Latin America Airport Quick Service Restaurant Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The Latin America airport quick service restaurant market s anticipated to register a CAGR of 6% during the forecast period.

The COVID-19 pandemic led to a negative effect on the Latin America airport quick service restaurant market. The onset of the COVID pandemic led to various countries imposing stringent rules and regulations on travel and lockdowns which affected airport operations and airport revenues. The decline in the number of air passengers during the pandemic led to the closing of various restaurants within the airport owing to the fact that these restaurants were facing huge losses. On the other hand, the decline in the pandemic led to the opening up of the borders of various countries and the removal of regulations governing travel and lifting of the lockdown has again prompted the aviation industry in Brazil to witness growth in air passenger traffic. Overall, the growth in air passenger traffic led to a number of quick-service restaurants within the Brazilian airports reopening and continuing their operations and this will lead to growth in the market during the forecast period.

There has been a steady growth in the number of passengers traveling through air over the past decade. With high pricing and low quality of the inflight food, the demand to bring your own food (BYOF) concept is gradually growing particularly from domestic economy class passengers. The demand for the BYOF concept is anticipated to drive the growth of quick-service restaurants in the airport during the forecast period. The increasing investments in airport infrastructure for the construction of new terminals and new airports to cater to the needs of growing passenger traffic, are anticipated to generate new opportunities for the concessionaire in the coming years.

The stringent regulations of airport authorities, problems in logistics and limitations in the menus of the QSRs are hampering the growth of airport quick-service restaurants market.

Latin America Airport Quick Service Restaurant Market Trends

By Food Type, Meals is Expected to Witness Significant Growth During the Forecast Period

By food type, meals is expected to witness significant growth during the forecast period. The growth in the number of air passengers as well as the increasing revenues of the middle-class population along with changes in food habits will lead various restaurants in Latin American airport to adapt to the changing preferences of the passengers and serve meals which is customized to suit the passenger requirements. Changes in meal types of passengers have led to rapid growth in the consumption of fast foods and this has led to the creation of new opportunities for market players. Moreover, the availability of a wide variety of different types of meals at restaurants within the airport and at lower costs as compared to in-flight meal purchasing is also boosting the growth of restaurants within the airports.

Various companies, in the present scenario, are expanding their food chains in Latin American countries where the penetration of low-cost carriers is high. As most of the low-cost carriers do not provide provisions for in-flight catering, expanding food chains will lead to different food and beverage companies catering to different types of meals for the passengers. Thus, such measures will lead the market to witness growth during the forecast period.

Brazil is Expected to Witness Significant Growth During the Forecast Period

The country of Brazil is expected to witness significant growth during the forecast period in Latin America Airport Quick Service Market. Brazil is the largest economy in Latin America, and this is the reason why the country has by far the largest air transport market in the Latin American region. Moreover, the growth in the market can be attributed to an increase in the number of air passengers in Brazil coupled with a growing number of food and beverage companies within Brazilian airports.

In 2021, according to CEIC data, the domestic air passenger traffic in Brazil was reported at 62,583,158 which was an increase as compared to the air passenger traffic which accounted for 45,249,089 in 2020. Moreover, in 2021, International air passenger traffic from Brazil was reported at 4,788,367 2021 according to CEIC data. For 2020, international air passenger traffic accounted for 6,763,298 people.

According to the recent report of IATA, the aviation sector contributes approximately USD 18.8 billion to the GDP of Brazil and the increase in the number of air passenger traffic will push various airports in Brazil to provide quick services to passengers in a shorter time. This will lead to various quick-service restaurants being opened across Brazilian airports and this will lead to the market growth during the forecast period.

Latin America Airport Quick Service Restaurant Market Competitor Analysis

The Latin America Airport Quick Service Restaurant Market is consolidated with some major players in the market including Burger King Corp., Domino's Pizza, Inc., McDonald's Corp., Starbucks Corp., and Subway IP LLC amongst others.

The increasing investments in airport infrastructure including the construction and expansion of new terminals and new airports in the Latin American region, to cater to the needs of growing passenger traffic, are anticipated to generate new opportunities for the concessionaire in the coming years.

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