July 19, 2024
Fast Food market

The rapid digitalization and technological innovations are anticipated to open up the new avenue for Fast Food market

The Fast Food Market is estimated to be valued at US$ 745.8 Billion in 2022 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The fast food market involves the sales of fast food products by entities (organizations, sole traders and partnerships) that provide fast food. Fast food is a type of mass-produced food that is prepared and served very quickly. The convenience offered by fast food, in terms of quick service, affordability, and taste, has been a key factor for its widespread popularity across both developed and developing countries. Hamburgers, chicken, pizza, and Mexican food (tacos, burritos, etc.) are some of the major fast food product categories.

Market Dynamics:

The fast food market is primarily driven by factors such as changing lifestyle and preferences of the population and increasing urbanization in developing countries. Urbanization has led to a significant increase in the working professional population with hectic schedules. This has increased the demand for quick-service and on-the-go food options such as fast food, thereby driving the market growth. In addition, increasing disposable incomes and purchasing power of consumers in developing regions are enabling them to spend more on food including fast food. Major fast food chains are innovating their menus by adding healthier food options such as salads, baked items, and low-calorie beverages to broaden their consumer base and drive market growth.

Segment Analysis

The global fast food market is dominated by burger/sandwich segment which holds more than 35% of the total market share. Burgers and sandwiches are very popular choices among the customers due to their affordability, convenience and tasty flavors. The segment is estimated to maintain its dominance over the forecast period owing to rapid expansion of key players like McDonald’s, Burger King, etc and introduction of affordable combo meal options.

PEST Analysis

Political: The fast food market is governed by various food safety and quality regulations set by regulatory bodies. Changes in political conditions related to health policies can impact the market.
Economic: Fast food being relatively affordable, the market often sees growth during economic crises as customers prefer cheaper food options. However, rising incomes also drive the demand for premium fast food experiences.
Social: Evolving customers preferences towards healthier, ethnic and customized food items pose challenges. Meanwhile, the trend of mobile apps and drive-thru continuing to attract customers.
Technological: Adoption of digital ordering platforms and apps by fast food chains have benefited their reach. Also, analytics help understand customer behavior and tweak offerings accordingly.

Key Takeaways

The Global Fast Food Market Size was valued at US$ 745.8 Billion in 2022 and is expected to witness high growth, exhibiting CAGR of 4.6% over the forecast period, due to increasing trend of online ordering and drive-thru among busy consumers.

Regionally, North America dominated the fast food market, accounting for over 35% share in 2022 led by presence of major market players. However, Asia Pacific is projected to witness fastest growth during the forecast period, driven by growing affordability, western influence and increasing number of fast food outlets.

Key players operating in the fast food market include Auntie Anne’s, INC, Cinnabon Franchisor SPV LLC, Domino’s Pizza, INC, Dunkin’ Brands Group, Inc, Hardee’s Restaurants LLC, Firehouse Restaurant Group, Inc, Jack in The Box INC., McDonald’s, Restaurant, Brands International Inc, INC, and YUM! BRANDS, INC. Major players are adopting strategies like product innovation, collaborations and acquisitions to strengthen their market position and cater to evolving customer demands.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it