Sep 23, 2020 10:57 AM ET
iCrowd Newswire – Sep 23, 2020

The increasing procurement of aircrafts, is leading the airlines to offer outsourced or in-house catering service providers to introduce their full meals and snacks on the newer fleets. This is catalyzing the demand for in-flight catering service market in Europe.

According to the new research report published by The Insight Partners, titled “In-Flight Catering Service Market – Global Analysis and Forecast to 2025”, The global in-flight catering service market is expected to grow at a CAGR of 6.4% during the forecast period 2018 – 2025, to account to US$29.0 Bn by 2025.

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Similar trend is also observed in North American countries. In addition, the North American mass has higher disposable income, which enables them to invest in luxuries and thus, the air travelers in the US, Canada and Mexico invest substantial amounts in on-board catering while travelling. Asia Pacific and Middle East and Africa regions are expected to be witness significant growth rate, owing to rising disposable income, increasing air travel, and growth of low cost airlines in the regions. Moreover, the introduction of services from various European and North American in-flight catering service provider in the Asia Pacific and Middle East and Africa region is also driving the market for in-flight catering service in these two regions.

The recent changes in the commercial aviation market leading to its gradual recovery from the global financial crisis have had an ambivalent effect on in-flight catering providers. On the one hand, the rising number of aircraft in the industry has created a growing demand for on-board catering services. On the other hand, the way catering providers operate could not remain the same as it had been prior to 2008, since the pressure to cut down expenses has led airlines to re-think their business models. In the market where outsourcing seems to be a solution largely favored by airlines, catering providers had to come up with ways of adapting and re-qualifying in order to survive.

Strategic Insights
Few of the recent strategies by some of the players in in-flight catering service market landscape are listed below-

2018: SCK Services GmbH planned to integrate into Gate Gourmet Germany. The existing workforce was continued with the SCK Services GmbH and continued to serve its customers at all the four German airports. The acquisition aimed to strengthen the operations of Gategroup in Germany.

2018: NICFlying Food Group caters Ethiopian Airlines, three times a week direct service between O’Hare international Airport and Addis Ababa Bole International airport. In this new route, these direct flights are offered between Chicago and Africa.

2018: LSG Sky Chefs had prolonged its joint venture partnership in Luanda, Angola for extra three years. LSG Sky Chefs TAAG Angola Catering S.A. is a joint venture between LSG Sky Chefs, TAAG Angola Airlines, Angola Air Catering and Luanda Airport (ENANA), and it has been a success story since its launch in June 2012.

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