July 18, 2024
Fast Food Market

Fast Food Market is Estimated To Witness High Growth Owing To Convenience Trends

The fast food market is estimated to be valued at US$ 780.11 Bn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The fast food market consists of restaurants and chains that offer quick services and affordable food options. Some of the popular fast food includes burgers, sandwiches, fried chicken, pizza and other snack items. The fast food is convenient to consume, affordable and offers variety of cuisines suiting varied tastes. The fast food market caters to on-the-go consumers seeking hassle-free meal solutions.

Market key trends:

One of the key trends driving the fast food market growth is increasing consumer preference for convenience food. Modern lifestyles with busy schedules leave less time for home cooked meals, driving the demand for easily accessible fast food joints. Fast food offers quick grab-and-go solutions without much effort or preparation time. The availability of diverse menus, meal combos and delivery options add to the hassle-free appeal of fast food. Even home delivery aggregators are collaborating with fast food chains to offer packaged meals at doorsteps, enhancing convenience for consumers. This rising demand for convenience due to busy lifestyles is a major trend boosting the fast food industry.

Porter’s Analysis

Threat of new entrants: High capital requirement and established brand loyalty for existing players make the threat relatively low. Bargaining power of buyers: Individual customers have high bargaining power due to availability of substitutes. However, organized retailers and food delivery platforms have relatively low bargaining power. Bargaining power of suppliers: Suppliers of food ingredients and paper/plastic products have moderate to low bargaining power due to availability of alternatives and supplier fragmentation. Threat of new substitutes: Substitutes like homemade food, food delivery from restaurants pose a moderate threat. Competitive rivalry: Intense competition among existing players adds pricing pressure.

SWOT Analysis

Strengths: Established brands, wide reach through dine-in and delivery channels, consistent menu and formats help customers make choices easily.
Weaknesses: Dependency on few mainstream food items leaves scope for innovation limited. High real estate and staff costs erode margins.
Opportunities: Growing demand for convenience food offers scope for menu expansion and improved quality. Digital/delivery channels can boost access.
Threats: Consumption trends shifting to healthier/homemade options. Rising costs can squeeze margins further.

Key Takeaways

The Global Fast Food Market Size is expected to witness high growth, exhibiting CAGR of 4.6% over the forecast period, due to increasing demand for convenience food among busy consumers. North America dominates the Fast Food Market currently. However, Asia Pacific is expected to witness the fastest growth due to rising disposable incomes, expanding urbanization and promotion of western food culture in countries like China and India.

Key players operating in the 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. Fast food giants like McDonald’s and KFC have established a widespread presence across global markets. Local chains are also expanding aggressively through online and delivery channels. Industry players focus on menu innovation, improved quality, and omni-channel strategies to boost market share.

 

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it