Fast Food Market - Forecast(2023 - 2028)

Fast Food Market Overview

Fast Food Market Size is estimated to reach $745.8 billion by 2027. Furthermore, it is poised to grow at a CAGR of 4.8% over the forecast period of 2022-2027. Fast Food is defined as the food that is prepared and served at quick service restaurants or street vendors. Fast Food is typically high in sugar, salt, and saturated fat or trans fats. Fast Food is an example of a convenient food that can be enjoyed anywhere, at any time. As a result of majority of customers' busy lifestyles, Fast Food products are estimated to rise in terms of volume sales. The popularity of Fast Food restaurants, sometimes known as quick service restaurants, is increasing (QSRs). They are prepared in huge quantities and served to customers promptly based on their requirements. Burger, sandwiches, pizza, spaghetti, fried chicken, seafood and other types of junk food are among the quick foods available. The growth of these markets has been aided by the introduction of unprocessed dairy, organic vegetables, hormone-free meat, and natural components to Fast Food menus. Shifting consumer Fast Food preferences, as well as increased exposure to Fast Food chain operations are significant factors boosting the Fast Food industry's growth. New product launches, as a result of increased investment in food processing R&D, as well as a stronger distribution network for Fast Food products and a lengthy shelf life for fast food, are all expected to contribute considerably to the growth of Fast Food market size over the forecast period 2022-2027.

Fast Food Market Report Coverage

The report: “Fast Food Market Forecast (2022-2027)", by Industry ARC covers an in-depth analysis of the following segments of the Fast Food Market.

Key Takeaways

Fast Food Market - Geography (%) for 2021

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Fast Food Market Segmentation Analysis - By Product Type

Fast Food based on product type can be further segmented into Pizza & Pasta, Burger & Sandwich, Chicken, Asian & Latin American Food, Seafood, Others. Burger & Sandwich Food held a dominant Fast Food market share in a year 2021 owing to the growing consumption of burgers and sandwiches. For instance, according to the United States Department of Agriculture (USDA), Americans consume an average of 2.4 burgers per day, or roughly 50 billion burgers per year. Additionally, new burger & sandwich product launches are estimated to contribute significantly to the growth of the market segment. 

However, Asian and Latin American food is estimated to be fastest growing with a CAGR of 6.2% over the forecast period 2022-2027. Asian/Latin American food has become one of the most popular fast food options among consumers, owing to a rise in demand from millennials mixed with a boom in demand for ready-to-eat dishes. Fast Food is extremely popular among people of all ages today, as Fast Food restaurants are everywhere and offer a wide range of options to suit most tastes. Fast Food restaurants offer take-out and drive-through services in addition to dining in. The growth of this segment is being fuelled by rising demand for a variety of food products. 

Fast Food Segmentation Analysis - By End User

Fast Food based on end user can be further segmented into Full-service Restaurants, Quick-service Restaurants, Catering, Others. Quick-service Restaurants held a dominant Fast Food market share in a year 2021. To meet the increased demand of customers, quick service restaurants produce processed food in bulk. Furthermore, increased internet usage and easy access to smart phones has led in more online purchases. As a result, some Fast Food industry are turning to ward internet portals to improve online meal ordering for these Fast Food chains, which would help the quick service restaurant market expansions.

However, Full-service restaurants is estimated to the fastest growing with a CAGR of 6.7% over the forecast period of 2022-2027. Quick service restaurants prepare processed food in excess to accommodate rising consumer demand. Furthermore, more online purchases have resulted from greater internet usage and simple access to smart phones. As a result, several Fast Food restaurants are turning to using internet platforms to improve online meal ordering, which will help the full-service restaurant sector to grow.

Fast Food Segmentation Analysis by Geography

The Fast Food based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America held a dominant Fast Food market share of 30% in the year 2021. The Fast Food market is growing owing to an increase in consumer expenditure on Fast Food in the region. Market growth in the region is being fuelled by factors such as the availability of a wide range of cuisines as well as low-cost snacks and add-ons in a number of flavors. Also altering consumption patterns and the increase in consumer health consciousness, who prefer fast foods with healthy components and low cholesterol, will lead North America throughout the forecast period.

However, Asia-Pacific is estimated to the fastest growing over the forecast period of 2022-2027. The demand for Fast Food in the region is being driven by changing consumer preferences combined with the presence of a huge consumer base. As per the study by the study by The International English Language Testing System (IELTS), fast food is consumed once a week by 20% of the population in the United State in 2021. Furthermore, rising discretionary spending is assisting regional market expansion. Furthermore, Asia-Pacific is predominantly composed up of rising countries, which are luring manufacturers from all over the world to invest, and this trait is proving to be a market booster for the Fast Food Market Size in this region

Fast Food Market Drivers

Increasing Restaurants Chain Boost Fast Foods Market.

The number of restaurants and hotels is projected to rise as a result of increased industrialization and globalisation, boosting the growth of the Fast Food industry. California had the most QSRs, with about 31.5 thousand units, according to a 2019 ranking of the states with the most. The increase in the speed of life of the urban population, as well as their need for faster, less expensive food options, has fuelled the growth of the Fast Food business, which includes quick-service restaurants, full-service restaurants, street vendors, and others. In addition, the increased popularity of Fast Food has resulted in an increase in the number of restaurant franchisees. Over the forecast period, such factors will propel the Fast Food Industry.

Increasing Use of Technology in Fast Food Industry propel Fast Foods Market.

People are becoming more technically advanced, and it has become common to order necessary items such as apparel, daily supplies, and food from an online site rather than visiting to a nearby store or grocery. People prefer to shop online owing to, branded manufacturers are present to serve at a lower price or with a better offer than the competition to attract more customers, and it is convenient for the consumer attributed to easy payment options such as cash on delivery or credit card with door-to-door delivery of their favourite foods. Manufacturers and significant brands debut on internet stores after capturing such customer trends. According to research, platform to consumer online food delivery revenue shares will be 293,638 million in 2021. The increasing use of technology in food and beverage industry is anticipated to propel Fast Food market growth.

Fast Food Market Challenges

Rising Concerns About Health Among Consumers Hamper Market Growth.

Rising health consciousness among consumers, as well as increased demand for healthy and delicious meals, has put a halt to the Fast Food industry's expansion. Fast Food products like sandwiches, pizza, fried chicken, and burger are considered junk food but there is a major difference between both, junk food basically refers to food with extremely low nutritional value, while Food that can be purchased quickly at a restaurant is referred to as Fast Food. According to researchers’ Fast Food consumption, increases obesity, overweight, and other medical problems. Report by NHANES shows that nearly one-third of individuals (30.7%) and about one in every eleven persons (9.2%) affects with severe obesity. are overweight. People prefer to eat healthy foods rather than quick food, resulting in the Fast Food industry's slow down.

Fast Food Industry Outlook

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Fast Food. The top 10- Fast Food companies are-

1. Domino’s Pizza, Inc.
2. CKE Restaurants Holdings, Inc.
3. Firehouse Restaurant Group, Inc.
4. Jack in the Box, Inc.
5. McDonald’s
6. Restaurant Brands International, Inc.
7. Yum Brands Inc.
8. Inspire Brands, Inc.
9. Doctor's Associates, Inc.
10. Auntie Anne’s Franchisor SPV LLC

Recent Developments

• In December 2021, Restaurant Brands International Inc. completed acquisition of Firehouse Restaurants Group Inc. (Firehouse Subs) for $1 billion. RBI is strong growing player with QSR sandwich category with sale of approximately 1.1 billion for 2021. 

• In August 2021, Domino’s Pizza, Inc. looks to accelerate expansion with help of Wow factor Plc- operator of Domino’s Pizza. The company director stated they are going to expand 35 branches up to the end of the year 2021 & 20 to 25 new branches in 2022 in Bang Kong, China. For one outlet company need to invest 5 million Baht which is 0.15 million USD. 

• In May 2021, the parent company of Carl's Jr. and Hardee's, CKE Restaurants Holdings, Inc., inaugurated its 1000th location in Madrid, Spain. In the next five years, the company hopes to expand its international footprint. CKE Restaurants wants to keep introducing mouth-watering flavors that emphasize their signature Chargrilled Angus Beef Burgers, crispy Hand-Breaded Chicken TendersTM, and other products.

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