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Airport Quick Service Restaurant Market Size
Airport Quick Service Restaurant Market was valued at USD 173.3 billion in 2022 and is estimated to register a CAGR of over 3% between 2023 and 2032. The demand for Airport QSRs is closely tied to the number of passengers traveling through airports. Based on IATA estimates, in 2022, international air traffic witnessed a substantial surge, registering a remarkable 152.7% increase compared to 2021 and achieving a level equivalent to 62.2% of the pre-pandemic levels in 2019. Specifically in December 2022, international air traffic experienced a notable 80.2% growth compared to December 2021, reaching 75.1% of the December 2019 levels.
On the domestic front, air travel in 2022 exhibited a notable uptick, showing a 10.9% rise from the previous year. The overall domestic air traffic for 2022 amounted to 79.6% of the total recorded in 2019. In December 2022, domestic air traffic increased by 2.6% compared to the same period in the previous year, reaching 79.9% of the levels observed in December 2019. As passenger traffic increases, there is a higher demand for quick and convenient dining options. Airports in major travel hubs or popular tourist destinations tend to experience higher footfall, driving the need for diverse and efficient food services, thus stimulating the airport QSR industry growth.
| Report Attributes | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 173.3 Billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 3% |
| 2032 Value Projection: | USD 251.7 Billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 230 |
| Tables, Charts & Figures: | 238 |
| Segments covered: | Cuisine Type and Franchise Type |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Evolving consumer preferences and health trends will help drive lucrative revenue to the airport QSR market. Consumer preferences play a significant role in shaping the offerings of QSRs, including those in airports. As health-conscious trends continue to gain traction, there is often a demand for healthier food options, including fresh and organic choices. QSRs adapting to these trends by offering a variety of options that cater to different dietary preferences may experience increased success in the airport market.
For instance, in August 2021, SSP Group announced its expansion in Australia, securing a new tender at Gold Coast Airport in Queensland. Under the contract, SSP will introduce three well-received local food and beverage brands at the airport. These include Liv-Eat, a quick-service concept emphasizing healthy eating; Roll’d, featuring authentic Vietnamese dishes like bánh mi and pho; and Red Rooster, Australia's second-largest quick-service chicken restaurant.
However, airports often have limited space and face operational challenges, including restrictions on construction and renovation. These constraints can limit the ability of airport QSRs to expand or optimize their operations. Additionally, stringent security measures and regulations at airports may pose logistical challenges for QSRs, affecting their ability to efficiently manage inventory, staff, and customer flow. Overcoming these operational hurdles is crucial for sustained success in the airport QSR market.
COVID-19 Impact
The COVID-19 pandemic significantly impacted the airport Quick Service Restaurant (QSR) industry, leading to a substantial decline in passenger numbers and disrupting travel patterns worldwide. Lockdowns, travel restrictions, and health concerns resulted in decreased foot traffic through airports, severely affecting QSR sales. Many airport restaurants faced closures, reduced operating hours, and shifts in consumer preferences toward contactless services. The industry also grappled with supply chain disruptions and the need to adapt to new health and safety protocols, presenting unprecedented challenges.
Airport Quick Service Restaurant Market Trends
One emerging trend in the airport Quick Service Restaurant (QSR) industry is the increasing adoption of digital technologies to enhance customer experience and streamline operations. This includes the implementation of mobile ordering apps, self-service kiosks, contactless payment systems, and digital menu boards. These technologies not only cater to the preferences of tech-savvy travelers but also contribute to faster service, reduced wait times, and improved overall efficiency in QSR operations.
Against this backdrop, in September 2023, Starbucks announced its plan to enhance convenience for bustling Houston travelers by introducing its first pickup-only concept at George Bush International Airport's Terminal E. In collaboration with airport hospitality group OTG, Starbucks will exclusively cater to mobile orders through its app. Customers, after enabling location services or manually choosing IAH Terminal E, can place their orders. Once the status updates to "ready," patrons can effortlessly pick up their items without the need to wait in line, streamlining the airport coffee experience.
Airport Quick Service Restaurant Market Analysis
Based on the cuisine type, the market is divided into Fast Food Chains, Beverages, Bakery & Confectionery and International Cuisine. In 2022, The fast-food chains segment will generate a high market share for 2022. Fast food chains are experiencing a surge in foot traffic at airports due to several factors. Travelers often seek quick and convenient dining options to fit within tight schedules, making fast food an appealing choice. The familiar and standardized menu offerings of these chains provide a sense of reliability for passengers with diverse preferences. Additionally, the speed of service aligns with the fast-paced nature of airport environments, where efficiency is crucial. The convenience, familiarity, and efficiency offered by fast food chains make them a popular and practical choice for on-the-go travelers navigating airports.
Based on the franchise type, the market is categorized into branded chains and local brands. In 2022, the roadways segment accounted for a market share of around 78% and is projected to grow significantly through 2032. Branded Quick Service Restaurant (QSR) chains are experiencing robust revenue growth at airports due to their established reputation, recognizable brand names, and standardized quality. Travelers, often in a time crunch, gravitate toward familiar QSR brands they trust for consistency and speed of service. These chains leverage strong marketing strategies to create brand loyalty, making them the go-to choose for passengers. Additionally, the convenience of finding renowned QSRs in airports enhances the overall traveler experience, contributing to sustained high revenue growth for these well-established brands.
North America led the global airport quick service restaurant market with a major share of over 35% in 2022. North America airport Quick Service Restaurant (QSR) industry is thriving due to the region's robust air travel infrastructure, with numerous major airports and extensive domestic and international flight networks, ensuring a constant influx of passengers. North American airports have recognized the importance of offering diverse and high-quality dining options, driving a surge in demand for QSRs. The cultural diversity of North American travelers further fuels the need for a wide range of food choices, and the prevalence of time-conscious passengers aligns perfectly with the quick and efficient service provided by QSRs, contributing to the flourishing industry in the region.
Airport Quick Service Restaurant Market Share
Major players operating in the airport quick service restaurant industry are:
- Chick-fil-A
- KFC
- McDonald's
- Pizza Hut Express
- Starbucks
- Subway
- Tim Hortons
KFC holds the largest market share, international outlets ensures that passengers receive the same quality products and service regardless of the airport they are in, the brand's operational efficiency aligns well with the fast-paced and time-sensitive nature of airport environments, where quick service is crucial. KFC's ability to adapt its menu to local tastes, combined with its diverse range of chicken-based items, allows it to cater to a broad audience.
Airport Quick Service Restaurant Industry News
- In August 2023, McDonald's inaugurated a restaurant at the Mumbai International Airport, asserting its status as the nation's inaugural airport drive-thru establishment. Managed by McDonald's India (West & South), the outlet is situated merely 100 meters from Terminal 2 of the international airport. Remarkably, this marks the city's initial McDonald's branch operating round the clock, offering services 24x7.
The airport quick service restaurant market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:
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Market, By Cuisine Type
- Fast Food Chains
- Burger & Fries
- Pizza
- Chicken Products
- Sandwich & Wraps
- Others
- Beverages
- Coffee
- Smoothies
- Milkshakes
- Others
- Bakery & Confectionery
- Cakes & Pastries
- Cookies
- Pies and Tarts
- Muffins
- Others
- International Cuisine
- Italian
- Chinese
- Mexican
- Indian
- Others
Market, By Franchise Type
- Branded Chains
- Local Brands
The above information is provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- ANZ
- Southeast Asia
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- UAE
- South Africa
- Saudi Arabia
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