Fast Food Market Overview
“The Global Fast Food Market is expected to grow rapidly at a 3.5% CAGR consequently, it will grow from its existing size of from $720 billion in 2023 to $930.25 Billion by 2030.”
Fast Food is a mass-produced food product that is designed for fast and efficient distribution that is sold through certain establishments, concession stands or convenience store. Fast food is perhaps most associated with chain restaurants--including such prominent brands as McDonald's, Burger King, and Taco Bell--that typically offer take-out and drive-through services, as convenience and speed are prioritized. The most popular fast food items include hot dogs, hamburgers pizza, french fries tacos, burritos and sandwiches.
The production of fast food usually reduces the quality of food to effectiveness cost, affordability, and profits. Fast food products are typically high-processed and precooked, or frozen, and can contain artificial preservatives, in addition to the high amounts of cholesterol, sodium saturated fats, refined sugars and grains. So, the word "fast food" has been branded with negative negative connotations in relation to health and raises ethical questions in the areas of labour and agriculture. While it's fast food is polarizing, it is still extremely popular worldwide due to its convenience and taste.
What is Fast Food, Exactly?
Do your hectic schedules make you want to use an open-air restaurant to grab dinner? Fast food restaurants are an easy, quick and cost-effective way to put food in your rest of your family's stomachs. However, it can come with some risks also.
Find out more below about what fast food actually is, how it's made as well as the possible advantages and dangers that can come when you eat your favourite drive-thru food.
Fast food refers to any restaurant or retail establishment that requires patrons to choose the items they want, place an order and pay for their food items prior to receiving them, as per the USDA.
It's usually described as food that is meant to be consumed quickly in which food is provided quickly or within a couple of minutes.
"In an era of post-pandemic fast food is believed to be any fast-casual eating establishment where you can place an order for food and not sit down or having it delivered or even order takeaway," says Caroline Thomason Dr. Caroline Thomason who is a dietitian in Northern Virginia, who assists people to stop dieting and gain confidence in their food choices.
Demand Outlook
The category of fast food foods is specifically designed to reduce time and facilitate quick serving. Pizzas and sandwiches, burgers and pasta, Chinese food Fried chicken and Chinese food are among the typical fast food items that are served all over the world. The kinds of fast food as well as the ingredients used to prepare fast food tend to differ between countries. As per the Centers for Disease Control & Prevention within the U.S., on average, 35.3% of adults consumed fast food in 2018-2022. A study released in 2022 revealed that U.S. adults consumed an average of 5.0 junk food items each day.
The rapid pace of life, the rapid change in working conditions, and the changing preferences and eating habits of the new generation are a few reasons behind the rapid growth of the food industry. Alongside this the growing number of stores that are part of a chain across the globe is an important factor that will positively impact the growth of the market over the 2023-2030 forecast timeframe.
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Market Dynamics
Growth Factors
One of the major reasons for the rapid growth of the fast food markets around the world is the rising number of women who are working. The female workforce of the U.S. in 208 was 45% as reported by the U.S. Department of Labor. Therefore, the rates of women's employment for South Africa and China were approximately 45 percent and 43.7 percent respectively. Furthermore, the rising number of restaurants and hotels are also a major factor in the growth of the global fast food market.
The market for fast food is constantly growing because of the increasing demand for fast snacks, convenience foods and meals that are ready to eat. The hectic lifestyle of the millennial generation as well as the growing number of people working have had a direct impact on consumption of fast food. This is likely to assist the fast food business expand internationally. Consumer spending on food consumed outside of the home has increased in the past few years. The rising rate of employment across the globe adds to this. Therefore, it's now easy to eat at-the-go food.
Another element that contributes to the rise of the global fast food markets is the rapid urbanization and industrialization. Additionally, the rise in disposable incomes are also a major driver of the worldwide market for fast food. The rising demand for ready-to-eat drinks and food is increasing consumption of fast-food on the world market. In addition, the growth of the beverage and food industries is helping to boost the growth of the fast food industry worldwide for the foreseeable time.
Other factors that are driving the growth and development of the global quick food markets is rising use of the online sales channel as an distribution channel. Hotels and restaurants are selling their food items via e-commerce platforms. This contributes to the development and growth of the global fast food market during the forecast time.
The major fast food market players have established global distribution networks. To keep up with the changing tastes of customers companies operating within the fast food industry are constantly updating their menus and offering. Additionally, an rise in fast service restaurants within the fast food industry aids businesses in increasing sales.
To expand their reach globally Market players are investing heavily in the media industry and collaborating with content suppliers. The company has launched an application that lets employees choose the career path they prefer. All of these strategies are helping to boost the growth of the global fast food industry.
Growth Drivers
What's the major elements that drive the market to Fast Food?
Improved the Standard of Living and Change in Consumer behaviour
A rising household income and a changing consumer habits are the main reasons behind consumers to eat out across the globe. Additionally the rapid growth of food and beverage outlets is increasing across both developed and emerging markets across the globe despite the continuing success of popular brands like Domino's, Pizza Hut, McDonald's, KFC, and Burger King.
With the rapid growth in consumption of food fast chains in young people, international fast-food chains are looking into foreign markets. Fast food consumption is increasing because of its convenience, accessibility, affordability and taste. The rising foreign investment, the rise in household incomes, a growing number of millennials, a increase in tourism and changing consumer habits are all contributing to the growing popularity of the business.
Increasing Number of Fast Service Restaurants
The industry is driven by the capability to serve food quickly and within a short amount of time, which is appealing to the younger generation of consumers. The increasing demand for food items that are ready-to-eat and fast food has altered the global marketplace's and its dynamic nature. There is less time and effort needed to make fast food which is a key reason for the increasing demand for these items.
In the year 2020 the QSR channel was the top of the line in terms of outlets. In India the fast-service restaurant industry is the fastest-growing sector of the food service sector. The increasing disposable incomes of consumers is also a major factor in the growth of the market in the next few years.
Challenges
What is the primary elements that could slow the demand to Fast Food?
Risky Health Issues Related to the consumption of Fast Food
The increasing consumption of fast food of young people is a reason to be concerned because it leads to an excessive intake of fats which could result in overweight and chronic illnesses that are associated with obesity. Obesity can cause gallbladder disease and the fatty liver, cardiovascular disease arthritis, joint problems, in addition to long-term health concerns as well as premature deaths and diseases. Fast food consumption is an underlying risk factor for obesity in children. There are numerous health risks related to fast food it is expected that the public will be aware of this and limit the expansion of this business.
Opportunities
What is the future to The Fast Food Market?
Healthy Fast Food Options for Fast Food Chains
With various levels of success Fast chain restaurants are on the bandwagon of healthy eating for a while. The goal of enhancing their menus with items which are lower in cholesterol, fat and sodium, is to boost sales and increase the client base. The anti-obesity movement is impacting the menus of fast food eateries. Fast-food chains are introducing healthier menus, potential opportunities will open up for manufacturers and suppliers of food. Over half of U.S. consumers like the trend towards healthy fast-food. Therefore, there are a lot of options for fast food eateries.
Market Segment Analysis
Information on Products
The burgers/sandwich market segment had a the largest share of revenue, which was 43% by 2021. The demand for burgers and sandwiches is increasing rapidly across the world. Consumers consume around 50 billion burgers every year as per the United States Department of Agriculture. The growing demand for convenience foods is driving demand for sandwiches and burgers. Additionally, the increasing trend of ready-to-eat food items is also driving the growth of this market.
The segment of Asian/Latin America is expected to grow the highest rate during the forecast time. The growth of this market is driven by increasing demand for a broad variety of food items. The market of Mexican food is rising across the U.S., due to an increase in Hispanic population. Based on The Simmons National Consumer Survey and the U.S. Census Bureau, around 110 million Americans consumed tortillas in 2017.
Information for End Users
The fast service restaurant segment had the highest revenue share of at 45% by 2021. Restaurants that offer quick service serve meals that require minimal preparation time and are served swiftly. Restaurants that are quick service typically provide a limited list of food choices that can be made in less time and with the least amount of variety.
Many fast food establishments have put in place points of sale for hospitality that provide fast service, while also guaranteeing the security and reliability. Kitchen staff members are able to view real-time orders made at the counter in front of them or via the drive through. Wireless technology allows cooks and cashiers to accept orders through drive through speakers. Therefore, technological advances are fueling the growth of the fast service restaurant segment.
The fast casual restaurant segment is anticipated to experience a strong growth from 2023 until 20302. Fast casual restaurants offer customers with freshly prepared and high-quality meals served in a relaxing setting, with counter service to ensure that things are moving swiftly. A fast casual eatery which is located mostly throughout areas like the U.S. and Canada, doesn't offer full table service, but it does offer premium meals that are made with less frozen or processed ingredients than fast food establishments. It's a mix that combines fast and casual dining.
Competitive Landscape of the Fast Food Market
- Jack in the Box Inc.
- McDonald’s
- Restaurant Brands International Inc.
- Yum Brands Inc.
- Inspire Brands Inc.
- Doctor’s Associates Inc.
- Auntie Anne’s Franchisor SPV LLC
- Domino’s Pizza Inc.
- CKE Restaurants Holdings Inc.
- Firehouse Restaurant Group Inc.
Recent Developments in Fast Food Market
October 30 2023: McDonald's McCrispy chicken sandwich becomes $1B brand worldwide after getting fresh name
Sep 19, 2023: Burger King, the second largest burger chain in India, is in advanced negotiations to sign a deal with Coca-Cola as its exclusive beverages partner, breaking off its near 10-year relationship with rival PepsiCo, executives directly aware of the developments said.
Aug 24, 2023: Subway said it will be sold to Roark Capital, a private equity firm with expertise in restaurant management that could help the sandwich chain expand and improve its stores.
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.
April 2022, Burger King is planning to open 200 new restaurants in the U.K. by the year 2026.
June 2022, Burger king launched 2 new plant-based burgers in the USA for vegans.
August 2022, McDonald's India is set to increase their number of outlets to 300 in the next 3 years.
Papa John’s International and franchisee operator Sun Holdings in the U.S. announced a domestic franchisee growth agreement in September 2021. Sun Holdings will open 100 new stores across Texas by 2029, as per the conditions of the contract.
Domino’s Pizza will produce ‘The Unthinkable Pizza’, India’s first plant protein-based product, in December 2020. The Unthinkable Pizza is a vegan pizza produced entirely of plant-based proteins with chicken like sensory qualities.
Jack in the Box plans to build 98 more outlets in the U.S. by March 2022. In addition to the 2,208 existing Jack in the Box stores, the new sites represent the brand’s highest level of expansion ever. Aside from that, Jack in the Box is set to acquire Del Taco, a prominent Tex-Mex fast food brand, which will add 600 more stores to the mix.
McDonald’s Corporation stated in March 2019 that it has reached an agreement to purchase Dynamic Yield, a leader in customization and decision logic technology with offices in Tel Aviv and New York. By buying Dynamic Yield, McDonald’s adds to its significant technology investments for growth.
Regional Insights
North America Dominates the Global Market
North America is the largest participant in the global fast food industry during the forecast time. The increasing trend towards fast food consumption as well as the growing youth-adult population in the region are key reasons behind the growth of the market within the area. Other factors that support market growth are the presence of big players like McDonald's. Burger King and Subway.
On average, the people of America USA consume USD 1,200 each year on fast food and the average American family consumes around 10 percent of their annual earnings. In addition, about 50 million customers are served by different fast-food chains each day across North America. The increasing use of fast-food delivery apps online as well as the popularity of drive-through restaurants across North America will drive the expansion of the fast-food industry in the coming years.
Asia Pacific has been predicted to be the fastest growing industry for quick food. The strategic expansion of major players in Asia Pacific and the growing popularity of fast food in the younger adult population is predicted to be the main elements driving this market. For example, Taco Bell I.P. Holder, LLC, an American fast food chain, has expanded its operations into Asia Pacific by establishing its first location located in Bangkok, Thailand.
The establishment of several chains of burgers in India including biggie's burger and the increasing use in Domino's as well as McDonald's. Burger King in Tier two and three cities in India will accelerate the size in the industry. Furthermore, the rapid rise in the use of Indian native online delivery apps such as Zomato and Swiggy will significantly impact the expansion in the food delivery industry.
Europe can be predicted to experience significant growth due to the fast pace of life and evolving working culture. The wide range of fast food options within the area is another reason that is driving market expansion. Based on research conducted by the EAE Business School, the number of fast food chains and home delivery chains grew by 5.1 percent across Europe in 2014 when contrasted to 2013. This increased which was 4,195 as of 2013 and then 4,420 by 2014. Based on a report from EIT Food in 2020 in 2020, the U.K. reported a 29 percent increase in the consumption of quick food in COVID-19 lockdowns.
Middle East & Africa region is predicted to witness rapid growth in the coming period, due to increasing tourist activities and the expansion of businesses of major businesses in this region. Brand marketing and advertising are just a few of the strategies used by the major players to facilitate business expansion. Additionally, with the increase in disposable income as well as the expansion in American chain restaurants across UAE, Kuwait, and Saudi Arabia, the fast food market is expected to expand in the region.
It is expected that the Latin American fast food market is expected to see significant growth because of the rising demand for eating fast food items including tacos, burgers, burritos, burgers and pizza. The market for fast food across Latin America is projected to expand at a rate of a notable CAGR over the forecast timeframe between 2023-2030.
Segments Covered in the Fast Food Market
Fast Food Market By Product
- Pizza/Pasta
- Burgers/Sandwich
- Chicken
- Asian/Latin American
- Seafood
- Others
Fast Food Market By End User
- Quick Service Restaurants
- Fast Casual Restaurants
- Caterings
- Others
Fast Food Market By Region
North America
Europe
Asia-Pacific
- China
- India
- Japan
- South Korea
- Malaysia
Latin America
- Brazil
- Rest of Latin America
Middle East & Africa (MEA)
- GCC
- North Africa
- South Africa
- Rest of the Middle East & Africa
Frequently Asked Questions:
What is the current size of fast food market?
The Global Fast Food Market is expected to grow rapidly at a 3.5% CAGR consequently, it will grow from its existing size of from $720 billion in 2023 to $930.25 Billion by 2030.
Who are the major players operating in the fast food market?
The major players operating in the fast food market are Auntie Anne’s Franchisor SPV LLC, Domino’s Pizza Inc., CKE Restaurants Holdings Inc., Firehouse Restaurant Group Inc., Jack in the Box Inc., McDonald’s, Restaurant Brands International Inc., Yum Brands Inc., Inspire Brands Inc., and Doctor’s Associates Inc.
Which are the driving factors of the fast food market?
Rapid development and urbanization are also contributing to the expansion of the global fast food sector. Furthermore, the global fast food business is being driven by increased disposable income.
Which region will lead the global fast food market?
North America dominated the fast food market in 2022 and will remain its dominance in the near future.
- Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
- Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
- Executive Summary
3.1. Market Snapshot
- Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
- COVID 19 Impact on Fast Food Market
5.1. COVID-19 Landscape: Fast Food Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
- Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
- Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
- Global Fast Food Market, By Product
8.1. Fast Food Market, by Product Type, 2023-2032
8.1.1. Pizza/Pasta
8.1.1.1. Market Revenue and Forecast (2018-2030)
8.1.2. Burgers/Sandwich
8.1.2.1. Market Revenue and Forecast (2018-2030)
8.1.3. Chicken
8.1.3.1. Market Revenue and Forecast (2018-2030)
8.1.4. Asian/Latin American
8.1.4.1. Market Revenue and Forecast (2018-2030)
8.1.5. Seafood
8.1.5.1. Market Revenue and Forecast (2018-2030)
8.1.6. Others
8.1.6.1. Market Revenue and Forecast (2018-2030)
- Global Fast Food Market, By End User
9.1. Fast Food Market, by End User, 2023-2032
9.1.1. Quick Service Restaurants
9.1.1.1. Market Revenue and Forecast (2018-2030)
9.1.2. Fast Casual Restaurants
9.1.2.1. Market Revenue and Forecast (2018-2030)
9.1.3. Caterings
9.1.3.1. Market Revenue and Forecast (2018-2030)
9.1.4. Others
9.1.4.1. Market Revenue and Forecast (2018-2030)
- Global Fast Food Market, Regional Estimates and Trend Forecast
10.1. North America
10.1.1. Market Revenue and Forecast, by Product (2018-2030)
10.1.2. Market Revenue and Forecast, by End User (2018-2030)
10.1.3. U.S.
10.1.3.1. Market Revenue and Forecast, by Product (2018-2030)
10.1.3.2. Market Revenue and Forecast, by End User (2018-2030)
10.1.4. Rest of North America
10.1.4.1. Market Revenue and Forecast, by Product (2018-2030)
10.1.4.2. Market Revenue and Forecast, by End User (2018-2030)
10.2. Europe
10.2.1. Market Revenue and Forecast, by Product (2018-2030)
10.2.2. Market Revenue and Forecast, by End User (2018-2030)
10.2.3. UK
10.2.3.1. Market Revenue and Forecast, by Product (2018-2030)
10.2.3.2. Market Revenue and Forecast, by End User (2018-2030)
10.2.4. Germany
10.2.4.1. Market Revenue and Forecast, by Product (2018-2030)
10.2.4.2. Market Revenue and Forecast, by End User (2018-2030)
10.2.5. France
10.2.5.1. Market Revenue and Forecast, by Product (2018-2030)
10.2.5.2. Market Revenue and Forecast, by End User (2018-2030)
10.2.6. Rest of Europe
10.2.6.1. Market Revenue and Forecast, by Product (2018-2030)
10.2.6.2. Market Revenue and Forecast, by End User (2018-2030)
10.3. APAC
10.3.1. Market Revenue and Forecast, by Product (2018-2030)
10.3.2. Market Revenue and Forecast, by End User (2018-2030)
10.3.3. India
10.3.3.1. Market Revenue and Forecast, by Product (2018-2030)
10.3.3.2. Market Revenue and Forecast, by End User (2018-2030)
10.3.4. China
10.3.4.1. Market Revenue and Forecast, by Product (2018-2030)
10.3.4.2. Market Revenue and Forecast, by End User (2018-2030)
10.3.5. Japan
10.3.5.1. Market Revenue and Forecast, by Product (2018-2030)
10.3.5.2. Market Revenue and Forecast, by End User (2018-2030)
10.3.6. Rest of APAC
10.3.6.1. Market Revenue and Forecast, by Product (2018-2030)
10.3.6.2. Market Revenue and Forecast, by End User (2018-2030)
10.4. MEA
10.4.1. Market Revenue and Forecast, by Product (2018-2030)
10.4.2. Market Revenue and Forecast, by End User (2018-2030)
10.4.3. GCC
10.4.3.1. Market Revenue and Forecast, by Product (2018-2030)
10.4.3.2. Market Revenue and Forecast, by End User (2018-2030)
10.4.4. North Africa
10.4.4.1. Market Revenue and Forecast, by Product (2018-2030)
10.4.4.2. Market Revenue and Forecast, by End User (2018-2030)
10.4.5. South Africa
10.4.5.1. Market Revenue and Forecast, by Product (2018-2030)
10.4.5.2. Market Revenue and Forecast, by End User (2018-2030)
10.4.6. Rest of MEA
10.4.6.1. Market Revenue and Forecast, by Product (2018-2030)
10.4.6.2. Market Revenue and Forecast, by End User (2018-2030)
10.5. Latin America
10.5.1. Market Revenue and Forecast, by Product (2018-2030)
10.5.2. Market Revenue and Forecast, by End User (2018-2030)
10.5.3. Brazil
10.5.3.1. Market Revenue and Forecast, by Product (2018-2030)
10.5.3.2. Market Revenue and Forecast, by End User (2018-2030)
10.5.4. Rest of LATAM
10.5.4.1. Market Revenue and Forecast, by Product (2018-2030)
10.5.4.2. Market Revenue and Forecast, by End User (2018-2030)
- Company Profiles
11.1. Auntie Anne’s Franchisor SPV LLC
11.1.1. Company Overview
11.1.2. Product Offerings
11.1.3. Financial Performance
11.1.4. Recent Initiatives
11.2. Domino’s Pizza Inc.
11.2.1. Company Overview
11.2.2. Product Offerings
11.2.3. Financial Performance
11.2.4. Recent Initiatives
11.3. CKE Restaurants Holdings Inc.
11.3.1. Company Overview
11.3.2. Product Offerings
11.3.3. Financial Performance
11.3.4. Recent Initiatives
11.4. Firehouse Restaurant Group Inc.
11.4.1. Company Overview
11.4.2. Product Offerings
11.4.3. Financial Performance
11.4.4. Recent Initiatives
11.5. Jack in the Box Inc.
11.5.1. Company Overview
11.5.2. Product Offerings
11.5.3. Financial Performance
11.5.4. Recent Initiatives
11.6. McDonald’s
11.6.1. Company Overview
11.6.2. Product Offerings
11.6.3. Financial Performance
11.6.4. Recent Initiatives
11.7. Restaurant Brands International Inc.
11.7.1. Company Overview
11.7.2. Product Offerings
11.7.3. Financial Performance
11.7.4. Recent Initiatives
11.8. Yum Brands Inc.
11.8.1. Company Overview
11.8.2. Product Offerings
11.8.3. Financial Performance
11.8.4. Recent Initiatives
11.9. Inspire Brands Inc.
11.9.1. Company Overview
11.9.2. Product Offerings
11.9.3. Financial Performance
11.9.4. Recent Initiatives
11.10. Doctor’s Associates Inc.
11.10.1. Company Overview
11.10.2. Product Offerings
11.10.3. Financial Performance
11.10.4. Recent Initiatives
- Research Methodology
12.1. Primary Research
12.2. Secondary Research
12.3. Assumptions
- Appendix
13.1. About Us
13.2. Glossary of Terms
