QSR market growing 6% CAGR by 2019
Various innovations in quick-service restaurant (QSR) market, including packaging and nutritious food products like low-fat milk and fruits on the menus will likely lead to the steady growth of the market during the forecast period, according to RnR Market Research, India.
Analysts forecast global QSR market to grow at CAGRs of 5.54% and 5.22%, in terms of revenue and volume, respectively, for the period of 2015-2019. The market size is calculated based off of retail sales generated by Asian food, burgers, chicken, chips, drinks, desserts, Mexican food, pizzas, sandwiches and other (seafood and other bakery items). The market size is also calculated from the sales from various service categories such as eat-in, take-out and mobile and street vendors. The increased demand for convenient or on-the-go products is the driving factor for the growth of this market. Asia-Pacific is predicted to be the fastest-growing market during the forecast period.
However, the growing health awareness is expected to pose challenges for the growth of the QSR market, the study says, as most QSR products are processed fast foods and high in fat. Many stringent government regulation and documentaries have educated consumers on the negative impacts of fast food consumption. For instance, during 2010, Puerto Rico's government passed a law to ban the sale of fast food from vending machines in all public schools. This step was taken as an attempt to reduce the obesity rate among children.
The competition in the QSR market is also intense with vendors competing on pricing strategy, product and packaging innovation, menu variation and calorie intake per meals. The market is predicted to witness brand wars, with vendors offering discount coupons or slashing prices to sustain their existing position in the market.
The report further states a major challenge for the growth of the market is the perception of QSR food as being unhealthy. In addition, price fluctuations of raw materials like sugar, salt and meat often result in the unstable prices of products offered by QSRs.