending of domestic consumers, blooming tourism also provides opportunities for the expansion of the market. The trend of going toward a convenient yet economical alternative to cooking at home provides a great scope for the market growth rate. For example, increase in demand for Coffee houses because of the demand for gourmet coffee and the need for a new place to hobnob. Changing lifestyles, rising populations, economic development, and rapid urbanization across the globe are promoting market growth. 

FOOD SERVICES AND DRINKING PLACES MARKET REPORT COVERAGE:

Market Segmentation

Food Services and Drinking Places Market - By Type:

• Restaurants and Mobile Food Services
• Bars and Cafes
• Catering Services
• Food Contractors   

Restaurants & Mobile Food Services and Bars & cafes contribute to a larger extent of share in this segmentation as their targeted customers are youth and middle age, groups. The youth account for 16% of the total world population, which helps in the surge of market demand.

Food Services and Drinking Places Market - By Ownership:

• Chain Market
• Standalone Market    

The chain markets have a good market share in the high-end pricing segment and highly developed countries where diversified services are available in such markets to meet different customer needs. Standalone markets are propelling in the economy segment and developing countries where most customers are from middle-income groups.

Food Services and Drinking Places Market - By Pricing:

• High-End
• Economy

In Food Services and Drinking Places, the market has demand for both high-end and economy pricing because the offering differs with the pricing. In the world of diversified customer preferences pricing segment plays a vital role in the growth of the market.

Food Services and Drinking Places Market - By Service:

• Online
• Offline

Advancements in technology and the availability of various sources for online services it is contributing a great share in Food Services and Drinking Places Market. The COVID-19 Pandemic has shifted the preference for dining from on-premises to off-premises due to increased conciseness of safety requirements.

Market Regional Analysis: 

The Global Food Services and Drinking Places Market Report includes the segmentation of regions:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Asia-Pacific and North American regions are expected to have a good market for Food Services and Drinking Place Market. In 2022, Asia-Pacific was the largest region in the food and beverage services market, followed by North America. Asia-Pacific is a largely populated region, and this region is undergoing rapid urbanization with the fastest-growing food services market in the world, mainly in countries like China, India, Japan, and South Korea, due to a larger consumer base. This led to driving demand for various segments of food services and drinking places market.

North America includes well-established food service sectors in countries like the United States and Canada. Attributes of this region are high demand for fast food, quick-service restaurants, casual dining establishments, and nightclubs are contributing to the market growth.

Countries in Europe like France, Italy, and Spain are known for their culinary culture and flourishing restaurant industry. It has a diverse and wide range of dining options in traditional cafes and bistros and high-end dining restaurants. 

COVID-19 Impact on the Food Services and Drinking Places Market:

The market faced inordinate changes due to the COVID-19 pandemic. It impacted changes in regulatory norms and increased safety measures globally that changed user preferences in the Food Services and Drinking Places market segmentation. Added new segments to the market, like cloud kitchens and ghost kitchens, which have only cooking and takeout services. Restrictions on people’s mobility and availability of man force for business have a serious impact on the market. The implementation of social distancing rules and stringent COVID-19 norms regarding safety measures has reduced the availability of the number of chefs and cooks in the industry, which reduced the market share. Disruptions in transportation and logistics caused a shortage of supply of raw materials has been a more pronounced impact on the decline in the meeting market demand for the market.

Market Key Players:

1. Compass Group plc
2. Starbucks
3. Sodexo
4. Aramark Corporation
5. McDonald's
6. Darden Restaurants
7. Yum China Holdings Inc.
8. Chipotle
9. Berkshire Hathaway Inc.
10. Subway

Among the top players, Coffee shop behemoth Starbucks has the largest coffee shop chain in the world, while McDonald’s is highest in ranking. In the North American region, Yum China Holdings, Inc. has accounted for the highest sale of any food service company in Asia.

Market Key Developments:

• In 2020, McDonald's installed digital self-order kiosks in its restaurants, and it formed McD Tech Labs, a Silicon Valley-based group with experts like engineers and data scientists to focus more on expanding food delivery and making tech-focused investments.