Global In-Flight Catering Service Market- Market Overview:

The global in-flight catering service market is expected to grow from USD 9.60 billion in 2022 to USD 19.69 billion by 2030, at a CAGR of 9.4% during the Projection period 2023-2030. The growth of this market is mainly driven owing to rising tourism across the world.

An in-flight catering service is one that provides food and drinks that are ready and prepared to eat in an aircraft during a flight. These services are widely available at any public airport and are usually prepared by catering companies and served by trolleys to passengers during flights Globally, in-flight catering services are expected to grow as a result of an increase in passengers travelling by air. With the increase in disposable incomes, particularly in emerging nations, the number of national and foreign passengers travelling by air has risen, boosting the market's growth. Moreover, businesses are offering continental meals to customers as a novel trend, which meets their specific meal requests and increases customer satisfaction as a result. Currently, most airline caterers and in-flight catering providers are improving their supply chain management in order to produce high-quality goods and run their in-flight catering operations efficiently while producing high-quality goods. Over the Projection period, demand for healthy food in-flight is expected to grow, as passengers' willingness to pay for high-quality, healthy food products. Also, airlines worldwide offer their customers a greater variety of food options and the option of customizing their meals. The airlines are adopting certain strategies to enhance their in-flight dining experience as the competition among them increases. These strategies range from the ordering process to the food serving process. In the Projection period, such developments may have a positive impact on market growth.

Sample Request: - Global In-Flight Catering Service Market

Market Dynamics:

Drivers:                          

• Increased air traffic

The market for in-flight catering services is expected to grow as air traffic increases. In recent years, the number of people who travel by plane has skyrocketed, indicating that many people can now afford to travel by plane. Air travel demand has increased for leisure and business purposes due to changing lifestyles and increasing disposable incomes.

Restraints:         

• High cost

Due to factors like the high cost of operating an airport store, retailers must pay higher rents and additional costs for their operations, airline meals are expensive. For store owners to cover this cost and make their business profitable, they need to increase the price of their products. A security training session and a daily background check are required for airport employees as well. As a result, the product price increases due to the rise in operational costs.

Opportunities:

• Rising competition among the major key players in the aviation sector

A variety of strategies are being implemented by airlines to improve the in-flight meal experience, from ordering to providing food. Also, in order to meet hybrid operational scenarios while providing service to consumers, airlines are utilizing different service strategies on the same aircraft for different classes, boosting market growth.

Challenges:

• Stringent airline catering regulations

The growth of the market is expected to be hindered by strict airline catering rules and an increase in in-flight food costs. During the Projection period, issues with the transportation of food, a low period of transportation of food, as well as stringent airline catering norms, will challenge the in-flight catering services market.

Segmentation Analysis:

The global in-flight catering service market has been segmented based on flight type, food type, airline class, and region.

By Flight Type

The flight type segment includes low-service carriers and full-service carriers. The full-service carriers segment led the largest share of the in-flight catering service market with a market share of around 64.8% in 2022. Airline meals have expanded because of the growing trend of international travel. Full-service carriers are usually international or long-haul. Flights that are operated internationally typically have a basic ticket price that includes several services, including in-flight entertainment, checked baggage, meals and beverages, and more legroom than those operated by low-cost carriers. In addition to economy class and business class, there is also premium economy and first class on some flights of full-service airlines.

By Food Type

The food type segment includes bakery & confectionary, meal, beverage and others. The meal segment led the largest share of the in-flight catering service market with a market share of around 35.7% in 2022. It varies in quantity, quality, and cost of in-flight meals across airlines, classes, and trip lengths. Following proper menu design and preparation, safety precautions are implemented, Chefs prepare meals in land-based kitchens, which are then reheated and served by flight attendants to passengers. Cooking procedures are carefully followed to maintain the aroma, colour, flavour and look of the components, and commercial airliners are offering a variety of meals, including continental dishes, to entice consumers. In-Flight Catering Services market size growth is further enhanced by a growing demand for healthy and nutritious meals, as well as customer willingness to pay for such meals.

By Airline Class

The airline class segment includes premium economy, business, economy, and first class. The economy segment led the largest share of the in-flight catering service market with a market share of around 30.9% in 2022. Consumers' growing preference for economy class travel for short- to medium-distance vacations has led to segment growth. As disposable incomes and middle classes have increased in APAC in the past few years, economy-class aircraft seating has also risen. Segment growth will also be boosted by the availability of cheap meal options.

Global In-Flight Catering Service Market - Sales Analysis.

The sale of in-flight catering services expanded at a CAGR of 8.8% from 2016 to 2022.

Over the Projection period, the inflight catering service market is expected to generate potential revenue opportunities for players due to initiatives by established service providers to improve their fleets as well as the launch of new airlines across various countries worldwide.

With commuters increasingly expecting nutritious and healthy food on board, it is anticipated that market growth will be further boosted. Furthermore, with the advancement of technology, major airline companies are increasingly utilizing online meal reservation systems, which is anticipated to increase meal booking services and, consequently, drive the demand for in-flight catering services.

Moreover, the growth in flight food requesting frameworks, as well as the rise in onboard cooking, will provide profitable opportunities for market players during the Projection period.

Thus, owing to the aforementioned factors, the global in-flight catering service market is expected to grow at a CAGR of 9.4% during the Projection period from 2023 to 2030.

By Regional Analysis:

The regions analyzed for the in-flight catering service market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Asia Pacific region dominated the in-flight catering service market and held a 38.6% share of the market revenue in 2022.

• The Asia Pacific region witnessed a major share. Regional growth can be attributed to a variety of factors, including international travel and tourism, rapid urbanization, an increase in living standards, aspirational travel, and a rise in discretionary incomes. In addition, the increasing number of airline operators in the region will create significant growth opportunities for in-flight catering providers. A substantial increase in international air travel and tourism in developing countries like India, China, and Vietnam is anticipated to drive the region's fastest growth.
• Europe is anticipated to experience significant growth during the predicted period. As legacy carriers enter the low-cost market in this region, the demand for in-flight catering services is expected to increase. Travelers are becoming increasingly willing to spend money on purchasing healthy and organic meals, and airlines are collaborating with experienced food professionals, both of which are expected to generate significant growth opportunities during the Projectioned period

Global In-Flight Catering Service Market - Country Analysis:

• Germany

Germany's in-flight catering service market size was valued at USD 0.84 billion in 2022 and is expected to reach USD 1.7 billion by 2030, at a CAGR of 9.5% from 2023 to 2030.

Airlines in the country place a higher emphasis on food quality and offering, especially in the economy class, which contributes to airline revenue, and remains the most important class of passengers for airlines. In order to maintain their share of the market, most carriers are working to improve food quality. Increasing competition on profitable long-distance routes leads airlines to collaborate with famous chefs to differentiate their service offerings with special menu items. By partnering with star chefs, airlines can offer special meals that will attract passengers and increase market share.

• China

China’s in-flight catering service market size was valued at USD 0.96 billion in 2022 and is expected to reach USD 2.01 billion by 2030, at a CAGR of 9.7% from 2023 to 2030.

During the Projection period, the Chinese aviation industry is expected to rebound and food quality services will become increasingly important. China's inflight catering service market is likely to grow over the next few years as technological advancements, such as meal ordering devices (MOD), are combined with a growing adoption of inflight catering services by low-cost carriers.

• India

India's in-flight catering service market size was valued at USD 0.74 billion in 2022 and is expected to reach USD 1.5 billion by 2030, at a CAGR of 9.6% from 2023 to 2030.

A growing medical tourism market and rising per capita disposable income are two crucial factors governing demand for catering in airlines in India. There are also many factors that drive the growth of the market, including increasing competition among airlines to attract and retain passengers, new scheduled aircraft deliveries, and increasing consumer demand for quality food onboard.

Key Industry Players Analysis:  

To increase their market position in the global in-flight catering service market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.

• ANA Catering Services Co. Ltd.
• LSG Sky Chefs
• AeroChef
• EGYPTAIR IN-FLIGHT SERVICES
• Flying Food Group
• LSG Group
• Cathay Pacific Catering Services Ltd.
• Royal Holdings
• Sats Ltd.
• The Emirates Group
• Gategroup
• InterGlobe Aviation Ltd.

Latest Development:

• In March 2022, Newrest offers hot meals on two-class Air Transat flights from various European countries, including France, Belgium, England, the Netherlands, Portugal, and Spain.
• In July 2021, LATAM Airlines has renewed their partnership agreement with Gategroup for an additional five years to provide inflight catering services. According to the agreement, Gategroup will serve LATAM Airlines at 16 locations, including two new strategic domestic locations: Bogotá, Colombia and Santiago, Chile.
• In November 2021, IndusGo, an Indian low-cost carrier, reopened meal services that had been suspended since the COVID-19 pandemic. The announcement follows the Indian Civil Aviation Ministry's approval that airlines can resume providing in-flight meal services.

Report Metrics

Report Attribute	Details
Study Period	2022-2030
Base year	2022
CAGR (%)	9.4%
Market Size	9.60 billion in 2022
Projection period	2023-2030
Projection unit	Value (USD)
Segments covered	By Flight Type, By Food Type, By Airline Class, and By Region.
Report Scope	Revenue Projection, competitive landscape, company ranking, growth factors, and trends
Companies covered	ANA Catering Services Co. Ltd., LSG Sky Chefs, AeroChef, EGYPTAIR IN-FLIGHT SERVICES, Flying Food Group, LSG Group, Cathay Pacific Catering Services Ltd., Royal Holdings, Sats Ltd., The Emirates Group, Gategroup, and InterGlobe Aviation Ltd.
By Flight Type	Low-Service Carriers Full-Service Carriers
By Food Type	Bakery & Confectionary Meal Beverage Others
By Airline Class	Premium Economy Business Economy First Class Airport
Regional scope	North America Europe Asia-Pacific South America Middle East and Africa

Scope of the Report

Global In-Flight Catering Service Market by Flight Type:

• Low-Service Carriers
• Full-Service Carriers

Global In-Flight Catering Service Market by Food Type:

• Bakery & Confectionary
• Meal
• Beverage
• Others

Global In-Flight Catering Service Market by Airline Class:

• Premium Economy
• Business
• Economy
• First Class Airport

Global In-Flight Catering Service Market by Region:

• North America
  • USA
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Russia
• Asia-Pacific
  • Japan
  • China
  • India
  • Korea
  • Southeast Asia
• South America
  • Brazil
  • Peru
• Middle East and Africa
  • UAE
  • South Africa
  • Saudi Arabia