In-flight catering, airline food, or in-flight meals refers to providing food services during flights by airlines. Depending on the airline and travel class, the quality and quantity of these meals vary greatly. They can be as simple as a snack or drink in economy class for short-haul flights or as elaborate as a seven-course gourmet meal in first class for long-haul flights. The types of food available vary considerably from country to country and frequently incorporate regional cuisine, sometimes from both the country of origin and the country of destination. When domestic American ticket prices were regulated, airlines differentiated themselves primarily through food.
Due to COVID-19, there was a significant global drop in air travel in 2020, which had a knock-on effect on the demand for airlines and aviation-related businesses such as in-flight meals. According to the ICAO, there was a little recovery in global passenger traffic in 2021, with approximately 2.3 billion passengers globally, or 49% below pre-pandemic (2019) levels. This is an increase from the 60% decline observed in 2020.
Additional precautions were taken inside the culinary facilities to maintain strict quality controls in reaction to the beginning of COVID-19, hence reducing the possibility of contamination of food items onboard. These advancements aided the in-flight caterers' revenue recovery, supporting the sector's expansion by supplying the airlines.
Leading market participants are adopting cutting-edge production management classifications and systems to boost the efficacy and efficiency of processes and systems. IT management systems, inventory management systems, lean manufacturing, and just-in-time manufacturing are among the most essential tools catering companies use to enhance their offerings.
Air New Zealand, FlyDubai, and Japan Airlines offer food and beverage services with digital capabilities. The in-seat IFE system allows passengers to place orders with these businesses. Emirates has just issued flight attendants serving business class with meal-ordering devices. As a result, these factors are anticipated to create opportunities for market growth.
Asia-Pacific is the most significant global inflight catering market shareholder and is anticipated to exhibit a CAGR of 11.99% during the forecast period. The expansion of international travel and tourism, rapid urbanization, a rising standard of living to complement aspirational travel, and increased discretionary spending all contribute to regional growth. In addition, the number of airline operators in the region is anticipated to create significant growth opportunities for in-flight catering providers. Due to substantial increases in international air travel and tourism in developing nations such as China, India, and Vietnam, the region is anticipated to expand rapidly. An increase in the budget allocation for enhancing airport infrastructure and constructing new airports may also contribute to the expansion of the aviation industry over the next decade.
Europe is estimated to exhibit a CAGR of 7.94% over the forecast period. The regional market holds the second-largest market share for in-flight catering services. The German market for in-flight catering services held the largest market share, whereas the British market is growing fastest in Europe. The region has seen an increase in legacy carriers entering the low-cost market, which is anticipated to increase demand for catering services on low-cost flights. In the coming years, the increasing willingness of travelers to spend money on purchasing healthy and organic meals and the collaboration between airlines and food professionals with real-world experience are expected to generate significant growth opportunities. It is also anticipated that the presence of major airlines like Virgin Atlantic, British Airways, TUI Airways, Lufthansa, EasyJet UK, Eurowings, and Easyjet, which are expanding global connectivity by introducing new destinations, will result in the introduction of new menus onboard the aircraft.