The global Fast Food Market is estimated to be valued at US$ 780.11 Bn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The fast food market comprises establishments primarily engaged in providing food services where customers usually order or select items and pay before eating. Food and drink are generally served quickly after ordering, although some locations offer table service. Some establishments in this market may provide certain types of equipment or seating facilities for consuming food on the premises. However, neither the availability of these food services nor the design or attractiveness of the facilities is a defining characteristic of this market. The main types of fast food include pizza/pasta, chicken, burgers/sandwiches, Asian/Latin American food, seafood, Mexican food, and others. Fast food is likely to be eaten outside the premises or ready to eat takeaway/takeout. With increasing urbanization, changing dietary habits, and increasing disposable incomes across emerging economies, demand for fast food products is on the rise.
Market key trends:
One of the key trends in the fast food market is growing consumer preference for healthier and gluten-free options. With rising health and wellness awareness, consumers are increasingly opting for fast food which is low in calories, fat, cholesterol, and sodium. Various fast food chains have launched nutrition-guided menus featuring whole grains, lean proteins, low-fat dairy, fruits, and vegetables to cater to this demand. Moreover, demand for gluten-free products is rising rapidly due to increasing cases of celiac disease and non-celiac gluten sensitivity. To tap into this lucrative segment, leading players are offering gluten-free breads, buns, patties, and sauces. Another trend gaining traction is fast food chains partnering with food delivery platforms to leverage their expansive online and mobile infrastructure. This enables customers to order meals on-the-go via websites and mobile apps, offering greater speed and convenience.
Threat of new entrants: The fast food market has moderate barriers to entry due to large capital requirements to establish new restaurants. However, brands leverage technology and drive-thru experience to maintain an edge over new entrants.
Bargaining power of buyers: Buyers have high bargaining power due to availability of substitutes. Fast food restaurants need to offer value deals, loyalty programs, customized offerings etc. to retain customers.
Bargaining power of suppliers: Major fast food chains have significant bargaining power over suppliers due to their large procurement volumes. However, supplier shortages can disrupt operations.
Threat of new substitutes: Substitutes like fast-casual dining, food delivery apps pose a moderate threat. Fast food chains diversify menu and focus on speed, value and consistency to compete against substitutes.
Competitive rivalry: The market is highly competitive due to presence of major global brands. Chains compete on pricing, promotions, menu innovations, customer experience and branding.
The Global Fast Food Market Demand is expected to witness high growth, exhibiting CAGR of 4.6% over the forecast period, due to increasing demand for convenience food options. The market size for 2023 is US$ 780.11 Bn.
Regional analysis: North America dominates the market currently due to high consumption of fast food. However, Asia Pacific is expected to grow at the fastest pace during the forecast period, led by developing countries like China and India. Increasing urbanization, growth of quick service restaurants and changing dietary habits will drive the regional market.
Key players analysis: Key players operating in the fast food market are Auntie Anne's, INC, Cinnabon Franchisor SPV LLC, Domino’s Pizza, INC, Dunkin’ Brands Group, Inc, Hardee's Restaurants LLC, Firehouse Restaurant Group, Inc, Jack in The Box INC., McDonald’s, Restaurant, Brands International Inc, INC, and YUM! BRANDS, INC. Major chains focus on expanding internationally and introducing new products catering to changing consumer preferences.