Report: Global QSR industry to grow 4.2 percent by 2022
The global QSR market — valued at more than $539 billion in 2016 — will soar to nearly $691 billion in five years, an anticipated CAGR of more than 4.2 percent between 2017 and 2022, according to a new Zion Market Research report.
The study, which analyzed data on the fast food market by dominant menu type, found that drive-thru restaurants will drive even more market growth moving forward. That and the fact that what researchers said is the "sharp rise in adoption of western fast food among the emerging economies" will reinforce QSR growth worldwide in the future.
"Rising hectic lifestyle with dual income is anticipated to elicit the demand for fast food in the forecast period," a news release about the study relayed. "Moreover, growing fondness towards inexpensive food with no waiting time may further prompt the fast food industry growth over the coming years."
However, the study found that the increasing rate of obesity is shifting market preferences toward more healthful food, which the researchers said may slow QSR growth in more developed countries.
The report segmented the industry into primary menu food types, including everything from chicken and burgers to pasta and pizza. The burger/sandwich sector, which emerged as the top segment in 2015, is expected to maintain the trend across this forecast period. Easy availability along with the presence of varied flavors is expected to spur the burger/sandwich market in coming years.
Pizza/pasta is gaining popularity as well, due to an increased variety of offerings. This category was found to be gaining influence in cultures worldwide, in the report.
North America led the fast food market and is expected to continue on that path with a growing market drift toward "pocket food" that is easy to eat on the run, like burritos, burgers and other such offerings. The report also concurred with many other findings that show consumers simply do not want to cook much anymore.
Europe is the second-largest QSR market, where lifestyles similar to those in North America make this restaurant model well-suited today. Increasingly, European fast food chains put local twists on American classics in their QSR models, but again, that swing toward more healthful options is impinging some growth.
The Asia Pacific region is expected to grow the most for QSR operators by 2022, where the report said a "surging demand for western and local fast food stimulates the growth of the market in this region."
Likewise, Asian food types with their more intense flavorings are booming and will continue to do so, particularly since a growing number of Asian regions are experiencing increases dual and discretional income. In this respect, the report said India and China will drive the most growth. The increased popularity of Western fast food brands, like McDonald's, KFC, and Dominos in India especially is expected to continue strongly.
Finally, Latin America was called out as having "huge potential for chained development in the forecast period." Latin American offerings have the foothold in that area's markets, too, and that is expected to continue. The study's authors said that the growing presence of street food producers in the QSR market globally has generated and lot of competition and product R&D for global markets at some of the bigger name QSR brands, as well.