In-Flight Catering Services Market Growth Opportunities and Forecast till 2032
The Global In-Flight Catering Services Market Size was valued at USD 16.2 Billion in 2023 and is anticipated to reach USD 33.7 Billion by 2032 with a CAGR of 8.7% from 2024 to 2032.
In-flight catering refers to the provision of meals and drinks to passengers on board an aircraft. It has a huge impact on the flying experience, especially in long-haul, luxury, and business aviation. In-flight catering is the supply of meals and drinks to passengers aboard an aircraft, and it plays an important role in improving the entire flight experience, particularly in long-haul, luxury, and business aviation environments. This crucial service provides passenger comfort, contentment, and well-being throughout air travel, resulting in a memorable and delightful voyage for passengers. Rising disposable incomes, an increase in aircraft passengers, strong brand marketing, technical advancements like as wing meal ordering systems, and the expansion of on-board catering services are all contributing factors to the evolution of the worldwide airline catering sector.
Parameter |
In-Flight Catering Services Market |
In-Flight Catering Services Market Size in 2023 |
US$ 16.2 Billion |
In-Flight Catering Services Market Forecast By 2032 |
US$ 33.7 Billion |
In-Flight Catering Services Market CAGR During 2024 – 2032 |
8.7% |
In-Flight Catering Services Market Analysis Period |
2020 - 2032 |
In-Flight Catering Services Market Base Year |
2023 |
In-Flight Catering Services Market Forecast Data |
2024 - 2032 |
Segments Covered |
By Aircraft Class, By Food Type, By Flight Type, By Catering Model, and By Region |
In-Flight Catering Services Market Regional Scope |
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
Key Companies Profiled |
ANA Catering Service Co., Ltd., DO & CO Restaurants & Catering AG, Cathay Pacific Catering Services (H.K.) Ltd., Flying Food Group, LLC, Emirates Flight Catering Co., LLC, Air Fayre CA Inc., GaJourney Group plc, Newrest Group International S.A.S, LSG Lufthansa Service Holding AG, and Saudi Airlines Catering Company. |
Report Coverage |
Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis |
In-Flight Catering Services Market Dynamics
The need for a better onboard dining experience is contributing to market growth. Furthermore, the advent of high-level services, such as meal pre-selection, mixed buy orders, and gratis catering choices, to meet individual passenger needs and conform with hybrid operational scenarios at reduced rates, is helping to drive market growth. The in-flight food industry is heavily impacted by the continual growth in air passenger traffic, which is driven by factors such as growing disposable incomes, an expanding middle class, and more tourism. As more people fly, demand for in-flight services and meals grow. In order to gain a competitive edge, airlines are putting more attention on enhancing the total passenger experience. High-quality food and services may significantly boost customer pleasure and loyalty, which is why in-flight catering is essential. As a result, airlines are investing to improve the quality, diversity, and presentation of onboard meals.
In-flight catering follows strict norms and criteria for food safety, hygiene, and quality. Catering enterprises may find it costly and difficult to achieve these standards. It can be challenging to manage the timely supply of food and drink supplies to airlines in numerous locations, especially on long flights. A supply chain failure or delay may impact the availability and quality of culinary services. One of the most significant issues that market operators confront is the implementation of severe airline catering regulations. However, various market competitors are taking initiatives to comply with regulatory laws and regulations, which are expected to drive market expansion in the future years.
Several airlines and food service providers are creating alliances and partnerships to use their combined purchasing power to negotiate better agreements with catering suppliers. Furthermore, bulk purchase can result in cost savings on food and beverage goods, as well as logistics and distribution for catering services. Furthermore, such collaborations enable airlines to standardize catering services while ensuring consistency and quality in the in-flight eating experience. For example, in July 2021, gategroup secured a partnership renewal agreement with LATAM Airlines to supply in-flight food services for another five years. According to the deal, gategroup will service LATAM Airlines from 16 sites, including two new important domestic hubs in Bogotá, Colombia, and Santiago, Chile. The in-flight catering sector has undergone drastic transformations as a result of advances in food packaging and delivery technology. These advancements allow airlines to give consumers with a wider range of freshly cooked, quality meals, even on long flights. Improved food packaging improves the whole in-flight eating experience while also preserving food quality and freshness.
Global In-Flight Catering Services Market Segment Analysis
In-Flight Catering Services Market By Aircraft Class
· Economy Class
· Premium Economy
· Business Class
· First Class
According to the in-flight catering services industry analysis, the economy class sector has always dominated, owing to the large number of people that travel in this category. Because of the enormous number of passengers, airlines frequently emphasize low-cost food options for Economy Class, which accounts for the majority of market income. Despite delivering simpler meals than premium classes, Economy Class maintains its supremacy due to its volume of operations. However, airlines are now competing to improve the quality of Economy Class meals as a distinction, particularly on long-haul flights. This focus on delivering improved food selections while retaining cost effectiveness allows the Economy Class category to maintain its dominant position in the in-flight catering business.
In-Flight Catering Services Market By Food Type
· Meals
· Bakery and confectionary
· Beverages
· Others
The meals category accounts for the biggest market share in the in-flight catering services industry by food type. This dominance is ascribed to the critical need of delivering full meals to passengers, particularly on long-haul and international flights. Airlines place a high value on meals because they are an important part of the passenger experience, which has a direct influence on consumer satisfaction. The diversity of food alternatives available, including particular dietary requirements such as vegetarian, vegan, and halal, highlights the importance of this area. While other food kinds, including as drinks and bakery goods, are important, they are frequently regarded supplements to the main meal service, confirming the meals segment's dominant position in the in-flight catering business.
In-Flight Catering Services Market By Flight Type
· Full Service
· Low Cost
· Others
The full service flight type category held a sizable market share in the in-flight food services industry. This dominance is attributed to full-service airlines' extensive meal offerings, which often include numerous meals, drinks, and a range of alternatives customized to passenger tastes and flight duration. Full-service airlines focus improving the total customer experience, particularly in premium cabins where high-quality cuisine is an important difference. The comprehensive in-flight catering available on long-haul and international flights contributes to this segment's market share, as customers anticipate a higher level of service, including well-curated meals. Low-cost carriers, on the other hand, frequently provide restricted or buy-on-board alternatives, accounting for a smaller part of the industry.
In-Flight Catering Services Market By Catering Model
· In-house Catering
· Outsourced Catering
As per the in-flight catering services market forecast period, the outsourced catering services sector is predicted to dominate the in-flight catering services market from 2024 to 2032. Airlines are progressively outsourcing food services to specialist suppliers to decrease operational difficulties, expenses, and the logistical load of handling in-house catering. Outsourced suppliers provide experience, scalability, and flexibility, allowing airlines to concentrate on core operations while maintaining high-quality food services for customers. This tendency is especially evident among full-service carriers, which want diversified and quality offers across many classes. As the need for individualized and diverse meal alternatives develops, outsourced catering firms' capacity to innovate and react fast will likely drive their dominance in the market over this era.
In-Flight Catering Services Market Regional Analysis
The Asia-Pacific region accounted for the greatest revenue share in 2023 and is predicted to increase at the quickest CAGR during the forecast period. Factors contributing to regional growth include increased international travel and tourism, increasing urbanization, growing living standards to supplement aspirational travel, and a comeback in discretionary expenditure. Furthermore, the region's growing number of airline carriers is projected to open up new prospects for in-flight catering suppliers. The area is expected to grow at the quickest rate, owing to significant growth in both international air travel and tourism in developing nations such as China, India and Vietnam.
In the market for in-flight food services, Europe has the fastest pace of growth. Several major aspects contribute to this increase. First and foremost, there is a lot of air traffic in the area; both business and leisure travelers utilize the airways regularly. Travellers from Europe have a particularly strong desire for luxury, personalized in-flight food services, which are driving the market's rapid expansion. Furthermore, the European aviation business has experienced an increase in the emphasis on enhancing the whole traveler experience, resulting in a need for improved catering services. The highly competitive European aviation sector encourages airlines to dedicate resources to distinctive and innovative catering services, hence boosting market growth.
In-Flight Catering Services Market Leading Companies
The in-flight catering services market players profiled in the report is ANA Catering Service Co., Ltd., DO & CO Restaurants & Catering AG, Cathay Pacific Catering Services (H.K.) Ltd., Flying Food Group, LLC, Emirates Flight Catering Co., LLC, Air Fayre CA Inc., GaJourney Group plc, Newrest Group International S.A.S, LSG Lufthansa Service Holding AG, and Saudi Airlines Catering Company.
In-Flight Catering Services Market Regions
North America
· U.S.
· Canada
Europe
· U.K.
· Germany
· France
· Spain
· Rest of Europe
Latin America
· Brazil
· Mexico
· Rest of Latin America
Asia-Pacific
· China
· Japan
· India
· Australia
· South Korea
· Rest of Asia-Pacific
Middle East & Africa
· GCC
· South Africa
· Rest of Middle East & Africa