Fast Food Market

Market Overview

The global fast food market size was valued at USD 772.04 billion in 2023. It is projected to reach USD 1186.44 billion by 2032, growing at a CAGR of 4.89% during the forecast period (2024-2032). 

The fast food category of food products is specifically and intentionally prepared to save time and allow quick serving. Burgers & sandwiches, pizzas & pasta, Chinese food, and fried chicken are some common types of fast foods served around the globe. The types of fast food and ingredients used for the preparation of fast food generally differ from country to country. According to the Centers for Disease Control & Prevention, in the U.S., on average, 36.6% of adults consumed fast food during 2013–2016. A study published in 2021 showed U.S. adults consumed an average of 4.8 junk food items every day. The fast pace of life, rapidly changing work life, and changing eating habits & tastes of a new generation are some of the other factors supporting fast food market growth. Apart from this, the increasing number of food chain stores around the globe is a key factor expected to positively influence the market growth during the forecast period.

Market Dynamics

What are the primary factors driving the market for Fast Food?

Improving Standard of Living and Change in Consumer Behavior

Rising family income and the change in consumer behavior are the primary factors driving consumers to dine out more in the majority of regions. In addition, the rapid expansion of various food service outlets is gaining popularity in developed and developing markets around the world, despite the continued popularity of well-known brands such as Domino's, Pizza Hut, McDonald's, KFC, and Burger King. With the rapid rise in the popularity of fast food among young people, global fast-food chains are currently considering overseas markets. The consumption of fast food is on the rise due to its convenience, affordability, menu variety, and flavor. Increasing foreign investment, rising household incomes, an expanding population of millennials, a rise in tourism, and shifting consumer consumption patterns all contribute to the expansion of the industry.

Increasing Number of Quick Service Restaurants

This industry is primarily driven by the ability to deliver food quickly and in a short amount of time, which appeals to young customers. The preference of consumers for ready-to-eat foods and fast food has altered the international market dynamic nature. Less time and effort are required to prepare fast food, which is a significant factor in the rising demand for these products. In 2020, the QSR channel led the industry in terms of outlet count. In India, quick-service restaurants are the fastest-growing segment of the food services industry. The rising discretionary income of consumers will also contribute to the market's growth in the coming years.

What are the main factors that will slow down the market for Fast Food?

Serious Health Concerns Linked to Consumption of Fast Food

The rising fast food consumption among young adults is a cause for concern because it results in a high fat intake, which might result in obesity and the chronic diseases associated with obesity. Obesity is associated with cancer, diabetes, gallbladder disease, fatty liver, cardiovascular disease, arthritis, and joint disorders, among other long-term health issues, premature death, and illnesses. The consumption of fast food has been identified as a potential risk factor for childhood obesity. With so many health concerns associated with fast food consumption, it is anticipated that awareness of this will act as a restraint on the expansion of this industry.

What are the future opportunities for the Fast Food Market?

Healthy Fast Food Options by Fast Food Chains

With varying degrees of success, fast food chains have been hopping on the healthy food bandwagon for some time. The purpose of improving their menus with foods that contain less fat, cholesterol, and sodium is to increase sales and attract a new customer base. The anti-obesity movement is also influencing the menus of fast-food restaurants. As fast-food chains introduce healthier menu options, opportunities will arise for suppliers and food processors. More than fifty percent of U.S. consumers like the trend toward healthier fast food. Consequently, there are more possibilities for fast food restaurants.

Regional Analysis

North America Dominates the Global Market

North America is the most significant shareholder in the global fast food market during the forecast period. The growing trend of fast food consumption and expanding young-adult demographic in the region are the key factors driving the market growth in the region. Other factors supporting market growth include the presence of major players such as McDonald's. Burger King and Subway. On average, people in the USA spend USD 1,200 on fast food every year, while an average American family spends approximately 10% of their annual income. Moreover, approximately 50 million people are served by various fast-food chains daily in North America. The growing use of online fast-food delivery apps and the success of drive-through restaurants in North America will drive the growth of the fast-food market over the forecast period.

Asia Pacific is pegged to be the fastest-growing market for fast food. Strategic expansion by major players in the Asia Pacific and the growing popularity of fast food among the young-adult demographic is expected to be the key factors driving the market in the region. For instance, Taco Bell I.P. Holder, LLC, an American fast food chain, expanded its business in Asia Pacific by establishing its first outlet in Bangkok, Thailand. Launch of several burger chains in India, such as biggie's burger, and increasing penetration of Domino's and McDonald's. Burger king in tier 2 and 3 cities of India will increase the growth of the market. Moreover, the rapid growth in the adoption of Indian homegrown online delivery apps like Zomato and Swiggy will contribute heavily to the growth of the fast food market.

Europe is expected to witness significant growth, owing to the region's fast pace of life and changing work culture. The availability of a wide variety of fast foods in the region is another factor fueling the market growth. According to the EAE Business School, the number of fast food outlets and home delivery chains increased by 5.1% in Europe in 2014 as compared to 2013, from 4,195 in 2013 to 4,420 in 2014. As per a study by EIT Food in 2020, the U.K. reported a 29 percent rise in consuming fast food during COVID-19 lockdowns.

The Middle East & Africa region is expected to register rapid growth during the forecast period, owing to growing tourism activities and business expansion by major players in the region. Advertising campaigns and brand marketing are some of the strategies being adopted by major players for business expansion. Moreover, with increasing disposable income and penetration of American fast food chains in UAE, Kuwait, and Saudi Arabia, the fast food market will grow in the region. The Latin American fast food market is expected to witness significant growth due to the growing inclination towards fast food consumption, such as burgers, tacos, burritos, and pizza. The fast food market in Latin America is projected to grow with a noteworthy CAGR during the forecast period.

Segmental Analysis

The global fast-food market is segmented based on Product, Service Type, and End-User. The market is further segmented by product into pizza/pasta, burgers/sandwiches, fried chicken, seafood, and other products. The burger and sandwich segment is the highest contributor to the market during the forecast period. The larger share is linked to its lower price and convenience of eating while traveling. Key burger chains worldwide, like Mcdonald's and Burger King, have been popular among youngsters and adults due to their different offerings and unique tastes. The presence of McDonald's worldwide is also contributing to the growth of the fast food market due to their quick service, good quality burgers, and economical price.

The pizza segment is expected to witness significant growth over the forecast period. The considerable growth of Domino's and Pizza Hut in developing countries like India has boosted the development of this segment. Dominos is penetrating tier 2 and tier 3 cities to expand all over India, capture their targeted young consumers, and dominate over its competitor, i.e., Pizza Hut. With the excellent branding of pizzas linked with celebration and exceptional taste, the segment is expected to grow more over the forecast period. The Others category encompasses a variety of fast food options, including Asian and Latin American cuisine. These segments are also experiencing an increase in prominence, particularly in regions such as the Asia Pacific, where there is a burgeoning demand for various fast food options.

The market is further segmented by Service Type into Eat-In, Take Away, Drive-through, Home Delivery, and Others. The Eat-In service type has been the dominant service type in the fast-food market. This segment provides a fast and convenient alternative for individuals who prefer to dine out by allowing them to dine within the restaurant premises. The Eat-In segment's dominance is due to its traditional restaurant experience and the added convenience of a seated environment, which is still highly valued by many customers. 

The home delivery segment has experienced substantial growth, particularly in response to the proliferation of online food delivery platforms. It provides the convenience of having food delivered directly to the customer's location, which is incredibly alluring in today's fast-paced world. Others encompass other service types, such as food trucks, kiosks, and other non-traditional fast-food formats focused on specific customer requirements or niche markets.  The fast food industry's overall resilience and diversity are bolstered by the distinctive appeal of each service variety, tailored to individual customers' preferences.

The market is further segmented by End-User into Quick Service Restaurants (QSRs), Fast-casual Restaurants, Catering, and Others. Quick Service Restaurants (QSR) are the most prevalent service type in the fast food market. This segment is the market leader, offering affordable food and fast service, which makes it a convenient choice for busy consumers. Quick-service restaurants (QSRs) provide a concise menu that can be prepared efficiently, making them a popular choice for individuals with busy schedules.

Fast Casual Restaurants provide superior quality and atmosphere compared to QSRs while remaining fast and affordable. They are becoming increasingly popular because of their distinct offerings and healthier choices. Others encompass street vendors, food trucks, and other unconventional fast-food establishments. These segments are frequently well-received in particular areas or communities and tailored to local preferences and interests. These different service types cater to various consumer preferences and needs, ensuring that the fast food market stays diverse and dynamic.

Recent Developments

• April 2022, Burger King is planning to open 200 new restaurants in the U.K. by the year 2026.
• June 2022, Burger king launched 2 new plant-based burgers in the USA for vegans.
• August 2022, McDonald's India is set to increase their number of outlets to 300 in the next 3 years.