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In-Flight Catering Services - Global Market Trajectory & Analytics

  • ID: 2255384
  • Report
  • September 2020
  • Region: Global
  • 609 Pages
  • Global Industry Analysts, Inc
The global market for In-Flight Catering Services is projected to reach US$22.4 billion by 2025, driven by the unprecedented rise in air passenger traffic and the resulting increase in demand for airline food and the increasing popularity of gourmet food catering as a competitive strategy for service differentiation among airline companies. Growing competition among airliners and increased commoditization of airline services are together unleashing focus on leveraging opportunities offered by targeting underserved travelers. Food and fine dining, Wi-Fi connectivity and on-board entertainment, duty-free in-flight shopping, are few of the in-flight services gaining in popularity as new value added services capable of opening new revenue opportunities. Growing consumer demand for high quality, premium healthy food even while flying is helping boost the prominence of food and drink as vital on-board services with the potential to impact overall passenger flying service experience. Although price is one of the factors that keep passengers on international flights satisfied, studies have revealed that food is also an important factor when it comes to keeping passengers happy. Surveys that have ranked in-flight services such as cost and fees, aircraft, flight crew, check-in, boarding, immigration, baggage and reservations etc., have highlighted food and beverage as ranking on par with entertainment as key to passenger satisfaction. Airline companies are increasingly waking up to the importance of food and beverage in roping in repeat passengers and retaining customers on international routes. Airliners are building their brands in new and powerful ways by delighting customers with exquisite in-flight experiences. One of these involves offering food and beverages unique to each company`s culture.

Noteworthy factors gaining ground as important growth drivers include the growing trend of unbundling airline food services to meet diverse consumer tastes and preferences and the resulting prominence of A La Carte meals over standard meals; launch of new mobile and online meal order booking options by major airlines; growing automation and proliferation of in-flight catering management solutions; rising popularity of mini-meals and nutritious snacks for health-conscious airline travelers; robust demand for environmentally sustainable food solutions with locally sourced ingredients; effervescent innovations in onboard meal menus; robust developments in the science behind airplane food including modern cooking techniques and ground-breaking designs in airplane ovens. There is a great deal of research being conducted to understand the impact of high altitude flying on appetite. Flying at high altitudes is known to reduce appetite and hunger thus making palatable airline food a challenge for food service providers. The temporary changes in body chemistry also tend to alter the taste buds, requiring innovations in food science to confront this challenge. Spicer foods and blander beverages are often well received by passengers. Bloody Mary, for instance is gaining a reputation for tasting great at high altitude. Similarly, power juices, smoothies and power salads featuring good quality protein are also growing in popularity. Alaska Airlines offers a protein platter featuring Greek yogurt, almonds, seasonal fruits, a cage-free hard-boiled egg, pita bread and non-GMO turkey. The United States, Europe and whole of Asia Pacific represent large markets worldwide with a combined share of 87.4 % of the market. China ranks as the fastest growing market with a CAGR of 6.6% over the analysis period supported by improving disposable income and higher standards of living, increase in the frequency of air travel, rise in the number of high net worth individuals (HNWIs) as well as expanding base of affluent middle class population who value access to healthy, nutritious food and therefore willing to pay a premium for food. The Middle East is also emerging as a hub of international airline activity supported by airport infrastructure upgrades to meet the air travel needs of millions of Muslim pilgrims visiting the region and expansion of aircraft fleets.

Competitors identified in this market include, among others:
  • AAS Catering Co., Ltd.
  • Abby`s Catering
  • ANA Catering Service Co., Ltd.
  • Brahim`s SATS Food Services Sdn Bhd
  • Cathay Pacific Catering Services (H. K.) Ltd.
  • dnata
  • Emirates Flight Catering Co., LLC
  • Gate Gourmet
  • KLM Catering Services Schiphol BV
  • LSG Lufthansa Service Holding AG
  • LSG Sky Chefs
  • Newrest Group International S. A.S
  • Royal In-Flight Catering Co., Ltd.
  • SATS Limited
  • Saudi Airlines Catering Company
Note: Product cover images may vary from those shown
I. INTRODUCTION, METHODOLOGY & REPORT SCOPE

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • In-Flight Catering Services: A Prelude
  • Historical Background
  • Key Stakeholders
  • Architecture of In-Flight Catering System
  • In-Flight Catering Services: Providing Quality, Fresh and Delicious Food to Air Passengers
  • Low Cost Carriers to Gain Greater Market Share
  • Economy Class Drives Market Growth
  • Air Passengers Exhibit Preference for Meals
  • In-Flight Catering: One of the Most Dynamic Segments in the Catering Industry
  • Inflight Catering: Major Trends Summarized
  • Airline Catering: From Simple Fare Comprising Biscuits to Elaborate Multiple Meal Option Menus
  • Quieter Airplanes Make it Easy to Savor In-Flight Meals
  • Food Services for Premium Cabins Similar to Top Restaurants on the Ground
  • Advent of Cultural and Religious Diets
  • Complimentary and Paid Multiple-Course Meals
  • Popular Food, Beverage and Culinary Trends in Airline Catering
  • Locally Procured Food: The New Flavor of the Season
  • Vegetables Take Center Stage
  • Adding Spice to Food
  • Hawaiian Food Going Places
  • Healthier Breakfast Options
  • Branded Farm Produce
  • New Meat Cuts
  • Stuffed Items Gain Popularity
  • Signature & High Class Cocktails
  • Seafood
  • Fast Food
  • Packaged Popcorn
  • Best Coffee Onboard
  • Craft Beer
  • Seasonal Food Items for Holiday Travelers
  • Spices and Herbs Replace Artificial Additives and Salt
  • Foods from Home/Destination Country
  • Nutritious Food Onboard: A Major Attraction for Health Conscious Customers
  • Few Other Airline Food & Catering Trends in a Nutshell
  • All Things Significant about Food Served in Flights across the World
  • Major Aspects of Aircraft Food
  • Emerging Economies to Propel Future Growth in In-Flight Catering Services Market
  • Economic and Demographic Fundamentals Support Market Growth
  • Global Economic Outlook: Real GDP Growth Rates in % by Country/Region for the Years 2018 through 2020
  • Fastest Growing Economies Worldwide over the Period 2016-2050: Annual Average Real GDP Growth (%) for Select Developing Economies
  • Major Market Challenges Summarized
  • Competitive Landscape
  • In-Flight Catering Services: An Intensely Competitive Marketplace
  • In-Flight Catering Services Competitor Market Share Scenario Worldwide (in %): 2019
  • gategroup and LSG Sky Chefs: Two Global Leading In-Flight Caterers
  • Leading Airlines for In-Flight Meals
  • British Airways: Managing Growing Competition through Novel Offerings
  • Emirates Group: Transforming from a Regional Leader to a Globally Recognized Brand
  • Cathay Pacific’s New Catering Model for Business Class Passengers Speeds up Service
  • Airport Catering Services Market Continues to Witness M&A Activity
  • gategroup’s Acquisition of LSG’s European Operations: A Major Development in Airline Catering Market
  • Major Mergers and Acquisitions in In-Flight Catering Market (2010-2019)
  • Partnerships between In-Flight Catering Companies and Airlines on the Rise
  • Strategies Adopted by Leading Airlines/Catering Service Providers
  • In-Flight Meal Experience Plays Major Role in Airline Branding
  • Matching Consumer Expectations: Difficult but Essential
  • Airlines Strike Balance between Catering Costs and Brand Image
  • Airlines Extend Premium-Quality Foods to Non-First Class Passengers
  • Large Airlines Focus on Lean Operations, Shed Catering Units
  • Novel Concepts in Production, Material & Process Management
  • Regulatory Forces Keep Close Watch
  • Catering & Logistics: The Most Essential Combination for Caterers
  • Impact of Covid-19 and a Looming Global Recession
2. FOCUS ON SELECT PLAYERS
  • Abby’s Catering (USA)
  • AAS Catering Co., Ltd. (Japan)
  • ANA Catering Service Co., Ltd. (Japan)
  • Brahim’s SATS Food Services Sdn Bhd (Malaysia)
  • Cathay Pacific Catering Services (H.K.) Ltd. (Hong Kong)
  • DO & CO Restaurants & Catering AG (Austria)
  • dnata (UAE)
  • Emirates Flight Catering Co., LLC (UAE)
  • Flying Food Group, LLC (USA)
  • gategroup Holding AG (Switzerland)
  • Servair SA (France)
  • KLM Catering Services Schiphol BV (The Netherlands)
  • LSG Lufthansa Service Holding AG (Germany)
  • LSG Sky Chefs (Germany)
  • Newrest Group International S.A.S (France)
  • On Air Dining Ltd. (UK)
  • Royal In-Flight Catering Co., Ltd. (Japan)
  • Saudi Airlines Catering Company (Saudi Arabia)
  • SATS Limited (Singapore)
  • TajSATS Air Catering Limited (India)
3. MARKET TRENDS & DRIVERS
  • Surge in Air Travel and the Corresponding Increase in Passenger Traffic Drive Healthy Growth in Demand for In-Flight Catering Services
  • Annual Air Passenger Traffic (in Millions) Worldwide by Country: 2010-2018
  • Global Passenger Air Traffic Revenues (in US$ Billion): 2010-2019
  • Global Annual Air Traffic in Trillion RPK (Revenue Passenger Kilometer) for the Period 1975 to 2038
  • Projected Growth in Global Airline Traffic (RPK) by Geographic Region: 2018-2038
  • Stable Commercial Aviation Outlook Signals Growth Opportunities for Airline Catering
  • Global Commercial Aircraft Fleet Projections: Breakdown of Fleet (in Units) by Region for 2018 and 2038
  • Ground Handling Services: The Backbone of In-Flight Catering
  • Growing International Tourism and Consequent Rise in Air Travel to Benefit In-Flight Catering Market
  • Europe Captures Largest Share of International Tourist Arrivals: Breakdown of International Tourist Arrivals (in %) by Region for 2018
  • Air Travel Dominates International Tourism Industry: Breakdown of Tourism Market (in %) by Mode of Transportation for 2000 and 2018
  • Booming Outbound Travels of Chinese Millennial Population to Benefit Growth Prospects for In-Flight Catering
  • Top Spenders Worldwide on Outbound Travel: Breakdown of Travel Expenditure (US$ Billion) by Country for 2018
  • Increasing Pressure to Reduce Costs Favor In-flight Catering Outsourcing
  • Shift from Complimentary Meals to ‘Buy on Board’ Transforms In-Flight Catering from Free Service Offering to a Revenue Model
  • Low-Cost Carriers Boost the “Buy on Board” Segment of Travel Retail
  • Local Touch to Buy-On-Board Catering
  • Culturally Diverse Food Preferences Spur Growth in Demand for Special Meals
  • Mobile-Based Ordering and Pre-Ordering Takes Off
  • Pre-ordered Meals at Airport Restaurants
  • Pre-Ordered Meals before Flights
  • Paid Pre-order Meals Still Not Flying
  • Dietary Restrictions and Food Allergies: The Main Considerations for Airlines When Deciding Menus
  • Demand Surges for Healthy and High Quality Food
  • Mini Meals: The Latest Fad for the Health Conscious Airline Traveler
  • Rising Airline-Hotel Collaborations Benefit Market Prospects
  • Enduring Trend of Environmental Sustainability Augurs Well for Long Term Growth of In-Flight Catering
  • Air Travel Plastic Waste Increasing Steadily: A Major Concern
  • Use of Plastic in In-Flight Catering Raises Carbon Emission Concerns
  • Major Airlines Undertake Sustainability Initiatives to Address Climate Change
  • Focus on Environmental Conservation and Cabin Waste Reduction Influence Packaging of Inflight Meals
  • Innovative Airline Amenity Ideas from PriestmanGoode
  • Edible Cups of Air New Zealand
  • SAS Unveils New, Sustainable Packaging of New Nordic Food Concept
  • SunExpress Germany Offers Meals in Recyclable, Bio-packaging
  • SIA Embarking on New Onboard Sustainability Initiatives
  • The Bring-your-Own-Cup Trend Catching Up in the Air Travel Industry
  • Airlines Caterers Prepare to Meet Challenges Posed by Increasing Numbers of Aging Air Travelers
  • Breakdown of Number of People Aged 65+ Years in Million by Geographic Region for the Years 2019 and 2030
  • Emerging Middle Class & Rapid Urbanization: Megatrends Driving Air Travel & Airline Catering
  • Global Middle Class Population (In Million) by Region for the Years 2020, 2025 and 2030
  • Global Middle Class Spending (US$ Trillion) by Region for the Years 2020, 2025, 2030
  • Middle Class Households as a Percentage (%) of Total Households for Select Countries: 2008, 2018, 2024, 2030, 2036
  • World Urban Population in Thousands: 1950-2050P
  • Degree of Urbanization Worldwide: Urban Population as a % of Total Population by Geographic Region for the Years 1950, 1970, 1990, 2018, 2030 and 2050
  • Innovations, Advancements and Service Enhancements
  • The Vertical Farm of Emirates
  • Lufthansa’s Astronauts’ Meals
  • Airborne Cooking Robot
  • Data Science and Artificial Intelligence by Airlines for Improved Food Supply and Sales
  • Sous-Vide Cooking Process from Cuisine Solutions
  • On-Demand Food Service for Enhanced Travel Experience
  • Meal Ordering Devices (MODs) for Taking Orders
  • Automated In-Flight Catering Management Solutions
  • Hybrid Model: The Next Big Thing in Airline Catering
  • Food Trucks
  • Onboard Picnic Services
  • Deep Frozen Meals
  • Key Challenges Facing In-Flight Catering Market
4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS

GEOGRAPHIC MARKET ANALYSIS

UNITED STATES
  • In-flight Catering Services Market in the US: Poised for Stable Growth
  • Improving Commercial Aviation Sector to Benefit Demand Prospects
  • Annual Air Passenger Traffic (Millions) in the US: 2010-2018
  • Increasingly Choosy Food Habits of Air Travelers Drive Growth in the Matured US Market
  • In-Flight Food Takes the Healthy Route
  • Willingness of Consumers to Pay Extra for On-Board Meals Bodes Well for the Market
  • North American Airlines Adopt New Approach towards In-Flight Food
  • Lean Manufacturing Leads the Way
  • In-Fight Catering: Localization and Personalization Assumes Importance
  • DIY Catering Comes to Rescue in Remote Locations
  • Lack of Adequate Safety Precautions in Airline: A Major Cause of Concern
  • Market Analytics
CANADA
  • Healthy Rise in Air Passenger Traffic Fuels Market Growth
  • Annual Air Passenger Traffic (Millions) in Canada: 2010-2018
  • Market Analytics
JAPAN
  • Growing Preference for Culture-Specific Meals Sustain Market Growth
  • Annual Air Passenger Traffic (Millions) in Japan: 2010-2018
  • Market Analytics
CHINA
  • Surging Demand for Air Travel Spurs Growth in Chinese In-Flight Catering Services
  • Annual Air Passenger Traffic (Millions) in China: 2010-2018
  • Rapid Market Development Results in Fierce Competition
  • Strategies to Drive Growth in China’s In-Flight Catering Market
  • Reducing Cost of Catering Operations
  • Local Characteristics, Chinese-Style Catering
  • Creating Healthy and Safety Atmosphere for Aviation Compound Food
  • Developing People-Oriented Service with Focus on Tourists
  • Market Analytics
EUROPE
  • Growing Demand for New Airplanes to Benefit Market Growth
  • Annual Air Passenger Traffic (Millions) in Select European Countries: 2010-2018
  • Commercial Aircraft Projections in Europe: Breakdown of Fleet (Units) by Type for 2018 and 2038
  • European Airlines Offer Buy-On-Board Services
  • Impact of Reorganized EU VAT System on In-Flight Catering Services in Europe
  • Market Analytics
FRANCE

GERMANY

ITALY

UNITED KINGDOM
  • UK Airlines Charge In-Flight Meals in Tune with Global Trends
  • Annual Air Passenger Traffic (Millions) in the UK: 2010-2018
  • Market Analytics
SPAIN

RUSSIA
  • Rising Air Travel Fuels Growth in Airline Catering Market
  • Annual Air Passenger Traffic (Millions) in Russia: 2010-2018
  • Changes Abound in Airline Catering Industry
  • In-Flight Catering Market Faces Food Safety Challenges
  • Market Analytics
REST OF EUROPE

ASIA-PACIFIC
  • Surging Air Passenger Traffic & Growing Affluence Drive Strong Market Growth
  • International Tourist Arrivals (in Million) in Asia-Pacific by Country: 2010 and 2018
  • Booming Commercial Aviation Sector Offers Lucrative Growth Opportunities
  • World Aviation Routes: Top Routes Ranked by Annual Air Travel Growth (in %) for the Period 2018-2038
  • Bakery Products Signal Opportunities for In-Flight Caterers
  • In-flight Bakery Product Choices in Asia-Pacific
  • Market Analytics
AUSTRALIA

INDIA
  • India: A High Growth Market for In-Flight Catering Services
  • Annual Air Passenger Traffic (Millions) in India: 2010-2018
  • Branded Foods Find Favor with Airlines
  • Rise in Low Cost Carriers with Buy on Board Options
  • LCC Penetration Rates (in %) for Domestic and International Routes in Select Asia-Pacific Countries: 2018
  • National Carrier Bows Down to Pressure
  • Rise of Halal Tourism in India
  • Flight Caterers Begin Diversifying into Retail Business to Remain Afloat
  • Key Challenges Confronting In-Flight Caterers in India
  • Market Analytics
SOUTH KOREA

REST OF ASIA-PACIFIC

LATIN AMERICA
  • Steadily Growing Aviation Sector Augurs Well for In-Flight Catering Services Market
  • Annual Air Passenger Traffic (in Millions) in Argentina, Brazil, Chile, Colombia and Mexico for the Period 2010-2018
  • Market Analytics
ARGENTINA

BRAZIL

MEXICO

REST OF LATIN AMERICA

MIDDLE EAST
  • Middle East Market for In-flight Catering Gains Prominence
  • Annual Air Passenger Traffic (Millions) in Select Middle Eastern Countries: 2010-2018
  • Middle Eastern Carriers Forge Ahead in On-board Catering Services
  • Back Catering: An Emerging Trend in the Market
  • Market Analytics
IRAN

ISRAEL

SAUDI ARABIA
  • An Important Regional Market Owing to Religious Travel
  • Annual Air Passenger Traffic (Millions) in Saudi Arabia: 2010-2018
  • Market Analytics
UNITED ARAB EMIRATES

REST OF MIDDLE EAST

AFRICA

IV. COMPETITION
  • Total Companies Profiled: 62
Note: Product cover images may vary from those shown
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