Airline Catering Industry
Global Airline Catering Industry to reach USD 21,116 million by 2027.
- The airline catering industry is projected to reach USD 21,116 million by 2027, registering a CAGR of 11.52%.
- Global seat capacity offered by airlines improved by 20% during 2021, exceeding the growth in passenger demand. The overall passenger load factor in 2021 stood at 68%.
- Airlines in several other countries have opted to pause their airline catering services up until as late as year-end-2021. However, these airlines have also resumed their offerings in recent months. For instance, in January 2022, Vietnam Airlines, the national flag carrier of Vietnam, announced that it is resuming its in-flight meals.
Low-Cost Carriers to Gain Greater Market Share
- The low-cost carrier segment of the market is anticipated to reach USD 6850.42 million in 2027, with a CAGR of 11.8% during the forecast period.
- In addition to exciting LCCs, with the growing demand for short-haul travel, various new LCC airlines have entered service over the past few years, and many more are expected to enter service in the coming years. Some of the new airlines are Avelo Airlines (commenced operations in April 2021), Flyr AS (commenced operations in June 2021), PLAY airlines (commenced operations in June 2021), Akasa Air, AraJet, Bonza Airline, Lynx Air, NELLA LinhasAéreas Ltda, and Northern Pacific Airways, among others (planned to commence operations in 2022).
Find our latest research on Europe In-flight Catering Market
Economy Class Drives Market Growth
- The economy class segment of the market is valued at USD 8914.01 million in 2021, with a CAGR of 11.31% during the forecast period.
- Economy class has the major market share in the global airline catering industry. The economy class seats yield the highest revenues for any airline, as their number is significantly higher than the other classes. The segment is also expected to dominate the market, as more airlines are likely to upgrade the meal offerings in this segment, to meet the increasing demands of passengers.
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Mobile-Based Ordering and Pre-Ordering Takes Off
- The advent of online and mobile ordering systems is expected to further boost the market size and growth.
- With the customers becoming more confident in terms of consuming food onboard, airlines are also providing options like the meal pre-selection, meal pre-order, and mixed buy-on-board/ complimentary catering to the passengers to make the process of ordering the food easier for the passengers. The provision of pre-ordering meals has also helped to enhance the confidence of consumers, in favor of inflight food services.
