Global inflight catering services is projected to reach $21.5 billion by 2024
With the traveling public returning to flying, the global market for inflight catering services is projected to reach $21.5 billion by 2024, registering a compounded annual growth rate (CAGR) of 4.6% according to ResearchandMarkets.com. But numbers on a balance sheet only tell so much.
Why the sudden growth in inflight catering? For a start, air travel is coming back after the global COVID lockdowns. Air travel is not just for business and education, but also for pleasure like reuniting with family, tourism of all kinds, and vacationing. With air passengers searching for choice, quality and consistency to find the best passenger experience, the demand for better in-flight experiences and higher quality food is growing.
Last year, Alaska Airlines – among other airlines – started to return in-flight meal service. As Todd Traynor-Corey, managing director of guest products at Alaska Airlines, said,
“We’re excited to welcome our guests back on board and want them to have a great experience with us. We’ve put a lot of thought and planning into safely adding additional food and beverage service on our flights, while getting back to fresh and local menu items that our guests love.”
Other US airlines are bringing back the in-flight hot meals for those long intercontinental and international flights. American Airlines is returning its in-flight meal service with upgrades depending on flight length. Delta Air Lines is also upgrading meals with fresh ingredients local to flight origin. United Airlines brought back the option to pre-purchase in-flight meals in September 2021.
Growth beyond the United States
European airlines represent the largest regional market for inflight catering services, accounting for an estimated 27.1% share of the global total. $5.7 billion USD is projected by 2024 just from Europe alone. Catering companies are also reporting post-pandemic growth. For instance, gategroup worked with Tasting HEIMAT to help Lufthansa bring traditional German cuisine to its inflight offerings, but as profiled here in 2021 Lufthansa changed its short-haul meal options. Do&Co last month reported earnings growth coming out of the pandemic.
In a new era of potential growth out of the pandemic, airlines have started getting creative with marketing their in-flight meals to retain enthusiasm among customers and potential customers. Even in 2020, Finnair offered the chance to take its airline food home to help retain enthusiasm for flying with potential post-pandemic passengers. Furthermore, Austrian Airlines and SWISS will now sell leftover airline food to passengers at a reduced price.
Asia-Pacific and China are important markets with a rising number of high net worth individuals (HNWIs) and a growing middle-class with increased discretionary spending. The standard of living is increasing, therefore the quality of the inflight experience must logically increase also. Back in 2019, Japan Airlines recognized the need for better in-flight food and hired a Michelin star chef to improve its offerings.
Ultimately, in-flight catering is an important part of the in-flight experience, and will see continued investment from airlines as they strive to differentiate themselves from the competition in the future.