First class: Industry growth will be aided by continued economic expansion

Aided by the decline in the world price of crude oil, which includes a decline of 47.2% in 2015, the industry has experienced unexpectedly smooth conditions. As a result, industry revenue is projected to increase an annualized 8.2% to $5.3 billion over the five years to 2018, including growth of 5.8% in 2018. Over the five years to 2023, industry growth will be aided by continued economic expansion, 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 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Airline networks have increasingly dropped catering on shorter domestic flights
  • The industry has benefited from a decline in the world price of crude oil
  • As a result of increasing air traffic, demand for airport catering services will likely expand
  • Industry Report - Industry Investment Chapter

    The Airline Catering Services industry has a low level of capital intensity. In 2018, for every dollar spent on wages, industry operators typically invested $0.06 in capital. Typically, airline caterers must invest in a central facility, commercial-use dishwashers and conveyors, insulated storage facilities, commercial-use ovens, cooling sheds, transportation vehicles and food trolleys. Industry processes are also reliant on employees for menu planning, food preparation, transportation, sales and client liaison roles. The average airline catering has 207 employees, and wages constitute an estimated 37.1% of revenue for industry operators. Alt...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
  • 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
  • Domestic travel
  • International travel

  • 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, Flying Food Group LLC,
  • Table: LSG Sky Chefs - financial performance
  • Table: Gate Gourmet - financial performance
  • Table: Flying Food Group LLC - 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • International trips by US residents (2009-2023)

  • 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 Industry Market Report on Airline Catering Services is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    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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