Airport Quick Service Restaurant (QSR) Market Trends [2031]

Report Description

Airport Quick Service Restaurant (QSR) Market Outlook 2031

The global airport quick service restaurant (QSR) market size was USD 169 Billion in 2022 and is likely to reach USD 251 Billion by 2031, expanding at a CAGR of 4.7% during 2023–2031. The market is driven by the rising consumer preference for ready-to-eat foods, due to the fast-paced lifestyle. Rising preference for air travel from passengers with growing income levels is fueling the market.

Food consumption habits are rapidly changing, owing to consumer preferences toward food items that are quickly prepared or ready to consume. This change boosted the consumer base for quick-service restaurants. The development of new airports and the upgradation of existing ones are providing lucrative growth opportunities for the players in the market. In addition, the rising government initiatives for strengthening and improving airports with modern amenities and services are further driving growth potential in the market.

• According to the Airport Council International (ACI)’s 2022 statistics, air passenger traffic grew globally by 53% in 2022. Movements increased by 20%, while the top 10 airports accounted for 10% of the air passengers.

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The research report finds that the COVID-19 pandemic affected the airport quick service restaurant (QSR) market. Lockdowns implemented by various governments across the globe and restrictions on travel led to the closure or limited operation of the majority of the airports. The tremendous decline in air travel during this period caused a major setback to the QSR units at the airports.

The market players adopted safety measures such as disposable packaging, food handling, and delivery solutions to prevent infection and serve the consumers. Post the COVID-19 normalization, the market is witnessing significant growth, owing to rising demand for fast food and ready-to-eat foods.

Impact of Artificial Intelligence (AI) on the Airport Quick Service Restaurant (QSR) Market

AI advances are expected to support the market growth, owing to the growing adoption of restaurant management software and smart gadgets. For example, it is possible for QSRs to automate orders with technologies such as speech recognition, machine learning, and computer vision. The AI solutions support predicting food preparation time, based on past data to inform customers about the wait time.

The AI-powered gadgets optimize staffing work and allow quick delivery of food. Furthermore, these solutions are used in the prediction of necessary inventory and time, to prevent unnecessary wastage of resources.

• In October 2023, Paerpay, a contactless payment solution provider to restaurants announced a partnership with Valyant AI. This partnership is intended to integrate AI-based services in the QSR sector, with the merging of Valyant AI voice-based platform for customer services with payment solution by Paerpay.

Airport Quick Service Restaurant (QSR) Market Dynamics

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Major Drivers

Changing lifestyle and consumption habits are likely to drive the market during the forecast period. The lifestyle in urban areas is rapidly moving, with the busy work schedules of working professionals. The preference for fast food and convenient food items is rising all over the world. Food items/ready-to-eat meals bought at QSRs are less expensive compared to buying an in-flight meal.

Airport QSRs are providing diverse options on their menus in different price ranges. Therefore, air travelers are giving preferences to these restaurants to buy ready to eat food during their travel time.

Existing Restraints

Regulations put on airport QSRs by airport authorities are expected to restrain the market during the forecast period. According to the guidelines, these restaurants are allowed to operate within limited space at the airport facilities, which limits operating hours and confines space for seating/standing arrangements. Furthermore, the fluctuating air passenger traffic at the airport has a significant impact on the market. Factors such as weather conditions, seasonality, geopolitical events, and others affect airport traffic, which directly impacts the business of QSRs.

Emerging Opportunities

Rising number of Airport facilities and the adoption of advanced technology solutions are likely to fuel the opportunities in the market in the coming years. Several countries, due to the rise of industrialization, urbanization, and other factors, are rapidly expanding airport infrastructure.

The expanding development of new airports is creating lucrative opportunities for the market players, as QSRs, shopping stores, and other leisure activities are becoming common in airports across the globe. Moreover, the adoption of technology solutions by QSRs for customer convenience is likely to support the market in the coming years.

Scope of The Airport Quick Service Restaurant (QSR) Market Report

The global market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Airport Quick Service Restaurant (QSR) Market Segment Insights

Restaurant Type

Based on restaurant type, the airport quick service restaurant (QSR) market is divided into fast foods & meals, bakery & confectionary, beverages, and others. The fast foods & meals segment is expected to hold the largest revenue share in the market during the projection period, owing to their increasing popularity and rising income levels in developing regions.

The preference for these food items is driven by promotional activities over social media and traditional media channels. The rising availability of diverse fast food items with different specification and price ranges are likely to boost the segment during the forecast period.

The beverages segment is anticipated to witness rapid growth, owing to the rising availability of several beverage options in airport QSRs. The beverage industry is rapidly evolving, with the development of various products according to the consumer taste choices, health demands, and budgets. The entry of new beverages such as smoothies, refreshment drink variants, and alcoholic beverages is likely to fuel this segment in the coming years.

Application Analysis

On the basis of application, the global market is bifurcated into domestic airport and international airport. The domestic airport segment is projected to register a considerable CAGR during the forecast period, owing to the increasing development of new local airports in across the globe, with the rise in domestic travel.

The investment in building of new airport is rising from private and public investors. This is mainly to accommodate the rising demand for air travel, due to busy schedules and changes in lifestyle. Passengers are willing to spend an extra amount to reach far-falling domestic destinations in a quick and comfortable way. This has increased the footfall at domestic airports, which is expected to support the segment during the projection period.

• According to the data published by the International Air Transport Association (IATA), the August 2023 domestic air traffic grew by 25.4% compared to the August 2022 numbers. This increase is also a 9.2% growth over August 2019 numbers. This signifies a considerable increase in domestic travel over pre-pandemic times. The growth is majorly driven by the rise of domestic travel in China and India.

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Regional Outlook

In terms of region, the global airport quick service restaurant (QSR) market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is projected to dominate the market during the forecast period, due to the rising popularity of convenient food and increasing expenditure on travel & leisure activities.

Popular food chain brands are expanding their presence in airport QSR space, with the rise of domestic travelers. Change of lifestyle and the rise of bringing your own food (BYOF), to not spend extra on onboard food items is likely to boost the regional market in the coming years.

• According to the Bureau of Transportation Statistics 2022, the US airliners carried 194 million more passengers than in 2021. In 2021, the total number of the US airline travelers was 658 million, which rose to 853 million in 2022, which is a 30% year-to-year (YoY) growth.

The market in Asia Pacific is expected to witness rapid growth over the assessment period, owing to the rising development of new domestic airports for local travelers. The footfalls at international airports are also growing at a steady rate in major economies such as China, India, Japan, and South Korea with expanding economic activities.

The rising commercialization of the aviation industry is making way for private players to invest proactively toward expanding their presence in the market. Major food franchises such as McDonald’s, Domino’s, Starbucks, and Subway are increasing their quick-service restaurants in the regional airports. All of these factors are expected to play a significant role in the growth of the market in this region in the coming years.

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