Snacking and indulgence will drive growth in the foodservice industry, new report findsSnacking and indulgence will drive growth in the foodservice industry, new report finds

Increased snacking and indulgence consumption will drive growth in the foodservice industry in the next few years. That, at least, is the prediction from a recent report by Technavio, a global technology research and advisory company.

The foodservice market, which is estimated to grow at a compound annual growth rate of 4.4% or by $204.8 billion from 2024 to 2028, will trend toward highly diverse populations and global cuisines. The report also found that onsite dining will find itself competing against the fast-food sector.

The report noted the rising popularity of global cuisine, driven by the increasing number of immigrants in the U.S. The authors found a high demand for Pan-Asian cuisine including Thai, Japanese and Vietnamese. Sushi concepts, in particular, have been very popular as of late. The report argues that the demographic will continue to expand which will continue to drive growth in the foodservice industry.

Delivery and online ordering are also growing, while payment procedures have become more digital. In addition, dining behavior is shifting toward self-service and fast food.

On the other hand, however, organic produce and healthy options are also growing in popularity, and special diets like veganism are gaining mainstream traction.

Related:Recipe report: Expect the unexpected with these curiously unusual cocktails

The report found that the unorganized fast-food sector, including vendors who sell from carts and trucks, is growing significantly, which could be a potential challenge for the foodservice industry as these concepts offer fast affordable food, which is a demand that is on the rise. Another potential challenge noted was adaptation to digital trends. The report urged foodservice providers to digitalize to meet these needs, offer real-time food service, limited-service restaurants, commercial spaces as well as packaged food service. Essentially, foodservice providers need to meet these consumer demands while maintaining a focus on affordability and convenience.