Market Trends

European Foodservice Market Surges with Tech Adoption and Diverse Cuisines

NEW YORK, March 28, 2024 (PRNewswire) -- The foodservice market in Europe is expected to experience remarkable growth from 2024 to 2028. Market research company Technavio projects an expansion by USD 265.9 billion during this period. At an estimated Compound Annual Growth Rate (CAGR) of 6.48%, the market's trajectory is a clear reflection of the rapid digitalization taking over the European dining scene.

Technavio has announced its latest market research report titled Foodservice Market in Europe 2024-2028.

Digital transformation in the European foodservice industry is spearheading changes with the emergence of cloud kitchens, innovative food tech start-ups, and a myriad of delivery applications such as Deliveroo, Just Eat, Uber Eats, GrubHub, Glovo, and Trendyol.

Digital Menus and Online Ordering: The New Norm

The shift towards digital menus and online ordering systems is significant. These platforms accommodate a diverse clientele, including immigrant populations that demand a slew of dishes ranging from Arabian appetizers and pizza to quinoa bowls and bouillabaisse. Even traditional players like McDonald's and Subway are steering towards digitalization, offering online order placements and contactless payment methods.

E-commerce platforms are not left behind either. They provide a wide array of options including plant-based, vegetarian, and vegan dishes, catering to the varying dietary preferences of the tech-savvy European consumers.

The Momentum of Market Growth

The European market is mounting an impressive pace, and insights into its historical (2018 - 2022) and forecast market size can be obtained here.

The detailed landscape of the foodservice market in Europe covers a broad spectrum of aspects.

Foodservice Market in Europe Scope

The base year for the current market scope is 2023, with a historical period drawing back to 2018-2022. Looking forward, the period from 2024-2028 is poised to witness an acceleration in market growth at a CAGR of 6.48%, with a market growth projection of USD 265.9 billion. Despite being fragmented, Europe maintains a year-over-year growth of 5.45%.

Segment Overview

This market is segmented by Sector (Commercial, Non-commercial, and Service categories like Conventional, Centralized, Ready-prepared, and Assembly-serve). The European sector of the market accounts for the total market contribution, seeing significant growth, particularly in the Commercial segment in 2023. Quick Service Restaurants (QSRs) are leading the march with an array of menu options that range from Western to Eastern cuisines.

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Market Segmentation by Sector

The commercial sector by far surpasses others in terms of growth, prompted by the convenience factor of QSRs and their expansive menus. The rise of digital e-commerce platforms like Trendyol and Yemeksepeti has been essential in this growth spurt. They've ridden the wave of digital transformation to become indispensable to consumers who appreciate the ease of digital menus and the fast service from their smartphones.

Dietary preferences coupled with cultural diversity have also flavored menus across Europe. There is a notable trend toward plant-based and health-conscious options as consumers become more aware of their nutritional choices and ethical concerns.

The foodservice industry also caters to a robust cost sector which includes military and civil defense, healthcare, education, and complimentary services like welfare, accounting for a significant chunk of the overall industry sales.

Geography Overview

In Europe, including countries like Germany, technology dictates the course of the foodservice industry. Digital menus and online platforms are now the backbone of services that cater to tech-fluent consumers. The shift towards these platforms comes from the demand for catering to dietary restrictions, cultural preferences, and ethical considerations. The largest cost sectors reflect this change as they adopt these tech-driven solutions.

Venture capital has also played an essential role in the rise of food tech start-ups. They have been ushering in a fresh perspective to the industry, especially with the introduction of cloud kitchens. Delivery platforms are diversifying the reach of the industry while smartphone applications are making ordering on-the-go more convenient.

Insights on Market Drivers, Trends, & Challenges

Adjusting to these new tech trends does not come without its challenges. Companies have been forced to rethink their approaches to meet the demands of a changing market. Nonetheless, the industry continues to thrive with technology at its center.

Download a Sample Report for insights on the market contribution of various segments, including country and region-wise data.

Market Research Overview

Principal players in this industry segment include AmRest Holdings SE, Compass Group Plc, Costa Group Holdings Ltd., Domino's Pizza Inc., Elior Group SA, and several others. The coverage of the market includes contract foodservice, full-service restaurants, quick-service restaurants, accommodating a vast range of consumer needs.

The proliferation of food delivery and takeaway services gained momentum due to increased convenience and the sanitary concerns posed by the ongoing pandemic. Providers are increasingly leveraging technology to facilitate contactless and hygienic dining experiences for their customers.

Sustainability is becoming a focal point with a push towards eco-friendly practices and a predilection for locally sourced ingredients. As the market grows, fueled by increasing disposable income, changing demographics, and evolving consumer behavior, staying competitive hinges on the use of technology and the ability to innovate while maintaining a customer-centric approach.

Technavio: A Research Powerhouse

Technavio is acclaimed globally for its state-of-the-art technology research. Their studies delve into early market trends, offering strategic insights to businesses ...

Targeting specific market opportunities and aligning with market trends to optimize one's position in the industry landscape is what their analysis strives to deliver. With over 500 specialized analysts, their report library boasts more than 17,000 comprehensive reports which span over the expanse of 800 technologies across 50 countries.

A client base of enterprises, which includes more than 100 Fortune 500 companies, attests to the breadth and depth of Technavio's research capabilities.

Technavio Contact Information

For further inquiries or additional information, Technavio can be reached through the following contacts:

Jesse Maida Media & Marketing Executive US: +1 844 364 1100 UK: +44 203 893 3200 Email: Email Contact Website: www.technavio.com

Final Thoughts

Driving this industry forward are dynamics in consumer behavior, digital advancements, and diverse culinary experiences. As these trends continue to shape the foodservice landscape, the European market can anticipate continued growth, with technology playing a pivotal role in its evolution.

Overall this report from Technavio lays a comprehensive foundation upon which businesses can forecast their strategic decisions in the burgeoning European foodservice market.

SOURCE: Technavio

The information provided in this article is based on report details and insights offered by Technavio, reflecting the current and forecasted dynamics of the foodservice market in Europe. For further detailed insights and to leverage this comprehensive research for business advantages, reach out to their professional team through the aforementioned contacts.