Market Trends of Asia-Pacific And Middle-East Inflight Catering Industry
Full-service Carriers Segment is Anticipated to Show Significant Growth During the Forecasted Period
Currently, full-service carriers dominate the inflight catering market. Due to increasing competition and lower operating costs due to reduced oil prices, full-service airlines are upgrading their inflight catering, aircraft interiors, and services.
Many FSCs in the Asia-Pacific and Middle East are well known for providing the best passenger amenities. Some of them are Qatar Airways, ANA All Nippon Airways, Singapore Airlines, Cathay Pacific Airways, Emirates, Qantas Airways, EVA Air, Hainan Airlines, and Thai Airways. Few airlines provide customized menus and onboard chefs to better serve first-class and business-class passengers. An increasing number of full-service carrier routes and new airline partnerships with local restaurants in Asia-Pacific and the Middle East are the major factors propelling the segment's growth during the forecast period.
Asia-Pacific Dominates the Market During the Forecast Period
The Asia-Pacific region dominates the market and will showcase remarkable growth in the coming years. The dominance is due to significant growth in LCCs and rising passenger traffic in countries like India, China, Japan, Thailand, and Indonesia. To fulfill the increasing passenger traffic, the airlines are expanding their aircraft fleet and introducing new aircraft routes, generating demand for the inflight catering market.
For instance, in September 2022, SATS Ltd. agreed to buy Worldwide Flight Services (WFS) in cash for EUR 1.2 billion (USD 1.1 billion). It was done in a deal that will transform Singapore's catering and gateway services company into the world's biggest handler of airborne freight. Similarly, in December 2022, China Eastern Airlines and CEA Group, its controlling shareholder, will pump USD 217.4 million into their airline catering arm. It was to enhance the entity's financial security and help it manage the impact of COVID-19. In the first six months of 2022, China Eastern Airlines spent CNY 439 million (USD 63.6 million) on catering. Eastern Air Catering and its subsidiaries supply catering and related services to various airlines from its airport kitchens around China. Such factors drive the Asia-Pacific inflight catering market during the forecast period.
