In-Flight Catering Services Market size is CAGR of over 6.1% from 2021 to 2027

In-Flight Catering Services Market Size
The In-Flight Catering Services Market size accounted for more than USD 8.89 billion in 2020 and is expected to increase at a rate of over 6.1% from 2021 to 2027.

The expanding worldwide demand for commercial aircraft alongside rising air traffic, especially within the APAC region is most likely to contribute to the growth of the market over the forecasting period.

For obtaining key market trends

The main causes of expansion in air travel are positive trends relating to Gross Domestic Product (GDP) and inexpensive air travel. Growing disposable income along with shifting lifestyles will drive the air travel demand for business & leisure travel. In the last few years, the cost of air travel is on the decline owing to high levels of competition among airlines and rising operating efficiency of airlines.

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The airline catering sector is being hit by some difficulties that might retard its future growth. New strict regulations on the types of food and beverages that can be consumed aboard might make it more difficult for airlines to provide the quality and diversity of food that customers are accustomed to. The COVID-19 pandemic has also had a big impact on the airline catering industry. When governments around the world locked down their countries and restricted travel, airlines were forced to cancel flights and lay off workers. This led to a sharp drop in demand for airline catering services. Now that travel restrictions are starting to ease, the airline catering industry is expected to start to recover. But it will take a while for the industry to return to pre-pandemic levels. Meanwhile, the industry will have to adjust to the new challenges it faces, including the stricter regulations on food and beverages.

In-flight Catering Services Market Report Attributes
Report Attribute Details
Base Year 2020
In-flight Catering Services Market Size in 2020 8,893.1 Million (USD)
Forecast Period 2021 to 2027
Forecast Period 2021 to 2027 CAGR 6.1%
2027 Value Projection 21,758.4 Million (USD)
Historical Data for 2017 to 2020
No. of Pages 140
Tables, Charts & Figures 150
Segments covered Aircraft seating class, Source, Food Type, Region
Growth Drivers
Growing demand for commercial aircrafts worldwide
Growing air traffic in Asia Pacific region
Growth in the airline sector in Middle East region
Pitfalls & Challenges
Strict regulations on airline-catering
What are the growth opportunities in this market?

In-flight Catering Services Market Analysis
The economy class segment accounted for over 60% of market share in 2020 under the leadership of increasing consumer preference for economy class for short to medium haul distance travel. APAC has shown an increase in disposable income number and middle-class population in recent years, which is driving the demand for economy class aircraft seats in the market.

While airlines and private planes fly high, they’ll be more and more dependent on outside firms to serve up delectable meals to their passengers. This outsourced part of the in-flight catering industry is expected to hit a whopping $16 billion by 2027. Why? Because it’s just so easy! Airlines can pick and choose from an enormous menu of foods and dishes, tempting passengers’ palates with treats from everywhere in the world. Further, outsourcing provides airlines with peace of mind since all the nitty-gritty details pertaining to food hygiene and safety are taken care of by these firms. Furthermore, most of the leading airlines have established agreements with reliable in-flight caterers. These deals confirm that passengers get to enjoy good-quality meals consistently on their trips, thereby enhancing the demand for outsourced food items.

Find out more about the most prominent segments driving this market

Meal segment bagged 45% of revenue share in the year 2020. Meal sizes, qualities, and prices differ with respect to airlines, classes, and flight durations. Safety measures are incorporated by proper menu design and preparation process. Meals are cooked in land-based kitchens by the airline kitchens, and flight stewards reheat and serve to the passengers. Adequate care in terms of cooking methods is taken in order to preserve aroma, color, flavor, and appearance of ingredients. Airline companies are also providing various meals and serving continental dishes in order to cater to customers.

Discover more about the primary segments influencing this market

Asia Pacific in-flight catering services market was severely impacted by COVID-19 pandemic and was worth more than USD 3 billion during 2020 driven by growing population, higher disposable income levels, and favorable government policies. Nations such as China and India are spending enormous amounts on airport infrastructure developments. Aside from these two, other nations such as Vietnam, Colombia, Indonesia, Malaysia, and the Philippines are likely to be rapidly growing nations for air passenger travel. Positive trends relating to the airline sector will spur the regional development.

As per the International Air Transport Association (IATA), in 2016, air travelers were approximately 3.8 billion and it will grow up to 7.2 billion by 2035. The region of Asia Pacific will lead the growth and it will be the region with the highest growth in air passenger traffic in the future. APAC will be responsible for almost 39% of global passenger traffic growth between 2017 and 2040, according to the Airports Council International’s (ACI) Annual World Airport Traffic Forecasts 2017 – 2040.

Hello! Listen closely, because the skies are about to get busy in North America! In the next few years, the number of people jumping on airplanes in North America will increase by a healthy 5% annually. And here’s the kickerinternational travel is set to soar by a whopping 8.4% through 2040. To accommodate all these additional fliers, the U.S. government has been handing out some serious money. They’ve already disbursed close to half a billion dollars in grants to airports all over the country. That’s roughly 327 separate airports in 46 states and even some Pacific islands! All this airport dough is being spent to ensure that we have enough runways, gates, and other high-falutin’ things to accommodate all those who desire to fly. And it’s not a pipe dream, either; we really do need more planes to accommodate the increased number of flyers. So, buckle up for some new wings up in the air

In-flight Catering Services Market Share

Some of the key players functioning in the in-flight catering service market are

• Gate Gourmet
• Saudi Airlines Catering
• LSG Group
• Dnata
• Servair
• Goddard Catering Group
• Newrest Catering
• Royal Holdings
• Journey Group PLC
• DO & CO
• SATS Ltd
• Emirates Flight Catering
• ANA Catering Service Co. Ltd.

Strategic partnerships and acquisitions are the key strategies opted by the key industry participants to bolster their position in the market.