Food away from home Market Expected to Reach $5848.7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Food away from home Market," The food away from home market size was valued at $4.3 trillion in 2021, and is estimated to reach $5848.7 billion by 2031, growing at a CAGR of 2.3% from 2022 to 2031.

The rise in popularity of dining out culture has significantly propelled the growth of the global food away from home market demand in the past decade. The eating-out culture is the major factor behind the significant growth of quick-service restaurants and popular fast-food chains in developed and developing nations. Moreover, major companies or food brands are adopting creative marketing strategies with more emphasis on the menu that helps to attract customers. Further, cleanliness and hygiene are the major factors that further attract consumers to fast-food chains like McDonald’s, KFC, and Domino’s. Rise in disposable income and surge in penetration of fast-casual restaurants and quick-service restaurants in developing nations like India, China, Brazil, and Indonesia are expected to foster the food away from home market growth in the forthcoming years.

In addition, the market for food away from home is experiencing growth due to rise in popularity of various cuisines. People all around the world are now aware of other cuisines because of globalization and the free flow of information via the internet. Globally, Chinese and Thai cuisine has been very popular. In addition, over the past ten years, both developed and developing countries have seen a marked increase in the number of restaurants, cafes, bars, and food trucks around the world. For instance, in 2019 there were roughly 41,600 Subway locations globally. McDonald's, Starbucks, KFC, Pizza Hut, Restaurant Brands International, and Dunkin Donuts also had a considerable number of locations.

Globally, customers and food service businesses have adopted digital platforms and devices owing to the expansion of digital technologies. The number of ghost kitchens and cloud kitchens has increased due to the increased global adoption of several online food delivery platforms including Zomato, Swiggy, Grubhub, Doordash, Foodpanda, and Uber Eats. Due to the simplicity and convenience involved in receiving meals at their homes, millennials and Gen Z are the main users of online food delivery platforms. Online delivery platforms are becoming more popular as internet usage among the general public increases and smartphone adoption increases. According to the International Telecommunication Union (ITU), around 4.9 billion, or 63% of the global population had access to the internet in 2021. This meant that the number of internet users across the globe had increased by 17% since 2019. The rapidly growing internet user base is expected to boost the growth of cloud kitchens and online food delivery platforms, which will further boost the food away from home industry.

According to the food away from home market analysis, the market is segmented on the basis of delivery model, application, type of occasion, ownership type, and region. On the basis of delivery model, the market is segregated into dine in, take away, and home delivery. On the basis of application, it is divided into restaurants, schools and colleges, hotels and motels, retail stores and vending, and others. The restaurants segment is further fragmented into full-service restaurants and limited-service restaurants. Further, on the basis of type of occasion, the market is categorized into entertainment, travel, retail, and freestanding. By ownership type, the market is segmented into independent and chains. Region-wise, the food away from home market is analyzed across North America, Europe, Asia-Pacific, and LAMEA (Latin America, The Middle East, and Africa).

As per the food away from home market forecast, by delivery model, the dine-in segment dominated the market, garnering a market share of 70.4% in 2021. The fact that dine-in is the most popular and conventional delivery option worldwide accounts for a significant portion of this market segment's domination. Dine-in enables restaurants to provide their patrons with the best possible service, ambiance, and food while also facilitating satisfying visitor experiences.

As per the food away from home market trends, based on the application, the restaurants segment dominated the market in 2021, accounting for 73.5% of food away from home market share. This is largely attributable to the enormous penetration of full-service and limited-service restaurants around the world. The growth of the restaurant sector in the market has been greatly encouraged by the rise in popularity of the dining-out culture and the rising participation of women in the workforce.

By type of occasion, the market was dominated by the freestanding segment in 2021. The proliferation of fast-food restaurants, rising disposable income, rising urbanization, and rising acceptance of online meal delivery services among the populace are the primary factors expected to propel the standalone segment's growth in the near future.

By ownership type, the chains is expected to be the fastest-growing segment during the forecast period. This segment is expected to grow quickly, in part due to the increase in the number of fast-food restaurants in developing countries like China, India, Indonesia, and Vietnam. The altering dietary choices and lifestyles of consumers in developing nations have an impact on the growth of well-known restaurant chains in the global market for meals consumed away from home.

A major element in the rise of the FAFH market in Asia-Pacific is the increased demand for fast food items like burgers, sandwiches, and pizza among others in developing nations like China, India, and Australia. The primary reason for this is the region's evolving lifestyle. The industry is expanding as a result of a number of small and midsize food manufacturing companies increasing their investments in developing countries. The regional fast-food market is primarily being driven by the high population density, consumer tastes and preferences, and the growing number of fast-food restaurants and trucks.

Chipotle Mexican Grill, Sysco Corporation, Yum Brands, Inc., Darden Concepts, Inc., Restaurant Brands International, Inc., Zensho Holdings Co., Ltd., SSP Group Plc, Jubilant FoodWorks Limited, Burger King Corporation, Cloud Kitchens, Bid Corporation, Aramark, SATS Ltd., Compass Group PLC, and Sodexo are the major companies profiled in the food away from home (FAFH) market report. These manufacturers are constantly engaged in various developmental strategies such as partnerships, mergers, acquisitions, and new product launches to gain a competitive edge and exploit the prevailing food away from home market opportunity.

Key findings of the study 

• The global food away from home market size was valued at $4,266.3 billion in 2021 and is estimated to reach $5,848.7 billion by 2031, growing at a CAGR of 2.3% from 2022 to 2031.
• By delivery model, the home delivery segment is estimated to witness the fastest growth, registering a CAGR of 3.5% during the forecast period.
• By application, the restaurants segment was valued at $3,136.4 billion in 2021.
• By region, the U.S. was the most prominent market in North America in 2021 and is projected to reach $1,126.8 billion by 2031, growing at a CAGR of 1.9% during the forecast period.