First class: Demand for premium foods will provide growth opportunities

With limited food options on flights, the potential for growth in the Airline Catering Services industry has been limited. Nonetheless, the industry has bounced back over the past five years, as rising per capita disposable income has allowed consumers and businesses to increase air travel. Aided by the decline in the world price of crude oil, the industry has experienced unexpectedly smooth conditions. Over the five years to 2021, industry growth will be aided by continued economic growth, which is expected to increase air travel. As a result of increasing air traffic, demand for airport catering services will likely expand. ...purchase to read more.

Industry Statistics & Market Size
Annual Growth 11-16
Forecast Growth 16-21

Industry Threats & Opportunities

  • Airline networks have increasingly dropped catering on shorter domestic flights
  • The industry has benefited during the past three years from a decline in the world price of crude oil
  • The number of airline passengers primarily drives demand for industry services
  • Industry Report - Industry Key Buyers Chapter

    The Airline Catering Services industry has a moderate degree of market share concentration. In 2016, the top four companies are estimated to account for 52.0% of the industry's revenue. These include top players such as LSG Sky Chefs, Gate Gourmet, Flying Food Group and Chelsea Food Services. LSG Sky Chefs is the industry's dominant player and holds over a fourth of the Airline Catering Services market. Airline caterers typically operate as independent entities; Chelsea Food Services is one of the only remaining airline caterers operated in-house by a US-based airline, United Airlines. Typically, airline caterers have over 250 employees; the largest companies, LSG and Gate Gourmet, have over 30,000 employees each...purchase to read more.

    Additional Insights for the Airline Catering Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Airline Catering Services Industry are

  • Ability to control stock on hand
  • Must comply with government regulations
  • Ability to form strategic relationships
  • IBISWorld analysts also discuss how external factors such as International trips by US residents and Domestic trips by US residents in the Airline Catering Services industry impact industry performance..

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    What's in this report

    What is the Airline Catering Services Industry?

    This industry provides food preparation and catering services for domestic flights, international flights (originating in the United States) and nonscheduled domestic flights (e.g. charter flights). Airline caterers generate revenue through the provision of full meals, beverages, snacks and other items, such as cutlery, napkins and cups.

    Industry Products
  • Full meals
  • Beverages
  • Snacks
  • Industry Activities
  • Preparing in-flight meals
  • Designing in-flight menus and creating meals
  • Providing in-flight snacks and beverages
  • Providing other in-flight catering services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • International trips by US residents
  • Domestic trips by US residents
  • Per capita disposable income
  • World price of crude oil

  • Current Performance
  • Fewer onboard amenities limits growth
  • Greater airline travel benefits industry
  • Other industry trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand growth
  • Other industry trends
  • Table: Airline Catering Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Airline Catering Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • International Airlines
  • Domestic Airlines
  • Charter Flights

  • Key Selling Industries
  • Beef & Pork Wholesaling
  • Beer Wholesaling
  • Dairy Wholesaling
  • Egg & Poultry Wholesaling
  • Fish & Seafood Wholesaling
  • Frozen Food Wholesaling
  • Fruit & Vegetable Wholesaling
  • Wine & Spirits Wholesaling

  • Products & Services
  • Full meals
  • Beverages
  • Snacks
  • Other
  • Chart: Airline Catering Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic flights
  • International flights
  • Non-scheduled domestic flights
  • Chart: Major Market Segmentation for the Airline Catering Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Airline Catering Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Airline Catering Services Industry

  • Industry Globalization
    LSG Sky Chefs, Gate Gourmet, FlyingFood Group,
  • Table: LSG Sky Chefs - financial performance
  • Table: Gate Gourmet - financial performance
  • Table: FlyingFood Group - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Airline Catering Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Airline Catering Services Industry
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • International trips by US residents (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Airline Hub
  • An airport that an airline uses as a transfer point to get passengers to their intended destination
  • Crude Oil
  • An unrefined oil
  • Jet Fuel
  • A derivative product of crude oil
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Airline Catering Services Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Airline Catering Services industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Airline Catering Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Airline Catering Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Airline Catering Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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