In-flight Catering Services Market Expected To Fuel Industry Growth With $24.75 Billion By 2025: Grand View Research Inc.

 

The global in-flight catering services market size is expected to reach USD 24.75 billion by 2025, exhibiting a CAGR of 5.7% between 2019 and 2025, according to a new report published by Grand View Research, Inc. The market is expected to be driven by the rising passenger traffic owing to increased business and leisure travel, coupled with rise in the number of low-fare airlines worldwide. Also, the provision of lightweight packaging solutions and contemporary menu designs help the airlines form a strong brand image, thereby supporting the growth.

Increase in demand for nutritious and healthy food products onboard is anticipated to drive the market for in-house catering services over the forecast period. Airline caterers are increasingly making efforts to match passenger expectations in all terms, such as collaborating with celebrity chefs for creating multi-cultural and customized menus. Similarly, a few airlines are employing wine experts and chefs in an attempt to enhance their promotional activities.

The ongoing technological advancements are helping airlines with service enhancement during flight hours. In-flight catering has become one of the vital services offered by full-service carriers, whereas low-cost carriers have turned it into a prominent source of ancillary revenue. Many airlines prefer third-party caterers to achieve quality and provide affordable meal options to their customers.

A rise in the number of long-haul and non-stop flights, primarily due to the upsurge in leisure as well as business tourism, has led to increased passenger demand for catering services on board. Airlines across the globe are differentiating themselves from the competition by setting a reasonable price range for meals on board to enhance the overall passenger travel experience, thereby providing a better in-flight experience.

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A steady rise in disposable income and growing adoption of technological advancements such as in-flight food and beverage ordering system are expected to propel the overall growth. Customer retention is of prime importance in the commercial aviation industry. Operators worldwide are strengthening their customer retention strategies in an attempt to enhance their profit margins and ensure a steady revenue generation. Some of the key airlines are concentrating on providing tailored services to their customers, such as offering regional cuisines on international routes. Also, the trend of offering customized as well as organic meals to passengers has proven beneficial for the market players in improving customer satisfaction levels.

Further key findings from the report suggest:

·         Growing preferences of passengers for organic, healthy as well as customized meal options during air travel is among the emerging trends in the market

·         Integration of technology for ordering F&B through the onboard In-flight Entertainment (IFE) system is anticipated to propel the demand for catering services in long-haul flights

·         The introduction of meals deigned by celebrity chefs as well as the availability of premium beverage offerings, such as wine, to attract the premium class passengers are expected to create significant opportunities for the airlines to maximize their ancillary revenue

·         Some of the leading key players in in-flight catering services market include Cathay Pacific Catering Services (H.K.) Ltd.; dnata; Gate Gourmet (gategroup); LSG Sky Chefs; and SATS Ltd.

The market is dynamic with the key service providers increasingly forming long-term agreements and joint ventures with airline operators to introduce innovative solutions and to strengthen their market presence. For instance, in January 2018, Gategroup Holding entered into a 30-year joint venture with Asiana Airlines of South Korea to establish themselves as the operator’s sole in-flight caterer, serving passengers traveling to destinations across North America, Australia, Europe, and Asia.

Some of the key market players include Gate Gourmet (Gategroup Holding), LSG Sly Chefs, dnata, SATS Ltd, and Do & Co. Other companies gaining traction in the market include ANA Catering Service Co. Ltd. (ANAC), Emirates Flight Catering, Flying Food Group, Newrest Group Services SAS, and Servair, S.A. These companies are strategically involved in mergers and acquisitions, long-term agreements, partnerships, and new service launches to expand their market presence. In January 2018, Dubai National Air Transport Association (dnata) introduced its newest flight catering facility at Dublin Airport, which comprises an industrial-sized kitchen, food preparation and assembly area, and storage.

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.