North America Food Service Market

North America Food Service Market Size (2024 to 2029)

North America Food Service Market size is expected to be worth USD 1166.93 billion in 2024,to reach USD 1884.35 billion by 2029, growing at a CAGR of 10.06 % in forecast period 2024 to 2029.

There are a variety of catering firms that provide food services. Meal services, commonly known as the catering industry or business, provide packaged and real-time food service. Fast food/ quick-service restaurants, full-service restaurants, limited-service restaurants, and exceptional food service restaurants are all part of the food service business. The growth of the foodservice market has been spurred by the rise of reach the millennial working population, which has changed tastes for ready-to-eat foods and changed taste preferences, and the growing need for personalized and novel food options.

The growth of the food service market has been spurred by the rise of the millennial working population which has shifted towards ready-to-eat foods. Also, the changed taste preferences and the growing need for personalized and novel food options are driving the market growth. Moreover, the extensive growth of popular players and their standard products in the United States is propelling the industry forward. In addition, the advancements in digital technologies and the growing demand for home delivery services are currently shaping the market. Companies are partnering with food technology firms to enhance their offerings and serve customer needs.  

The food service market is driven by the changing customer demographics, technological advancements and the region’s economic progress. Also, the increased demand for convenience food and home delivery services is contributing to the expansion of the market share.  

The growing need for customization and novelty in meal menu choices. Customers have a wide range of options for customizing their meals based on their flavour, nutritional and financial decisions. Furthermore, eateries and restaurants have evolved as accessible venues for teens, families and working professionals to interact and chill, accelerating industry expansion. Moreover, the growth of e-commerce/online channels and on-the-go food services, packaging innovations, the advent of low-fat drinks, gluten-free items and other factors aid the industry's expansion. Additionally, elements such as an increase in the number of women in the workplace, a decrease in the practice of making home-cooked meals, high purchasing power and improved distribution networks are stimulating market expansion.  

The emergence of social districts is believed to provide potential opportunities for the North America food services market. Like, in Anoka (USA), the state regulatory authorities have designated a social district which is particularly included in the omnibus alcohol bill. The Shakopee and Stillwater have received approval to create this place via the commercial bill’s provision. The market is anticipated to expand further with this trend as it will offer new opportunities for industry players. Additionally, the Canada-United States-Mexico Agreement (CUSMA) holds more growth potential for the North America food services market due to preferential accessibility.  

The main problem impeding the expansion of the market is strict policies and rules. In addition, the complicated food service operations because of high dependence on technology, packaging and equipment are key problems in ensuring food safety, efficient manufacturing processes and nutritional quality. Coupled with, high energy costs and labour shortage the North America food service market is struggling to achieve persistent growth. Apart from this, other factors like agroterrorism and intentional contamination of food supplies owing to geopolitical issues and conflicts in other regions have decreased the market growth rate. For instance, the supply chain disruption of fertilizers for crop cultivation, wheat and other necessary item for the food service industry due to Ukraine-Russia war.  

The ban on the development of new drive-thrus will slow down the North American food service market growth rate. The United States has the most drive-thrus i.e. around 200k. For instance, it holds about 70 per cent of revenue for McDonald’s prominent chains. But, in recent times, multiple state authorities have proposed bills to prohibit the new drive-thrus. As per industry experts and urban planners, the model has flaws in modern cities. In the last few years, Minneapolis, New Jersey, Fair Haven, Missouri, Creve Coeur, Orchard Park, New York and other cities have already banned new ones. Further, it is part of countless traffic, congestion and accidents. This also hampers the community’s efforts to achieve ecological and livability targets.  

This Research Report on North America Food Service Market is segmented and sub segmented into following categories

North America Food Service Market By Type 

• Serving Equipment 

• Ware Washing Equipment 

• Storage & Handling Equipment 

• Cooking Equipment  

The largest share of the Food Service Market was held by the cooking equipment segment. This can be attributed to the need for energy efficiency and evolved customer choice for healthy food options and gourmet. So, consumers now have a variety of dining options because of the increased popularity of creative cooking and baking. As a result, restaurants are investing in various types of cooking equipment to deliver the best services to clients, which is driving the growth of the catering equipment market. Moreover, the industry’s increased focus is on minimal waste and sustainability shows the use of automation technology to solve manpower shortages. Furthermore, there is a growing integration of the Internet of Things (IoT) and artificial intelligence (AI) in cooking equipment. However, the high cost of the latest or most advanced systems is a major hurdle for small and medium-sized enterprises.  

North America Food Service Market By End-User 

• Catering 

• Quick Service Restaurants & Pubs 

• Full-Service Restaurants & Hotels  

The quick services and pubs segment held the most significant proportion of the food service market. The introduction of new technology for food preparation, storage and service for serving the consumer's need for unique and moderately priced items. The segment’s revenue has been surging considering in the last few years. Key players include Starbucks Corporation, Restaurant Brands International, KFC and Nestle SA.  Moreover, the rising consumption of domestic combinations of traditional cuisines with an attractive ambience and the growing food tourism are accelerating the expansion of independent restaurants in the region. Additionally, the shift in customer taste to more sustainable and traditional meat-sourcing companies has elevated the demand for non-vegetarian-based food items.  

North America Food Service Market By Region

• United States
• Canada

United States food service market is ruling with the dominant share from past few years owing to its large population, substantial presence of affluent customers and positive economic scenario. In addition, the US industry is dominated by chained food service franchises. On the other hand, limited-service restaurants (LSR) is the biggest category under consumer food service with marginally more than 50 per cent market share. In coming years, both food and beverages will expand though beverages will witness better performance. Additionally, the retail sales of food items continue to prevail with significant market share. However, the local industry’s growth has slowed down due to elevated food inflation and energy prices.   

Canada food service market is progressively growing forward and is expected to surge its industry value during the forecast period. Despite this upward trend, more than half of the food service companies and restaurants are running at a loss or break-even point. This can be linked to the current labour problems and high food prices. However, the country’s market is growing with 28 per cent of customers declaring coming out for dining for often than in 2022. The companies and restaurants have implemented loyalty programs which have helped them to retain the majority of consumers with 98 per cent utilizing loyalty points and rewards.  

KEY PLAYERS IN NORTH AMERICA FOOD SERVICE MARKET

Key Players in the North America Food Service Market are  Cambro Manufacturing Co. Inc, Duke Manufacturing Co. Inc, Comstock-Castle Stove Co., Inc, Alto-Shaam, Inc, Middleby Corporation, Welbilt, Inc, Ali Group S.r.l. a Socio Unico, Illinois Tool Works (ITW), Inc, Dover Corporation, Electrolux.

RECENT HAPPENINGS IN THE MARKET

• In June 2024, Pepper Lunch inked a contract for the opening of its latest restaurant in Tempa (Florida). It is projected to start operations by September 2024 and will provide a teppanyaki-style concept. Moreover, it is the first modern prototype design after the acquisition by Hot Palette America, a US company.  

• In June 2024, Bojangles collaborated with ezCater to introduce its official catering initiative in the United States. Bojangles is an American restaurant chain while ezCater is a food-for-work technology company. This will help the people choose food items from the menu, order catering-related products or services and book pickup or delivery online.