The In-Flight Catering Service Market size is forecast to reach $18.96 billion by 2025, growing at a CAGR of 5.1% during the forecast period 2020-2025. A rise in the number of long hauls and non-stop flights, primarily owing to the upsurge in leisure as well as business tourism and steady rise in disposable income are the major factors driving the growth of the market. The increasing trend of offering customized as well as organic meals to passengers is set to further enhance the overall market demand for the In-Flight Catering Service Market during the forecast period 2020-2025.
Flight Type- Segment Analysis
The Full-Service Carrier segment held the largest share in the In-Flight Catering Service Market in 2019 and is estimated to grow at a CAGR of 6.17% during the forecast period 2020-2025. A full-service airline typically offers passengers in-flight entertainment, checked baggage, meals, beverages, and comforts such as blankets and pillows in the ticket price. The seats generally have more recline than a low-cost carrier as well as more legroom. Since full-service carrier are generally international or long-haul flights, the growing trend of international travel is expected to have a positive impact on segment growth. The primary factor driving growth is the upsurge in the travel and tourism industry, the rise in economic activity, urbanization, and rising consumer preference for low fare and non-stop carriers. As a result, there has been an increasing demand for onboard catering services, to better serve the customer needs. Numerous low cost carriers operate on international routes, in turn creating a significant demand for local as well as international cuisines onboard. Full-Service Carrier is set to be the highest growing segment and is estimated to register the highest CAGR during the forecast period 2020-2025.
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Airline Class- Segment Analysis
The Economy Class segment held the largest share in the In-Flight Catering Service Market in 2019 owing to its affordable ticket price as compared to the other classes, ultimately attracting the broad traveller base. Economy class, also called third class, coach class, steerage, or to distinguish it from the slightly more expensive premium economy class, standard economy class, or budget economy class is the lowest travel class of seating in air travel. Economy class seats usually recline and have a fold-down table. The availability of food also varies. Some major carriers no longer serve meals in the economy for short flights. Meals are now only generally provided on international flights. Some airport vendors have started to offer packaged meals to economy travellers that can be carried on to flights. Growth in the number of corporate travellers, coupled with the expansion of global business networks is among the prominent factors positively impacting the growth. Various emerging economies worldwide have witnessed considerable growth in GDP, resulting in leisure travellers to book business class for their air travel. In-flight meals on long-haul flights play an important role in attracting customers. As a result, various airlines are considering advertising their services by making food a pivotal point. The Economy Class is set to be the highest growing segment and is estimated to register the highest CAGR during the forecast period 2020-2025.
Geography – Segment Analysis
Asia Pacific dominated the In-Flight Catering Service Market in 2019 with a share of more than 37.81%, followed by Europe owing to the rise in international travel and tourism. The upsurge in the middle-class people and an improved standard of living along with the increasing number of airline operators are increasing the growth of the In-Flight Catering Service Market in this region.
However, Europe is estimated to grow at a higher CAGR during the forecast period 2020-2025 owing to the growing number of legacy carriers venturing into the budget bracket. The increasing spending capacity of passengers to avail of healthy and organic meals and airline collaboration with hands in experience food professionals is increasing the growth of the In-Flight Catering Service Market in this region.
In-Flight Catering Service Market Drivers
Growth in the number of air travel, and the emergence of low-cost airline companies in developing countries
Growth in the number of air travel and the emergence of low-cost airline companies in developing countries is increasing the growth of the In-Flight Catering Service Market owing to the low airfares, higher living standards, and an expected recovery in the world gross domestic product. Rising GDP, and consequently, disposable income and living standards, result in an increased demand for air travel for both business and leisure purposes. Although living standards is one of the most important determinants of the number of enplaned passengers, it is important only until a point. More than developed economies, higher living standards propel the growth in air traffic for emerging economies as their propensity to spend can grow at a much higher pace, and their markets haven’t reached maturity yet. Paying cheap fares for no-frills air travel was a bargain accepted by the majority of air travelers. Those who pined for the glamour days of flying always had the option of paying more for first-class. Thus, increasing the growth of the In-Flight Catering Service Market during the forecast period 2020-2025.
The increasing trend of offering customized as well as organic meals to passengers
The increasing trend of offering customized as well as organic meals to passengers is increasing the growth of the In-Flight Catering Service Market. Meals are usually prepared on the ground in catering facilities close to the airport and are then transported to the aircraft and placed in refrigerators for flight attendants to heat and serve on board. The caterers are more like the middlemen that help airlines mass-produce thousands of meals a day; the airline’s catering team is usually responsible for menu design. The airline targets travellers between 18 and 35 years old. Passengers are offered many benefits which only could matter to the millennials. One of the benefits advantages is supreme food. The menu contains mainly organic foods that go together with craft beer. Thus, increasing the growth of the In-Flight Catering Service Market during the forecast period 2020-2025.
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In-Flight Catering Service Market Challenges
Transportation of food and low shelf life of the transported food as poor handlings of food either results in contamination or wastage
Some of the factors that are set to impede the growth of the In-Flight Catering Service Market are the transportation of food and low shelf life of the transported food as poor handlings of food either results in contamination or wastage.
In-Flight Catering Service Market Industry Outlook
Product launches, mergers and acquisitions, joint ventures, and R&D activities are key strategies adopted by players in the In-Flight Catering Service Market. In 2019, the In-Flight Catering Service Market share is consolidated by the top ten players present in the market. In-Flight Catering Service Market, the top 10 companies are Journey Group Plc, On Air Dining, KLM Catering Services Schiphol, Air Fayre, Servair, LSG Lufthansa Service Holding, Abby’s Catering, Cathay Pacific, Singapore Airlines, AAS Catering, LSG Lufthansa Service Holding, ANA Catering Service, TajSATS Air Catering Limited, and Brahim’s SATS Food Services among others.
Acquisitions/Product Launches
In September 2017, Cathay Pacific redesigned its in-flight catering services by introducing a dial-on-demand service alongside a pre-order option on routes from Hong Kong to London and Hong Kong to Chicago.
In June 2018, Singapore Airlines introduced its first-class meal menu crafted by Gordon Ramsay for their international flights.
Key Takeaways
The Asia Pacific dominated the In-Flight Catering Service Market in 2019 owing to the rise in international travel and tourism. The In-Flight Catering Service Market scope for different regions will be provided in the final report.
Growth in the number of air travel and the emergence of low-cost airline companies in developing countries is likely to aid in the market growth of the In-Flight Catering Service Market.
Detailed analysis of the Strength, Weakness, and Opportunities of the prominent players operating in the market will be provided in the In-Flight Catering Service Market report.
Transportation of food and low shelf life of the transported food as poor handlings of food either results in contamination or wastage is poised to create hurdles for the In-Flight Catering Service Market.
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