The global fast food market size was valued at USD 731.65 billion in 2022. It is projected to reach USD 1087.31 billion by 2031, growing at a CAGR of 4.5% during the forecast period (2023-2031).
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 of 2023-2031.
| Report Metric | Details |
|---|---|
| Base Year | 2022 |
| Study Period | 2021-2031 |
| Forecast Period | 2023-2031 |
| CAGR | 4.5% |
| Market Size | USD 1087.31 billion by 2031 |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends |
| Geographies Covered |
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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.
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.
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.
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.
The global fast food market share is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
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 of 2022-2031.
The global fast food market share is segmented by product type, category, production, packaging, and distribution channel.
Based on product type, the global market is bifurcated into burgers and sandwiches, pizza, asian food, latin american, and fried chicken.
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 around the world, like Mcdonald's and Burger king, have gathered a lot of popularity among youngsters and adults due to their different offerings and unique taste. 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 significant growth of Domino's and pizza hut in developing countries like India has boosted the growth of this segment. Dominos is penetrating tier 2 and tier 3 cities with a goal 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 excellent taste, the segment is expected to grow at a higher rate over the forecast period.
Based on service type, the global market is bifurcated into quick service restaurants, street vendors, and delivery.
The quick service restaurant segment is the highest contributor to the market during the forecast period, owing to the increasing number of fast-food chain stores around the globe. Advertising and marketing campaigns by food chain restaurants and quick-serving outlets are also playing a major part in supporting market growth. As the disposable income of households rises, consumers spend more money at hotels, restaurants, and cafes. Considering the preference of the younger generation for quick-service restaurants such as Domino's, KFC, Pizza Hut, Burger King, Subway, Taco Bell, and McDonald's, these food chains are targeting new markets in Tier 2 and Tier 3 cities, which will propel the growth of fast food market.
The delivery segment is expected to grow at the highest CAGR over the forecast period due to its ease of ordering, tracking the delivery, and time-saving characteristics. Online ordering systems for restaurants and caterers are experiencing rapid growth as a result of the increasing demand for convenience and variety among consumers. As the demand for convenience increases, current innovations are gradually becoming the norm, such as the use of mobile devices and leading food delivery websites/applications like Uber Eats, Menulog, Swiggy, and Zomato.
