In-flight Catering Market Size (2024 – 2030)

According to recent research findings, the Global In-flight Catering Market achieved a valuation of USD 8.60 billion and is anticipated to attain a market size of USD 27.15 billion by the culmination of 2030. Across the forecast span from 2024 to 2030, an estimated Compound Annual Growth Rate (CAGR) of 17.85% is projected. A surge in long-haul and non-stop flights, attributed primarily to the escalating trends in both leisure and business tourism, has resulted in heightened passenger requirements for in-flight catering services, accompanied by a steady increase in disposable income. The industry's growth is predominantly fueled by the expanding adoption of technological advancements such as in-flight food and beverage ordering systems.

Industry Overview:

In-flight meals, or inflight dining services, refer to the provisions extended to passengers during flights and at airports. Catering has evolved into a significant facet of the industry, especially for operators within long-distance networks. Meal planning and dietary design are pivotal elements of the culinary domain. These meals are orchestrated by professional airline catering services and served to passengers utilizing the airline's service vehicles. The caliber and quantity of meals served on board vary across airlines and boarding classes. Key industry participants are progressively embracing fresh paradigms and systems from the realm of production control to enhance and refine system and process efficiency. Noteworthy tools employed by catering providers to enhance their offerings encompass just-in-time production, lean manufacturing, inventory management systems, quality systems, and IT management systems. Airlines worldwide, such as Virgin America, Air New Zealand, flydubai, and Japan Airlines, are broadening their services through the introduction of digital F & B (Food and Beverage) services. These services enable passengers to place orders via the in-flight In-Flight Entertainment (IFE) system. Emirates recently distributed meal ordering devices to all business class flight attendants.

In 2017, Cathay Pacific revamped its in-flight catering service by introducing on-demand services, in addition to pre-order alternatives, on the Hong Kong-London and Hong Kong-Chicago routes. Moreover, major incumbent and full-service airlines are collaborating with renowned chefs to revamp menus and enhance the in-flight dining experience. In 2018, Singapore Airlines unveiled a premium menu meticulously curated by Gordon Ramsay for international flights. Nevertheless, inadequate food handling may result in pollution or waste, presenting the market with challenges concerning food transportation and the limited shelf life of transported food items.

COVID-19 Impact on the Inflight Catering Market:

The COVID-19 pandemic has instigated a comprehensive crisis characterized by the imposition of travel restrictions and the suspension of flights to curb the global spread of the virus. In compliance with security regulations, certain airlines have provided passengers with cold meals or pre-packaged food alongside bottled water. The sector displayed signs of recuperation in 2021, yet international air travel, in particular, remains considerably below pre-COVID-19 levels. Nonetheless, North American and European airlines are gradually reintroducing menus akin to those pre-COVID-19.

Food safety has perennially been a priority for catering companies, yet the prior protocols were exclusively designed to prevent foodborne illnesses. Consequently, the pandemic has introduced new dynamics and essential safety protocols to commercial aviation specialty kitchens. Moreover, the pandemic has spurred an elevation in catering standards concerning food safety, cleaning, and disinfection, necessitating onboard catering companies to incur supplementary costs to ensure optimized standards.

Market Drivers:

Increased Passenger Volume Driving Market Growth:

The exponential surge in air passengers is anticipated to serve as a primary driver for the expansion of the in-flight foodservice industry. Despite economic growth deceleration in several countries, the tally of domestic and international air travelers continues to ascend, thereby propelling market growth. Furthermore, the burgeoning consumer demand for nutritious and healthful food is poised to augment market growth. Additionally, the adoption of online platforms by major airlines for meal orders is projected to further amplify meal reservations.

Technological Advancements in Flight Operations Driving Market Growth:

Enhanced automation and the widespread integration of in-flight meal management have empowered food service providers and airlines to collaborate and deliver an enhanced passenger experience at minimal costs. Moreover, heightened investments in the aviation sector are expected to benefit the catering market as global in-flight catering companies gear up to invest more substantially and bolster their market share. Notably, the Government of India has sanctioned 100% Foreign Direct Investment (FDI) in scheduled air freight services, regional air freight services, and passenger airlines. However, FDI exceeding 49% necessitates governmental approval. India's aviation industry is estimated to attract an infusion of Rs 35,000 crore ($4.99 billion) over the ensuing four years.

Market Restraints:

Limited International Flight Services and Cuisine Diversity Hindering Market Growth:

While private planes provide exemplary services, international flights often accommodate a diverse array of passengers covering extensive distances who seek varied cuisines not consistently provided by the aircraft's service providers. This disparity not only creates unfavorable impressions among customers but also constrains the growth of the catering market.

Inflight Catering Market - By Flight Type

• Full-Service Carrier (FSC)
• Low-Cost Carrier (LCC)
• Others

In terms of flight types, the market for in-flight catering services is segmented into full-service carriers (FSC), low-cost carriers (LCC), and other categories. The FSC segment is anticipated to hold the largest market share in 2018 and is projected to maintain this position throughout the forecast period. This dominance is attributed to the international or long-haul nature of FSC flights, with an increasing trend towards international travel expected to further boost segment growth. Typically, international airlines, which are often long-haul flights, offer a range of services within their basic ticket prices, including in-flight entertainment, checked baggage, food, and beverages.

The LCC segment is forecasted to witness substantial growth during the forecast period. A significant driver of this growth is the surge in the travel and tourism industry, coupled with increased economic activity, urbanization, and a rising preference among consumers for low-cost and nonstop carriers. Consequently, there has been a growing demand for onboard catering services to better cater to customer needs. Many LCCs operate on international routes, consequently creating a significant demand for both local and international cuisines to be offered onboard.

Inflight Catering Market - By Class

• Economy Class
• Business Class
• First Class
• Others

Categorizing the market based on classes, it includes economy class, business class, first-class, and other segments. The economy class is expected to emerge as the leading segment in the next six years. The key driver for this segment's growth is its affordability compared to other classes, attracting a larger number of passengers. Additionally, the availability of low-cost meal options is anticipated to further accelerate the growth of this segment.

The business class is poised to experience substantial growth with a Compound Annual Growth Rate (CAGR) of just over 7% from 2019 to 2025. The increase in business travelers, along with the expansion of global business networks, is a key positive factor impacting this growth. Many emerging economies worldwide have witnessed impressive GDP growth, prompting travelers to opt for business class tickets for their air travel needs. In-flight meals on long-haul flights play a pivotal role in attracting customers, prompting airlines to highlight their food offerings as a service differentiator. Together, these factors are expected to support the market over the forecast period.

Inflight Catering Market - By Food and Beverages

• Meal
• Bakery & Confectionery
• Beverage
• Others

Under the category of Food and Beverages, the market is segmented into meals, bakery items, confectionery products, beverages, and other related offerings. The meal segment is projected to hold the largest market share in 2018, maintaining a leading position throughout the forecast period. Key growth drivers include the increasing acceptance of side dishes for travelers and a rising demand for catering services on long-haul direct flights. Major in-flight catering providers are actively working to offer passengers a variety of culturally diverse meal options. The growing demand for healthy, nutritious meals among passengers, coupled with their willingness to pay premium prices for such offerings, is likely to drive growth over the next six years.

The beverage segment is expected to witness significant growth during the forecast period. Factors influencing this growth include the rising passenger demand for tea, coffee, and healthy juices, particularly on short-haul flights. Additionally, the wide array of beverage options available, ranging from juices to various types of alcohol, further fuels growth in this segment. Some airlines are even beginning to offer personalized drink options to enhance customer satisfaction.

Inflight Catering Market - By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East
• Africa

Geographically, the Asia Pacific region is poised to dominate the in-flight catering services market and maintain its dominance throughout the forecast period. With a projected significant CAGR of over 7% between 2019 and 2025, key factors contributing to this growth include the rise of the middle class and increased overseas travel and tourism due to improved living standards. Furthermore, the growing number of airlines in the region is expected to create substantial growth opportunities for in-flight catering providers.

Europe is anticipated to witness notable growth during the forecast period. The region is observing an increasing number of established airlines entering the budget category, which is expected to drive demand for in-flight catering services on low-cost flights. Additionally, the rising purchasing power of passengers for healthy and organic meals, along with airline collaborations with experienced culinary professionals, are factors likely to create significant growth opportunities in the coming years. Growth is also expected to accelerate as major operators introduce new routes and expand their airline networks.

Inflight Catering Market - Share by Company

1. Gate Gourmet (Gategroup Holding)
2. LSG Sly Chefs
3. dnata
4. SATS Ltd
5. Do & Co

Companies such as Gate Gourmet (Gategroup Holding), LSG Sky Chefs, dnata, SATS Ltd, Do & Co, ANA Catering Service Co. Ltd. (ANAC), Emirates Flight Catering, Flying Food Group, Newrest Group Services SAS, and Servair, S.A., among others, are gaining traction in the market and play pivotal roles.

Noteworthy Developments in the Inflight Catering Market:

• Service Launch: In March 2022, Newrest announced the initiation of hot meal services on two-class flights of Air Transat from various European countries including Belgium, England, France, the Netherlands, Portugal, and Spain.
• Collaboration: In July 2021, gategroup signed a partnership renewal agreement with LATAM Airlines for an additional five years to provide inflight catering services. The agreement covers 16 locations, including two new strategic domestic locations: Bogotá, Colombia, and Santiago, Chile.
• Service Launch: In November 2021, the Indian low-cost carrier IndiGo announced the resumption of its meal services, which had been suspended due to the COVID-19 pandemic. This announcement followed the Indian Civil Aviation Ministry's decision to allow airlines to resume in-flight meal services on all domestic flights.