Be it international or domestic, the increasing number of individuals preferring air travel remains a key factor influencing the growth of the in-flight catering market, given the . Moreover, different types of in-flight catering services offered in airlines are attracting new businesses across the globe which has made it compelling for in-flight catering service providers to offer high quality and timely services. That said, in-flight catering service providers are investing in technologies to ensure smooth in-flight catering operations and produce meal packages for a large bulk of passengers.
Demand for in-flight catering continues to remain concentrated in the European countries on back of increasing number of individuals travelling to Europe by air either for business or tourism. This factor has a dual complementing advantage as it has driven growth of aviation industry in Europe that in turn is influencing the use of in-flight catering, promoting the In-flight catering market growth in Europe. Furthermore, the growing international tourism has also impacted growth of aviation industry in emerging economies of Asia Pacific excluding Japan (APEJ), making it a lucrative market for in-flight catering services.
Many such insights have been covered in a new research report by Fact.MR that projects the in-flight catering market to expand at a CAGR 5.3% of in terms of value during the period of forecast, 2016. In combination with increasing number of passengers preferring air travel, the rising demand for quality and hygienic main courses, breakfast and beverages have propelled the growth of the in-flight catering market during the period of forecast.
In-Flight Catering Market: Main Course to Become Heavy; Beverages to Fizz Up
In-flight catering market growth is largely pushed by the increasing demand for main courses by passengers on-board. One of the main reason for high main course demand is the growing traffic in long-haul flights that have remained instrumental in fuelling demand for in-flight catering services on a large scale. In long haul flights, airlines are providing three course meals with beverages and salads offered as complementary dishes. This factor has significantly raised the demand for main courses, given their packaged benefits.
Albeit at a low revenue base as compared to main courses, beverages are expected to witness substantial demand among customers, particularly millennials and kids. This aspect coupled with increasing number of millennials travelling via air route has pushed the consumption of beverages in airlines, in turn spearheading the in-flight catering market during the period of forecast.
In-Flight Catering Market: Food Innovations to Present Lucrative Opportunities Across Regional Markets
Airlines use in-flight catering services to improve the in-flight experience of their passengers. Leading airlines across the globe are implementing advanced technologies in order to better their in-flight catering services, while adding innovation in food products as per cuisine preferences of consumers. In addition, they are following a unique trend of offering regional as well as continental meal options to their passengers, which helps satisfy specific meal requests of passengers, thus increasing passenger satisfaction levels. Furthermore, majority of airline caterers and in-flight catering service providers in the market are improving their supply chain management (SCM) in order to achieve high quality products along with cost-effectiveness in their in-flight catering operations. That said, increasing investments by famous food brands are expected to take this trend to the next level by offering famous food products to the air passengers popular among the airline business across the globe.
In-Flight Catering Market: Growing Number of International and Domestic Air Passengers Boosting Momentum
According to the International Air Transport Association (IATA), the international and domestic air traffic across the global aviation industry has witnessed a significant surge since the past few years that has led to increased operational profits and overall net profits of airlines. Moreover, the increasing number of individuals opting for air travel is expected to boost the demand for in-flight catering services, in turn fuelling the growth of the in-flight catering market during the period of forecast. According to analysis of International Air Transport Association (IATA), more than seven billion passengers are expected to opt for air travel by end of 2036, with a 3.6 percent year-on-year growth. That said, in-flight catering service providers are focusing on providing better service quality to customers in in order to attract more passengers from a business development standpoint. This factor is expected to fuel demand for various in-flight catering services, consequently driving the growth of the in-flight catering market during the period of assessment.