The fast food restaurant sector will grow at a compound annual growth rate of 4.6% reaching $931.7 billion by 2027, according to ResearchandMarket.com, The data analytics company said fast food will grow significantly due to an increasing number of such outlets globally, as well as higher numbers of working women, enhanced ordering technology, higher demand for all types of global cuisine and changing customer tastes, according to a news release.
Nonetheless, the increasing costs of establishing restaurants, along with more customer health concerns will also restrain some of the potential growth in fast food, the company said. And one of the biggest incursions into fast food business is from the fast casual sector, where growth may negatively affect the fast-food sector's growth.
Pluses for fast food brands continue to be not only the speed of delivery, but the ease of eating these types of often-tote-able menu items – an important asset in an ever fast-moving world. Fast food restaurant growth will, in that way, boost the overall restaurant sector growth. And, among emerging economies in China, India and Brazil, fast food dominates due to large populations and growing numbers of brands like McDonald's, Burger King, Wendy's, Subway, and Dunkin' Donuts, the research found.
Burgers, sandwiches, Asian, Latin American cuisine vie for most-favored status
On the basis of culinary type, Asian and Latin American food were most preferred as a consumer fast food choice. The segments are valued at $155.5 billion, with an expected compound annual growth rate of 3.4% through 2027 when the sector is expected to reach $203.6 billion. Nonetheless, the burger/sandwich segment is expected to grow at the highest rate during the fast-food market forecast period, due to overall consumer preference for these menu items.
North America was the top fast food market last year globally due to the high rate of consumption of such fare across the U.S., Canada, and Mexico. North America is also expected to see the biggest CAGR for this segment of 3.4%, the company said.