In the coming year, the fast food industry is poised for substantial growth, driven by evolving consumer preferences and technological advancements. The market size is forecasted to increase from $645.2 billion in 2024 to $663.92 billion in 2025, with a compound annual growth rate (CAGR) of 2.9%. This expansion can be attributed to changing lifestyles, rapid urbanization, globalization, and an increased demand for convenient dining options. North America currently leads the market, while the Asia-Pacific region is expected to experience the fastest growth in the near future.
Market Growth Accelerates Towards 2029
By 2029, the global fast food market is projected to reach $833.43 billion, growing at a CAGR of 5.8%. Key factors contributing to this robust growth include rising consumer spending on food, industrialization, an expanding young population, increased disposable income, and economic development. Notable trends shaping the industry include the rise of plant-based alternatives, ghost kitchens, contactless ordering and payment systems, customizable menus, and healthier food options. For instance, the Good Food Institute reported that global retail sales of plant-based meat and seafood reached $6.1 billion in 2022, reflecting an 8% revenue growth and a 5% volume increase. Additionally, sales of plant-based dairy products hit $21.6 billion, marking a 7% rise compared to the previous year.
The food service sector's upward trajectory continues to fuel the fast food market's expansion. In 2022, U.S. restaurant sales soared to $898 billion, a significant $166.5 billion increase from 2021. Moreover, advancements in online food delivery services are transforming the industry. KFC Australia introduced Wing, the country's first on-demand drone delivery service, collaborating with Collins Food Limited to create a cloud kitchen dedicated to swift drone deliveries. Major players are also embracing strategic partnerships to introduce innovative technologies, such as automated voice ordering at drive-thru locations, exemplified by CKE Restaurants Holdings' collaboration with Presto Automation, OpenCity, and Valyant AI.
In May 2024, Burger King acquired Carrols Restaurant Group to integrate and improve its locations under the Reclaim the Flame plan, aiming to enhance brand growth and profitability through reimagining and refranchising restaurants.
From a broader perspective, this market report covers various segments, including service types, product categories, and end-users. It provides insights into regions like Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa. Countries profiled include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, the USA, Canada, Italy, and Spain. The report spans five years of historical data and ten years of forecasts, offering detailed market segmentation and competitor analysis.
For readers, this report underscores the dynamic nature of the fast food industry. As consumer preferences shift towards healthier and more convenient options, businesses must adapt by embracing innovation and sustainability. The integration of advanced technologies and strategic partnerships will be crucial for companies to remain competitive and meet evolving customer demands. The fast food market's continued growth signals a promising future for both established players and emerging brands in this vibrant sector.