United Kingdom Foodservice Market Size

United Kingdom Foodservice Market Analysis

The United Kingdom Foodservice Market size is estimated at 99.44 billion USD in 2024, and is expected to reach 134.50 billion USD by 2029, growing at a CAGR of 6.23% during the forecast period (2024-2029).

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99.44 Billion

Market Size in 2024 (USD)

134.50 Billion

Market Size in 2029 (USD)

6.79 %

CAGR (2017-2023)

6.23 %

CAGR (2024-2029)

Largest Segment by Foodservice Type

34.35 %

value share, Quick Service Restaurants, 2023

QSRs have been quick to adapt to changing consumer preferences and demands. QSRs have introduced healthier menu options, catering to individuals looking for nutritious choices.

Largest Segment by Outlet Type

57.34 %

value share, Independent Outlets, 2023

Independent outlets hold a major share due to the appeal of unique and authentic dining experiences. They are focused on creating a community-oriented atmosphere in the United Kingdom.

Fastest-growing segment by Foodservice Type

32.39 %

Projected CAGR, Cloud Kitchen, 2024-2029

Full service restaurants prioritize modifying menus to account for changes in customer tastes and habits while enhancing their delivery capabilities.

Fastest-growing segment by Outlet Type

6.35 %

Projected CAGR, Independent Outlets, 2024-2029

Independent outlets continue to grow as they emphasize creating unique, individualistic, vibrant atmospheres that are more difficult for the larger chains.

Leading Market Player

1.17 %

market share, The Restaurant Group PLC, 2022

The company operates more than 400 restaurants in the United Kingdom, with major brands like Brunning & Price, Benny's, Chiquito, Wagamama, Coast to Coast, Firejacks, and TRG Concessions.

Rising coffee and tea consumption in the country especially in speciality tea/coffee is driving the market growth

United Kingdom 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.

• The quick service restaurants segment is expected to register a CAGR of 5.20% by value during the forecast period, owing to the standardization across food outlet chains in terms of ambiance, hygiene, service time, and ease of access. This is expected to raise consumer interest, thereby increasing overall footfall.
• However, cloud kitchens are anticipated to register the fastest growth at a CAGR of 31.84% during the forecast period, with booming online delivery preference by consumers, especially after the COVID-19 pandemic. The country experienced a growth in online delivery by 110% in 2021. Moreover, the affordability that cloud kitchens offer to manufacturers with less investment is boosting the growth of cloud kitchens in the United Kingdom.
• The market for full service restaurants registered a CAGR of 5.56% by value during the study period. European cuisine held the largest share of the market in 2022, with a 47.06% value stake. The growth of the segment can be attributed to the introduction of vegan, low-sugar, and gluten-free options to traditional European dishes by restaurants. FSR outlets have tried to make these dishes healthier and more appealing to the consumer due to a growing demand for nutritional diets in the United Kingdom.
• The growth of cafes & bars is supported by the rising consumption of tea and coffee in the country, especially in the specialty tea/coffee category. Around 70% of consumers in the United Kingdom drink at least two cups of coffee or more per day. Moreover, 23% of coffee drinkers regularly downed more than three cups of coffee per day, and 21% drank more than four cups per day in 2021. Hence, the cafes & bars segment in the United Kingdom is projected to register a CAGR of 4.87% by value during the forecast period.