Food And Beverage Services Market Definition And Segments
Food and beverage service refers to the activity of preparation, exhibiting, and serving meals and drinks to consumers. The forms and cuisines that make up food can vary greatly.
The main types of food and beverage services are restaurants and mobile food services, bars and cafes, catering services, and food contractors. Catering services is the business of providing food service at a remote location or at a specific location, such as a hotel, hospital, pub, airline, cruise ship, park, filming location or studio, entertainment location, or event venue. Chain markets and standalone markets own the services, and prices range from high-end to low-end. These services are provided through online and offline modes.
The food and beverage services market covered in this report is segmented –
1) By Type: Restaurants And Mobile Food Services, Bars And Cafes, Catering Services And Food Contractors
2) By Ownership: Chain Market, Standalone Market
3) By Pricing: High-End, Economy
3) By Service: Online, Offline
Subsegments Covered: Full-Service Restaurants, Limited-Service Restaurants, Cafeterias, Grill Buffets, And Buffets, Mobile Food Services, Snack And Nonalcoholic Beverage Bars, Drinking Places (Alcoholic Beverages), Food Service Contractors, Catering Services
The food and beverage services market size has grown strongly in recent years. It will grow from $3715.91 billion in 2023 to $3903.1 billion in 2024 at a compound annual growth rate (CAGR) of 5.0%. The growth in the historic period can be attributed to changing consumer preferences, economic trends, urbanization and lifestyle changes, globalization of food culture, regulatory changes.
The food and beverage services market size is expected to see strong growth in the next few years. It will grow to $4880.53 billion in 2028 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to sustainability practices, virtual and ghost kitchens, culinary innovation and fusion, health-conscious dining, cultural and local influences. Major trends in the forecast period include digitalization and contactless services, technology integration, digital ordering and delivery, rise of ghost kitchens, technology integration in restaurants, personalization and customization.
Digital Transformation Fuels Expansion In The Food And Beverage Services Industry
The food and beverage services market is expected to benefit from the rising digitalization of food services. Consumers are increasingly preferring to order food online for home delivery. For instance, according to KPMG, the average spend per person per year on food takeaways in the UK was $721 in 2021. Additionally, Nottingham claimed the title of the UK's takeaway hub, boasting an average expenditure of £1,097 per individual in 2021. Major companies providing food delivery services include Deliveroo, Just Eat, and Uber Eats. This trend is likely to continue in the forecast period and will drive the food and beverage services market going forward.
Growing Popularity Of Plant-Based Foods Boosts Food And Beverage Services Market
The growing popularity of plant-based foods is expected to propel the growth of the food and beverage services market going forward. Plant-based foods refer to food products that are primarily or entirely derived from plant sources, such as vegetables, fruits, grains, nuts, seeds, and legumes. Food and beverage services play an important role in the promotion, preparation, and distribution of plant-based foods. For instance, in February 2023, according to the Plant Based Foods Association, a US-based agency, retail sales of plant-based foods continued to increase, growing by 6.2% in 2021, which is a record year of growth, and bringing the total plant-based market value to an all-time high of $7.4 billion in revenue. Therefore, the growing popularity of plant-based foods is driving the growth of the food and beverage services market.
Major companies operating in the food and beverage services market report are JELD-WEN Inc., Georgia-Pacific LLC, Builders FirstSource Inc., LIXIL Group, Stora Enso Oyj, Weyerhaeuser Company, West Fraser Timber Co. Ltd., UFP Industries Inc., Universal Forest Products lnc., Boise Cascade Company, Celulosa Arauco y Constitución Company, Louisiana-Pacific Corporation, Resolute Forest Products Inc., UPM-Kymmene Corporation, Interfor Corporation, NCI Building Systems Inc., Metsä Group, Rayonier Advanced Materials lnc., Cavco Industries Inc., Norbord Inc., Western Forest Products Inc., Canfor Corporation, PotlatchDeltic Corporation, Cefla s.c., Nature Home Holding Company Limited, Sappi Limited, Roseburg Forest Products Co., Masonite International Corporation, Barberán S.A., Tolko Industries Ltd., Hampton Affiliates lnc., Conifex Timber Inc., Stella-Jones Inc., CanWel Building Materials Group Ltd.
Impact Of Pandemic On Market Growth
The outbreak of COVID-19 disease (COVID-19) has acted as a massive restraint on the food and beverage services market in 2020 as governments globally imposed restrictions on domestic and international travel, limiting the need for services offered by these establishments. COVID-19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China and has spread globally, including Western Europe, North America, and Asia. Steps by national governments to contain the transmission have resulted in a decline in economic activity with countries entering a state of "lock down." The outbreak has had a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the food and beverage services market will recover from the shock over the forecast period as it is a "black swan" event and not related to ongoing or fundamental weaknesses in the market or the global economy.
The Impact Of Modern Technology On Restaurant Sales And Customer Experience
Modernizing technologies in restaurants improves customer satisfaction, thereby boosting restaurant sales. Establishments in the industry are introducing self-ordering touchscreen kiosks, mobile apps for customizable orders and quick payment, and digital entertainment such as gaming. For instance, in April 2023, PepsiCo, a US-based food company, launched the Greenhouse Accelerator Program. The program aims to support emerging Hispanic-owned food and beverage small businesses. It identifies and uplifts emerging Hispanic-owned food and beverage start-ups. This is done by providing mentorship, funding, and other resources to help startups grow and succeed in the industry. The program selects ten finalists to participate in a six-month business mentoring program and receive a $20,000 grant to accelerate their businesses.
The Emergence Of Personalized Order Experiences In Food And Beverage Services Market
Major companies operating in the food and beverage services markets are increasing their focus on introducing personalized order experiences to sustain their position in the market. Personalized order experiences refer to the practice of tailoring the process by which customers place orders for products or services to their individual preferences and needs. For instance, in September 2022, Iris Software Inc., a US-based software company, launched its F&B Order and Pay solution. The solution includes a set of configurable modules that enable restaurants to offer their guests and staff an excellent digital experience. This platform offers various features that empower guests to order and pay for food and drinks, making the process quicker and more convenient for staff. With the platform, guests can easily browse, tap, order, and pay.
Asia-Pacific was the largest region in the food and beverage services market in 2023. North America was the second largest region in the food and beverage services market. The regions covered in the food and beverage services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the food and beverage services market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.
The food and beverage services market includes revenues earned by entities by providing meals, snacks, and beverages to customer order for immediate on-premises and off-premises consumption. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The food and beverage services market research report is one of a series of new reports from The Business Research Company that provides food and beverage services market statistics, including food and beverage services industry global market size, regional shares, competitors with a food and beverage services market share, detailed food and beverage services market segments, market trends and opportunities, and any further data you may need to thrive in the food and beverage services industry. This food and beverage services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.