Global Fast Food Market Size (2024 - 2030)

The Global Fast-food Market size is valued at USD 677.94 billion in 2023 and is projected to reach USD 930.02 billion by 2030. This market is anticipated to witness a CAGR of 4.62% from 2024 - 2030. The increased demand for quick and cost-effective food, a shift in consumer food preferences, the rapid expansion of fast-food chains, growing disposable income, the rise of food delivery apps, and the implementation of innovative production strategies are some factors majorly driving the market growth.

Industry Overview:

Fast food refers to foods that are mass-produced to be served quickly. These pre-cooked meals, such as burgers and pizzas, provided consumers with quickness and flavor. Fast food is extremely popular among people of all ages today, as fast-food establishments can be found almost anywhere and offer a diverse menu to satisfy most tastes. Fast food businesses provide takeout and drive-through services along with dining in. Furthermore, with the introduction of the internet, people are increasingly using food delivery applications to place orders from big delivery restaurants such as Pizza Hut, Domino's, and McDonald's, among others. Prominent fast food companies such as McDonald's, Burger King, Taco Bell, Wendy's, Jack in the Box, White Castle, KFC, and others have been rapidly developing and evolving since the 1920s. More health-conscious fast-food chains, such as BurgerFi, Chipotle, Pita Pit, and others have developed in recent years, offering meals made with fewer pesticides, hormone- and antibiotic-free ingredients, and served in recyclable take-out containers. In its business strategy, the fast food and quick service restaurant industry have changed to accommodate evolving client needs. Third-party delivery services, such as Foodler, Grubhub, etc. have boosted the delivery trend by offering the convenience of delivering food at odd hours. As a result, clients who choose to eat at home contribute a significant portion of the fast food and quick service restaurant industry's revenue. The rise in disposable income and the food industry's rapid urbanization are the main drivers of market growth. A major aspect fueling the market's rise is the convenience and affordability of fast food. The rapid adoption of the Western way of life has significantly improved the prospects for developing markets. Product advancements, rapid worldwide expansion, and enhancements to the dining experience have all helped global suppliers reach out to new customers. The global market is projected to grow rapidly with massive investments by major operators.

COVID-19 pandemic impact on the Fast Food Market

The food and restaurant industries have been badly hit by the COVID-19 outbreak. Consumer spending had dwindled, and supply chain disruptions had wreaked havoc on the industry. Nationwide lockout and shutdown resulted in an 80% reduction in restaurant dining. Food pickup choices from restaurants were imposed as a result of social separation. A decrease in consumer spending and supply chain disruptions significantly impacted the sector. Many fast-food restaurants introduced delivery services and meal packages during the pandemic, which increased the demand for fast food. The market is likely to restore its demand following the pandemic with an increase in the number of fast-food franchises and increased demand for online meal deliveries, Furthermore, the market expansion is aided by an increase in the working population.

MARKET DRIVERS:

The rise of food delivery apps and the implementation of innovative production strategies are likely to boost the growth of the global fast-food industry

With the outbreak of the Covid-19 pandemic, consumer demand has turned to online channels such as meal delivery applications. With the statewide lockdowns and social distancing conventions, consumers increasingly used food delivery applications such as Ubereats and GrubHub, among others. These delivery applications aid in the reduction of brick-and-mortar restaurant upkeep expenditures. Furthermore, rising investments by top manufacturers in the development of innovative items to entice consumers are a big role in the increased consumption of fast food.

Integration of technology in the fast-food industry is offering huge growth potential

Technology has also played an important part in the market's expansion. Many other technologies, such as touchscreen point-of-sale terminals, kitchen-display screens, and self-order kiosks are assisting in the restructuring of industry operations. In numerous restaurants, the number of self-order kiosks has been increasing. These contribute to exceeding diners' expectations by providing a superior digital experience and user-friendly interfaces. Furthermore, by allowing multiple evaluations and customizations, these provide buyers with a quick and easy way to be choosy about their orders. Aside from serving consumers, kiosks also aid in improving average check size and order volume, as well as decreasing lines.

The increased demand for quick and cost-effective food, a shift in consumer food preferences, the rapid expansion of fast-food chains, and growing disposable income are the major drivers of the industry

The growth of the fast-food market is aided by an increase in the number of restaurants and motels. In the worldwide fast-food business, rising disposable income is the main growth driver. The worldwide fast-food business is being driven by a significant increase in the middle-class population's economic prosperity and an expanding population, particularly among the young working population. A recent trend observed in the target market is increasing consumer preference for online shopping and e-commerce activities, which is likely to propel the growth of the global fast-food market owing to the easy availability of various products and brands, easy accessibility, and affordability. Furthermore, changing customer needs and the introduction of new product variations and flavors are likely to present producers with profitable expansion opportunities. The addition of unprocessed dairy, hormone-free meat, organic veggies, and natural ingredients to fast-food menus has also aided the growth of these markets. Such developments have shown to be significant for growth, with altered consumer fast food preferences and more openness in fast-food chain operations.

MARKET RESTRAINTS:

Rising competition among different fast-food chains and regulatory requirements can be a challenge

The fast-food business is highly competitive, and the level of competition among competitors only grows as expansion strategies are implemented. Each brand in this industry is working hard to set itself apart from the competition, which only adds to the amount of competition and rivalry already there. Additionally, regulatory standards such as FSSAI rules all contribute to ensuring that customers are provided with safe consumable products. Following specific guidelines assists the FBO in attracting more customers, improving quality, and providing room for progress. Constant changes in regulatory regulations take time, thus remaining current becomes a huge challenge for business owners.

Growing health consciousness among people and the shift to healthier lifestyles may hinder the development of the fast-food industry

Consumption of fast food in large amounts can cause a variety of illnesses, including a rise in body obesity, digestive issues, heart diseases, and other medical issues. Fast food's unsaturated fat content and the resulting health conditions can limit the market expansion. Food safety regulations that aren't up to par hinder growth. Also, the market size is hampered by the improvement of animal safety regulations. Increasing health awareness among people regarding the harmful effects of consuming food high in cholesterol, high-calorie and unhealthy foods is restricting market expansion.

FAST FOOD MARKET REPORT COVERAGE:

Fast Food Market – By Product Type

• Pizza/Pasta

• Burger/Sandwich

• Asian/Latin American Food

• Chicken

• Seafood

• Others

Based on Product Type, the Fast Food Market is categorized into Pizza/Pasta, Burger/Sandwich, Asian/Latin American Food, Chicken, Seafood, and Others. The Burgers/Sandwich segment accounted for the largest revenue share of more than 42% in 2021 owing to the high product demand. The wide availability of burger options, which include goods with protein options such as beef, venison, and several others, is related to the increased demand for burgers/sandwiches. Moreover, numerous food-service providers are experimenting with various cheese, onion, meatloaf, bacon, and other ingredients. Subway released additional Italian fillings and sandwich topping options in 2021. Furthermore, according to the United States Department of Agriculture (USDA), Americans consume nearly 50 billion burgers each year. Additionally, new burger/sandwich product launches are likely to contribute significantly to the growth of the burger/sandwich market sector, owing to increasing investment in food processing R&D, as well as a strong distribution network of fast food items and high-shelf life of fast food.

The Asian/Latin American Food segment is poised to grow at the quickest rate during the forecast period. Asian/Latin American food has become a popular fast food among consumers owing to the tastes and ingredients used in it. The growth of this segment is being fueled by rising demand for a variety of food products. The demand for Mexican food in the United States is being driven by an increase in the Hispanic population.

Fast Food Market – By End User

• Quick Service Restaurants

• Fast Casual Restaurants

• Caterings

• Others

Based on End-User, the Fast Food Market is categorized into Quick Service Restaurants, Fast Casual Restaurants, Caterings, and Others. The Quick Service Restaurants segment is dominating in the market, with a 42.59% share in the global fast-food market, and is likely to retain its dominance over the forecast period. Consumers prefer quick-service restaurants to sit-down eateries. The need for fast service restaurants is growing in response to the growing desire for fresh, appealing, and tasty food at an accessible price. Furthermore, keeping the healthy and natural ingredients while preserving the taste helps to develop the market. To meet the increased demand of customers, quick-service restaurants produce processed food in volume. Furthermore, increased internet penetration and easy access to smartphones have led to more online purchases. As a result, some fast-food chains are turning to ward internet portals to improve online meal ordering for these fast-food chains, which would help the quick service restaurant market flourish.

The Fast Casual Restaurant segment is anticipated to increase rapidly. Customers can enjoy freshly prepared, high-quality meals in a relaxing setting with counter service to keep things moving along swiftly. Fast-casual restaurants, which are largely found in the United States and Canada, do not offer full table service but instead emphasize high-quality meals made with fewer processed or frozen components than fast-food restaurants. It's a combination of quick food and casual dining.

Fast Food Market - By Region:

• North America

• Europe

• Asia-Pacific

• Rest of the World

Geographically, the North American Fast Food Market accounted for the maximum share of the global market. The North American fast food market is witnessing a shift in consumption patterns, with high demand for fast foods with healthy ingredients and low cholesterol among health-conscious consumers. The rapid expansion of fast-food chains coupled with the popularity of fast foods in the region, busy lifestyles, and the growing disposable income are some factors contributing to the growth of fast-food restaurants in the region. Factors such as a variety of fast food, budget-friendly snacks, add-ons in various flavors, and specialized menus to cater to the growing market trends, such as veganism, are likely to drive the market growth. Furthermore, the presence of key market participants in the region, as well as the resulting high investments in the fast-food industry, is a major driver of market expansion.

The European Fast Food Market accounts for a significant share of the global market, owing to a busy lifestyle, shifting consumer fast food preferences,  and high demand for convenient restaurant food. The introduction of unprocessed dairy, organic vegetables, hormone-free meat, and natural components to fast food menus has contributed to the maturing of these sectors.

Asia-Pacific Fast Food Market is anticipated to register the fastest growth rate during the forecast period. Emerging counties in the Asia-Pacific region are enticing manufacturers from all over the world to invest, and this feature is proving to be a market booster for the fast-food industry. Local and international fast-food restaurant businesses have a strong presence in the region. McDonald's, Burger King, and KFC are among the region's most popular American restaurant chains. The demand for fast food in the region is being driven by changing consumer preferences, an increase in disposable income, the rising influence of food delivery apps, and the presence of a huge customer base.

The Fast Food Market in Latin America, the Middle East, and Africa are poised to grow at a rapid pace during the forecast period. Demographics, urbanization, and the rapid adoption of the western lifestyle have all helped to brighten the prospects for developing markets.

Major Key Players in the Market

1. Auntie Anne's, INC

2. Cinnabon Franchisor SPV LLC

3. Domino's Pizza, INC

4. Dunkin' Brands Group, Inc

5. Hardee's Restaurants LLC

6. Firehouse Restaurant Group, Inc

7. Pizza Hut

8. Subway

9. Jack in The Box INC.

10. McDonald's

11. Burger King

12. KFC, Restaurant Brands International Inc, 

13. YUM! BRANDS, INC

Market participants have used a variety of development tactics to extend their fast food market share, boost profitability, and stay competitive in the industry. The major players in the fast-food market have extensive global distribution networks. To accommodate evolving consumer demands, companies in the industry are updating their menus and services. Furthermore, an increase in the number of quick-service restaurants in the market is aiding sales. McDonald's is pushing and spending more on media and relationships with content providers to broaden its global reach.

Papa John's International, Inc. has refranchised its majority ownership in a joint venture with Blue and Silver Ventures, Ltd. Sun Holdings, a leading multi-brand franchisee operator and one of Papa John's top domestic franchise partners, has taken over 90 Papa John's locations in Texas. Blue and Silver Ventures is still a limited partner in the venture, with the same ownership stake as before.

Notable happenings in the Global fast-food Market in the recent past:

• Product Launch- In March 2022, Smashburger, the burger joint, unveiled a new menu that will be available across the United States. Two new dishes have been added to the redesigned fast-food menu: Scorchin' Hot Chicken Tenders and Adult Chicken Tenders. These chicken products, which are inspired by the rising success of the Scorchin' Hot Crispy Chicken Sandwich, will be served in 3-piece and 5-piece sizes and will be constructed entirely of white, crispy flesh chicken with the customer's choice of sauce – Ranch, Honey Mustard, or BBQ.

• Expansion- In March 2022, Jack in the Box announced its plans to grow its operations in the United States by building 98 more outlets. In addition to the Jack in the Box outlets already open, the additional locations represent the brand's highest level of expansion ever.

• Partnership- In February 2021, Beyond Meat, Inc. announced a global strategic agreement with Yum! Brands to co-create and supply plant-based protein menu items that will be available exclusively at Pizza Hut, KFC, and Taco Bell for the next several years. Beyond Meat® and Yum! Brands plan to use their industry-leading research and development skills to keep up with the changing tastes of today's and tomorrow's consumers.

• Partnership- In October 2021, McDonald’s entered a strategic partnership with IBM for the development of AI technology that will enable the fast-food company to automate its drive-thru lanes.

• Acquisition-  In December 2021, Jack in the Box Inc., one of the nation's largest QSR chains, and Del Taco Restaurants, Inc., the nation's second-largest Mexican QSR chain by the number of restaurants, announced a definitive agreement under which Jack in the Box will acquire Del Taco for USD 12.51 per share in cash in a transaction valued at around USD 575 million, including existing debt.

• Product Launch- In October 2020, Dunkin' Donuts, announced the launch of a fiery ghost pepper-flavored donut, which is said to be the first of its type.

• Product Launch- In December 2020, Domino's Pizza launched 'The Unthinkable Pizza,' India's first plant protein-based product. The Unthinkable Pizza is a vegan pizza made completely of plant-based proteins that has sensory attributes similar to chicken.