In-Flight Catering Service Market

Rising adoption of in-flight catering services to boost the market growth

Due to increased in-flight catering automation and advancements in catering management, airlines are offering a great passenger experience. An example of a tailored service that airlines are always pursuing is pre-ordered meal offerings. American Airlines expanded the availability of its pre-ordered meal service to premium cabin passengers on domestic American Eagle flights in February 2020. The company wants to provide meals to customers that are regionally appropriate. This is then anticipated to propel the market's expansion.

Businesses are also embracing an unique trend that helps them fulfil their clients' special dietary needs and improves customer satisfaction: offering continental meal alternatives. The majority of in-flight catering service providers and airline caterers are aiming to enhance their supply chain management (SCM) in order to generate high-quality products while effectively managing their in-flight catering operations. For instance, Newrest and American Airlines renewed their contract for in-flight catering in June 2021.

The teams are able to deliver the highest level of food safety thanks to the company's in-flight catering standards, which include end-to-end cold chain management and HACCP tracking of food production.

To improve and boost the effectiveness of the processes and systems, the major market participants are adopting cutting-edge categories and systems from the production management sector. IT management systems, inventory management systems, lean manufacturing, and just-in-time manufacturing are some of the most important instruments used by catering providers to improve their offers. Airlines all across the world, including Virgin America, Air New Zealand, FlyDubai, and Japan Airlines, provide digitally enabled food and beverage services. By using the in-seat IFE system, passengers can place orders through these businesses. Every flight attendant servicing business class on Emirates just received meal ordering devices.

Therefore, such factors are anticipated to enhance the in-flight catering services market CAGR worldwide in recent years.

However, the rise in long-haul and non-stop flights, mainly as a result of an increase in both leisure and business travel, has increased passenger demand are other factors driving the growth of the in-flight catering services market revenue.

The Global In-flight Catering Services Market Industry is experiencing a surge in demand driven by the increasing number of air travelers. In 2024, the market is projected to reach 19.6 USD Billion, reflecting the growing preference for air travel across various demographics. This trend is particularly evident in emerging economies where disposable incomes are rising, leading to more individuals opting for air travel. Airlines are responding by enhancing their in-flight services, including catering options, to attract and retain customers. This heightened focus on passenger experience is likely to propel the growth of the in-flight catering sector.

The Global In-flight Catering Services Market Industry is poised for substantial growth, with projections indicating a compound annual growth rate (CAGR) of 8.76% from 2025 to 2035. This growth trajectory suggests a robust demand for in-flight catering services, driven by factors such as increased air travel, evolving consumer preferences, and technological advancements. As airlines continue to invest in enhancing their catering offerings, the market is likely to expand significantly. The anticipated growth underscores the importance of strategic planning and investment in catering services to capitalize on emerging opportunities within the aviation sector.

The Global In-flight Catering Services Market Industry is increasingly influenced by the growing consumer preference for health-conscious meal options. As travelers become more aware of dietary choices, airlines are adapting their menus to include nutritious, organic, and locally sourced ingredients. This shift not only caters to health-conscious passengers but also aligns with broader sustainability goals. Airlines that offer tailored meal options, such as gluten-free or vegan choices, are likely to enhance customer satisfaction and loyalty. This trend indicates a potential for growth in the market, as airlines invest in innovative catering solutions to meet evolving consumer demands.

The Global In-flight Catering Services Market Industry is increasingly shaped by sustainability initiatives as airlines strive to reduce their environmental impact. Many carriers are adopting eco-friendly practices, such as minimizing single-use plastics and sourcing ingredients from sustainable suppliers. This commitment to sustainability resonates with environmentally conscious travelers, potentially influencing their choice of airline. As the market evolves, airlines that prioritize sustainable catering solutions may gain a competitive edge. The emphasis on sustainability not only aligns with global environmental goals but also reflects a growing consumer expectation for responsible practices within the aviation sector.

The Global In-flight Catering Services Market Industry is witnessing a transformation due to technological advancements in food preparation and delivery systems. Innovations such as improved food preservation techniques and automated catering processes are enhancing efficiency and reducing waste. Airlines are increasingly leveraging technology to streamline operations, ensuring that meals are prepared and served at optimal quality. This not only improves the passenger experience but also contributes to cost savings for airlines. As technology continues to evolve, it is expected that the market will see further enhancements in catering services, potentially leading to increased revenue streams for airlines.

The Global In-flight Catering Services Market Industry is significantly impacted by the expansion of low-cost carriers (LCCs), which are reshaping the competitive landscape. These airlines often provide basic catering services, yet they are increasingly recognizing the importance of enhancing their offerings to attract passengers. As LCCs expand their routes and increase passenger volumes, the demand for in-flight catering services is likely to rise. This trend is expected to contribute to the market's growth, with projections indicating a market size of 49.3 USD Billion by 2035. The competitive dynamics introduced by LCCs may also drive innovation and diversification in catering services.

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The region with the highest revenue share in 2021—more than 30.0%—was Asia Pacific. Boom in foreign travel and tourism, fast urbanisation, a rising level of living to go along with aspirational travel, and a comeback in discretionary spending are all factors that contribute to the regional growth. Additionally, there will likely be major expansion potential for in-flight catering providers due to the region's growing number of airline operators.

It is projected that the region will expand at the quickest rate, mostly as a result of significant growth in both international air travel and tourism in developing nations like China, India, and Vietnam.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  In-flight Catering Services MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe in-flight catering services market accounts for the second-largest market share. As more legacy carriers enter the low-cost market in the region, it is expected that demand for in-flight food services on low-cost flights would rise. The increased propensity of travellers to spend money on buying healthy and organic meals and airline partnership with food professionals with practical knowledge are additional variables anticipated to offer considerable growth potential in the upcoming years. Growth is also predicted to be boosted by the leading operators' addition of new routes and expansion of their airline fleet.

Further, the Germany in-flight catering services market held the highest market share, and the UK in-flight catering services market is the fastest-growing market in the European region.

The North America In-flight Catering Services Market is expected to grow at the fastest CAGR from 2022 to 2030. Each state in North America has a significantly different diet. The United States and Canada, the two largest nations in North America, have very different eating patterns from one another. The Quebec area of Canada consumes food differently from the other provinces. More variation exists within the continent's smaller nations. Therefore, carriers must plan and stock their food supplies in accordance with their routes and the area they are working in.

Moreover, United States in-flight catering services market held the largest market share, and the Canada in-flight catering services market was the fastest-growing market in the Asia-Pacific region.

Major market players are investing heavily in R&D to enhance their product lines, which will help the in-flight catering services market grow even more. In-flight Catering Services Market participants are expected to take a range of strategic initiatives to enhance their  footprint, with key market developments such as new contractual agreements, product launches, increased investments, mergers and acquisitions, and collaboration with other organizations. Competitors in the in-flight catering services industry must offer cost-effective products and services to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturers adopt in the  in-flight catering services industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, in-flight catering services industry has provided medicine with some of the most significant benefits. The in-flight catering services market major player such as SATS, Servair, Egypt Air In-Flight Services, Goddard Catering and others are working on expanding the market demand by investing in research and development activities.

SATS offers food and gateway services throughout Asia. Airline catering, food distribution and logistics, industrial catering, and linen and laundry services are all included in SATS's food offerings. Airfreight, baggage and ramp handling, passenger services, aviation security, cargo, warehousing, perishables handling, cruise handling, and terminal management are all included in its gateway services.

Also, leading international provider of flight and travel services is dnata. The business, which was founded in 1959, provides high-quality and secure ground handling, freight, travel, catering, and retail services in 36 nations on six continents.  In August 2022, one of the biggest providers of air and travel services worldwide, dnata, has expanded its long-standing relationship with GOL Airlines (GOL), a well-known low-cost airline in Brazil. With the contract's extension, dnata will continue to offer the airline a variety of passenger, ramp, and baggage services, providing a seamless airport experience for more than 19 million travellers.