Latin America Fast Food Market

Latin America Fast Food Market Size (2024 to 2032)

The fast food market size in Latin America is estimated to be worth USD 86.25 billion by 2032 from USD 58.59 billion in 2024, growing at a CAGR of 4.95% from 2024 to 2032.

The increasing prominence of quick and tasty eating habits among people due to busy lifestyles is a major factor in the growth of the Latin American market. Recently, women have also been participating in the workplace, where their time to cook food at home is less. Therefore, many people are habituated to eating food in hotels or restaurants.

• According to the International Labour Organization, 48% of women in Latin America participated in the workplace in 2023.

Increasing disposable income and the rising popularity of the fast food centers that are easily available in the streets and more convenient even for the middle-class economy people are sole to promote the growth rate of the market in Latin America. Fast food does not cost much and is more convenient to cook in less time. College students, working-class people, and others generally prefer fast food as a time-saving factor. They usually prefer tasty and healthy food that can be prepared in less time without much effort in cooking.

Though the number of people eating fast food is growing, the rising awareness of the negative effects as they are less in nutrient value results in type 2 diabetes and various diseases. This negative effect of eating fast food regularly is impeding the growth rate of the Latin American fast food market.

• In 2022, according to survey reports, approximately 14.1 million adults suffered from diabetes only in Mexico. These statistics show that nearly 17% of the population in Mexico is suffering from diabetes.

These statistics show that the awareness to eat a healthy diet rather than fast food is subsequently to limit the growth rate of the Latin American fast food market.

The penetration of e-commerce platforms in delivering food products to the doorstep is greatly influencing the growth rate of the Latin American fast food market. In urban cities, online food delivery is becoming more popular these days, which is raising the demand for food supply. The rising number of smartphone users is also one of the common factors for the growing demand for the use of online food delivery applications. Smartphone users can easily install the food application and order their food products according to their interests.

• According to the statistics, Rappi was Mexico's most popular food delivery app. Roughly 6.3 million people downloaded the Rappi app on their mobile phones, which showed drastic demand for fast food in 2023.

Stringent rules and regulations by the government to approve ready-to-eat food products that are made with ingredients that are quite harmful are acting as a barrier for key players in the Latin American fast food market. The world is worst affected by the emergence of COVID-19, where supply chain disruptions erupted at huge levels that constantly varied the cost of the final products. The low-economy countries suffered from the crisis due to these tough times that proportionally degraded the growth rate of the fast-food market in Latin America. The lack of skilled workers in hotels and restaurants due to the economic crisis also causes a slow decline in the market's growth rate.

SEGMENTAL ANALYSIS

This research report on the Latin American fast food market has been segmented and sub-segmented based on the following categories.

Latin America Fast Food Market By Type

• Burgers & Sandwiches
• Pizzas & Pasta
• Asian/Latin American Food
• Chicken/Seafood

The burgers & sandwiches segment is likely to hold the largest share of the market, whereas the pizzas & pasta segment is likely to grow at a faster rate during the forecast period. Burgers and sandwiches are becoming a staple food in Latin America, and many people are commonly opting for these foods in their regular diet options. Pizzas and pasta are also gaining popularity, with many top companies launching innovative flavors to attract consumers.

The launch of innovative pizzas in Argentina, which is its own recipe, is expected to gear up the new opportunities for pizza & pasta in Latin America.

Latin America Fast Food Market By Distribution Platform

• Quick Service Restaurant (QSR)
• Street Vendors
• Food Delivery Services
• Online Food Delivery

The quick-service restaurant segment is gaining huge traction in the growth rate of the Latin American fast food market. Street vendors segment is likely to hit the highest CAGR by the end of 2029. Recently, online food delivery applications have gained huge popularity as many people rely on online applications to order their preferred food. The launch of many McDonald's restaurants in Mexico and Argentina has substantially elevated the market's growth rate. MC Donald offers various offers to online customers that statistically surge the growth rate of the online food delivery segment during the forecast period.

COUNTRY-LEVEL ANALYSIS

Top key companies are focusing on launching innovative food options that deliver healthy products using prominent raw materials. Launching innovative fast-food options based on consumer preference and healthy ingredients is anticipated to showcase huge opportunities for the growth rate of the Latin American fast-food market. Mexico has been led with the dominant share of the market for the past few years and is likely to gain a huge growth rate in the coming years as well. Growing per capita income and rising expenditure on innovative fast food products that are newly launched among people in Mexico substantially show the huge growth rate of the Latin American fast food market. Mexican cuisine is becoming popular worldwide these days. The launch of these recipes, especially by companies like McDonald's and others, is certainly meant to leverage the market's growth rate. MC Donald's recent launch is Crocs Happy Meal, which is affordable for common people and will enhance the growth rate of fast food.

The fast food market in Argentina is likely to have a steady pace throughout the forecast period. An increasing number of top companies and rising people's interest in ready food products due to lack of time to cook are anticipated to promote the market's growth rate. The demand for the value combo meals is most popular in Latin America, which drives the growth rate of the fast food market.

LIST OF KEY PLAYERS IN THE LATIN AMERICA FAST FOOD MARKET

Companies playing a major role in the Latin American fast food market include Domino's Pizza, Burger King, KFC, Subway, Dunkin' Donuts, McDonald's, Hardee's, Pizza Hut, Firehouse Subs and Auntie Anne's.

RECENT HAPPENINGS IN THE MARKET

• In March 2024, MC Donald and Formula One partnered together in Latin America. The iconic leader in fast food brands in Latin America, MC Donalds, is likely to deliver their fast food products in collaboration with Formula One from here on. This company is committed to delivering high-quality products for the fan base of Formula One from here on across the Latin American region.
• In August 2018, McDonald's introduced its new application for the advancements and made individuals utilize the application. It is parting with McDonald's gold cards as a piece of the battle.
• In August 2018, CNBC confirmed that Subway has the most areas around the globe, around 43000 out of 2017.
• In August 2018, Burger King began selling many soft drinks that are making acceptable benefits from the beginning of the day.