Global inflight catering market was valued at US$ 22.09 Billion in 2022 in terms of revenue, exhibiting a CAGR of 7.71 % and expected to reach at 40.01 Billion during the forecast period (2023 to 2030).
Inflight or airline catering is a service provided by companies during air travel and at the airports. Catering becomes a very critical part of the business, especially for Network Carriers serving long distances. Meal design and meal planning are important processes of catering services. According to International Air Transport Association (IATA), catering planning and catering operations are important areas of activities of inflight services. Various organizations and groups are formed in order to regulate and organize inflight-catering activities. For instance, Inflight Catering Work Group was established in 2004, to bring together airlines and caterers in order to discuss issues of mutual concern and of special interest of the catering community, identify potential areas of cooperation, as well as implement concrete solutions. Moreover, Inflight RFID Task Force, focuses on catering trolley tracking and its maintenance history. Both these groups work with IATA.
Drivers
Major market drivers
Major market drivers of the in-flight catering service market are the rise in offering customized and organic meals to the travelers in flight. The best thing is that the meals are typically ready on the ground in catering offices near the air terminal and are then shipped to the airplane and put in fridges for airline stewards to warm and serve ready. The food providers are more similar to the agents that help carriers mass-produce many dinners daily. The aircraft's catering group is generally answerable for the menu plan, offering quality food to the travelers.
The aircraft targets travelers somewhere in the range of eighteen and thirty-five years of age. Travelers are offered many advantages, which just could make a difference. One of the advantages in this market is the supreme food. The menu contains predominantly natural food varieties that go along with specialty brews. Due to its effective drivers, the market is expected to develop at an effective rate in the forecast period.
Significant market opportunity
The significant opportunity in this in-flight catering market is the advancement in the technologies of the food and beverages industries like the travelers could quickly order their food through online mode. The process of serving a pre-packed meal is also a great benefit to the Global in-flight catering market for its effective development. These significant market opportunities are offering the market a growth option in the future estimated period.
Figure 1. Global Inflight Catering Market Value Share (%), By Region, 2021
Market Restraints
An increase in the cost of the in-flight food makes it difficult for the in-flight catering service market to work properly. Hence this high cost is also hampering the effective market growth to a great extent in the forecasted period.
Transportation of food and low period of transported foods are increasing the food wastage in this industry. A portion of these food wastage elements likely set challenges in developing the in-flight catering market. It is important to tackle these market challenges effectively to enhance the growth of the particular market
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2022 | Market Size in 2022: | US$ 22.09 Bn |
| Historical Data for: | 2017-2021 | Forecast Period: | 2023 |
| Forecast Period 2023 to 2030 CAGR: | 7.71% | 2030 Value Projection: | 2023-2030 |
| Geographies covered: |
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| Companies covered: |
SATS ltd., Gate Gourmet, LSG Sky Chefs, DO & CO Aktiengesellschaft, NewrestInternational Group, Emirates Flight Catering, Flying Food Group, Journey Group plc, and DubaiNational Air Transport Association. |
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| Restraints & Challenges: |
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Market Trends
The widespread adoption of inflight catering across the aviation industry on account of the increasing competition amongst the airlines represents one of the key factors driving the market growth. In line with this, the need for serving enhanced onboard dining experience is contributing to the market growth. This is further supported by the implementation of high-level services, including meal pre-selection, mixed buy order, and complimentary catering options for fulfilling individual passenger requirements and complying with the hybrid operational scenarios at lower prices.
Significant technological advancements, along with rising automation in food and beverage (F&B) industry, such as the utilization of tablets and mobile devices for ordering meals, thus ensuring the smooth functioning and management of catering services are acting as other major growth-inducing factors. Besides this, favorable initiatives being undertaken by governments of various countries for elevating the inflight catering standards by ensuring food safety, hygiene and sanitization, especially during the ongoing global outbreak of coronavirus disease (COVID-19) are further creating a positive outlook for the market growth. The market is also driven by rising consumer expenditure capacities, steadily increasing number of air travelers, and the introduction of premium meal plans by airline companies and catering services.
Figure 2. Global Inflight Catering Market value Share (%), By Aircraft Class, 2021
Global Inflight Catering Market- Impact of Coronavirus (Covid-19) Pandemic
Covid-19 pandemic largely affected the inflight catering market due to lockdown all over the globe, flights was stopped operating in lockdown for long period of time. After lockdown new protocols were imposed on inflight food practices such as food safety, cleaning, sanitizing, food quality. Pandemic has brought new dynamics to commercial professional kitchen.
Recent Developments
Competitive Section
Major players operating in the global inflight catering market include SATS ltd., Gate Gourmet, LSG Sky Chefs, DO & CO Aktiengesellschaft, NewrestInternational Group, Emirates Flight Catering, Flying Food Group, Journey Group plc, and DubaiNational Air Transport Association.
An inflight catering, airline food, or in-flight meal is a meal served to passengers on board a commercial airliner. These meals are prepared by specialist airline catering services and normally served to passengers using an airline service trolley. The quality and quantity of the meals served in flight differs by the airline companies and the Classes of travel.
Rising number of airline passengers is fueling growth of the inflight catering market. For instance, in October 2022, Enexor BioEnergy, a U.S.-based start-up won the sustainability innovation challenge to turn waste into energy and was supposed to receive up to US$ 80,000 in funding from Oversea-Chinese Banking Corporation Limited (OCBC), to pilot new solutions for Singapore Airport Terminal Services (SATS Ltd.) a leading in-flight catering service provider at Changi Airport, Singapore. Enexor’s proprietary “Bio-CHP” system will be used to convert organic food waste and plastic waste into renewable energy.
Market Dynamics
By aircraft Class, economy Class is gaining traction in the market. Rising number of passengers traveling through economy Class is fueling growth of economic services in the inflight catering market. In economic Class, the focus is more on affordable meals, beverages, and shelf-stable food for purchase in both long-haul and short-haul flights.
Europe held a significant market share in 2021, due to increasing number of people travelling to European countries and high number of domestic players in inflight catering services market. For instance, one of the important player in the inflight catering services market, LSG Group, headquartered in Germany, served 205 airports with 696 million number of meals by 2021.
Key features of the study:
Detailed Segmentation:
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