Food Truck Market

Market Overview

The global food truck market size was valued at USD 4.3 billion in 2022, registering a CAGR of 6.7% during the forecast period (2023-2031). The growing popularity of street food and beverages, shifting consumer tastes, urbanization, and an increase in working women stimulate market growth.

A "Food Truck" is a large truck (usually a van) that may prepare, cook, serve, or sell food. Others have onboard kitchens and create fresh meals or reheat those already prepared in a brick-and-mortar commercial kitchen. Some, such as frozen dessert trucks, offer frozen or prefabricated food. Sandwiches, French fries, hamburgers, and other local fast food are common. Food truck market share is expected to rise at a 6.7% growth rate due to the growing popularity of street food and beverages, shifting consumer tastes, urbanization, and an increase in working women. Food trucks are considered because of the restaurant industry's mobility factor. A food truck can go wherever there are people who want to eat. As a result, it is one of the most popular trends in the restaurant industry. Demand for the Food Truck sector has grown due to altering client tastes, preferences, and penchant for street food and drink consumption.

Market Dynamics

Market Drivers

Changing Consumer Preference for Convenience

Consumers are increasingly looking for quick-service restaurants that fit into their hectic schedules. Food trucks offer quick and convenient meals, making them an appealing option for on-the-go dining. Food trucks have grown in popularity in major urban areas worldwide in recent years, pushed by consumers seeking convenient dining options in congested cities. Statista data show that the number of food trucks in the United States has gradually increased over the last decade. There were around 3,500 food trucks in the country in 2010. By 2019, the number of food trucks had more than doubled to around 8,000.

According to the United Nations, metropolitan areas house around 55% of the world's population. This urbanization trend has increased demand for convenient dining options in cities, where time is typically limited. As consumers emphasize quick and convenient dining options, the global food truck market trend thrives, providing various and distinctive culinary experiences to satisfy these changing demands.

Market Restraints

Regulatory Challenges

Food trucks frequently need numerous permits and licenses to operate legally, and these regulations might vary greatly from one location to the next. Navigating the complicated web of regulations can take time and money. According to the Institute for Justice's "Food Truck Freedom" report, regulatory restrictions for food trucks can vary greatly between cities and states in the United States. Some localities have strict rules requiring many permissions and licenses, while others have streamlined the procedure. Food truck operators must adhere to strict health and safety requirements.

According to a study published in the International Journal of Environmental Research and Public Health, health inspections guarantee food safety in mobile food vending. Many regions are working to streamline these laws and facilitate the food truck market growth.

Market Opportunities

Expansion in New Markets

Food trucks are becoming increasingly popular in suburban and residential regions with limited traditional dining alternatives. According to National Restaurant Association research, suburban and residential regions are emerging as significant growth areas for food trucks. Food truck companies have also considered international development. One well-known example is "Kogi BBQ" in Los Angeles, which became famous for its Korean-Mexican fusion cuisine. Kogi expanded its international operations by opening food trucks in nations such as Canada and Japan, offering its distinctive concept to global audiences.

Expansion of food trucks into new areas can be less expensive than launching a brick-and-mortar restaurant in the same location. Food trucks are an appealing alternative for entrepreneurs entering new markets because of their minimal overhead costs and mobility.

Regional Analysis

The global food truck market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Europe Dominates the Global Market. Europe is the most significant global market shareholder and is anticipated to exhibit a CAGR of 6.8% during the forecast period. Europe had the highest revenue share due to increased events and festivals. According to a survey conducted by Le Cordon Bleu, food festivals and street food events more than doubled in 2019, resulting in increased demand for food trucks in the region. Taste of London, Country to Country, and Oktoberfest are a few of the main street food events in the United Kingdom in 2021 that will feature more than five grand food trucks.

Europe hosted multiple food festival events in 2021, undoubtedly increasing demand for food trucks. For example, the Europe Street Food Festival will be hosted in Austria in March 2022. Several cuisine exhibitions were held over the food trucks at the event. During the forecast period, this is likely to increase the market. Europe saw strong demand for vans, accounting for over 90% of worldwide van sales. Despite the impact of the COVID-19 pandemic on the European market, sales of electrically chargeable and hybrid electric vans increased in 2021. Food truck market insight shows that Such gains in electric vans are becoming popular in the food truck industry, which is expected to rise significantly throughout the projection period.

North America is anticipated to exhibit a CAGR of 7.0% over the forecast period. Food trucks are popular in North America because of their minimal capital requirements and the availability of great locations to start food truck operations around the country. The food truck business costs between USD 50,000 and USD 60,000 in the United States. The country earned between USD 2,50,000 and USD 500,000 annually from the food truck industry. People are drawn to start food truck enterprises in the United States as revenue profits improve, which is projected to raise demand for food trucks throughout the projection period.

The United States now operates more than 35,500 food trucks, expected to rise during the projected period. With 753 enterprises operating in the state, California has the most food trucks. Texas came in second with 549 operations, followed by Florida with 502 food truck enterprises. According to a survey by The Restaurant Times U.S. on the most popular food trucks, more than 60% of millennials choose food trucks presenting authentic and distinctive menu selections over brick-and-mortar restaurants. For example, Curry Up Now, U.S., earned enormous popularity among California consumers when it introduced a hybrid of Indian and Mexican burritos in 2018. The boost in tourism throughout these states is projected to result in significant growth for the food truck industry in the current year and during the projection period.

Asia-Pacific is expected to have the quickest CAGR of 7.5% during the 2023 to 2031. Consumers in Asian countries such as China, Japan, and South Korea prefer street food, which is expected to increase product demand in the region. The existence of well-established manufacturers in Asia Pacific, such as Hanyi Machine and Ante Trailers, as well as rising demand for street food, are projected to fuel market expansion.

The Middle East and Africa food truck business has grown rapidly in recent years with rate 6.4%, driven by urbanization, changing consumer lifestyles, and an increased interest in international cuisines. Food truck activity is brisk in major cities around the Middle East and Africa, including Dubai, Riyadh, Cairo, Johannesburg, and Nairobi. These metropolitan areas have a varied customer base and high foot traffic.

Segmental Analysis

The global food truck market is segmented based on size, food type, and region.

The type is further segmented into Expandable Boxes, Buses and vans, Customized Trucks, and Others.

Buses and Vans are the market leaders. Buses and vans turned into food trucks include adapting a normal bus or van into a mobile kitchen and service area. The car's interior has been altered to accommodate kitchen equipment, storage, and service stations. Buses and vans are great for companies looking for a mobile kitchen with plenty of interior room. They are frequently used to serve various cuisines and can house a small crew of kitchen professionals. When parked, expandable food trucks include expandable sections or compartments that may be extended to generate more internal room. These trucks frequently have slide-out portions or fold-out walls that allow for more kitchen and service space.

Based on size, the market is sub-segmented into small, large, and medium.

Medium-sized trucks hold the major market share. Food trucks in the medium size range find a compromise between compactness and spaciousness. They have more interior area than tiny trucks, which allows for a larger menu and more culinary equipment. Small food trucks are frequently compact and have a small footprint. They are designed to be agile and maneuverable in small places. Due to space limits, these trucks are smaller and may feature a more streamlined menu.

The segment can be further bifurcated by food type into Barbecue and snacks, Fast Food, Desserts and confectionary, Bakery, Vegan and meat plants, and Others.

Vegan and meat Plant influenced the market. Customers seeking options from plant-based, vegetarian, or vegan cuisine can get it at vegan and meat plant food trucks. Plant-based burgers, vegan hot dogs, tofu dishes, and vegetarian options may be available. These trucks cater to health-minded, environmentally conscious, and dietary-restricted customers. They can be found at a variety of events and places. Food trucks specializing in Barbecue and snacks serve grilled or smoked meats, savory snacks, and finger foods. Burgers, hot dogs, kebabs, and other grilled or fried appetizers fall within this group.

Recent Developments

• August 2023- Loblaw collaborates with Food Banks Canada to provide emergency food access to needy Indigenous organizations.
• August 2023- Cocktails and Aperitivi are the specialty of VS Veicoli Food Trucks.
• March 2023- Gatik and Kroger announced a collaboration to develop fully driverless autonomous box trucks in Dallas, Texas.