The presence of a copious number of prominent players is what makes the global fast food market intensely competitive and fairly fragmented, finds researchers at Transparency Market Research (TMR). Top players operating in the market include Doctor’s Associates Inc., Yum! Brands Inc., Domino’s Pizza Inc., Wendy’s International Inc., McDonald’s Corp., Jack in the Box Inc., and Burger King Worldwide Inc. TMR observes that the top players are making sizeable investments aimed at introducing advancement in their product portfolio. They are tinkering with innovative flavors and taste in their products and adding more nutrients to attract consumers. A growing number of players are also looking to tap untapped avenues in emerging markets to gain a firm foothold in the regions.
The global fast foods market was valued at US$477.1 billion in 2013 and is projected to rise at a 4.40% CAGR during the forecast period of 2013–2019. Rising at this pace, the market is estimated to be worth US$617.6 billion by 2019 end.
The various types of fast food products are categorized into burger and sandwich, pizza and pasta, chicken, Asian/Latin American fast food, Mexican, sea-foods, and snacks. Of these, the demand for pizza/pasta and burger/sandwich is potentially more attractive than all others. The extensive consumption of these fast foods in developed regions will sustain the rapid CAGR of the segments during the assessment period.
Regionally, Europe and North America have been potential markets for fast food, with the latter taking the lead in 2013. North America is expected to retain its sway through 2019. However, the notably rising appetite for fast food in emerging economies such as China will lead Asia Pacific to gain massive shares in the coming years.
Fast-paced Lifestyle and Transforming Food Habits of Worldwide Consumers drive Demand
The global fast food market has evolved rapidly over the past decade gaining strength from the constantly changing dining habits of people world over residing on the back of hectic lifestyle they are increasingly adopting. The easy availability of fast food and the inclination toward less cooking have inflamed the consumption of fast food among consumers across emerging and developed emerging economies.
Advancement in food delivery technologies and players focused on bringing innovations by experimenting with exotic ingredients augur well for the fast food market. Aggressive promotional activities by top brands have also paid off well in recent years.
Innovative Flavors and Texture might Appeal to Consumer Palates but Health Concerns continue to Impede Demand
The introduction of new flavors, texture, and taste in fast food is substantially catalyzing the growth of the market over the assessment period. However, the market also suffers from some noticeable setbacks. The adverse health effects of ingredients used in fast foods, especially on children, and the purported health concerns their consumption have given rise to in recent years are factors that continue to have adverse impact on the attractiveness of the market.
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Nevertheless, several fast foods companies in recent years are taking measures to make their products more appealing and acceptable among worldwide consumers by making their offerings healthier. For instance, prominent fast food brands are avoiding artificial preservatives and colors, apart from adding more nutrients to their products. This is gathering steam with the palates of young adults and kids and stoked the popularity of fast foods.