In-Flight Catering Service Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The market for in-flight catering is valued at about $16.9 billion in 2022, and is expected to reach $31 billion by 2030, at a CAGR of 9.3 percent between 2024 and 2030. The significant growth trend is due to the growing number of passengers and the rising demand for improved service quality. As customer satisfaction is a major concern of the airlines, the in-flight catering service has become a critical factor in a highly competitive market. Moreover, there are a number of factors driving the growth of the market, such as the development of food technology, the increasing popularity of healthy food, and the growing adoption of green aviation practices. In addition, innovations such as pre-packaged and dietary meals, dietary customization, and local cuisine have become more popular, catering to the diverse needs of passengers. Strategically, major players in the market, such as Gate Gourmet, LSG Skychefs, and Do & Co, have been strengthening their cooperation with local suppliers, and have been making technological breakthroughs to improve the efficiency and quality of their services. In addition, they have also been promoting the development of a more diverse and sustainable business model, which will help to drive the growth of the market.

Regional Market Size

Regional Deep Dive

INTEGRAL CATERERS IN FLIGHT — THE MARKET IS NOW STRONGLY GROWING IN MANY REGIONS, DRIVEN BY THE INCREASING DEMAND FOR AIR TRAVEL AND THE CHANGING CONSUMER PREFERENCES AS TO QUANTITY AND QUALITY OF MENUS AND A FOCUS ON SUSTAINABILITY. Each region has its own characteristics influenced by cultural preferences, legal frameworks and economic conditions. North America and Europe are characterized by a strong focus on premium services and innovation, while the Asia-Pacific region is experiencing rapid growth, driven by the growing middle class and the increasing mobility of the population. Middle East and Africa are characterized by significant investments in quality and service, while Latin America is characterized by a growing focus on local cuisine, which reflects the diversity of the population.

Europe

• European air companies are establishing closer links with local chefs and restaurants to enhance the on-board dining experience, which reflects the region’s gastronomic culture. British Airways’ links with Michelin-starred chefs have created exclusive menus.
• Sustainability is a key focus, with many airlines implementing initiatives to reduce food waste and use eco-friendly packaging, driven by regulations from the European Union aimed at promoting environmental responsibility in the aviation sector.

Asia Pacific

• The Asia-Pacific region is witnessing a surge in demand for diverse culinary offerings, with airlines like Singapore Airlines and Cathay Pacific investing in regional cuisines to cater to their multicultural passenger base.
• Technological advancements are reshaping the in-flight catering landscape, with companies adopting AI and data analytics to optimize meal planning and inventory management, enhancing efficiency and reducing waste.

Latin America

• Latin American airlines are increasingly focusing on incorporating local flavors and traditional dishes into their in-flight menus, with companies like LATAM Airlines showcasing regional cuisine to enhance passenger experience.
• Economic factors, including fluctuating fuel prices and currency volatility, are influencing catering budgets, prompting airlines to seek cost-effective yet high-quality catering solutions to maintain profitability.

North America

• The North American market is shifting toward healthier food and organic ingredients, driven by consumers’ growing demand for healthy, well-being-focused dining experiences. GateGourmet and LSG Sky Chefs are responding to this trend by developing menus that feature plant-based and locally sourced ingredients.
• Regulations on food hygiene and safety have a bearing on the catering industry. The FAA and the USDA have set strict guidelines which caterers must comply with. This has resulted in the development of high quality and safe meals.

Middle East And Africa

• The Middle East is experiencing a boom in luxury in-flight catering services, with airlines such as Emirates and Qatar Airways offering gourmet dining experiences that reflect the region's opulence and hospitality culture.
• Investment in airport infrastructure and catering facilities is on the rise, supported by government initiatives aimed at boosting tourism and enhancing the overall travel experience, which is expected to elevate service standards in the region.

Did You Know?

“Did you know that the average airline passenger consumes about 1,200 calories during a long-haul flight, with meal preferences varying significantly across different cultures?” — International Air Transport Association (IATA)

Segmental Market Size

In-flight catering plays a key role in enhancing the satisfaction of passengers on board and is currently experiencing steady growth. The trend towards greater comfort and quality expectations on board are the main reasons for this. In addition, regulatory requirements with regard to food hygiene and safety are pushing operators to further improve their catering services. The in-flight catering market is at a mature stage of development. The most important players in the market are GateGourmet and LSG Skychefs, which provide a wide range of products and services in various regions, especially North America and Europe. The main applications of in-flight catering services are preparation, packaging and delivery. In recent years, more and more airlines have been collaborating with renowned chefs and local suppliers to enhance their on-board offerings. Also, the trend towards greater efficiency and reduction of waste is boosting the growth of in-flight catering. The introduction of new IT systems, such as advanced inventory management and on-line ordering, is shaping the market and making it more efficient and more satisfying.

Future Outlook

From 2022 to 2030, the market for in-flight catering services is expected to grow from $16.9 billion to $31.6 billion, with a CAGR of 9.3%. This growth is due to the expansion of the airways, resulting from the post-pandemic resurgence in air travel. The penetration of the catering service on commercial flights is expected to reach about 75% in 2030. This shows the essential role that good catering has in improving the customer experience and the competitiveness of the airlines. Future trends in in-flight catering will be largely determined by technological innovations and changing customer preferences. Artificial intelligence will allow for a more individualized and sustainable menu. The integration of advanced logistics solutions will facilitate the delivery of services. The growing concern for health and well-being will also drive demand for healthier menus, organic ingredients and dietary accommodations. In the meantime, as the satisfaction of passengers and brand loyalty are becoming increasingly important for the success of the company, in-flight catering will play an increasingly important role in differentiating the service and enhancing the customer experience.