Home Technology Food Service Distribution Software Market Share, Suppliers, Forecast to 2029

Food Service Distribution Software Market Size, Share & Trends Analysis Report By Component (Software, Services), By Deployment Mode (Cloud, On-premise), By Organization Size (SMEs, Large enterprise), By End-User (Restaurants & hotels, Supermarkets, Casinos, Pizzarias, Delicatessens, Convenience stores, Hospitals and schools, Franchises) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SRTE750DR
Last Updated : Jun 23, 2022
Author : Straits Research
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Market Overview

Food Service Distribution Software allows users to schedule, track, and manage inventory related to food storage and distribution. The software allows foodservice distribution companies to plan shipments, manage customers, and maintain well-documented records of food orders. Food Service Distribution Software has the ability to produce analytics reports used in sales processes and performance evaluation. They offer customized tools for analyzing performance, profits, and market prices to maximize sales effectiveness, and also contain tools for managing incoming distributions.

Technological advancements in cloud-based ERP solutions, favorable government regulations, and growing demand for food on-demand services drive the market growth. In the U.S., some of the local enterprises such as ABS Seafood, Golden Gate Meat Company, and Vegiworks are currently using Food Service Distribution Software to enhance productivity, control inventory management, improve pricing transparency, and evaluate performance.

Food Service Distribution Software Market

Market Dynamics

Rising Popularity of Online Food Ordering Services

Technological development is reshaping the Food Service Distribution Software market across all industrial sectors. Shifting customer preference towards online food ordering services through apps and websites drives the market growth. Today, the online food ordering platform offers umpteen services to customers, including menu comparison, review posting, scanning, and tracking. In 2018, about 82% of orders were placed from home, while only 16% were placed from the workplace.

Study Period 2020-2032 CAGR 4.3%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD XX Billion
Forecast Year 2032 Forecast Year Market Size USD XX Billion
Largest Market Europe Fastest Growing Market Asia Pacific
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Regional Analysis

Europe’s Food Service Distribution Software Market to Grow with the Highest CAGR

Europe’s Food Service Distribution Software market is projected to grow with the highest CAGR during the forecast period due to the rising adoption of Food Service Distribution Software. In 2016, internet penetration rates in Sweden and Austria were 56% and 46%, respectively. The leading players are channelizing efforts to develop innovative solutions to gain a competitive edge drives the regional market growth. The following table depicts the increase in market evaluation in 2016 of new European foodservice distribution companies. 

increase-in-market-evaluation-in-2016-of-new-European-foodservice-distribution-companies

Food Service Distribution Software Market in Asia-Pacific

Asia-Pacific’s market is backed by surging online ordering frequency, internet penetration, and favorable government regulation. The food tech industries are adopting Food Service Distribution Software to enhance productivity, effectiveness, price transparency, and control inventory management, further driving the regional market growth. In 2020, Swiggy, India’s largest online food delivery platform, partnered with Karnataka Government and Amazon Web Services to provide cloud platform services and distribute food among the people amidst a coronavirus outbreak.

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Segmental Analysis

An Array of Cloud Foodservice Solutions to Drive the Cloud Segment’s Growth

The cloud segment holds the highest market share and is presumed to continue the same during the forecast period. Cloud foodservice solution offers a secure payment platform, meal plan solution, and loyalty applications at lower prices, which is why it is extensively used across several industrial sectors. In 2020, Saarioinen, a leading convenience food manufacturer in Finland, implemented Infor cloud Food Service Distribution Software to increase customer experience, warehouse and distribution management, end-end traceability, and performance evaluation, among others.

Government Initiatives to Drive the SMEs Segment Growth

The SMEs segment is anticipated to grow with the highest CAGR during the forecast period. Increasing government initiatives to adopt Food Service Distribution Software for enhancing customer experience drives the segment growth. For instance, in 2017, the government of India (GOI) implemented the Depot Online System to facilitate effective management, tracking, and control of procurement, storage, and movement of food grains. The system enables SMEs to increase productivity and have better control over transactions. Advancement in technology such as cloud computing enables SMEs to collaborate more closely with customers, easily access the past order and transaction history, manage inventory level, and eliminate the need for hardware and internal network

Large Enterprise Segment to Dominate the Market

The large enterprise segment dominates the market and is presumed to continue the same during the forecast period. Large enterprises, such as hospitals and financial institutions, are largely adopting Food Service Distribution Software, further driving the segment growth. In 2017, Food Service Solutions launched a food service platform that aids in reducing food waste and offers easy-to-use inventory reports to enhance customer experience and gain a competitive edge.

Technological Advancement to Drive the Software Segment Growth

The software segment holds a significant market share. The segment is bolstered by the rising adoption of digital technology among people and favorable government regulations in terms of food safety. In 2019, the U.S. government implemented the Food Safety Modernization Act (FSMA) that focuses on improving the country’s food safety. In 2017, Amazon acquired the leading food distributor company Whole Foods to strengthen its business in food distribution service, further driving the segment growth.

Restaurant and Hotels Segment to Witness the Fastest Growth

The restaurant and hotel segment is projected to witness the fastest growth. The segment’s most prominent driver is the rapid technological advancement in the field of food delivery service. Shifting consumer preference towards online food ordering provides an impetus to the segment growth. Recently, Dineout launched Project Thali to eliminate hunger at local and national levels. Thus, Food Service Distribution Software will provide ease in business operations and inventory management, further increasing its adoption in restaurants and hotels. 

Market Size By Component

Market Size By Component
  • Software
  • Services


  • Impact of covid-19

    COVID-19 has severely affected all industrial sectors, particularly SMEs. The Food Service Distribution Software market is witnessing a sluggish growth due to temporarily halt of business operations to support government regulations. However, some of the government agencies and large enterprises continue to provide foodservice distribution amidst the outbreak to provide people with necessary commodities. For instance, in 2020, Sysco and the U.S. Foods, the two largest restaurants, and food service distributors of the U.S. are supplying groceries to stores, further driving the demand for Food Service Distribution Software to track inventory management, supply chain, and performance.


    List of key players in Food Service Distribution Software Market

    1. BlueCart
    2. AFS Technologies
    3. Food Service Solutions
    4. Simons Solutions
    5. Rutherford and Associates
    6. Produce Pro Software
    7. Bcfooderp
    8. Redzone
    9. GetSwift
    10. Biwer and Associates
    11. ENCOMPASS TECHNOLOGIES
    Food Service Distribution Software Market Share of Key Players

    Recent Developments

    • In 2018, AFS Technologies, a leading global provider of software solutions, partnered with Keck’s Food Service, Inc. to enhance warehouse management, productivity, analytics, order management, and integrated deal management.
    • In 2017, BlueCart acquired Sous to enhance BlueCart’s existing cloud procurement management solution. In light of the acquisition, the company aims to focus on new innovations.
    • In 2019, AFS Technologies, a leading global provider of software solutions, launched Artificial Intelligence (AI) and Machine learning to focus on problem-solving, especially in manufacturing, food distribution, and food retailing.

    Food Service Distribution Software Market Segmentations

    By Component (2020-2032)

    • Software
    • Services
      • Training services
      • Implementation services
      • Other support services

    By Deployment Mode (2020-2032)

    • Cloud
    • On-premise

    By Organization Size (2020-2032)

    • SMEs
    • Large enterprise

    By End-User (2020-2032)

    • Restaurants & hotels
    • Supermarkets
    • Casinos
    • Pizzarias
    • Delicatessens
    • Convenience stores
    • Hospitals and schools
    • Franchises

    Frequently Asked Questions (FAQs)

    What is the growth rate for the Food Service Distribution Software Market?
    Food Service Distribution Software Market size will grow at approx. CAGR of 4.3% during the forecast period.
    Some of the top industry players in Food Service Distribution Software Market are, BlueCart, AFS Technologies, Food Service Solutions, Simons Solutions, Rutherford and Associates, Produce Pro Software, Bcfooderp, Redzone, GetSwift, Biwer and Associates, ENCOMPASS TECHNOLOGIES, etc.
    Europe has held a dominant position in the Food Service Distribution Software Market, with the largest market share.
    The Asia Pacific region has experienced the highest growth rate in the Food Service Distribution Software Market.
    The global Food Service Distribution Software Market report is segmented as follows: By Component, By Deployment Mode, By Organization Size, By End-User


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