Insight company, Research and Markets, has released a new report looking at the impact of COVID-19 on the industry while mapping out their take on how the industry will trend through 2027 when, according to the report, the Global Fast Food Market will reach US$ 884.56 Billion.
The Asia-Pacific region is predicted to experience the highest growth “mainly due to increased urbanization, rise in disposable income and demand for the western lifestyle.”
The global food industry has changed and developed over the decades to satisfy customer needs and consumer behaviour. Hence, fast food has found its roots in developed and developing economies with the evolution of time, which is mainly accepted based on its quick availability and taste factor. Moreover, the global vendors have successfully reached out to new consumers through product innovations, quick-fire international expansion, and improvements in the dining experience.
Among the emerging economies in the Asia-Pacific, China and India dominate in fast food consumption, owing to their massive population base and growth in the number of QSRs such as McDonald’s, Burger King, Wendy’s, Subway, and Dunkin’ Donuts.
Additionally, the global fast-food industry is defined by a complex arrangement of activities involving supply, consumption and delivery of food products across the globe. The market revolves around burgers/sandwiches, pizza/pasta, chicken, Asian/Latin American food, and seafood based on the type. Amongst which Asian/Latin American food has been the most preferred fast food among consumers, due to its flavours and ingredients added in the products.
However, the burger/sandwich attributed to increased consumer demand for taste and preferences is anticipated to advance at a tremendous rate during the forecast of the fast-food market.
Impact of COVID-19
By the end of the year 2019, due to the novel coronavirus outbreak, most consumers had started avoiding fast food to maintain careful measures. Furthermore, the operational disruptions in the hotel and food & beverages industry, and disruption in the supply chain due to the COVID-19 outbreak, have impacted the fast-food market in terms of revenue. Nevertheless, the sale is anticipated to rebound promptly in the near future.
End-User – Quick service Restaurants are the most Favoured by Consumers
Furthermore, end-users divide the fast-food market into food-service restaurants, quick-service restaurants, and catering. Quick service restaurants are the most favoured by consumers, with the increasing demand for fresh, tasty, and appealing food at affordable cost. Hence, the need for quick service restaurants is increasing. Retaining healthy and natural ingredients along with maintaining the taste also boosts the quick service restaurants market growth. As per the analysis, the Global Fast Food Industry is expected to expand at a CAGR of 7.35% from 2020-2027.
Region-wise – China and India dominate in Fast Food Consumption
The Worldwide Fast Food Market is analyzed across North America, Europe, Asia-Pacific, Middle East & Africa, and South America in this report. As per the analysis, the Asia-Pacific region is foreseen to experience high growth mainly due to increased urbanization, rise in disposable income and demand for the western lifestyle. Among the emerging economies in the Asia-Pacific, China and India dominate in fast food consumption, owing to their massive population base and growth in the number of QSRs such as McDonald’s, Burger King, Wendy’s, Subway, and Dunkin’ Donuts.
Notwithstanding, North America attributes the high consumption of fast food in the U.S., Canada, and Mexico. Consumers in the region are attracted by fast food with new flavours, textures, and higher nutrition. Furthermore, North America, owing to a rise in disposable income, the consumers’ busy lifestyle, and growth in the working women population is supporting the fast-food market. Also, in the COVID-19 era, digital payment is helping the fast-food market to expand with the help of contactless delivery options across the globe.
In addition, significant growth in fast food chains in Brazil and the rest of South America is presumed to strengthen the development of the fast-food market during the outlook period. Furthermore, South American food opened the market with bold flavours. The Middle East and Africa are likely to show sustainable growth with better living standards and discretionary incomes. As per this research study, Worldwide Fast Food Market Size was valued at US$ 538.34 Billion in 2020.
Key Players Analysis
The companies profiled in this report include Starbucks Corp., Papa John’s International Inc., Domino’s Pizza Inc., The Wendys Co.mino’s Pizza Inc, The Performance Food Group. The players in the fast-food industry have embraced new product launches and business augmentation as their vital developmental tactics to expand their market share, increase profitability, and remain competitive in the Global Fast Food Market. For instance, Starbucks came up with the ‘Future Drive-Thru Concept’, and Wendy’s also launched Spiced-Up Breakfast in January 2021 to augment their market for fast food.
For more information about the report go here.