North America In-flight Catering Services Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

North America In-flight Catering Services Market Trends and Insights

Rebound in Air-Passenger Traffic and Long-Haul Capacity Additions

According to IATA's report for the entire year of 2024, international traffic surpassed the 2019 benchmark by a mere 0.5%. While the combined total traffic (encompassing both domestic and international) exceeded 2019 figures by 3.8%.^{[1]Federal Aviation Administration, “FAA Aerospace Forecast 2024-2044,” faa.gov} Airlines are therefore pushing capacity toward transoceanic sectors where meal service is mandatory, and yields run higher than short-hauls. In the summer of 2025, North America boasted a seat capacity of 793 million. As Canadian gateways increased their flight frequencies and Mexican leisure routes expanded, demand for catering services became concentrated at airports with limited kitchen facilities. The FAA projects system revenue passenger miles will grow 2.8% annually through 2045, implying longer average stage lengths that favor caterers able to scale multi-course service economically. Suppliers lacking fresh-frozen networks or multi-cuisine certification risk displacement on expanding long-haul corridors.

Premiumization of Onboard Experience to Differentiate Airline Brands

Delta formalized chef programs with José Andrés and Mashama Bailey in 2024, rotating seasonal menus in Delta One cabins, and Alaska Airlines introduced its Chef’s Table concept in May 2025.^{[2]Delta Air Lines, “Premium Dining Partnerships,” delta.com} A 2024 survey of premium travelers showed 78% cite food quality as a key repeat-booking trigger, pushing carriers to invest in signature dishes, wine pairings, and regionally sourced ingredients. American Airlines operates a 214,000-square-foot facility in Dallas/Fort Worth that produces 15,000 meals daily, demonstrating how industrial kitchens can incorporate chef recipes at scale. Business-class meals now command rate premiums that translate catering spend into measurable customer lifetime value during economic cycles.

Expansion of LCCs and Hybrids Scaling Buy-on-Board and Pre-Order Models

Volaris carried 30 million passengers in 2024 and generated approximately 15% of ancillary revenue from onboard food, while VivaAerobus operates a 100% retail model and increased capacity by 33% year-over-year. United and Delta expanded meal pre-order windows to five days before departure, allowing dynamic galley loading that cuts waste and boosts sell-through. Because every item is a discrete transaction, low-cost carriers gather granular purchase data that informs rapid SKU iteration, pressuring legacy complimentary service to adopt hybrid approaches on short routes.

Digitalization Through Pre-Order Platforms, Data-Driven Menu Planning, and Kitchen Automation

In 2024, gategroup rolled out AI pilots in Los Angeles, Toronto, and Chicago, achieving a reduction in overproduction of up to 20%. ^{[3]gategroup, “Sustainability and Innovation Initiatives,” gategroup.com} KLM Catering Services slashed food waste by 60% using predictive planning. Meanwhile, Airbus introduced a prototype Food Scanner that monitors consumption and delivers real-time data to caterers. Although capital-intensive, high-volume hubs are adopting robotic plating and automated tray assembly, leading to enhanced labor productivity and consistent meal quality..

High Operating Costs and Inflation in Food, Labor, and Utilities

Food-away-from-home inflation in the United States reached 4.1% in 2024, and labor costs increased by 4.5%, resulting in average food-service wages of USD 19.47 per hour.^{[4]U.S. Bureau of Labor Statistics, “Consumer Price Index – Food Away From Home,” bls.gov} Canada faced 5.2% food inflation in October 2024 before easing to 4.3% a month later, with hospitality pay averaging CAD 20.85 (USD 15.40). Refrigeration and blast-chilling operations account for 15%–20% of total energy expenses, and commercial power rates increased by roughly 3% across North America in 2024. These pressures compress margins on economy-class contracts, triggering SKU rationalization and automated shift scheduling that risk service differentiation and staff retention.

Stringent Multi-Jurisdiction Food-Safety/Halal / Kosher Rules

The FDA’s FSMA 204 traceability mandate took effect in January 2026 for high-risk foods, imposing two-year audit-trail requirements. Canada’s Safe Food for Canadians Regulations mirror that framework, and Mexico’s NOM-251-SSA1-2009 governs handling practices. Halal and kosher lines incur an additional 15% in ingredient and certification costs, yet are essential on select routes. Compliance complexity favors large network caterers, who can amortize systems across thousands of daily meals, while smaller regional kitchens face either margin dilution or market exit.

Segment Analysis

By Food Type: Snacks Gain as Short-Haul Frequencies Multiply

Meals accounted for 44.76% of revenue in 2025, but snacks and savouries are forecast to climb at an 8.39% CAGR to 2031 as carriers add sub-500-mile services best suited to pre-packaged items. More than half of United States flights are under two hours, limiting the feasibility of heated meals and favoring snack boxes and grab-and-go sandwiches. United extended its pre-order window to offer 12–15 SKUs per route, while Delta rotates seasonal snack boxes priced at USD 10–12. Shelf-stable items also carry lighter traceability burdens, which speeds up the time-to-market. Although beverages remain a core revenue line, TSA liquid-carrying rule relaxations are allowing larger personal drinks, which is dampening onboard sales growth. Bakery and confectionery products play a niche role in premium cabins, where warm cookies and plated desserts elevate the brand experience.

Regulatory clarity improves snack economics. FSMA 204 exempts many shelf-stable goods processed with validated kill steps, lowering audit overhead. Caterers with flexible lines can deliver mixed cases, including a protein box, a fruit cup, and a premium snack mix, without requiring duplicate inventory. Traditional meal-assembly plants designed for thousands of identical entrées must reinvest or risk obsolescence. As a result, snacks are becoming the testing ground for plant-based proteins, allergen-free ingredients, and compostable wrappers that satisfy airline sustainability mandates with minimal operational disruption.

Note: Segment shares of all individual segments available upon report purchase

By Flight Type: LCC Momentum Challenges FSC Volume Dominance

Full-service carriers accounted for 61.89% of 2025 revenue, but low-cost operators are expected to expand by 9.02% annually through 2031, treating food as a profit center rather than an obligation. Volaris earns roughly 15% of its ancillary revenue from catering alone. VivaAerobus recorded a 33% capacity jump and sells every meal retail. WestJet’s tiered menus monetized flights once considered too short for service, selling snack boxes for USD 5 up to premium meals for USD 18. Charter and private-jet catering remain high-margin niches with spend often exceeding USD 50 per passenger.

LCCs win on data transparency. Each transaction feeds route-level analytics that inform SKU curation and waste reduction. Full-service carriers are experimenting with hybrid models; American introduced buy-on-board on sub-900-mile flights in 2024. Loyalty programs, however, limit how far legacy brands can unbundle without alienating frequent flyers. The strategic balance seeks to protect premium tiers while monetizing economy cabins via optional upgrades.

By Aircraft Seating Class: Business Cabins Drive Premiumization Economics

The economy generated 56.98% of 2025 revenue, thanks to passenger volume. However, business-class demand is expected to rise 9.21% annually to 2031, as airlines focus on improving food quality to justify fares that are three times the economy class rate. Signature chef alliances are now standard on transatlantic and transpacific routes, and a 2024 survey found that 78% of premium flyers consider cuisine a key factor in their booking decisions. First class remains limited to flagship long hauls where airlines spend over USD 100 per passenger on multi-course dining, but its halo effect uplifts the wider brand image.

At the low end, airlines micro-specify calorie counts and portion costs, leaving caterers with razor-thin margins of 3% to 5%. FSMA 204 imposes equal traceability obligations across all cabins, yet its cost impact is disproportionately harsher on low-priced economy meals. This split is prompting caterers to invest in high-margin, premium production lines while automating economy-scale assembly to maintain viability.

By Catering Model: Retail Formats Erode Complimentary Dominance

The classic complimentary service still accounts for 60.41% of 2025 revenue, anchored by long-haul sectors where meals remain non-negotiable. Retail buy-on-board, however, is the fastest-growing model at an 8.66% CAGR. United and Delta generate incremental revenue from advance orders priced at USD 10–15, integrating selections into mobile apps and loyalty profiles. Volaris and VivaAerobus demonstrate that gross margins can exceed 40% when every item is a sale, compared to 15%–20% on complimentary contracts.

Retail models align airline and caterer incentives by shifting the focus from volume uplift to sell-through rates. Integration with New Distribution Capability channels lets carriers bundle food with seats, baggage, and lounge access in a single offer. Complimentary service holds on long hauls because passengers expect at least two meal waves on 10-hour flights, yet menu “upgrade” options blur the line as carriers upsell chef-designed entrées at USD 20–30.

By Flight Duration: Long-Haul Revenue Intensity Offsets Short-Haul Volume

Short-haul segments accounted for 57.45% of revenue in 2025, but long-haul demand is expected to grow at an annual rate of 8.53% through 2031. Boeing forecasts 2.8% yearly growth in regional revenue passenger miles to 2045, outpacing seat counts and reinforcing longer stage lengths. Multi-course meals, mid-flight snacks, and beverage service add 20%–30% to cost yet command price premiums that lift overall yields. Air Canada’s Asia expansion illustrates the upside: catering spend per transpacific passenger runs three to four times that of a domestic shuttle flight.

Regional jets on sub-two-hour legs lack oven capacity and storage volume, forcing reliance on shelf-stable snacks and sandwiches. TSA rule changes on liquids permit passengers to carry larger beverages, resulting in lower in-flight drink purchases. Southwest, Spirit, and Frontier exploit the model by offering snacks only, monetizing food as an optional add-on rather than baked-in cost. Long-haul services, by contrast, require cold-chain integrity, allergen-free menus, and efficient waste management systems, which only large-scale caterers can provide.

Geography Analysis

The United States generated 55.91% of regional revenue in 2025, driven by dense hub-and-spoke networks in Atlanta, Dallas/Fort Worth, Chicago, and Los Angeles. Passenger counts in 2024 exceeded 2019 levels by 8%, and international RPKs jumped 18.4%, but domestic growth slipped to 4.0% by late 2025. DO & CO opened a USD 50 million expansion at JFK in March 2024, targeting premium long-haul services, while gategroup deployed AI forecasting at LAX and ORD, cutting waste up to 20%. Inflation and FSMA 204 compliance weigh on margins, favoring integrated players that spread traceability costs across high volumes.

Canada is the fastest-growing geography at an 8.81% CAGR through 2031. Air Canada reached 50 million passengers in 2024, driven by its Asia routes, which require multi-cuisine menus and rigorous cold-chain logistics. Toronto Pearson and Vancouver handle most of that surge, prompting gategroup AI pilots and SATS joint-venture talks in 2024. Food-service inflation peaked at 5.2% in 2024, and hospitality wages averaged, prompting operators to consider automation. Canada’s SFCR mirrors US traceability rules, enabling compliance synergies for cross-border routes yet raising barriers for small kitchens that lack digital lot tracking.

Mexico shows smaller absolute revenue but outsized growth driven by ultra-low-cost carriers. Volaris flew 30 million passengers in 2024 and earns a significant slice of profit from food sales. VivaAerobus expanded capacity by 33% year-over-year on a fully retail model. Tourism recorded 42 million international visitors in 2024, with demand concentrated in Cancún and Los Cabos. Catering infrastructure is fragmented outside Mexico City; however, lighter compliance oversight under NOM-251-SSA1-2009 allows faster menu turnover. Flag carrier Aeromexico revamped its premium menus in 2024 to defend its share on long-haul flights, leveraging local chef partnerships.