The north america in-flight catering market size is projected to expand at a CAGR of 3% during the forecast period, 2021–2028. The growth of the market is attributed to increasing number of airline passengers. Moreover, growing requirement for high-quality food products and services by airline companies.
The cuisine in North America varies greatly from state to state. In Canada, residents in the Quebec area have different eating habits than those in the other provinces. As a result, airlines must stock up the food based on the itineraries and the location of the operation. However, one trend that unites all the nations in the region is healthy eating. Yogurt, chicken, sandwiches, and fresh fruit are just some of the meals that have shown impressive sales. The competitive landscape in the aviation industry has urged airlines to develop their own distinct brand identities. In-flight food has evolved as a key factor for distinguishing the quality of services supplied by various airlines, as well as influencing how customers perceive an airline company. The awareness of this fact has prompted North America-based airlines to devote substantial resources to develop a successful in-flight food service that caters to customers' preferences, while protecting the airlines' market share.
North America In-flight Catering Services Market Segment Insights
On the basis of aircraft seating classes, the market is segmented into economy class, business class, and first class. The economy class segment is expected to constitute a key market share during the forecast period. The economy class accounts for around 70% of the in-flight culinary services market share. Airlines cannot offer inferior meals and must adhere to strict quality requirements. The majority of passengers in this class regard air travel as an experience rather than merely a method of getting from one location to another. As a result, each airline's economy class remains the most significant sector. One of the key trends in economy class meals is customers' increasing demand for healthy in-flight food offerings, particularly in developed countries. Business and first-class travelers have always been ahead of the curve when it comes to nutritious food alternatives; however, the economy class segment is expected to expand at a high CAGR during the forecast period. As more airlines aim to enhance their food services in this category to cater to the requirements of customers, the economy class sector is projected to outperform other segments. Passengers in economy class are also being offered lower-cost options, resulting in the establishment of tier-based complementary onboard amenities.
Based on flight service types, the North America in-flight catering market is divided into full-service carrier and low-cost carrier. The full-service carrier segment is anticipated to represent a key market share during the forecast period. In-flight entertainment, meals, drinks, and creature comforts, such as blankets and pillows, are usually included in the ticket price of a full-service airline. Seats are typically more comfortable and offer better legroom than those on low-cost airlines. Rising tendency of international travel is projected to positively influence the segment growth, as full-service carriers are usually international or long-haul flights. The boom in the travel and tourist business, as well as increased economic activity, urbanization, and growing customer demand for low-cost and non-stop carriers, are the major factors driving the market expansion. As a result, growing requirement for onboard catering services in order to better fulfil the demands for customers is driving the segment growth. On international routes, a large number of low-cost carriers operate frequently, creating a huge demand for local and foreign cuisines onboard.
In terms of geography, the market is categorized as the US and Canada. The US is anticipated to dominate the market during the forecast period. Each state's diet in North America differs significantly. The eating habits of the two major North America-based countries, the US and Canada, are vastly different. The differences between smaller countries on the continent are much more pronounced. As a result, carriers must plan and supply food in accordance with their routes and the region of operation. However, growing trend toward of consuming healthy foods across the continent, notably in the US, is driving the growth of the market in the country. Moreover, 25% of the US population eat fast food every day; however, the proportion is steadily declining. Increasing obesity prevalence is a major issue driving the shift in eating habits. Healthy eating has gained a lot of demand in the area of in-flight catering. Food products such as yoghurt, chicken, sandwiches, and fresh fruits have seen a surge in demand. Besides that, the country has a large market for chocolates, bakeries, and other sweets. Increasing demand for low-calorie meals has led in a dramatic shift in the food options available on flights.
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Key Players Covered in the Report
Fleury Michon America, Journey Group PLC, gategroup, Lufthansa Service Holding AG, and Flying Food Group LLG.
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