Skyrocketing Passenger Numbers Drive Global In-Flight Catering Services Market, says Market.us

In-flight catering has seen a rise in demand due to increased business and leisure travel. Airlines around the globe have established a reasonable price range for their onboard meals to improve the passenger experience and enhance the overall travel experience. The market is expanding due to the increased demand for the product in diverse markets around the world.

According to Market.us, “The In-flight Catering Services Market is projected to reach a valuation of USD 16.88 Billion by 2032 at a CAGR of 7.1%, from USD 8.50 Billion in 2022.”

In 2021, the Asia Pacific region accounted for more than 30.0% of revenue. Regional growth is due to a rise in international tourism and travel, rapid urbanization, and a rising standard of living that complements aspirational traveling. There has also been a revival in discretionary spending. The region’s growing number of airlines will create significant opportunities for in-flight caterers. This is due to significant increases in international air travel as well as tourism in developing countries such as China, India and major cities in Vietnam.

Anurag Sharma, a senior research analyst at Market.us, said, “The increasing number of passengers flying via planes is driving the global in-flight food services market to strong growth. In-flight catering is a service that provides meals to passengers aboard planes and at airport terminals. The market is growing because of the constant rise in disposable incomes of consumers and the desire to travel to new places.”

The key drivers of market growth are increased passenger air traffic, the expansion of global aircraft fleets through the launch of new airlines, and technological advancements in food-ordering technology. The airline industry is seeing increased traffic due to a growing global population. 

According to the International Air Transport Association, airlines carried 3.8 billion passengers on scheduled flights in 2016, an increase of 7.4% compared to 2015. This has boosted the market for in-flight catering.

The market would grow if there was more global air traffic and new airlines. Airline companies have been forced to increase their air fleets due to increasing demand. To capitalize on lucrative opportunities, there are new players entering the aviation industry. Airline Network News & Analysis reports that 79 new airlines were founded in 2017, with a total of 77 worldwide. Europe holds 37% of all new airlines’ shares.

Market growth is impeded by the inability to provide low-cost carriers with meals onboard and the poor quality of the food at high altitudes. High altitudes can make it difficult for human taste buds to function properly. This is why airline food can taste mediocre or bad. The sense of smell is also affected by the cabin’s humidity and pressure. The taste of in-flight food can also be affected by the fact that it has been pre-cooked and stored in a plastic container. These factors make it difficult for passengers to eat onboard or in-flight food. This could impact the performance of the market over the next few years.

The market for in-flight catering services can be divided into three categories: meals, bakery, confectionery, and beverages. Due to increased passenger numbers and longer-duration flights, the meals segment was the most popular in the global market. Many catering companies also offer mini-meals for customers who travel in a short time, which has fueled the growth of the market for in-flight catering services. Market growth will be further aided by the availability of an online ordering platform and strict hygiene regulations for food products.

The In-flight Catering Services market can be classified based on Airline Class into Premium Economy Economy, Economy Business, and First Class. The forecast period will see a higher CAGR for the Economy segment. This segment’s growth is due to the rising demand for economy-class holidays, both short and medium distance. In APAC, the middle class has grown and there is a growing demand for economy-class seating. Segment expansion will be encouraged by the availability of affordable lunch options.

In-flight Catering Services Market Key Companies:

Market players are creating partnerships, strategic alliances, and performing acquisitions and mergers to help them stay ahead of the competition. DNATA will manage catering services for all airlines in the global network of the airline, which is a benefit to the company. The following are some of the most prominent players in the global market for in-flight catering services:

• Flying Food Group LLC
• ANA Catering Services Co. Ltd.
• Emirates Flight Catering
• DNATA
• Gate Group (Gate gourmet)
• Newrest International Group
• Servair SA
• DO & CO.
• LSG Lufthansa Service Holdings AG