Global In-flight Catering Services Market by Flight Type (Full Service Carrier, Low-Cost Carrier), by Airline Class (Economy, Business) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Industry Insights

In-flight catering services are expected to grow at a substantial CAGR of 5.7% between 2019-2025. The market was valued at USD 16.74 million in 2018. The increase in long-haul and nonstop flights, mainly due to an increase in leisure and business tourism, has resulted in increased demand for catering services onboard. To differentiate themselves from their competitors, airlines around the world are offering reasonable prices for meals onboard to improve the passenger experience and provide a better in-flight experience.

The overall growth is expected to be driven by a steady increase in disposable income and increasing adoption of technological advances such as the in-flight food ordering system and beverage ordering system. Commercial aviation is a highly competitive industry. Customer retention is a key factor. In an effort to increase their profit margins, and ensure steady revenue generation, operators around the world are improving their customer retention strategies. Many of the major airlines have a focus on tailoring their services to customers. For example, they offer regional cuisines on international flights. The market leaders have seen a rise in the popularity of serving organic and customized meals to their passengers, which has helped them improve customer satisfaction.

To improve the efficiency of their systems and processes, the market leaders are adopting new concepts from the production management area. Catering providers use a variety of tools to improve their services. These include lean manufacturing, just-in-time production, inventory management systems and quality systems. FlyDubai, Virgin America, Japan Airlines and Air New Zealand are all enhancing their service offerings with digitally-enabled F&B. These services enable passengers to place orders through the in-seat IFE network. Emirates recently issued Meal Ordering Devices for all business class flight attendants.

Cathay Pacific introduced a dial-on demand service and a preorder option for flights from Hong Kong to London. Celebrity chefs are also working with legacy carriers and full-service carriers to redesign their menus and improve the air travel experience. Singapore Airlines launched its first-class menu created by Gordon Ramsay in 2018 for international flights. The market will likely face challenges in the transportation of food, as well as low shelf life. Poor handling of food can lead to contamination and wastage.

Flight Type Insights

The market for in-flight catering services has been divided into Full-Service Carriers and Low-Cost Carriers (LCCs) based on flight type. FSCs accounted for the largest share of the market in 2018, and it is expected to continue its dominance during the forecast period. FSCs are usually long-haul or international flights. This will likely have an impact on the segment's growth. International airlines fly on long-distance routes. Their basic ticket price includes many services such as checked baggage and meals and beverages.

Over the forecast period, LCC is expected to experience significant growth. Growth is primarily driven by the growth in the travel and tourist industry, rising economic activity, urbanization and rising consumer preference to fly non-stop and low-fare carriers. To better meet customer needs, there is a growing demand for onboard catering services. Many LCCs operate internationally, which means there is a large demand for both local and international cuisines.

Airline Class Insights

The market can be divided into three types based on airline class: economy, business, and first-class. The future leader segment is expected to be economy class for the next six-years. Its low ticket prices, which are lower than other classes, is the key factor driving segment growth. This ultimately attracts a broad traveler base. Segment growth will be stimulated by the availability of affordable meals.

The business-class is expected to grow at a remarkable CAGR of just under 7% between 2019 and 2025. The growth is being driven by the increase in corporate travelers and the expansion of global business networks. Many emerging economies have seen significant growth in their GDP. This has led to leisure travelers booking business class flights. Long-haul customers are attracted by in-flight meals. Airlines are now considering making food an important part of their advertising. The market is expected to be strengthened by these factors over the forecast period.

F&B Type Insights

The market can be divided into three types based on its F&B type: bakery, confectionery, beverage and meal. In 2018, the largest market share was held by the meal segment, which is expected to continue its dominance throughout the forecast period. The growth is due to increased consumption of ready-to eat meals by travelers and a growing demand for catering services on long-duration nonstop flights. In-flight catering companies are making great efforts to provide passengers with culturally diverse meals. Over the next six-years, the demand for healthier and more nutritious meals by passengers will drive growth. Customers are willing to pay a higher price for such meals.

The forecast period will see significant growth in the beverage segment. The main factors driving the segment growth are rising demand for coffee and healthy juices, especially on short-haul flights. Segment growth is also stimulated by benefits like a wide range of beverages for passengers, including juices and various types of alcohol. In an effort to improve customer satisfaction, some airlines offer personalized drinks.

Regional Insights

In-flight catering services were dominated by Asia Pacific in 2018. It is expected that it will continue to dominate the market over the forecast period. The market is expected to grow at a substantial CAGR of more than 7% between 2019-2025. A rise in international tourism and travel due to an increase in middle-class populations and an improved standard living are key factors that have contributed to this growth. In-flight catering services in the region will also benefit from the growing number of airlines operating in the area.

Europe is forecast to grow at a significant pace during the forecast period. There has been a rise in legacy airlines entering the budget segment, which is expected to increase the demand for onboard catering services on low-cost flights. In the coming years, there will be significant growth opportunities due to increased spending by passengers who want to eat healthy, organic meals. Additionally, airlines are expected to collaborate with experienced food professionals to increase their expertise. The growth is expected to be boosted by key operators introducing new routes and expanding the airline fleet.

Market Share in-flight Catering Services Market Insights

It is a dynamic market with key service providers forming long-term partnerships and joint ventures to offer innovative solutions to airline operators. Gategroup Holding, for instance, entered into a joint venture of 30 years with Asiana Airlines in South Korea in January 2018 to become the sole in-flight caterer for the operator, catering to passengers flying to North America, Australia and Europe.

Gate Gourmet (Gategroup Holding), LSG Sly Chefs (dnata), SATS Ltd and Do & Co are some of the major market players. These companies strategically participate in mergers and acquisitions as well as long-term partnerships, partnerships, and the launch of new services to increase their market presence. The newest flight catering facility for Dublin Airport was opened by the Dubai National Air Transport Association (dnata). It includes an industrial-sized kitchen, food preparation, assembly, storage, and storage.

Report Scope

The Report Covers Certain Segments

This report predicts revenue growth at the global, regional and country level and offers an analysis of industry trends for each sub-segment from 2015 to 2025. Grand View Research segmented the global market for in-flight catering services based on type of flight, airline class, F&B type and region.

• Forecast of Flight Types (Revenue, USD Million, 2015-2025)

  • Full-Service Carrier (FSC)

  • Low-Cost Carrier (LCC)

  • Other

• Airline Class Outlook (Revenue USD Million, 2015-2025)

  • Economy Class

  • Business Class

  • First Class

  • Other

• F&B Type Outlook (Revenue USD Millions, 2015-2025)

  • Meal

  • Bakery & Confectionery

  • Beverage

  • Other

• Regional Outlook (Revenue USD Million, 2015-2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

Up Market Research published a new report titled “In-flight Catering Services Market research report which is segmented by Flight Type (Full Service Carrier, Low-Cost Carrier), by Airline Class (Economy, Business), By Players/Companies ANA Catering Service Co Ltd (ANAC), SA These companies are strategically involved in mergers and acquisitions, storage, which comprises an industrial-sized kitchen, food preparation and assembly area, partnerships, long-term agreements, Emirates Flight Catering, new service launches to expand their market presence In January 2018, Newrest Group Services SAS, Servair, Dubai National Air Transport Association (dnata) introduced its newest flight catering facility at Dublin Airport, Flying Food Group”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global In-flight Catering Services Market Report Segments:

The market is segmented by Flight Type (Full Service Carrier, Low-Cost Carrier), by Airline Class (Economy, Business).

In-flight Catering Services Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the In-flight Catering Services Market

Overview of the regional outlook of the In-flight Catering Services Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The In-flight Catering Services Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of In-flight Catering Services Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Full Service Carrier

                2. Low-Cost Carrier

                1. Economy

                2. Business

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the In-flight Catering Services Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the In-flight Catering Services Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.