Market Trends of North America Inflight Catering Industry
This section covers the major market trends shaping the North America In-Flight Catering Services Market according to our research experts:
The Hybrid and Other Flight Type Segment Is Expected To Witness Significant Growth During The Forecast Period.
The Hybrid and other flight type segment are expected to witness significant growth during the forecast period. This segment includes the catering provided in hybrid business model airlines, charter jets, and private jets. Though the revenues are currently the least from the segment, the high anticipated growth of the segment is primarily due to the increasing preference toward hybrid carriers and their increasing penetration in the region's market. These hybrid carriers blend low-cost carrier traits with full-service carriers to maximize profit. New hybrid airlines are starting operations in this region to cater to the rising passenger traffic. Hybrid airlines in the North American region include JetBlue, WestJet, and AirTran. The introduction of new airlines in this model is expected to be the driving factor for the market. Companies such as LSG Skychefs have developed a hybrid blueprint for the aviation industry which combines high-end, complimentary services for premium guests with reasonably priced, innovative offerings for Buy-on-Board passengers. The concept reflects the airline's brand identity, is appealing to passengers, and can be used to continue to uphold high standards for operational efficiency. According to the new blueprint, the 'basic' option is applicable to the most price-conscious passengers, with no 'extras' like food, drinks, or baggage allowance included in the ticket price. By utilizing this option, passengers have the option to purchase food and beverages from either the Buy-on-Board card or the monthly menu selections. Moreover, the 'Smart' option offers the passengers a standard fare, and the ticket price also includes a number of additional services such as baggage allowance, preferred seating, and a meal box with a snack, beverage, and dessert. Thus, such initiatives will lead to growth in the market during the forecast period.
The United States is Expected to Witness Significant Growth During The Forecast Period
The United States is expected to witness significant growth during the forecast period. The diet of the people in the United States of America varies considerably with each state. Over the past few years, various airline catering companies such as Newest and Flying Food Group are focusing on improving the food quality which is being served to passengers on board the aircraft. Newrest, in August 2021 further announced that they have started inflight catering services for two new airlines belonging to the United States of America. The Newrest team has now started providing in-flight catering services to Delta Air Lines and United Airlines. Moreover, the collaborators of the company also serve lunch and pre-arrival meals for both airlines on the full menu. On the other hand, the enhanced competition amongst the airlines in the United States has encouraged them to adopt certain strategies to elevate the customer perception of the inflight dining experience. Moreover, the market will grow rapidly as air carriers in the United States are now focusing on greater customer experience by increasing the quality of the food served onboard the flight and the diversified cuisine and dietary choices of the passengers have encouraged more and more airlines to serve different meals on special routes. For instance, Delta Airlines have partnered with different inflight catering companies so that their passengers can receive authentic regional dishes while flying to both domestic as well as international routes.
As of the current scenario, the growth in the obesity rate of the people in the United States has also led to various airlines changing their inflight catering menu in order to keep pace with the growing trend of healthy eating which is being practiced in the United States. Foods such as yogurt, poultry, sandwiches, and fresh fruits, have witnessed a spike in demand in the field of inflight catering. Besides, the United States is also a large market for chocolates, bakeries, and other confectioneries. The demand for low-calorie meals has resulted in a significant change in food offerings during flights. The onset of the COVID-19 pandemic led to various changes in terms of in-flight catering. Additional quality measures have been implemented in the kitchens to ensure zero transmission of infection via onboard food. However, some airlines, such as Southwest and American Airlines, have eliminated or reduced the food and drink services offered on most flights.
Furthermore, to help prevent the spread of the virus, airlines closed airport lounges, stepped up cleaning procedures in the cabins, and suspended hot towel service for first-class passengers, among other changes. Southwest Airlines stopped serving snacks and beverages on all flights, while American Airlines stopped serving food on short-haul international flights (less than 4.5 hours) and only serves an onboard meal on long-haul international flights. Delta Air Lines has reduced onboard services by eliminating alcoholic drinks and offering only bottled beverages, while Alaska Airlines will not offer food or drinks on flights shorter than 250 miles, including in first class.
Thus, the growing number of changes will lead to the inflight catering market in the United States witnessing a significant increase during the forecast period.
