In-flight Catering Services Market worth over $20 Bn by 2026
Published Date: April 22, 2020 Authors: Kiran Pulidindi, Sayan Mukherjee
In-flight Catering Services Market size is expected to surpass USD 20 billion by 2026, according to a new research report by Global Market Insights, Inc.
Bolstering air traffic in Asia Pacific region will be one of the chief factors driving the in-flight catering services industry growth. APAC is likely to drive the largest growth in the airline industry with more than 50% of the global air traffic in the coming two decades. This is mainly due to the robust economic development, favorable demographic profiles, and improvement in household income, which augments the regional demand for air travel and consequently in-flight catering services market.
China is likely to replace the U.S. as the world’s largest aviation market by mid 2020s. Also, India will take the third place, surpassing the UK by 2024. Moreover, Indonesia is likely to rank fourth in the aviation market by 2030. Thailand, on the other hand, is expected to enter the top 10 in aviation industry. This is prominently attributed to the significant rise in air traffic, rise in tourism activities, cheap travel rates, and increasing per capita income in the region. Thus, increasing air travel propel the need for in-flight catering services. However, the impact of Covid-19 has been severe on the industry in 2020, and the revenue fall is pegged at almost 50% over the previous year.
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Browse key industry insights spread across 120 pages with 129 market data tables & 22 figures & charts from the report, “In-flight Catering Services Market Size By Aircraft Seating Class (Economy-class, Business-class, First-class), By Source (In-house, Outsource), By Food Type (Meal, Bakery & Confectionery, Beverages), Industry Analysis Report, Regional Outlook, Application Development, Competitive Landscape & Forecast, 2020 – 2026” in detail along with the table of contents:
The economy class is poised to register over three-fifth market share in 2026. Most of the Asian and European economy class flights cater the passengers with gourmet meals either on one tray or in multiple courses. While in long-distance flights, beverages such as cocktail and champagne are also provided. Rise in high standards of living and increasing business travel is likely to drive the in-flight catering services market in business class.
The in-house service segment to observe 14.5% CAGR during 2020 to 2026. Meals including fruits and salad which can be served easily generally come under in-house as the aircrafts are equipped with limited kitchen facilities. Also, other meals served are relatively expensive than the outsourced meals, thus, it is gradually losing shares to outsource meals.
The beverages segment is expected to generate more than USD 4 billion revenue in 2026. Various beverage options ranging from fruit juices, tea, coffee, and assorted varieties of alcohol are served with the meals. Alcoholic beverages such as wines, cocktail, and champagnes, are also offered with gourmet meals to improve the dining experience.
Europe will be one of the key markets
The European in-flight catering services market to reach USD 5 billion by 2026. In 2018, the region accounted for nearly 25% of the airline passengers in worldwide air traffic. This is mainly due to the rise in tourism activities, high standards of living, and surging demand for healthy balanced meals during the flight. The regional in-flight catering services offer food with various dietary preferences with options of vegetarian and meat-based meals.
Manufacturers focusing on acquisitions and partnership in the industry
Some of the service provides in the global in-flight catering services market include Gate Gourmet, Saudi Airlines catering, Servair, Dnata, and LSG Group. The other market players involved in the market are ANA Catering Service Co. Ltd., Emirates Flight Catering, Newrest Catering, DO & CO, Journey Group, Goddard Catering Group, Royal Holdings, SATS Ltd, etc.
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