The Fast Food Market is estimated to be valued at US$ 745.8 Billion in 2022 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The fast food market consists of vendors providing quick service restaurant foods and snacks. Fast foods are inexpensive, easily available and provide convenience. The preference for quick serves and on-the-go meals has fueled the demand.
Market key trends:
One of the key trends fueling the market growth is fast paced urbanization. There has been rapid urbanization across developing regions of the world owing to growing work prospects in cities. Urban residents are moving away from home cooked meals and prefer convenience foods that save time. Fast foods perfectly fit the increasingly busy lifestyles of urban populations. Moreover, growing disposable incomes allow for occasional indulgence in fast foods. Fast food chains are leveraging this trend by opening outlets in key urban areas to cater to time starved customers. This has significantly boosted the fast food market size over the years.
Porter’s Analysis
Threat of new entrants: The fast food market has high threat of new entrants due to relatively low setup costs. However, established brands have strong economies of scale and customer loyalty that deters new competitors.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes. However, offerings from major chains attract buyers due to convenience, consistency and pricing.
Bargaining power of suppliers: Suppliers have low bargaining power due to fragmented supply base and dependence of chains on a few key ingredients. Suppliers are easily replaceable.
Threat of new substitutes: Threat from substitutes is high with diversified offerings from casual dining, quick service restaurants and grocery stores. Home-delivered meals also increased competition.
Competitive rivalry: Intense due to strong brand recognition, menu innovation and loyalty programs by major players. Marketing spends and promotions are high to gain market share.
SWOT Analysis
Strengths: Established brands, menu variety, affordable pricing, strong distribution networks and focus on speed, quality and consistency.
Weaknesses: Heavy reliance on few core products, perception of being less healthy, issues around management of supply chains.
Opportunities: Drive-thrus, delivery, international expansion, menu innovation to attract more customers.
Threats: Rising input costs, health/nutrition related regulations, competition from substitutes.
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 options. The market size for 2022 is estimated at US$ 745.8 Billion.
Regional analysis: North America dominates the global fast food market currently due to widespread presence of major chains. However, Asia Pacific is expected to be the fastest growing region supported by rising disposable incomes, urbanization and changing lifestyles.
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. Major players are focusing on geographic and product expansions to cement their leadership positions through innovations.
Read more: https://www.ukwebwire.com/fast-food-market-trends-forecast/Â
