Foodservice in the US: Key market research findings
- The commercial segment accounts for a majority of the market’s revenue
- Key vendors – Aramark, Burger King, Compass Group, McDonald’s, Starbucks, and YUM! Brands
Technavio’s market research analysts predict the foodservice market in the US to grow at a CAGR of more than 3% between 2016 and 2020. The market’s growth can be accredited to the ongoing rise in the number of ethnic restaurants in the region. The US is an ethnically diverse country, with the population comprising of people from Hispanic, Black, and Asian origins. With healthier lifestyles and continued interest in ethnic foods and different cultures, there is an immense scope in the retail of ethnic foods and ingredients, as well as pre-prepared, healthy food products. The prominent ethnic food consumers in the US, combined with the high growth projections of visible minority populations is expected to propel growth in the market through the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the foodservice segments based on the product.
“Of late, there has been an increasing preference for healthy and gluten-free food among consumers. Due to the increasing prevalence of celiac disease and gluten intolerance among consumers, foodservice companies are incorporating healthy options like gluten-free food products in their menu. Companies such as Freshly are now delivering fresh and frozen gluten-free products to consumers directly. Besides, many staff and workers who are in offices and hospitals have demanded healthier menus from the food providers,” says Vijay Sarathi, Lead Analyst, Food & Beverages, Technavio Research.
By 2020, the commercial segment will account for almost 84% of the market’s revenue to continue its position as the key revenue generator in the foodservice market in the US. This segment includes restaurants, cafés, hotels and lodging, pubs, nightclubs and bars, takeaway, and other sub-segments that include travel and leisure hotels and retail hosts. The location plays a key role in the growth of the foodservice market in the US. High-end retailers are leveraging this trend to set-up small eat-outs in their retail spaces to attract customers. For instance, Barnes and Noble, a leading bookstore in the US, serves Starbucks coffee at most of its stores in the US.
The prominent players in the market include Aramark, Burger King, Compass Group, McDonald’s, Starbucks, and YUM! Brands. The foodservice market in the US is highly fragmented because of the presence of numerous small and large suppliers. These vendors compete on factors such as price, quality, innovation, service, reputation, distribution, and promotion to gain maximum market shares during the forecast period. The increasing level of competition in this market may lead to vendors reducing their product prices, which in turn could negatively impact their profit margins and market growth potential.
A more detailed analysis is available in the Technavio report, Foodservice Market in the US 2016-2020.
We can customize reports by other regions and specific segments upon request.
Other related reports:
