Foodservice trends in 2017

Here are some key findings from Euromonitor International’s 2017 edition of Consumer Foodservice, which is now available.

China and emerging regions driving growth

In 2016 total foodservice value sales grew by 4.6%, with similar expected growth for 2017. With the exception of the US market, value growth is buoyed by emerging markets. Over the next five years, consumers are expected to spend nearly twice as much on foodservice in China as the US. The Chinese market will remain central to many corporate global growth strategies.

Chicken the preferred fast food

The strongest performing format in 2016 was chicken fast food, which grew 8% by value to reach US$65.6 billion in total global sales. As a menu offering, chicken enjoys universal appeal and, unlike more regional-specific items such pizza or burgers, chicken can be found on menus in all world markets and is highly adaptable to local consumer preferences.

Coffee, anyone?

Specialist coffee shops were the second fastest growing format in 2016 by value. The specialist coffee shop format continued to perform well in all world regions — evidence of the format’s increasingly universal appeal — but specialist coffee shops have become particularly attractive to consumers in emerging markets. In Latin America and Asia Pacific, where the format grew fastest, demand for specialist coffee shops is driven by a consumer base with greater access to disposable income who can afford the relative luxury of specialty beverages.

Tech-driven chains pressure top players for share of global foodservice

Technology has become an integral part of global growth strategies, and the fastest growing global chains have also become leaders in tech-driven foodservice. With an effective mobile strategy, a popular rewards program and modern payment options, Starbucks, for example, grew 11.6% by value in 2016 to close the gap with leading operators McDonald’s Corp, Yum! Brands Inc and Restaurant Brands International Inc. No company in the top 10 global rankings grew faster than Domino’s Pizza Inc, which grew 13.9% by value in 2016 and continued to grow its share of the global market. Domino’s Pizza continued to invest in technology that enhances the convenience in ordering, preparation and delivery — all aspects of the modern foodservice experience that consumers in all world markets increasingly prefer.

Convenience stores and fast food

Convenience stores’ fast food grew 6.1% by value in 2016. Posting US$18.8 billion in 2016 foodservice sales, Japan-based Seven & I Holdings Co Ltd (7-Eleven) overtook Doctor’s Associates Inc (Subway) to become the world’s fifth largest foodservice company by value in 2016. The foodservice offerings at convenience stores continue to improve as operators increasingly look to foodservice to attract customers. With a blend of on-trade and off-trade offerings at value-oriented prices that appeal on variety and convenience, convenience stores are becoming the foodservice format that modern consumers need. Modern convenience stores increasingly offer more healthful menu offerings and in-store dining options.

New concepts in consumer foodservice

During this edition of the research, analysts in all 54 countries were asked to submit the most interesting and most relevant new restaurant concepts in their market. These new concepts will form the basis of two new global briefings that seek to uncover the most important foodservice trends emerging across global markets. The typical global consumer leads an increasingly modern, urban, digitally connected lifestyle, and restaurants are learning how to provide a modern experience that consumers need, as well as one that suits consumers’ evolving dining preferences. Ranging from vegan comfort food street stalls in Finland to food parks in the Philippines, this year’s new concepts highlight how novelty and innovation in all forms are critical to the greater foodservice experience that consumers seek.