In-Flight Catering Services Market Revenue 2021: Top Four Crucial Trends Favoring Industry Demand 2027; Global Market Insights Inc.

Major in-flight catering services market players include Gate Gourmet, Saudi Airlines Catering, LSG Group, Dnata, Servair, Goddard Catering Group, Newrest Catering, Royal Holdings, Journey Group PLC, DO & CO, SATS Ltd, Emirates Flight Catering, and ANA Catering Service Co. Ltd.

In-flight Catering Services Market Growth Predicted at 6.1% Through 2027: GMI

The in-flight catering services market size is anticipated to record a valuation of USD 21 billion by 2027, according to the most recent study by Global Market Insights Inc. The industry is slated to see exponential growth driven by the increasing adoption of commercial aircraft. There are continuous developments across the airline sector mainly in the Middle East region. Most of the chief airlines are increasingly opting to outsource the in-flight catering services in a bid to upgrade their meal offerings. In addition, the continuously proliferating air traffic across the world coupled with the rise in the number of air travelers, specifically in the Asia Pacific will significantly drive the growth of the market.

Moreover, providers of in-flight catering services across the globe are adopting key strategies, such as partnerships, and acquisitions to expand their reach and customer base. They are also coming up with new facilities to meet the rising passenger requirements. For instance, in April 2020, Dnata, major Dubai-based airport services firm partnered with Aer Lingus, an Irish national carrier in order to operate its catering services. Through this partnership agreement, Dnata offered catering services to all the latter's flights departing from Dublin. LSG Group, Gate Gourmet, and Saudi Airlines Catering are some other major industry participants.

Mentioned below are some prominent factors shaping this business avenue lately:

Growing inclination towards first-class passenger seating

Annual remuneration from the first-class aircraft seating segment is expected to record nearly 14% of the in-flight catering services market share in the analysis timeline. The growth is ascribed to the increasing preference for luxurious class travel by the wealthy class of people. In addition, the price of this class is expected to be approximately five times more compared to that of business class.

In-house sourcing to see higher footprint

Demand for in-house sourced in-flight catering services is anticipated to exceed USD 5.5 billion by 2027. This is mainly owing to the insufficiency of airlines that offer in-house catering services across the world. Moreover, in-house catering services can be put together easily with limited available options, such as vegetables, salads, and fruits. In addition, the higher prices associated with full course meals and the ease of availability of the outsourced meals at a relatively lower price will boost the in-flight catering services market progression.

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Rising intake of bakery & confectionery items

The in-flight catering services market share from bakery & confectionery is poised to observe a growth rate of more than 6.1% through 2027. This can be owed to the higher provision of several bakery and confectionary items, including chocolates, muffins, biscuits pastry, desserts, and snack bars during flight hours. Breakfast cookies, as well as savory snack mixes, are also provided as a complimentary treat by some of the leading airlines as these sweets aid in limiting the impacts of in-flight sickness. However, the increasing concerns over sensitive and allergen food items have made way for the imposition of a host of cautionary methods.

Expanding passenger count in Latin America

The in-flight catering services market in Latin America could witness a rate of 6% up to 2027. This is due to the rising government support towards the expansion of the airline sector to offer reasonable costs & taxes with effective infrastructure and regulatory environment. It has also been estimated that passenger volume in the region will double by 2034.

The strong presence of some of the topmost airlines, including LATAM, and their growing efforts to form joint ventures with several other bigwigs, like Delta Airlines, will lead to the progression of the aviation sector in the region.

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Source: Global Market Insights Inc.


Categories: Aeronautics and Aerospace

Tags: Business-class, Economy-class, First-class, in-flight catering services, in-flight catering services industry, in-flight catering services market

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Arun Hegde
Arun Hegde
Corporate Sales, USA, Global Market Insights Inc.
Global Market Insights Inc.
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