Global Foodservice Disposable Distribution Systems Market – Insights
Rising demand for fast food is one of the major factors driving growth of the food service disposable distribution systems market. High demand for fast food is majorly attributed to rising working population, especially in the emerging economies such as India, China and Japan among others. According to Coherent Market Insights, the chained restaurant market in India was valued at US$ 6.77 Bn in 2016 and the slated to expand at a CAGR of more than 12% from 2018-2025. Rapid penetration of fast food manufacturers in emerging economies such as India and China, on account of rising demand for such food items have paved the way for foodservice disposable distribution systems.
According to Coherent Market Insights, high demand for fast food in India is majorly attributed to rising millennial population, with the median age of the population being 28. The country has relatively high young population, which rely on food services due to busy schedule and lack of enough time to cook traditional meals. Therefore, such factors are propelling demand for fast food, in turn driving growth of the foodservice disposable distribution systems market in the region.
Among product type, the tableware disposables segment accounted for major market share of 43.2% in 2016, and is expected retain market dominance throughout the forecast period. Among distribution channel, wholesale segment accounted for marker share of 77.6% in 2016, and is expected to retain market dominance throughout the forecast period. Furthermore, end-users of food service disposables prefer adopting tableware disposable products and durable plastic glasses in bulk, which is driving growth of this segment. Moreover, on the basis of application, the market is segmented into restaurants, bars & pubs, clubs, food service providers & caterers, and others.
According to Coherent Market Insights, North America dominated the global foodservice disposable distribution systems market in 2016, recording revenue of US$ 18.8 Bn and the same is expected to reach US$ 26.5 Bn by the end of 2025, maintaining annual growth of 3.48% during the forecast period from 2018 to 2025. The U.S. is the growth engine in the regional market. According to Coherent Market Insights, the fast food industry in the U.S. was valued at US$ 200 Bn in 2017. In 2016, the country had over 190,000 franchised quick service restaurants. McDonald’s is one of the leading players in the fast food industry, holding a brand value of around US$ 90 Bn. KFC, Subway, Pizza Hut, and Yum! Brands are some of the other key players operating in the fast food industry in the U.S. These factors are responsible for growth of the foodservice disposable distribution systems market in the U.S.
Asia Pacific, however, is expected to record the fastest growth throughout the forecast period, maintaining annual growth of 4.73%. The fast food industry in emerging economies in Asia Pacific such as India is gaining significant traction, thereby pushing the demand for foodservice disposable distribution systems market. Burger King, the world’s second-largest burger chain, made its entry in India in 2014, boosting the fast food market in the country. According to Coherent Market Insights, he food service industry in India is expected to garner over US$ 50 Bn by the end of 2025, with chain restaurants witnessing the fastest growth during the forecast period. Rising workforce coupled with increasing purchasing power of the working populace are some of the key factors driving demand for fast food products, which in turn is fuelling growth of the foodservice disposable distribution systems market.
Figure1. Global Foodservice Disposable Distribution Systems Market Share (%), By Product Type, 2016
Source: Coherent Market Insights (2018)
Based on product types, the tableware disposables segment accounted for major market share of 43.2% in 2016 and is expected retain market dominance throughout the forecast period. Based on distribution channel, wholesale segment accounted for the dominant share of 77.6% in 2016 and is expected to retain market dominance throughout the forecast period. The key end-users of food service disposables prefer acquiring tableware disposable products, and durable plastic glasses among others in bulk, which is fuelling growth of this channel.
Furthermore, on the basis of application, the market has been classified into restaurants, bars & pubs, clubs, food service providers & caterers, and others.
Some of the key players operating in the foodservice disposable distribution systems market include Dispo International, EFG Foodservice, First Pack, Go-Pak Group, and MBS Wholesale Ltd. among others.
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