Food Service Market Size to Hit USD 7,389.11 Billion by 2034, Fueled by AI Adoption and Rising Demand for Convenience

According to Towards FnB, the global food service market size is calculated at USD 3,758.58 billion in 2025 and projected to hit around USD 7,389.11 billion by 2034, growing at a CAGR of 7.8% during the forecast period from 2025 to 2034. The market is rapidly evolving, driven by consumer demand for convenience, healthier food options, and innovative dining experiences.

Ottawa, Aug. 06, 2025 (GLOBE NEWSWIRE) -- The global food service market size stood at USD 3,486.62 billion in 2024 and is expected to increase from USD 3,758.58 billion in 2025 to around USD 7,389.11 billion by 2034, growing at a CAGR of 7.8% from 2025 to 2034, according to study published by Towards FnB, a sister firm of Precedence Research.

The market is experiencing growth in recent times due to changing lifestyles, urbanization, rising disposable incomes, and the high preference of ordering food or dining out by consumers of different age groups.

In fact, Millennials and Gen Z now account for over 40% of all food delivery service users, driving strong demand for convenience-based dining.

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Market Overview

Rising urbanization, disposable incomes, changing lifestyles, and a high preference for ordering food from outside or dining in options are leading to the growth of the food service market. Availability of different types of cuisine options, along with food options for vegans and consumers preferring a plant-based diet, is also helping the growth of the market. Consumers such as working professionals and students, Gen Z, and millennials who prefer to order food on different instances on a large scale form a huge base for the food service market. Quick service restaurants and food aggregators play a vital role in the growth of the market as well.

Key Highlights of the Food Service Market

By region, Asia Pacific dominated the food service market in 2024, whereas the Middle East and Africa are expected to grow with the fastest CAGR in the foreseen period due to the evolution of different types of cuisines in the region.
By type of service, the commercial food service segment dominated the food service market, whereas the family restaurants segment is expected to grow in the future due to changing lifestyles, urbanization, and changing demands of the growing population.
By type of food offering, the food segment dominated the food service market in 2024, whereas the specialty menus are observed to grow in the forecast period due to high preferences for vegan, plant-based, and allergen-free food options for particular people, as per their diet preferences.
By mode of delivery, the dine-in segment dominated the food service market in 2024, whereas the aggregator model is expected to grow in the foreseen period due to the availability of multiple cuisine options and discounts on such models.
By ownership, the independent operators segment dominated the market in 2024, whereas the chained operators are expected to grow in the foreseen period due to standardization and brand loyalty.
By pricing tier, the mid-scale processing segment dominated the market in 2024, whereas the premium dining segment is observed to grow due to rising disposable income, allowing people to gorge on different types of cuisines for an elevated dining experience.
By cuisine, the local cuisine segment dominated the food service market in 2024, whereas the fusion cuisine segment is observed to grow in the foreseen period due to the high demand for fusion cuisine by Gen Z and millennials, and food enthusiasts.
By end-user, the individual consumers segment dominated the market in 2024, whereas the corporate/office workers segment is expected to grow due to increased urban employment, leading to demand for meal options for office workers.

New Trends in the Food Service Market

The rise of cloud kitchen models focusing on food delivery with no dine-in options is helping the growth of the food service market.
AI and data analytics help food outlets design customized menus for their customers for an enhanced food ordering experience, further fueling the market’s growth.
Hygienic factors such as touchless menus, self-service kiosks, and contactless payment options are further helping the market’s growth.
Themed cafes, culturally-designed menus, and engaging dining experiences are also some of the factors helping the market’s growth, leading to an increase in consumer base involving Gen Z and millennials.

Vidyesh Swar, Principal Consultant at Towards FnB, stated, “We are seeing increased momentum in the enriched food category, as more consumers prioritize nutrient-rich options and governments support healthier dietary frameworks worldwide. This growing consumer preference is shaping the future of food service by pushing more food service providers to innovate around nutritional offerings.”

How has AI benefited the Food Service Market?

Artificial Intelligence has emerged as a useful tool in the food service market, which allows for optimizing operations, providing personalized customer experiences. With the rise of cloud kitchens and quick service restaurants, online delivery platforms, AI is being deployed to analyze customer data, with dynamic menus, and the use of chatbots, voice assistants is helping customers with their orders. AI is also useful for targeted promotions, and using algorithms to predict demand patterns based on time of day and location, along with tracking expiry dates, which helps with inventory management and restocking. AI can also be used to schedule employees, reducing costs incurred due to overstaffing and understaffing both. The use of AI-powered robots in some service locations is replacing human servers.

For instance, Domino's Pizza has optimized delivery routes using AI, improving customer satisfaction by reducing wait times by up to 20%.

Recent Developments in the Food Service Market

In July 2025, 2XL Corporation announced the launch of its ‘Force No Rinse Food Service Disinfecting Wipes’, which are helpful to ensure the cleanliness of food contact surfaces. The corporation claims that the wipes kill 99.9% of bacteria and germs on food contact surfaces to ensure complete safety while ordering food from outside. (Source- https://www.nonwovens-industry.com)
In July 2025, Zomato-parent Eternal Ltd. announced the launch of its new venture to completely own subsidiary Blinkit Foods Ltd., focusing on preparing, selling, and delivering food to customers. (Source- https://www.republicworld.com)

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Market Dynamics

What are the Growth Drivers of the Food Service Market?

There are multiple factors helping the growth of the food service market in recent times. High demand for ordering food through convenient methods is one of the major factors for the growth of the food service market. Quick service restaurants and food aggregators, allowing customers to order different types of cuisines at discounted prices, are also helping the growth of the market. Availability of food options for vegans and plant-based meal options is also helping the growth of the food service market by enhancing the consumer base of the market. Rising disposable income, changing lifestyle and food preferences, and changing demands of the growing population are also some of the major growth factors of the market.

The increasing shift towards cloud kitchens, expected to grow by 25% year-over-year, is also reshaping the food service landscape.

Challenge

High Operational and Labor Costs Affecting the Food Service Market’s Growth  

High operational and labor costs are affecting the growth of the food service market. Shortage of labor and strain on wages are other factors affecting the market’s growth. Prices incurred for rent, utilities, and raw materials keep fluctuating, further disturbing the market’s growth. Smaller businesses are unable to manage such costs and hence are unable to maintain their food and service quality, affecting the market’s growth.

Opportunity

Advanced Technology enhancing consumer Experience is helpful for the Market’s Growth.

Advanced technology is one of the major factors helpful for the market’s growth. Use of AI algorithms to design customized menus for customers helps to engage customers and be loyal towards a brand, and helps in the market’s growth. High demand for fusion cuisines by Gen Z and millennials is another major factor in the market’s growth. Interactive sessions with the chefs, cuisine stories, and AR menus are also some of the digital experiences fueling the market’s growth.

Food Service Market Regional Analysis

Asia Pacific dominated the Food Service Market in 2024

Asia Pacific is a region with a blend of multiple cultures, traditions, and cuisines, making it a land rich in culinary history. Hence, the region dominated the food service market in 2024. Countries like India, China, Japan, and South Korea contributed significantly to the growth of the market in the region. Urbanization, rise in disposable incomes, and changing lifestyles of people are some of the major reasons for the growth of the market in the region. Availability of different types of food options, such as street food or premium dining experiences in the same area, also helps to elevate the market’s growth.

The Middle East and Africa are expected to grow in the Foreseen Period.  

Land rich in culture, cuisine, and tourism due to its rich culinary history and scenic beauty is helping the growth of the food service market in the region in the foreseeable future. The regions are rich in culinary history, and the availability of fusion cuisine in attractive cafes and premium dining restaurants is also helping the market’s growth. Different types of food outlets with engaging customer experience, availability of local and fusion cuisines, along with premium dining experiences, are also some of the major factors helping the market’s growth.

How Big is the Canada Food Service Market?

According to Towards FnB, The Canada food service market size was valued at USD 115.33 billion in 2024 and is expected to grow steadily from USD 135.63 billion in 2025 to reach nearly USD 583.47 billion by 2034, with a CAGR of 17.6% during the forecast period from 2025 to 2034. Increasing consumer spending on food, evolving dietary habits, and the growing variety of food services are fueling the expansion of the service market.

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Food Service Market Report Scope

Report Attribute	Key Statistics
Base Year	2024
Forecast Period	2025 to 2034
Growth Rate from 2025 to 2034	CAGR of 7.8%
Market Size in 2024	USD 3,486.62 Billion
Market Size in 2025	USD 3,758.58 Billion
Market Size by 2034	USD 7,389.11 Billion
Dominated Region	Asia Pacific
Fastest Growing Region	Middle East & Africa
Regions Covered	North America, Europe, Asia-Pacific, Latin America and Middle East & Africa

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Food Service Market Segmental Analysis

Type of Service Analysis

The commercial food service segment dominated the food service market in 2024, inclusive of restaurants, cafes, food outlets and joints, and catering services. Such food places offer different types of food options and cuisines to their customers, elevating their culinary experience. Rise in disposable incomes, urbanization, and changing lifestyles are also helping the market’s growth. Quick service restaurants with the availability of different types of food options at economical prices are also helping the market’s growth.

The family restaurants (delivery and takeaway services) segment is expected to grow in the foreseeable period due to the growth of digital platforms offering convenience to consumers. Such platforms allow customers to order food from various restaurants and food joints, allowing them to gorge on different cuisines from the convenience of sitting at home. The segment also allows customers to avail multiple discounts and make their meal an economical one as well. Increasing population of working professionals and students, rising mobile penetration, and higher demand for convenience are also some of the major market growth factors in the foreseeable period.

Type of Food Offering Analysis

The food segment dominated the food service market in 2024 due to its high demand compared to beverages and desserts. The segment is highly demanded on various occasions, leading people to order food or dine in, further fueling the market’s growth. Food is a high-demand segment due to different factors such as availability of different types of cuisines, fusion cuisines, traditional and local food, along with western food options, highly demanded by Gen Z and millennials.

The specialty menus segment is expected to grow in the forecast period due to a strong and growing consumer base for customers interested in trying different types of cuisines. Fusion cuisines with a mix of traditional and new types of foods help the market’s growth in the foreseeable period. A mixture of different regions of cuisines for an experimental dish is highly preferred by Gen Z and millennials for its unique taste and Instagram-worthy looks. Hence, the segment is observed to grow in the foreseen period.

Mode of Delivery Analysis

The dine-in segment dominated the food service market in 2024 due to a strong base of consumers preferring the dine-in option more compared to takeaway. Such consumers prefer to dine in for its buffet option, décor, and ambience, and enjoy the meal with such a premium experience. The human connection and enjoying the meal time with family and friends help the growth of the segment, further fueling the market’s growth. Hence, the segment dominated the food service market.

The aggregator mode segment is observed to grow in the foreseen period, as it provides its consumers the convenience of sitting at home and ordering different types of cuisines and food options. The consumers can browse through the menus of different restaurants and cafes and get them at the earliest possible time at discounted prices. Hence, the segment is observed to grow in the foreseen period.

Ownership Analysis

The independent operators segment dominated the food service market in 2024 due to its adaptability in the local market, deep knowledge of local cuisines, and enhanced and strong connection with customers, which helped the market’s growth. Such food joints understand the food preferences of locals and design the menu accordingly. They are also flexible with pricing for customers, enabling their loyalty in the future. Such factors help the growth of the food service market in the foreseeable period.

The chained operators segment is observed to grow in the foreseen period due to consumers’ trust in the brands, their consistent quality, and enhanced consumer experience, which allows the growth of the segment in the foreseen period. The segment’s major growth is due to its marketing, centralized supply chains, loyalty programs, and technology integration. Such food outlets also provide different types of new food options introduced by the brand, instantly allowing the growth of its consumer base. Hence, the segment is observed to grow in the foreseen period.

Pricing Tier Analysis

The mid-scale segment dominated the food service market in 2024 due to its affordability and convenience factor for middle-income consumers, forming a strong base for the market. The segment involves small chain restaurants, neighborhood restaurants, casual and fast-food dining chains offering affordable meal options for middle-income groups. Hence, such consumers can enjoy different types of cuisines at affordable prices. Hence, the segment dominated the food service market in 2024.

The premium dining segment is expected to grow over the forecast period due to a strong consumer base with rising disposable income and improving standard of living of people. Urbanization and high demand for a premium dining experience are also the growth factors for the market in the foreseeable period. Unique and exclusive food buffet, unique culinary experience, and engaging ambience help the segment’s growth.

Cuisine Analysis

The local cuisine segment dominated the food service market in 2024 due to the comfort of local cuisine, which was opted for by consumers on a large scale. Local cuisine is relatable to consumers, along with being pocket-friendly, and hence is highly opted for by consumers on a large scale. Family-run outlets, street food outlets, and regional outlets rule the segment and allow the market to grow. Hence, the cuisine dominated the market in 2024.

The fusion cuisine segment is observed to grow in the foreseen period due to factors such as global travel, food enthusiasts, and people who love to experiment with their taste palates. Fusion of different cuisines and innovation of drool-worthy and Instagrammable dishes also help the food service market growth in the forecast period. Such types of dishes are highly demanded by Gen Z and millennials, further fueling the market’s growth.

End-User Analysis

The individual consumers segment dominated the food service market in 2024 due to multiple factors helping the market’s growth. The factors, such as dining solo, grabbing a snack on the go, ordering from online platforms, or having a prepaid meal in case of busy schedules, help to deepen the market’s growth due to high traction volumes. Such solo food demand options help the market’s steady growth, along with maintaining loyalty. Improving lifestyle, affordability, and convenience are some of the segment’s driving growth.

The corporate segment is expected to grow in the foreseen period due to factors such as a rising population of working professionals with hectic schedules, high demand for nutritious food, and group ordering by offices. Office cafeterias, prepaid meal subscriptions, and tie-ups with different types of food delivery partners are also helping the growth of the market in the foreseeable period. The segment also offers convenient food options for working professionals and, hence, is helpful for food service market growth.

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Additional Topics Worth Exploring:

Gluten Free Food Market: The global gluten free food market size is increasing from USD 14.25 billion in 2025 and is expected to surpass USD 33.59 billion by 2034, with a projected CAGR of 10% during the forecast period from 2025 to 2034.
Canned Food Market: The global canned food market size was reached at USD 122.72 billion in 2024 and is anticipated to reach USD 181.66 billion by 2034, growing at a CAGR of 4% over the next decade.
Organic Food Market: The global organic food market size is expected to grow from USD 253.96 billion in 2025 to USD 660.25 billion by 2034, with a compound annual growth rate (CAGR) of 11.20% during the forecast period from 2025 to 2034.
Frozen Food Market: The global frozen food market size is expected to grow from USD 214.32 billion in 2025 to USD 347.01 billion by 2034, at a CAGR of 5.50% over the forecast period.
Sugar-Free Food Market: The global sugar-free food market size is expected to grow from USD 48.14 billion in 2025 to USD 83.2 billion by 2034, growing at a CAGR of 6.27% during the forecast period from 2025 to 2034.
Vegan Food Market: The global vegan food market size is anticipated to grow from USD 22.38 billion in 2025 to USD 55.88 billion by 2034, with a CAGR of 10.7% during the forecast period from 2025 to 2034.
Snack Food Market: The global snack food market size is expected to increase from USD 265.95 billion in 2025 to USD 468.76 billion by 2034, growing at a CAGR of 6.50% throughout the forecast period from 2025 to 2034.
Food Additives Market: The global food additives market size is on a growth trajectory, with its valuation expected to nearly double over the next decade rising from USD 128.14 billion in 2025 to USD 214.66 billion by 2034.

Food Service Market Top Companies

McDonald's Corporation
Yum! Brands, Inc. (KFC, Pizza Hut, Taco Bell)
Starbucks Corporation
Restaurant Brands International (Burger King, Popeyes, Tim Hortons)
Domino’s Pizza Inc.
Chipotle Mexican Grill, Inc.
Darden Restaurants (Olive Garden, LongHorn Steakhouse) 
Compass Group PLC 
Sodexo Group 
Aramark Corporation 
Subway 
Inspire Brands (Arby’s, Dunkin’, Sonic, Jimmy John’s)
Jollibee Foods Corporation 
Panera Bread 
Shake Shack Inc. 
Brinker International (Chili’s, Maggiano’s) 
SSP Group (Travel & Airport Food Services) 
Wingstop Inc. 
The Cheesecake Factory 
Zomato Limited (Delivery + Cloud Kitchen Model)

FAQs

What’s driving growth in the food service market?
Rising urbanization and busy lifestyles are fueling demand for convenient dining, fast food, and delivery options. Advances in mobile ordering and digital platforms make access easier and more seamless.

How are delivery models and service formats evolving?
Cloud kitchens and ghost restaurants enable efficient delivery-only operations, while omnichannel channels like dine-in, takeaway, and subscription services enhance consumer reach.

What technological innovations are transforming the industry?
AI-driven inventory systems, smart kitchen automation, digital payment solutions, and data analytics tools optimize efficiency and personalize guest experiences.

Which emerging consumer trends are shaping the market?
Health-conscious diners are demanding plant-based, low-calorie, and allergen-aware options. Meanwhile, sustainability priorities propel the use of eco-friendly packaging and locally sourced ingredients.

What main challenges is the food service sector facing?
Operators grapple with rising labor and food costs, supply chain disruptions, and compliance with food safety standards, all while balancing consumer expectations and profitability.

Segments Covered in the Report

By Type of Service 

Commercial Foodservice 
- Full-Service Restaurants (FSR) 
Fine Dining 
Casual Dining 
Family Restaurants 
- Quick-service restaurants (QSR) 
- Cafés & Bars 
- Street Food & Kiosks 
- Delivery & takeaway Services 
Non-Commercial Foodservice (Institutional) 
- Educational Institutions (Schools, Colleges) 
- Hospitals & Healthcare Facilities 
- Military & Government Facilities 
- Business & Industry (B&I) Canteens 
- Correctional Facilities

By Type of Food Offering 

Food (Meals, Snacks) 
Beverages (Hot, Cold, Alcoholic, Non-alcoholic) 
Packaged/Prepared Food 
Specialty menus

By Mode of Delivery 

Dine-in 
Takeaway 
Drive-Thru 
Online Delivery 
- Aggregator Model (e.g., Uber Eats, Swiggy) 
- Cloud Kitchens / Ghost Kitchens

By Ownership 

Independent Operators 
Chained/branded operators (National/Global Chains)

By Pricing Tier 

Premium 
Mid-Scale 
Economy / Value-Based

By Cuisine 

Regional/Local Cuisine 
Asian Cuisine 
Western Cuisine 
Latin American Cuisine 
Middle Eastern Cuisine 
Fusion Cuisine

By End-User Segment 

Household/individual consumers 
Corporate/office Workers 
Students 
Tourists 
Patients & Healthcare Workers

By Region

North America

U.S.
Canada

Asia Pacific

China
Japan
India
South Korea
Thailand

Europe

Germany
UK
France
Italy
Spain
Sweden
Denmark
Norway

Latin America

Brazil
Mexico
Argentina

Middle East and Africa (MEA)

South Africa
UAE
Saudi Arabia
Kuwait

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Towards FnB is a global consulting firm specializing in the food and beverage industry, providing innovative solutions and expert guidance to elevate businesses. With an in-depth understanding of the dynamic F&B sector, we deliver customized market analysis and strategic insights. Our team of seasoned professionals is committed to empowering clients with the knowledge needed to make informed decisions, ensuring they stay ahead of market trends. Partner with us as we redefine success in the rapidly evolving food and beverage landscape, and together, we’ll navigate this transformative journey.

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