Fast Food Market

According to Stratistics MRC, the Global Fast Food Market is accounted for $1,006.43 billion in 2022 and is expected to reach $1,601.51 billion by 2028 growing at a CAGR of 8.05% during the forecast period. Food produced and served at quick-service restaurants or by street vendors is referred to as fast food. It serves as a substitute for home-cooked food. In end-user businesses, including restaurants, hotels, and fast food outlets, quick food is widely used. They are typically prepared in bulk and rapidly served to clients according to their requirements. Fast food options include burgers and sandwiches, pizza and pasta, chicken, and seafood, as well as Asian and South American cuisine.

According to the Centers for Disease Control & Prevention, in the US, on an average, 36.6% adults consumed fast food during 2013–2016. Major players in the fast food market have an extensive product portfolio to cater to children, adults, and the geriatric population.



Market Dynamics:

Driver:

Changing consumer behaviour and higher spending on food

The growth of households with two or more people in the majority of regions and increased family income are the main factors driving consumers to eat out more. However, despite the continued popularity of well-known brands like Domino's, Pizza Hut, McDonald's, KFC, and Burger King, the rapid expansion of variety food service outlets is gaining popularity in both developed and developing regions around the world. International fast food firms are focusing on foreign markets as fast food becomes increasingly popular among millennials. The expansion of the millennial population, rising family incomes, increasing tourism, and changing consumer purchasing patterns are all contributing to the industry's growth.

Restraint:

Rapidly expanding geriatric population

Some of the major factors anticipated to impede market growth in the near future are the rapidly expanding geriatric population and the negative health effects of fast food. Moreover, people are migrating towards healthy eating habits in increasing numbers globally, which have led to an increase in the popularity of healthy food options. It is anticipated that this change in lifestyle may partially impede market expansion. However, rising food safety standards and legislation safeguarding wildlife, are anticipated to be major barriers for this industry. Nevertheless, it is anticipated that consumer health awareness, particularly obesity, may limit market expansion.

Opportunity:

Growing number of quick service restaurants in developing and developed countries

Convenience, which makes it possible to serve food quickly and in a short amount of time and appeals mostly to millennial consumers, is a key factor propelling this market. Consumer preference for prepared foods and fast food has altered the dynamics of the global market. Fast food is easier to prepare and consume, which contributes significantly to the rising demand for these products. Another element that will enable the market to thrive in the upcoming years is the rising disposable income of customers. According to the USDA, the number of quick-service restaurants in the United States increased by almost 20% during the previous ten years, from about 285,000 establishments in 2000 to over 340,000 in 2015. In comparison to the 20 percent national average, quick-service restaurant growth in many urban counties during the period 2000–15 exceeded 30%, particularly in the Mid-Atlantic, Southeast, and rapidly urbanising counties in the Western states.

Threat:

Increasing awareness among consumers about health issues

Even while ready-to-eat Snacks are a common type of food eaten away from home; they have fewer nutrients, fibre, and water than natural foods and are higher in calories. A rising tendency in increased junk food intake is attributed to higher income levels, the move towards rapid urbanisation, home deliveries, aggressive, attention-grabbing advertising, and international cuisines. Young adults' increasing reliance on fast food raises concerns since it encourages high fat consumption, which raises the risk of obesity and the chronic diseases associated with it.

Covid-19 Impact:

Due to the increased number of cases and concern over acquiring the infection via food, the COVID-19 pandemic had a negative impact on the food industry. Early on in the epidemic, supply-chain disruptions and labour shortages had an influence on the demand for fast food. About 7 million Americans lost their jobs in June 2020, according to the National Restaurant Association. Also, increased consumer knowledge of the benefits of eating healthy foods had an impact on the expansion of the industry during the pandemic. Due to an increase in fast food franchises and rising demand for online meal deliveries, the market is anticipated to regain its demand after the pandemic.

The burgers & sandwich segment is expected to be the largest during the forecast period

Due to the popularity of burgers and sandwiches among all age groups, the burger and sandwich restaurant segment will continue to dominate the market during the forecasted period. Burgers and sandwiches also cost less than pizza and pasta. One of the most well-known fast food franchises is McDonald's. In 119 nations throughout the world, it has company-operated restaurants, franchised restaurants, and authorised affiliates.

The food delivery services segment is expected to have the highest CAGR during the forecast period

Over the projection period, food delivery services are expected to develop at a robust pace. The introduction of new delivery services into the food sector in recent years has altered the way that food is ordered and distributed. The primary driver of the expansion of the food delivery sector is the accessibility of the internet. Furthermore, quick-service restaurants and food chains are actively promoting market expansion with their advertising and marketing activities.

Region with largest share:

North America commanded the largest revenue share on the global market, and it is anticipated that it will continue to do so throughout the projected period. This area's dominance can be attributed to the rise of homes with two wage earners, rising household income levels, and the rapid spread of fast food franchises. Due to Americans eating out almost every day of the week, the United States is the largest market for the snack food sector. Mexico, meanwhile, is anticipated to bring in the most money due to changing lifestyles, a huge population of younger people, and an expanding tourism industry.

Region with highest CAGR:

Due to the increasing number of tourists, the Europe region will see the highest development in this market throughout the projection period. Consumer spending on fast food and shifting consumer preferences will both contribute to growth. Additionally, because of hectic lifestyles, the popularity of ready-to-make breakfast products is also rising. A market with significant growth potential for baked goods and potato products is Europe, one of the most attractive regions in the world.



Key players in the market

Some of the key players in Fast Food market include Auntie Anne’s Inc, Burger King, Chipotle Mexican Grill, Cinnabon Franchisor SPV LLC, CKE Restaurants Holdings Inc., Doctor’s Associate Inc, Domino's, Dunkin, Firehouse Restaurant Group , Inc, Hardee's Restaurants Llc , Inspire Brands Inc, Jack in the Box Inc., KFC, Little Caesars, McDonald's, Papa John's, Pizza Hut, Restaurant Brands International Inc, Taco Bell, Fujian Food Co., Ltd, Wendy's and Yum! Brands, Inc.

Key Developments:

In October 2021, Burger King expanded its U.S. menu with the plant-based “Impossible Nuggets” and the nationwide LTO release of Ghost Pepper Nuggets.

In September 2021, Papa John’s International signed a domestic franchisee development agreement in the U.S. with franchisee operator Sun Holdings in the U.S. According to the terms of the agreement, Sun Holdings will open 100 new stores across Texas by 2029.

Food Items Covered:
• Pizza & Pasta
• Asian & Latin American Food
• Burger & Sandwich
• Seafood
• Noodles
• Manchuria
• Fried Rice
• Hamburger
• Muffin
• Donuts
• Onion Rings
• French Fries
• Torta Banana
• McPollo Italiano
• Paneer 65
• Chilly Paneer
• Paneer Majestic
• Other Food Items

Service Types Covered:
• Delivery & Take Away
• On-Premise
• Online Food Delivery
• Food Delivery Services
• Street Vendors
• Eat-In
• Home Delivery
• Other Service Types

End Users Covered:
• Fast Casual Restaurants
• Quick Service Restaurants
• Caterings
• Full Service Restaurants
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances