Airline Catering Market Size
The Global Airline Catering Market size was USD 4.63 Billion in 2024 and is projected to touch USD 8.82 Billion in 2025. By 2034, the market is anticipated to reach USD 291.73 Billion, exhibiting a CAGR of 47.52% during the forecast period from 2025 to 2034. This exponential growth is attributed to evolving passenger expectations, premium in-flight service expansion, and growing airline partnerships with luxury culinary brands. Approximately 46.73% of the demand is driven by meal services, followed by 23.26% for bakery and confectionery offerings. Over 52% of consumption is contributed by economy-class passengers globally.
In the United States, the airline catering market is witnessing substantial growth, accounting for 27.9% of global demand. More than 57% of domestic carriers have integrated digital pre-order systems, and 48% now provide customizable meal services. Premium-class passengers account for nearly 33% of total food service upgrades, while sustainable packaging adoption stands at 42% in the U.S. market. The country continues to lead innovation in health-conscious and plant-based onboard dining trends.
Key Findings
- Market Size: $4.63 billion (2024), $8.82 billion (2025), $291.73 billion (2034), with a CAGR of 47.52% over the forecast period.
- Growth Drivers: 64% investment in smart kitchens, 52% shift to eco-packaging, 48% demand for pre-order meal services, 37% rise in premium travel.
- Trends: 57% of airlines offer local cuisines, 42% plant-based menus, 38% use cold meal formats, 29% include functional nutrition options.
- Key Players: Gategroup, LSG Sky Chefs, DO & CO, Emirates Group, SATS Ltd & more.
- Regional Insights: Asia-Pacific holds 36.5% of the global airline catering market, followed by North America at 28.7%, Europe at 22.3%, and Middle East & Africa with 12.5%, reflecting regional demand and service expansion strategies.
- Challenges: 46% face labor shortages, 41% report ingredient cost hikes, 34% struggle with hygiene compliance under budget constraints.
- Industry Impact: 51% improved operational efficiency, 39% uplifted customer satisfaction, 33% repeat flyer growth from improved meal services, 28% loyalty score increase.
- Recent Developments: 45% automation in catering centers, 40% use AI tools, 38% new menu launches, 27% switch to biodegradable service ware, 31% new regional kitchens.
The airline catering market is transforming rapidly, driven by digital innovation, demand for personalized meals, and sustainability. Providers are focusing on local sourcing, technology upgrades, and partnerships with premium brands. Asia-Pacific continues to dominate, while North America and Europe prioritize service enhancements and eco-conscious operations.
Airline Catering Market Trends
The airline catering market is undergoing significant transformation due to changing consumer preferences and evolving airline service standards. Approximately 62% of airlines have shifted toward offering more plant-based and healthy meal options in-flight, with over 40% expanding their vegan and allergen-free menu offerings. Around 55% of long-haul carriers have integrated region-specific cuisines to cater to diverse international passengers. Moreover, 38% of full-service airlines are now offering pre-order meal services through digital platforms. In terms of packaging, nearly 47% of carriers have moved to eco-friendly materials in response to sustainability goals. Premium-class meals have also seen a quality upgrade, with 33% of carriers collaborating with celebrity chefs and branded restaurants to enhance in-flight dining experiences. The shift toward high-quality, personalized, and sustainable meal services continues to shape the airline catering landscape globally.
Airline Catering Market Dynamics
Rising demand for premium in-flight experiences
More than 48% of business and first-class passengers prefer customized gourmet meals over standard menus. Additionally, 42% of airlines report an increase in demand for dietary-specific meal plans including keto, gluten-free, and low-carb offerings. The shift in traveler expectations is prompting 37% of carriers to upgrade their catering partnerships.
Expansion in low-cost carrier catering
Nearly 58% of low-cost carriers are expanding in-flight food offerings as ancillary revenue drivers. About 35% are now offering customizable meal options via digital booking platforms, and 27% are collaborating with local brands for snack-box tie-ins. This shift opens substantial opportunities for catering vendors to scale operations affordably.
RESTRAINTS
"Volatility in airline operations and fuel prices"
Roughly 43% of catering contracts face adjustments due to changes in flight schedules and fleet availability. Additionally, over 39% of service providers have reported disruption due to irregular flight frequencies. Fuel price volatility has caused 31% of airlines to scale back in-flight service costs, directly affecting catering budgets.
CHALLENGE
"Rising costs and labor shortages in foodservice"
More than 46% of airline caterers report a shortage of skilled culinary labor, leading to operational delays and reduced meal quality consistency. About 41% cite a rise in procurement costs of high-quality ingredients, while 34% are experiencing increased pressure to maintain hygiene standards without proportionate budget increases.
Segmentation Analysis
The global airline catering market is segmented by type and application, each contributing distinctively to the overall revenue stream. By type, the market includes Meals, Bakery and Confectionery, Beverages, and Others. In 2025, the Meals segment is projected to dominate with the highest share, followed by Beverages and Bakery. The overall market is expected to reach USD 8.82 Billion in 2025 and continue expanding rapidly to USD 291.73 Billion by 2034, reflecting a CAGR of 47.52%. Application-wise, long-haul flights contributed over 55% of the market share, while short-haul services are growing steadily due to rising domestic travel and LCC expansion.
By Type
Meals
Meals dominate the airline catering market as the most preferred in-flight offering, especially on long-haul and international routes. Around 63% of passengers select hot meal services, with 58% of airlines offering meal customizations based on dietary needs like vegetarian, diabetic-friendly, and high-protein diets. Over 45% of full-service carriers now offer multi-course meals in premium cabins.
Meals held the largest share in the airline catering market, accounting for USD 4.12 Billion in 2025, representing 46.73% of the total market. This segment is expected to grow at a CAGR of 51.2% from 2025 to 2034, driven by increased long-haul flight frequency, growing premium class offerings, and demand for dietary-specific meals.
Top 3 Major Dominant Countries in the Meals Segment (heading-Major Dominant Countries in the Type 1 Segment)
- United States led the Meals segment with a market size of USD 1.15 Billion in 2025, holding a 27.9% share and expected to grow at a CAGR of 50.1% due to premium cabin expansion and domestic travel growth.
- Germany captured a share of USD 0.89 Billion in 2025, accounting for 21.6% of the segment, with a CAGR of 52.4% fueled by strong international air traffic and luxury service focus.
- UAE accounted for USD 0.71 Billion in 2025 with a 17.2% share, expanding at a CAGR of 54.6% due to international hub positioning and emphasis on high-quality in-flight experiences.
Bakery and Confectionery
Bakery and confectionery items form a growing category in airline catering, especially on short and medium-haul routes. Nearly 49% of passengers prefer packaged baked goods like croissants, muffins, and biscuits. Over 40% of airlines now include dessert items such as cakes and chocolates in both economy and business class menus.
Bakery and Confectionery segment is projected to reach USD 2.05 Billion in 2025, capturing 23.26% of the market share, with an expected CAGR of 45.7% from 2025 to 2034, driven by consumer preference for quick snacks, increased frequency of short-haul flights, and growth of breakfast menus.
Top 3 Major Dominant Countries in the Bakery and Confectionery Segment
- United Kingdom led the segment with a market size of USD 0.62 Billion in 2025, capturing a 30.2% share and projected to grow at a CAGR of 46.1% due to snack-oriented service models.
- France secured a 25.4% share with USD 0.52 Billion in 2025, and is expected to expand at a CAGR of 44.3%, leveraging its global culinary reputation in baked goods.
- Japan held a share of 18.7%, or USD 0.38 Billion in 2025, growing at a CAGR of 45.8% driven by a strong preference for premium packaged pastries and sweets.
Beverages
The beverage category is essential for all flight classes, with 73% of passengers opting for complimentary or paid beverage options. Soft drinks, bottled water, and alcohol dominate this segment, while 36% of airlines report increased demand for energy drinks and flavored sparkling water. Sustainability is also rising, with 28% moving to recyclable packaging.
Beverages are estimated to account for USD 1.71 Billion in 2025, representing 19.38% of the global airline catering market, with a CAGR of 44.9% between 2025 and 2034. Growth is fueled by the addition of health-conscious beverages and new offerings in both alcoholic and non-alcoholic categories.
Top 3 Major Dominant Countries in the Beverages Segment
- China led the segment with USD 0.49 Billion in 2025, accounting for 28.6% share, projected to grow at a CAGR of 45.3% due to increasing domestic travel and beverage variety.
- United States captured 24.8% share with USD 0.42 Billion in 2025, growing at a CAGR of 43.9%, supported by personalized beverage services and high passenger volume.
- Australia held a 19.1% share, or USD 0.33 Billion in 2025, and is forecasted to grow at a CAGR of 44.2% owing to eco-friendly beverage packaging initiatives and regional airline partnerships.
Others
The 'Others' category includes fruit bowls, yogurt cups, protein bars, and specialized dietary snacks such as low-sodium and high-fiber options. Around 29% of airlines are introducing customizable snack boxes under this segment. These items are particularly favored by health-conscious passengers and those traveling in premium cabins or short-haul flights.
The Others segment is expected to reach USD 0.94 Billion in 2025, accounting for 10.64% of the total airline catering market, and will grow at a CAGR of 42.5% through 2034, driven by health trends and demand for personalized dietary add-ons.
Top 3 Major Dominant Countries in the Others Segment
- Canada led this segment with USD 0.29 Billion in 2025, capturing 30.8% share and projected to grow at a CAGR of 41.7% due to increasing demand for nutritious snack options.
- South Korea followed with USD 0.26 Billion in 2025, accounting for 27.7% share, growing at a CAGR of 43.3% due to its expanding premium domestic aviation market.
- Singapore secured 22.6% share with USD 0.21 Billion in 2025 and is forecasted to grow at a CAGR of 42.9%, driven by its focus on business travelers and wellness-focused meal options.
By Application
Economy Class
Economy class holds the highest volume in airline catering demand, driven by the sheer number of passengers. Approximately 64% of meals served in-flight are in economy class. Airlines are increasingly offering upgraded meals and snack boxes to enhance passenger satisfaction. About 52% of airlines offer pre-booking meal options for economy travelers, and 37% of passengers opt for combo meals when available.
Economy Class held the largest share in the airline catering market, accounting for USD 4.62 Billion in 2025, representing 52.38% of the total market. This segment is expected to grow at a CAGR of 48.6% from 2025 to 2034, driven by increasing low-cost carrier penetration, rising passenger volumes, and demand for better service quality in economy cabins.
Top 3 Major Dominant Countries in the Economy Class Segment
- India led the Economy Class segment with a market size of USD 1.32 Billion in 2025, holding a 28.5% share and expected to grow at a CAGR of 50.2% due to rapid air traffic growth and expanding low-cost airline networks.
- Indonesia captured a share of USD 0.98 Billion in 2025, accounting for 21.2% of the segment, with a CAGR of 49.1% driven by a boom in regional travel and domestic tourism demand.
- Brazil recorded USD 0.84 Billion in 2025 with a 18.2% share, growing at a CAGR of 47.8% due to growth in budget airlines and expanded domestic air routes.
Business Class
Business class passengers demand premium and personalized meal services, contributing significantly to overall catering revenue. Roughly 58% of business travelers prefer meals with regional flavor profiles, while 45% expect multi-course options. Enhanced in-flight dining is used by over 41% of airlines as a loyalty-building strategy in this segment.
Business Class accounted for USD 3.14 Billion in 2025, representing 35.6% of the total market, and is forecasted to expand at a CAGR of 46.1% from 2025 to 2034, driven by rising international business travel, premium service expectations, and culinary innovation in the cabin service offerings.
Top 3 Major Dominant Countries in the Business Class Segment
- Germany led the Business Class segment with a market size of USD 0.91 Billion in 2025, holding a 29% share and expected to grow at a CAGR of 46.9% due to international business hubs and high standards for premium in-flight service.
- Singapore held USD 0.72 Billion in 2025, accounting for 22.9% of the segment and growing at a CAGR of 45.3% as a global aviation hub with significant long-haul travel.
- Japan contributed USD 0.63 Billion in 2025 with a 20.1% share, forecasted to grow at a CAGR of 44.7% due to corporate travel recovery and premium class investment by airlines.
First Class
First class caters to the most premium airline passengers, offering exclusive meal experiences with chef-curated menus, wine pairings, and customizable dining options. Only about 5% of overall airline passengers travel in first class, but they contribute disproportionately to catering profits. Over 61% of carriers partner with luxury brands for this segment.
First Class is projected to generate USD 1.06 Billion in 2025, holding a 12.02% share of the market and is expected to grow at a CAGR of 44.2% between 2025 and 2034, supported by luxury travel demand, growth in high-net-worth individuals (HNWIs), and strategic alliances with upscale foodservice providers.
Top 3 Major Dominant Countries in the First Class Segment
- United Arab Emirates led the First Class segment with a market size of USD 0.31 Billion in 2025, holding a 29.2% share and expected to grow at a CAGR of 43.8% due to luxury air travel trends and international connectivity.
- Saudi Arabia captured USD 0.27 Billion in 2025 with a 25.4% share, growing at a CAGR of 42.9% amid increasing investments in luxury tourism and aviation infrastructure.
- United Kingdom generated USD 0.21 Billion in 2025, holding a 19.8% share, and is set to expand at a CAGR of 44.5% due to strong demand from affluent business travelers and elite service standards.
Airline Catering Market Regional Outlook
The global airline catering market demonstrates a strong regional presence across North America, Europe, Asia-Pacific, and the Middle East & Africa. Asia-Pacific is expected to lead the global market with a 36.5% share in 2025, followed by North America at 28.7%, Europe with 22.3%, and the Middle East & Africa contributing 12.5%. Rapid air travel expansion, evolving passenger preferences, and increasing long-haul flights are shaping regional demand. Regional players are also adopting local flavors and sustainable practices to capture competitive advantages in their respective markets.
North America
North America maintains a dominant position in the airline catering landscape due to high passenger volumes and robust air traffic networks. Around 61% of full-service carriers in the region have upgraded their meal offerings to align with health and wellness trends. Moreover, 54% of airlines have adopted digital meal pre-order platforms to streamline operations and reduce waste. Demand for premium class dining is also surging, particularly across transcontinental routes.
North America held the second-largest share in the airline catering market, accounting for USD 2.53 Billion in 2025, representing 28.7% of the total market. This segment is expected to grow at a CAGR of 46.8% from 2025 to 2034, driven by tech-driven service enhancements, health-focused menus, and rising international business travel.
North America - Major Dominant Countries in the Airline Catering Market
- United States led North America with a market size of USD 1.45 Billion in 2025, holding a 57.3% share and expected to grow at a CAGR of 46.2% due to long-haul traffic and premium segment expansion.
- Canada followed with USD 0.64 Billion in 2025, capturing a 25.2% share and forecasted to grow at a CAGR of 45.1% due to increased tourism and LCC growth.
- Mexico contributed USD 0.44 Billion in 2025, accounting for a 17.5% share and is projected to grow at a CAGR of 47.9% due to regional airline partnerships and rising international travel.
Europe
Europe showcases strong airline catering growth with a focus on sustainability and culinary diversity. Nearly 59% of European airlines have incorporated plant-based and local cuisine into their menus. Moreover, 42% of carriers are revamping catering contracts to include recyclable packaging and low-carbon meal prep processes. Premium economy and business class services are key contributors to meal innovation across the region.
Europe accounted for USD 1.97 Billion in 2025, representing 22.3% of the global airline catering market, and is expected to grow at a CAGR of 47.2% from 2025 to 2034, driven by eco-conscious catering trends, increasing intra-European flight activity, and diversified service offerings.
Europe - Major Dominant Countries in the Airline Catering Market
- Germany led the Europe market with USD 0.74 Billion in 2025, holding a 37.6% share and expected to grow at a CAGR of 48.3% due to strong international connections and luxury service offerings.
- United Kingdom followed with USD 0.68 Billion in 2025, securing a 34.5% share and growing at a CAGR of 46.4% due to rising global travel links and corporate flight demand.
- France contributed USD 0.55 Billion in 2025, with a 27.9% share, growing at a CAGR of 45.6% driven by culinary innovation and expanding mid-haul segments.
Asia-Pacific
Asia-Pacific leads the global airline catering market, supported by a boom in domestic and international travel. Over 67% of regional airlines are investing in localized menus and fusion cuisines to cater to diverse passenger demographics. Moreover, 51% of carriers in Asia-Pacific are enhancing their economy-class services with fresh meal options and digital ordering solutions, driven by rising middle-class air travelers.
Asia-Pacific held the largest share in the airline catering market, generating USD 3.22 Billion in 2025, representing 36.5% of the global market. It is forecasted to grow at a CAGR of 48.7% from 2025 to 2034, supported by expanding fleet sizes, new airline routes, and rising cross-border passenger traffic.
Asia-Pacific - Major Dominant Countries in the Airline Catering Market
- China led Asia-Pacific with USD 1.36 Billion in 2025, capturing 42.2% share and forecasted to grow at a CAGR of 49.4% due to massive domestic demand and international airline expansion.
- India followed with USD 0.98 Billion in 2025, holding a 30.4% share and expected to grow at a CAGR of 50.1% due to the rapid emergence of budget carriers and new route development.
- Japan accounted for USD 0.88 Billion in 2025, securing a 27.3% share, growing at a CAGR of 46.9% driven by high service standards and international business traveler volume.
Middle East & Africa
The Middle East & Africa region is a growing hub for luxury airline services, with 62% of regional carriers offering gourmet in-flight meals across business and first-class cabins. Airlines in this region are also known for collaborating with luxury hotels and chefs to enhance meal quality. African markets, meanwhile, are experiencing a rise in demand for pre-packaged meals on low-cost carriers.
Middle East & Africa captured USD 1.10 Billion in 2025, representing 12.5% of the global airline catering market and is projected to grow at a CAGR of 46.4% between 2025 and 2034. Growth is driven by international hub development, tourism growth, and increasing regional connectivity.
Middle East & Africa - Major Dominant Countries in the Airline Catering Market
- United Arab Emirates led the region with USD 0.46 Billion in 2025, capturing a 41.8% share and expected to grow at a CAGR of 45.9% due to luxury airline demand and global transit traffic.
- Saudi Arabia accounted for USD 0.38 Billion in 2025 with a 34.5% share, expanding at a CAGR of 46.7% due to national tourism expansion and Vision 2030 aviation investments.
- South Africa contributed USD 0.26 Billion in 2025, holding a 23.6% share, growing at a CAGR of 46.2% due to improved domestic airline infrastructure and rising regional connectivity.
List of Key Airline Catering Market Companies Profiled
- Flying Food Group
- DO & CO
- Emirates Group
- SATS Ltd
- Cathay Pacific Catering
- Gategroup
- Newrest International Group
- LSG Sky Chefs (LSG Group)
Top Companies with Highest Market Share
- Gategroup: Held the largest share of 21.6% in the global airline catering market due to its strong global footprint and airline partnerships.
- LSG Sky Chefs: Accounted for 18.4% share, supported by widespread operations and strategic contracts with major international carriers.
Investment Analysis and Opportunities in Airline Catering Market
The airline catering market presents strong investment potential driven by digitization, sustainability, and culinary innovation. Around 64% of market participants are investing in smart kitchen technologies to improve productivity and quality control. Nearly 48% of global airlines are allocating budget to upgrade onboard food experiences, particularly in business and first-class segments. Approximately 36% of investors are focusing on cloud-based meal planning systems to streamline pre-order services. Additionally, over 52% of catering providers are investing in eco-friendly packaging solutions to meet rising demand for sustainable practices. This evolving landscape creates opportunities for strategic investments in automation, packaging, regional kitchen facilities, and premium product development across the value chain.
New Products Development
Innovation in airline catering is accelerating, with over 57% of airlines introducing region-specific meals to reflect local cuisines. Roughly 42% of companies have launched plant-based and vegan-friendly menus to appeal to health-conscious travelers. About 38% have developed ready-to-eat cold meals and bento-box formats to optimize prep time and reduce waste. In addition, 29% of providers are experimenting with functional ingredients such as protein-rich or probiotic options. Nearly 31% of international carriers are also collaborating with celebrity chefs and restaurants to co-develop luxury menu items. This trend is not only elevating the dining experience but also driving differentiation and customer loyalty for airline brands globally.
Recent Developments
- Gategroup Expansion: In 2024, Gategroup expanded its footprint in Asia by partnering with regional airlines, increasing production capacity by 22% to support growing demand across the continent.
- DO & CO Sustainability Launch: DO & CO introduced biodegradable meal trays and utensils on select European routes, cutting down single-use plastics by nearly 40% during the first quarter of 2024.
- SATS Ltd Digital Integration: SATS integrated AI-driven inventory tracking in its Singapore kitchens in 2024, improving food utilization rates by 33% and reducing wastage across its regional supply chain.
- Emirates Group Menu Innovation: Emirates launched new Mediterranean and Middle Eastern-inspired menus across long-haul routes in 2024, covering 31% of its fleet and receiving a 27% boost in passenger satisfaction scores.
- LSG Sky Chefs Automation Upgrade: In 2024, LSG upgraded its European production centers with robotics, increasing packaging efficiency by 45% and enabling faster turnaround for high-volume meal services.
Report Coverage
This comprehensive report on the airline catering market offers a detailed overview of current trends, growth drivers, segmentation, and regional outlook. The report includes in-depth analysis of four key regions—Asia-Pacific, North America, Europe, and the Middle East & Africa—highlighting regional shares of 36.5%, 28.7%, 22.3%, and 12.5% respectively. It explores four major product segments: Meals, Bakery & Confectionery, Beverages, and Others. The Meals segment leads with a 46.73% share in 2025. Among applications, Economy Class dominates with 52.38%, followed by Business Class at 35.6%. Additionally, the report features strategic insights into key players including Gategroup, LSG Sky Chefs, and DO & CO, among others. It provides valuable facts and figures around investment trends, new product development strategies, and sustainability efforts—such as 48% investment growth in packaging innovations and 57% product development around localized cuisine. The report also covers recent developments, with top firms increasing capacity, introducing eco-friendly practices, and leveraging AI to boost efficiency. This report ensures decision-makers and stakeholders are equipped with crucial market intelligence for effective strategy development and competitive positioning in the airline catering space.
| Report Coverage | Report Details |
|---|---|
|
By Applications Covered |
Economy Class, Business Class, First Class |
|
By Type Covered |
Meals, Bakery and Confectionary, Beverages, Others |
|
No. of Pages Covered |
101 |
|
Forecast Period Covered |
2025 to 2034 |
|
Growth Rate Covered |
CAGR of 47.52% during the forecast period |
|
Value Projection Covered |
USD 291.73 Billion by 2034 |
|
Historical Data Available for |
2020 to 2023 |
|
Region Covered |
North America, Europe, Asia-Pacific, South America, Middle East, Africa |
|
Countries Covered |
U.S. ,Canada, Germany,U.K.,France, Japan , China , India, South Africa , Brazil |
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