In-Flight Catering Services Market - Segmented by Aircraft Seating Class, by Flight Service Type, by Food Type, and by Geography - Growth, Trends, and Forecast (2018 - 2023)

Market Insights

The market for in-flight catering is anticipated to grow at a CAGR of over 5.61% during the forecast period. Growth in the passenger air traffic will drive the in-flight catering services market in the coming years.

Market Dynamics

The airline catering market is a sub-segment of the transport catering industry, the growth of which is largely dependent on the development and growth of the aviation industry.

The growth in the number of airline passengers over the past few years has affected the airline catering business, to a considerable extent. The trend of serving pre-packaged meals in airlines has been on the rise over the past few years. There lies a significant potential in Asia-Pacific and the Middle East, where the market is operated and owned by carriers, unlike that in the United States. The airline catering market is expected to witness growth, on account of improving demand for airplane transportation, rising number of airplane deliveries, and an increase in the number of airline passengers.

In-flight catering services are expected to witness impressive levels of growth in the market, as carriers consider options to improve the quality of food served on planes. Increase in the quality of food and services provided are anticipated to be directly driven by passengers’ desire to have healthier and better-quality food on their flights.

The catering service providers are now getting involved in providing sophisticated snacks, which resemble a mini-meal, instead of only providing light snacks, such as nuts, pretzels, etc. Virgin Atlantic, in its selected flights (primarily for its upper-class customers), provides healthy but wholesome items, such as vegetarian sushi or beef sliders, to satisfy customer’s cravings. For their long-haul flights, the firm also provides enhanced snacks, such as grilled sandwiches and noodle-soup. Creative refreshments are also on the table for economic classes, where mini-meals are offered for a fee. In addition, an increased focus on culture-specific menus also generates a greater interest in the provision of in-flight food services. The versatility in cultural dining always adds to the comfort and interest of the traveler. For instance, the Flying Food Group strives to design meals, in accordance with the familiarity of destination flyers around the world. The commuters appreciate the cuisine of the upcoming destination, to familiarize themselves with the taste of the new culture.
Technology Trends

In the food & beverage industry, ordering and paying for food and beverages via tablet and mobile devices, has become the new trend at casual dining chains, such as Applebee’s and Chili’s, across the United States, while airport restaurateur OTG, has installed thousands of food-ordering iPads, at half a dozen of the US airports.
Regional Insights

APAC is anticipated to dominate the market during the forecast period, at a CAGR close to 8%.  Rapid urbanization, the resurgence in discretionary spending, increase in international travel and tourism, and a rising standard of living to complement aspirational traveling are the factors that are expected to drive the growth in this region. By 2020, China is expected to supersede Japan, to become the world's second-largest source of business travel, after the United States.

Major Players: Jetfinity, Dnata, Gate Gourmet, Do & Co, Cathay Pacific, SATS Ltd., among others.

Recent Developments:

Jan 2018: Gate Group entered into a 30-year JV with Asiana Airlines of Korea.

Nov 2017: Gate Group and LATAM Airlines created a dining concept for the economy class traveler, in long-haul flights, allowing customers to choose from three choices of food for lunch, dinner, and breakfast.

Oct 2017: LSG has partnered with Air New Zealand and New Zealand Ministry, to tackle in-flight catering wastage.

Mar 2017: Cathay Pacific redesigned its in-flight catering service by introducing “dial on demand” catering alongside a pre-order option, on routes from Hong Kong to London and Hong Kong to Chicago.

Reasons to Purchase this Report

• Analyzing various perspectives of the market with the help of Porter’s Five Forces Analysis
  
• Detailed analysis on the segment that is expected to register the highest growth rate
  
• Study on the region and country that are expected to dominate the market
  
• Identifying the latest developments, market shares, and strategies employed by the major market players
  
• 3-month analyst support, along with the Market Estimate Sheet (in Excel)
  

Customization of the Report

This report can be customized to meet your requirements. Please connect with our Customer Service team, who will ensure you get a report that suits your needs.