Market Trends of Asia-Pacific Inflight Catering Industry
The Meals Segment is Projected to Occupy the Largest Market Share During the Forecast Period
During air travel, inflight food plays a significant role in shaping passengers' perceptions of airline service. Airlines in Asia-Pacific have recognized this and made concerted efforts to cater to their passengers' diverse dietary needs and preferences. As a result, the availability and quality of meals offered by airlines in the region have grown significantly in recent years.
The region's demand for the meals segment is driven by the annual rising air passenger traffic growth as more air travel leads to more food sales on board. Additionally, the inflight dinners for most regional airlines include meat, a salad or vegetable, a small roll, and a dessert. A cooked breakfast or lighter continental-style meal may be an option during morning flights. For instance, in March 2024, Malaysia Airlines launched its new Best of Asia menu. The airline launched this menu to provide passengers with an enhanced in-flight dining experience.
Moreover, the growth of the vegan and vegetarian population is increasing rapidly in the region due to factors such as altruism, environmental concerns, etc. The trend of growing vegetarianism has increased the demand for vegan or vegetarian meals. Moreover, the growth of health-conscious people has resulted in the growing popularity of gluten-free and low-salt meals, as they are becoming the major food offerings under the special meals for airlines. For instance, in January 2024, Emirates announced that a significant increase in vegan meal consumption was noted on its flight routes to China, Japan, and the Philippines. The airline also mentioned that there was a demand for plant-based meals in Southeast Asia, as the airline saw a growth of 5% in 2023 for plant-based meals compared to 2022. Such factors are expected to drive the demand for this segment in the region during the forecast period.
The Inflight Catering Market in India May Experience the Highest Growth
The Indian inflight catering market is expected to grow at the highest rate during the forecast period, owing to the growing aviation market in the country. The boom in air travel in India is adding a new dimension to the inflight catering services business. Around 20 million people used domestic airline services, and around 10 million passengers used international airline services in the country.
With an expected increase in traffic of 20% over the next two years, the inflight meal business is poised to register significant growth. Besides, the entry of domestic airlines into intercontinental routes is expected to create competition among caterers, forcing them to be innovative. Vistara is offering a "Chef On-board" program in partnership with the airline's caterers, Taj SATS Air Catering Limited. According to the company, Chef On-board is an innovative and first-of-its-kind initiative in India, where chefs will take direct and instant customer feedback on the new menu introduced across the network. Such efforts to enhance the inflight catering experience may help the growth of the players in the country.
Nevertheless, the largest inflight catering market in the region currently belongs to China due to the country's high aviation activity. To cater to the growing aviation demand, airlines in China are procuring new aircraft and introducing new routes. To maintain their competitiveness, Chinese airlines are re-designing their inflight menus to increase their profitability while maintaining food quality. In the Chinese market, due to the high competition in the airline market and low-profit growth of small- and medium-sized air carriers from additional supporting services, airlines have been dropping the idea of providing complimentary inflight meals to economy-class passengers, which is expected to reduce the growth of the market during the forecast period.
