III. Industry Analysis

Due to the growing working millennial population, commercial facilities like cafés and restaurants have become more popular as places to socialize while enjoying new and creative meals. The adoption of a fast lifestyle and the elimination of home cooking from family activities have raised the demand for non-traditional ready-to-eat foods. The blending of various ingredients with various flavors has also increased demand for the food services sector. The growth of the food service market has been greatly accelerated by the rise in the number of food dishes and the increased adoption of newer and diverse meal menus mixed with the development of home delivery features.  

The global fast food and quick service restaurant market reached a value of $260 billion in 2020. The market is expected to grow at a CAGR of 5.1% during 2021-2026. The global foodservice market is projected to grow from $2,540.05 billion in 2022 to $5,194.60 billion by 2029, at a CAGR of 10.76% in the forecast period.
The growth of the food service industry has been spurred by the increase in the working population of millennials, who have shifting tastes and changing preferences for ready-to-eat items coupled with the growing need for customized and newer food options. According to the National Restaurant Association forecast, restaurant industry sales in 2020 were $659 billion. It is projected that sales will hit a whopping $899 billion in 2021.
With the economic downturn, restaurants are attempting to provide their customers with a better value for their money in addition to making operational improvements to help reduce costs. Around 36 percent of quick-service operators and 16 percent of casual-dining operators are seeing the demand for value as the year’s top trend in their segment.