Market Trends of Foodservice Disposable Packaging Industry
This section covers the major market trends shaping the Foodservice Disposable Packaging Market according to our research experts:
Growing Number of Quick Service Restuarant across the Globe
- The food industry has undergone significant changes over the past few years. The COVID-19 pandemic has made consumers increasingly rely on online delivery platforms with all safety standards in place, starting from preparation, packaging, and delivery. The emergence of Cloud Kitchens has been observed in the regions where delivery services help them create a profitable market to operate without having to invest in infrastructure for dine-in services.
- Food packaging trends are rapidly evolving with lifestyle changes, and food distribution channels are increasingly relying on online food delivery applications. The growing strata of the working populace and the average fast food meal's popularity are driving the foodservice packaging industry.
- For example, in 2021, US consumer spending in the QSR sector totaled USD 304.8 billion. Though Subway had over 6,000 more locations than the next-ranked company, McDonald's had more revenue. However, in terms of sales per unit, Chick-fil-A, renowned for its high levels of customer service, bested both McDonald's and Subway in 2020.
- The COVID-19 pandemic caused monthly quick-service restaurant sales in the United States to decrease. Sales fell from USD 29.66 billion in 2019 to USD 24.16 billion in 2020 in March 2020, marking the start of the year-over-year decline. Things started to improve by 2021, with sales beginning in March exceeding pre-pandemic levels and exceeding USD 30 billion per month for the remainder of the year.
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Asia-Pacific is Fastest Growing Market for Foodservice Disposable Packaging Market
- It is anticipated that the foodservice packaging market will expand further in the Asia-Pacific. Consumers are choosing convenience foods owing to rising disposable incomes, which is broadening the reach of the fast-food culture. The high concentration and presence of the global population in the region have been a complementing factor in the market. Some opportunity-rich environments are the Indian Sub-continent, Japan, Korea, the SEA Region, and China, among others.
- All businesses that provide meals made outside the house, such as restaurants, cafes, and other food outlets, are categorized as being in the restaurant or foodservice industry. As fast-food restaurants become more prevalent, mobile food businesses like food trucks and cloud kitchens are also growing in developing nations, despite their optimism for the future expansion and viability of their enterprises and restaurant owners.
- Although the procedure is complex, incorporating technology allows the players in the foodservice business to flourish significantly. For operators of food chains, high-cost investment in cutting-edge infrastructure continues to be a significant barrier. The pressure on the hotel sector has intensified due to quality and service with the growth of fast food chains, organized food unions, and food outlets.
- People are increasingly using the expanding number of cafes offering food and alcohol for gatherings and parties. Traditional cafes and lounges are often renovated by market players in the restaurant business, turning them into themed establishments that draw more customers than older ones. Additionally, several chains and restaurants are enhancing their online presence to broaden their clientele and boost sales.
- Online portals like UBER Eats, Zomato, Swiggy, and others are helping players in the restaurant industry increase the number of delivery orders and takeaways. According to the survey analysis, in urban areas, 52.2% of consumers prefer to receive home food delivery through online ordering.
- Improving connectivity services and smartphone penetration in major economies is vital for consumers to order food and drink online. Today, consumers are overwhelmed by the limitations of their lifestyle and have little time to cook, so they look for functional food. The demand for the disposable packaging market is hence growing continuously. On the other hand, new entrants to the packaging market are competing fiercely with existing players due to improved business models and innovative food menus.
- New players are focusing on digital channels to reach consumers and are primarily focused on branding. Federal authorities are also adjusting their regulatory landscape to ensure the quality of food and services restaurateurs provide.
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