Fast food refers to food that can be prepared and served quickly, with minimal preparation time. This includes products such as pizza, burgers, sandwiches, bagels, tacos, wraps, hot dogs, and other healthier alternatives including salads and baked goods. The demand for fast food is driven by changing lifestyles and busy schedules of people. With increasing number of dual income families and time constrained individuals, consumption of fast food products is rising steadily.
The global fast food market is estimated to be valued at US$ 780.11 Bn in 2023 and is expected to exhibit a CAGR of 7.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The working population prefers fast food due to convenience factor as it allows them to save time on cooking and meal preparation. As per the World Bank, the global middle class population is expected to reach 5.3 billion by 2030 from 1.8 billion in 2009. These individuals have increased disposable incomes which is likely to drive fast food consumption. Fast food companies can capitalize on this opportunity by introducing affordable product offerings suitable for target demographic and expanding geographical footprint across high potential markets.
Porter’s Analysis
Threat of new entrants: The fast food market has high initial investment requirements which acts as a barrier for new entrants. Established players have significant brand recall and customer loyalty which is difficult for new players to attain.
Bargaining power of buyers: Buyers in the fast food market have high bargaining power due to the availability of substitutes. Buyers can switch to other fast food options based on price and quality.
Bargaining power of suppliers: Major fast food chains have outsourced production which reduces their dependence on a particular supplier. This gives them bargaining power over suppliers.
Threat of new substitutes: The threat is moderate as several substitute options like restaurant dining, home delivery etc are available to customers.
Competitive rivalry: The market is highly competitive due to presence of major global and regional fast food chains.
SWOT Analysis
Strength: Fast food has convenience, standardization and brand recall. Established chains have strong supply chain and distribution networks.
Weakness: Concerns over health impacts of fast food like obesity, high salt/fat content.Dependency on franchising model leads to loss of control.
Opportunity: Rising globalization and urbanization present scope for international expansion. Changes in consumer lifestyles and demand for convenience foods.
Threats: Stringent government regulations over quality, nutriiton. Rising health consciousness may impact sales.
Key Takeaways
The Global Fast Food Market Size is expected to witness high growth supported by increasing consumer spending, westernization of diets and busy lifestyles. The global fast food market is estimated to be valued at US$ 780.11 Bn in 2023 and is expected to exhibit a CAGR of 7.3% over the forecast period 2023 to 2030.
The North American region currently dominates the market owing to prominent fast food chains and heavy marketing spends. Changing demographics, growing millennial population and their preferences will influence future demand. Asian markets like India and China due to growing middle class, increasing disposable incomes and proliferation of fast food joints.
Key players operating in the fast food market are Epicurean, John Boos, Edward Wohl, San Jamar, SAGE, Neoflam, Catskill Craftsmen, Proteak, Carver Board, Virginia Boys Kitchens, Totally Bamboo, Lipper International, Madeira, Fackelmann, TOPULORS. Players are focusing on menu innovations, dining experiences and branding & promotional activities to drive growth.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it