FAST FOOD MARKET ANALYSIS

The global fast food market size was valued at US$ 745.8 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 4.6% from 2023 to 2030. The rapid industrialization and urbanization worldwide are key factor driving fast food market growth. Additionally, the growing disposable income of consumers is again expected to support the market growth during the forecast period. The major players in the fast food market are focusing on increasing the efficiency of their operations to reduce operating costs and increase profitability. They are investing in technology and automation to streamline their processes. In addition, they are focusing on marketing and advertising to enhance their brand visibility in the global market. All these factors are projected to propel the market growth.

Global Fast Food Market: Regional Insights

Based on geography, the global fast food market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

North America is expected to dominate the global fast food market over the forecast period owing to the high consumption of fast food in the U.S and Canada. Also, growing demand for fast food with healthy ingredients is again expected to fuel regional market growth.

In the near future, the Asia Pacific region is anticipated to be the fastest-growing market for fast food. This is mainly due to the strategic expansion by major players in the region and the rising popularity of fast food among young adults. Additionally, the development of fast food delivery apps in the region is further bolstering market growth.

Figure 1. Global Fast Food Market, By Region, 2023

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Global Fast Food Market Drivers:

Increasing number of fast food restaurants to augment market growth

Rise in the number of fast food restaurants is a key factor propelling fast food market growth. For instance, in 2019, Subway had around 41,600 stores worldwide, similarly McDonald, Starbucks, KFC, Pizza Hut, Restaurant Brands International, and Dunkin Donut had 37,855, 30,000, 23,000, 18,515, 25,809, and 9,200 worldwide stores, respectively.

Key players are introducing new product due to changing consumer taste and preferences

The fast food market has witness substantial growth owing to the change in consumer tastes and preferences. For this key players are introducing new items to increases the variety of fast food items sale. For instance, in 2019, Burger King launched Whopper sandwich in the Baltics nations to attract new customers and meet the demand of the customers. Similarly, in 2020, McDonald introduced Chicken McGriddles and McChicken Biscuit sandwiches healthy products to meet the change in consumer taste, which is shifting towards healthier meals.

Global Fast Food Market Opportunities:

The global fast food industry has huge market potential due to the growing consumer demand for convenience food. Many key players in the fast food market offer a wide range of products and are mostly franchised to minimize the overhead costs and increase flexibility. Some of the larger chains, such as McDonald's and Burger King, provide a consistent menu and quality experience worldwide to provide consumers with a familiar and reliable dining experience. Moreover, many companies are involved innovation for healthier options, including the use of organic ingredients and natural vegetables.

In order to compete with the growing competition, the global fast food market players are focusing on implementing innovative strategies and techniques. This is expected to bring bright market opportunities. This includes introducing new products and increasing the customer service. Moreover, they are also focusing on minimizing the usage of artificial preservatives in their food products. For instance, some of the largest burger chains have already begun switching to buns made from organic flour and have started reducing their use of antibiotics to raise their livestock. These efforts are expected to offer additional market growth opportunities to the players.

Global Fast Food Market Trends:

Emergence of new fast food outlets

The emergence of new fast food outlets is a key factor driving the market. These outlets offers a range of dishes such as burgers, pizzas, sandwiches, pastas, and more. They also offer different services, such as food deliveries and drive-through facilities. Additionally, many of these outlets are offering healthy foods that promote better health and aid in weight loss. The growing popularity of fast food delivery apps like Swiggy and Zomato is further fueling market growth.

Growing number of merger and acquisition in the market

Some of the key players are adopting merger and acquisition to promote their products in the global fast food market. In March 2023, Rebel Foods, a Pune-based cloud kitchen operator, has acquired master franchise rights to operate Wendy’s restaurants in the country.

Global Fast Food Market Restraints:

Ill effects of fast food to hinder market growth

The major disadvantage of fast food is that it is mostly high in sugars, fats, salts, and calories and low in minerals and vitamins. This can lead to heart problems, poor digestion, obesity, and a lack of nutrients. This factor is expected to hamper the market growth.

Growing demand for fresh food to hinder fast food market growth

Another disadvantage of fast food is that it is not as fresh as homemade meals and is often prepared and stored in a way that reduces its nutritional value, such as by deep frying or using microwaves. In addition to this, some fast food product are very high in sodium. This is because it acts as a preservative and also enhances the flavor of certain dishes. However, fast food can also be a good option for people who have tight schedules and need to manage office work.                           

Figure 2. Global Fast Food Market, By Product Type, 2023

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Global Fast Food Market Segmentation:

The global fast food market report is segmented into product type, end user, and region

Based on product type, the market is segmented into Burgers/Sandwiches, Pizza/Pasta, Asian/Latin America food, Chicken, Seafood, and Others. Out of which, Burgers/Sandwiches is expected to dominate the global market over the forecast period and this is attributed to its increased popularity among consumers.

Pizza/Pasta segment is also expected to witness significant growth in the near future and this is owing to the rise in demand for different varieties of pizza.

Based on end user, the market is segmented into Full-Service Restaurants, Quick Service Restaurants, Caterings, and Others. Out of which, Full-Service Restaurants is expected to dominate the global market over the forecast period and this is attributed to the growing popularity of luxury dinning among high disposable income population.

Quick Service Restaurants segment is also expected to witness significant growth in the near future. QSR are popular fast food restaurants, offer limited menus, fast food cuisines, and minimal table service.

Global Fast Food Market: Key Developments

In January 2018, Domino’s Pizza introduced Burger Pizza, available in two vegetarian and two non-vegetarian variants.

In October 2021, McDonald’s has entered a partnership with IBM to help the fast-food chain automate its drive-thru lanes

In April 2023, Fast food restaurant chain Burger King has partnered with the delivery management platform Bringg to incraese its customer delivery experience in Brazil.

Global Fast Food Market: Key Companies Insights

The global fast food market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global 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

*Definition: Fast food give people a taste of new flavors that they may not be able to experience at home. Moreover, it can save a lot of time for busy families.