The In-flight catering market to expand at a CAGR 5.3% of in terms useful during the amount of forecast. In combination with increasing number of passengers preferring aviation, the rising demand for quality and hygienic main courses, breakfast and beverages have propelled the expansion of the in-flight catering market during the period of forecast.
A rise in the number of long-haul and non-stop flights, primarily due to the upsurge in leisure as well as business tourism, has led to increased passenger demand for catering services on board. Airlines across the world are differentiating themselves from the competition by setting an inexpensive price range for meals on board to reinforce the general passenger travel experience, thereby providing a better in-flight experience.
Top Driver: Increasing number of airline passengers
Increasing number of airline passengers is a key factor expected to drive growth of the global inflight catering market over the forecast period. In addition, increasing the quality of food and services offered by aircraft service providers is another factor expected to further fuel growth of the global inflight catering market over the forecast period.
Ongoing trend observed in the target market is increasing technological advancements in food & beverage industry, such as ordering and payment through tablet and mobile devices for particular order. For instance, Applebee’s and Chili’s casual dining chains across the US, while airport restaurateur OTG – installed thousands of food-ordering iPads, at half a dozen of the US airports. In addition, serving pre-packaged meals is another trend which is expected to support growth of the global inflight catering market over the forecast period.
Increasing initiatives by established service providers to improve existing fleet and launch of new airlines across various countries in the world are expected to create potential revenue opportunities for players operating in the global inflight catering market over the forecast period.
Meals Segment Expected to Dominate the Market during the Forecast Period
Meals are expected to be the dominant food type within the inflight catering market during the forecast period, thanks to the demand from the Asian and European airlines. There was a growing preference from the passengers in these regions towards meals, especially in long haul flights. Some airlines within the North American region serve meals that are available, at an additional cost. However, the beverages segment is predicted to get the very best rate of growth during the forecast period. Strategies just like the introduction of beverages like premium wines to lure the business and first-class passengers have shown positive results to the airlines, and this is often expected to help the expansion of the beverages segment during the forecast period.
Based on flight type, the in-flight catering services market has been segmented into Full-Service Carriers (FSCs), Low-Cost Carriers (LCCs), et al. The FSC segment accounted for the largest market share in 2018 and is anticipated to retain its dominance over the forecast period. Since FSCs are generally international or long-haul flights, the growing trend of international travel is expected to have a positive impact on segment growth. Airlines flying on international routes are typically long-distance flights whose basic ticket price, includes various services, like in-flight entertainment, checked baggage, and meals and beverages.
Asia-Pacific to continue to have a large market share
The Asia Pacific dominated the market for in-flight catering services in 2018 and is expected to maintain its dominance over the forecast period. It is anticipated to expand at a significant CAGR of over 8% between 2019 and 2028. The vital factor contributing to the growth includes a rise in international travel and tourism owing to the upsurge in the middle-class population and an improved standard of living. Moreover, the increasing number of airline operators in the region is expected to create significant growth opportunities for in-flight catering providers in the region.
And also Europe is predicted to grow at a considerable pace over the forecast period. The region has been witnessing a growing number of legacy carriers venturing into the budget bracket, which successively is predicted to drive the demand for onboard catering services in low fare flights. Furthermore, increasing spending capacity of passengers to avail of healthy and organic meals, and airline collaboration with hands-on experience food professionals are a number of the factors that are expected to make considerable growth opportunities within the forthcoming years. Additionally, the introduction of latest routes and airline fleet expansion by the key operators are anticipated to spice up the expansion.
Players to Focus on In-flight catering market
Five major players dominate the marketplace for inflight catering. Also, when it comes to supplying from small and medium-size airports, the market is fairly fragmented with the presence of regional players. Demand for food with top quality and safety was the most reason for airlines to prefer the catering from major manufacturers than the regional players. Further, these big players have increased their R&D spending exponentially to integrate the innovation with culinary excellence. This has resulted in premium quality food for airline inflight catering.
Scope of the Report
By Food Type
By Flight Type
Key Reasons to Purchase this Report
Table of Content
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