Global Fast Food Market will be worth US$617.6 billion by 2019, research says
Transparency Market Research’s new market study on the global fast foods market delves into the trends and opportunities of the industry for the 2013-2019 period.
The report, titled "Global Fast Food Market Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2013 - 2019" predicted that the global fast foods market will be valued at US $617.6 billion by 2019, increasing from US $477.1 billion in 2013. This will translate into a compound annual growth rate (CAGR) of 4.40% over the report’s forecast period.
While fast food still holds a large market in North America, in the coming years the non-traditional fast foods markets are expected to generate a significant chunk of the global revenue – these include Asia Pacific and Rest of the World. According to the research, an expanding population base coupled with economic growth and increasing disposable income levels are the major factors driving the fast food market in these regions. Peer pressure among consumers to switch to Western eating habits is also a key factor fueling the growth of this market.
However, in traditional fast food markets such as North America and Europe, due to an evident shift in consumer food choices from fast foods to natural foods, the growth of the overall market will be negatively impacted. Consumers are increasingly becoming conscious about the ill-effects of food additives in the long run. Thus, market players are compelled to switch to natural ingredients, hormone-free meats, and organic produce to make their products attractive for consumers. On the contrary, in the developing countries of Asia Pacific, the recently gained economic prosperity and surging income levels have led to higher spending on contemporary foods, which include fast foods as well.
The report segments the global fast foods market on the basis of delivery chain, food type, and geography. By product type, burgers/sandwiches, pasta/pizza, seafood, chicken, Asian/Latin American, and snacks are the segments of this market. The market of pizza/pasta and burgers/sandwiches will display a higher CAGR compared to Latin American food or chicken during the forecast period. Nevertheless, developed markets will witness a rising preference for Latin American food and chicken due to their bold flavors and health benefits.
The market size of Pizza/Pasta and Burger/Sandwich are expected to grow at a higher CAGR compared to chicken or Latin American food. However, developed markets are expected to witness the growing trend for chicken and Latin American Food due to its bold and spicy flavors and health benefits. Chained fast food outlets are the most preferred distribution channels and are expected to dominate the distribution share of fast food by 2019.
Geographically, in 2013, North America stood as the largest market for fast food followed by Asia Pacific. In North America, the busy lifestyle of individuals that does not leave adequate time for fresh cooking on a regular basis and dependence on convenient restaurant food are driving the market. Drive-thru food joints and food-on-the-go are a commonality in North America where people eat out frequently. In 2013, Asia Pacific and North America collectively held a share of more than 64% in the global fast food market.
According to the research, the top players in the global fast food market are Burger King Worldwide Inc., McDonald’s Corporation, Jack in the Box Inc., Wendy’s International Inc., Yum! Brands Inc., Domino’s Pizza Inc., and Doctor’s Associates Inc.