North America Foodservice Market Size

The North America Foodservice Market is experiencing significant growth, driven by various segments such as quick service restaurants, full service restaurants, and cloud kitchens. The market's expansion is largely attributed to the increasing popularity of food delivery platforms, which offer convenience to both restaurants and customers. The United States holds the largest share of the market, with substantial growth noted in the full service restaurant and cloud kitchen segments. Additionally, the Canadian market is expected to grow rapidly due to a high influx of immigrants, increasing the demand for diverse cuisines. The post-pandemic recovery is also anticipated to boost the foodservice industry in Mexico, contributing to the overall market size increase in the region.

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Market Size of north america foodservice Industry

North America Foodservice Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 1.05 Trillion
svg icon Market Size (2029) USD 1.81 Trillion
svg icon Largest Share by Foodservice Type Quick Service Restaurants
svg icon CAGR (2024 - 2029) 11.65 %
svg icon Largest Share by Country United States

Major Players

North America Foodservice Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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North America Foodservice Market Analysis

The North America Foodservice Market size is estimated at 1.05 trillion USD in 2024, and is expected to reach 1.81 trillion USD by 2029, growing at a CAGR of 11.65% during the forecast period (2024-2029).

1.05 Trillion

Market Size in 2024 (USD)

1.81 Trillion

Market Size in 2029 (USD)

6.71 %

CAGR (2017-2023)

11.65 %

CAGR (2024-2029)

Largest Country

79.14 %

value share, United States, 2023

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The rapid growth of major brands such as KFC, Domino's, McDonald's, and Pizza Hut and their standard offerings in the United States have led to the market's growth.

Fastest-growing Country

17.96 %

Projected CAGR, Canada, 2024-2029

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The consistent rise in immigrants settling across the country over the past few decades has developed a space for multinational cuisines for Canadian residents.

Largest Segment by Foodservice Type

49.62 %

value share, Quick Service Restaurants, 2023

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Meat-based cuisines and burgers led to the growth of quick service restaurants. These segments together held around 53% of the total QSR market value in 2022.

Fastest-growing segment by Foodservice Type

20.13 %

Projected CAGR, Cloud Kitchen, 2024-2029

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Technological innovations such as mobile ordering and delivery that provide convenience and improve consumer satisfaction have boosted the demand for cloud kitchens.

Leading Market Player

2.59 %

market share, Yum! Brands, Inc., Inc.

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The company has a significant presence in the region due to its brand recognition in the market, as it provides chicken, pizza, and Mexican-style meals through its popular brands.

Consumer inclination towards Asian cuisine and technological advancement in the sector, boost the growth of the market

  • The quick service restaurants segment was the largest segment in North America in 2022. The market recorded a CAGR of 5.33% from 2017 to 2022, primarily because the QSR industry adapted quickly to the region's poor economy due to the COVID-19 pandemic and inflation. Factors contributing to the popularity of QSRs are low cost and quality, especially in chained outlets. For instance, between September 2021 and January 2022, menu prices in QSR restaurants increased by 1.3%. The average order value in QSRs remained below USD 26 in 2022, whereas the average order value for FSRs was nearly double that value.
  • The full service restaurant segment has witnessed sizable growth in the region in recent years. The growth is due to the segment providing various cuisines to various cultures and expanding the menu accordingly. Asian food is said to be one of the fastest-growing cuisines in the United States in both the FSR and QSR segments. The country had more than 38,000 Chinese restaurants, 25,000 Japanese restaurants, and 5,000 Thai restaurants in 2021.
  • The cloud kitchens segment is anticipated to see the fastest growth during the forecast period, as it is projected to record a CAGR of 19.35% by value. The cloud kitchen industry has grown owing to technological advancements. The major industry players are also influenced by numerous advancements in database management systems to track the trends in their category. A challenge for the industry in developing economies in the region is that cloud kitchen operators are dependent on the customer base of the delivery platforms they sell on. This becomes a barrier in countries like Mexico, Puerto Rico, and the Dominican Republic, where internet penetration is not sufficiently high.
North America Foodservice Market

Expansion of food delivery platforms and demand for Asian restaurants favor the market

  • The primary reason for the expansion of the market in North American countries is the services provided by food delivery platforms and the convenience they provide to both restaurants and customers. These delivery platforms have progressed beyond the Silicon Valley competition in recent years and have grown throughout the United States. These platforms have reached more than 20 million daily active users in North America and have become major industry stakeholders. Some major platforms in North America include DoorDash, GrubHub, Uber Eats, Foodpanda, Instacart, Deliveroo, Postmates, Seamless, and Gopuff.
  • The United States held the largest share of the North American foodservice market. The US market recorded a CAGR of 4.13%, by value, during 2017-2022. The growth was attributed to the expansion of the full service restaurants and cloud kitchens, both of which recorded CAGRs of 4.35% and 12.92%, by value, respectively, during 2017-2022.
  • The full service restaurants segment in the United States and Canada has seen tremendous growth over the past few years, mainly due to the vast immigrant population in the country. This has increased the demand for cuisines like Asian (especially Indian, Chinese, and Japanese), European, and Middle Eastern over recent years. For instance, Canada accepted a record 431,645 immigrants as permanent residents in 2022. Therefore the Canadian foodservice market is projected to record the fastest CAGR of 17.99%, by value, during the forecast period.
  • The post-pandemic recovery of the industry may help in the expansion of the foodservice industry in Mexico. By the end of the forecast period, the country is expected to have over a million QSR outlets and close to 792 cloud kitchens.

North America Foodservice Industry Segmentation

Cafes & Bars, Cloud Kitchen, Full Service Restaurants, Quick Service Restaurants are covered as segments by Foodservice Type. Chained Outlets, Independent Outlets are covered as segments by Outlet. Leisure, Lodging, Retail, Standalone, Travel are covered as segments by Location. Canada, Mexico, United States are covered as segments by Country.

  • The quick service restaurants segment was the largest segment in North America in 2022. The market recorded a CAGR of 5.33% from 2017 to 2022, primarily because the QSR industry adapted quickly to the region's poor economy due to the COVID-19 pandemic and inflation. Factors contributing to the popularity of QSRs are low cost and quality, especially in chained outlets. For instance, between September 2021 and January 2022, menu prices in QSR restaurants increased by 1.3%. The average order value in QSRs remained below USD 26 in 2022, whereas the average order value for FSRs was nearly double that value.
  • The full service restaurant segment has witnessed sizable growth in the region in recent years. The growth is due to the segment providing various cuisines to various cultures and expanding the menu accordingly. Asian food is said to be one of the fastest-growing cuisines in the United States in both the FSR and QSR segments. The country had more than 38,000 Chinese restaurants, 25,000 Japanese restaurants, and 5,000 Thai restaurants in 2021.
  • The cloud kitchens segment is anticipated to see the fastest growth during the forecast period, as it is projected to record a CAGR of 19.35% by value. The cloud kitchen industry has grown owing to technological advancements. The major industry players are also influenced by numerous advancements in database management systems to track the trends in their category. A challenge for the industry in developing economies in the region is that cloud kitchen operators are dependent on the customer base of the delivery platforms they sell on. This becomes a barrier in countries like Mexico, Puerto Rico, and the Dominican Republic, where internet penetration is not sufficiently high.
Foodservice Type
Cafes & Bars
By Cuisine
Bars & Pubs
Cafes
Juice/Smoothie/Desserts Bars
Specialist Coffee & Tea Shops
Cloud Kitchen
Full Service Restaurants
By Cuisine
Asian
European
Latin American
Middle Eastern
North American
Other FSR Cuisines
Quick Service Restaurants
By Cuisine
Bakeries
Burger
Ice Cream
Meat-based Cuisines
Pizza
Other QSR Cuisines
Outlet
Chained Outlets
Independent Outlets
Location
Leisure
Lodging
Retail
Standalone
Travel
Country
Canada
Mexico
United States
Rest of North America
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North America Foodservice Market Size Summary

The North America foodservice market is experiencing significant growth, driven by various segments such as quick service restaurants (QSRs), full service restaurants (FSRs), and cloud kitchens. The QSR segment has emerged as the largest due to its adaptability to economic challenges and consumer preferences for low-cost, quality meals, particularly in chained outlets. The FSR segment has also seen substantial growth, fueled by the diverse culinary offerings that cater to the multicultural population in the region. Asian cuisine, in particular, has gained popularity, contributing to the expansion of both QSR and FSR segments. The cloud kitchen segment is poised for rapid growth, leveraging technological advancements and the increasing demand for online meal delivery. However, challenges such as dependency on delivery platforms in regions with low internet penetration remain.

The United States holds the largest share of the North American foodservice market, with notable growth in FSRs and cloud kitchens. The Canadian market is projected to grow rapidly, driven by a multicultural population and a rising demand for international cuisines. The post-pandemic recovery is expected to bolster the foodservice industry in Mexico, with an increase in QSR outlets and cloud kitchens. The market is characterized by a fragmented landscape, with major players like Darden Restaurants, Starbucks, and Yum! Brands holding a small share. The evolving consumer behavior, with a shift towards fast food and online ordering, is reshaping the market dynamics, prompting operators to innovate and expand their offerings to meet the growing demand.

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North America Foodservice Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Foodservice Type

      1. 1.1.1 Cafes & Bars

        1. 1.1.1.1 By Cuisine

          1. 1.1.1.1.1 Bars & Pubs

          2. 1.1.1.1.2 Cafes

          3. 1.1.1.1.3 Juice/Smoothie/Desserts Bars

          4. 1.1.1.1.4 Specialist Coffee & Tea Shops

      2. 1.1.2 Cloud Kitchen

      3. 1.1.3 Full Service Restaurants

        1. 1.1.3.1 By Cuisine

          1. 1.1.3.1.1 Asian

          2. 1.1.3.1.2 European

          3. 1.1.3.1.3 Latin American

          4. 1.1.3.1.4 Middle Eastern

          5. 1.1.3.1.5 North American

          6. 1.1.3.1.6 Other FSR Cuisines

      4. 1.1.4 Quick Service Restaurants

        1. 1.1.4.1 By Cuisine

          1. 1.1.4.1.1 Bakeries

          2. 1.1.4.1.2 Burger

          3. 1.1.4.1.3 Ice Cream

          4. 1.1.4.1.4 Meat-based Cuisines

          5. 1.1.4.1.5 Pizza

          6. 1.1.4.1.6 Other QSR Cuisines

    2. 1.2 Outlet

      1. 1.2.1 Chained Outlets

      2. 1.2.2 Independent Outlets

    3. 1.3 Location

      1. 1.3.1 Leisure

      2. 1.3.2 Lodging

      3. 1.3.3 Retail

      4. 1.3.4 Standalone

      5. 1.3.5 Travel

    4. 1.4 Country

      1. 1.4.1 Canada

      2. 1.4.2 Mexico

      3. 1.4.3 United States

      4. 1.4.4 Rest of North America

North America Foodservice Market Size FAQs

The North America Foodservice Market size is expected to reach USD 1045.42 billion in 2024 and grow at a CAGR of 11.65% to reach USD 1814.07 billion by 2029.

In 2024, the North America Foodservice Market size is expected to reach USD 1045.42 billion.

North America Food Service Market Report Snapshots

North America Foodservice Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029