Food service sales to grow by a third in just five years
Thursday 31st August 2006 10:30
Rising numbers of households and more mobile lifestyles will fuel a 33% growth in global food service sales by 2010, experts have predicted.
Research group Planet Retail estimates revenues will rise to US$2,474b (£1,311b), compared with $1,861b (£984b) in 2005. This will also be driven forward by the post-9/11 economic recovery in the West.
Tony Horton, managing director of food service consultancy Tricon, said the figures were not surprising. "It's a very good outlook for food service at the moment, which is essentially being driven by greater affluence," he said.
Horton said UK figures supported the estimates. Tricon is working on the basis that retail and food service sales, estimated to be worth £60b and £20b in 2004 respectively, will both hit £80b by 2014.
The emerging economies of Brazil, Russia, India and China are propelling the global growth. The Planet Retail report forecasts annualised growth of 15.1% in Russia and 11.8% in India, compared with 6.5% in the USA, between 2005 and 2010. As a result, Western European countries will see their market share drop, says the study.
Horton said there was a "massive boom" under way in Russia, which he attributed to the fact that many Russians bought their property from the state in the early 1990s at a cut price. Coupled with higher wages, it has left them with a high disposable income.
The report also noted a trend for greater levels of professionalism in the contract catering sector, which it credited to market consolidation. Healthier food and well-known brands are also set to play a more vital role incoming years.Forecasts
|Top five food service
markets in 2010
|Top five food service companies in 2010
(includes Pizza Hut and KFC)
Source: Foodservice trends worldwide 2006, Planet Retail
By Tom Bill
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