The in-flight catering services market is projected to witness significant growth by 2027 on account of the growing number of air travelers worldwide. Additionally, escalating demand for quality and nutritious in-flight food among air passengers is likely to propel market expansion through the forecast timeframe.

Rising disposable income has made air travel more affordable, causing an upsurge in the number of people frequently travelling by air. Additionally, there has been a shift in consumer preference from packaged and sugary in-flight meals to healthier and fresh meals, which is has created massive potential for product penetration.

Notably, industry players have been implementing strategic initiatives to capitalize on the mounting demand in the sector, thereby enhancing market dynamics. For instance, in August 2021, Newrest, a food service company, launched in-flight catering services for major US airlines, Delta Airlines and United Airlines, in Croatia.

In another instance, in July 2021, a major in-flight catering services provider, Gategroup, announced the renewal of its partnership with LATAM Airlines to establish the former as a market leader in Latin America. LATAM Airlines, the Chile-based airline holding company, agreed to a five-year cooperation that would cover numerous airports. The arrangement comprises 14 existing Gategroup locations as well as two new crucial domestic locations, viz., Bogot??, Colombia, and Santiago, Chile.

The in-flight catering services market has been segmented based on aircraft seating class, food type, source, and region. In terms of aircraft seating class, the market has further been classified into first class, business class, and economy class.

The economy class sub-segment generates considerable revenue in the airline industry. Most flight travelers favor economy class due to its low cost. To preserve their market position, major airlines are focusing on retaining economy class passengers, which is anticipated to foster segmental outlook over the review period.

With respect to source, the in-flight catering services market has been divided into in-house and outsource. The outsource sub-segment is likely to observe strong growth over the forecast period. Increase in the number of air travelers around the world, prevalent consumer demand for healthy and high-quality meals, and growing preference for low-cost flights are likely to fuel segmental adoption in the coming years.

Based on food type, the market has been segmented into beverages, bakery & confectionery, meal, and others. The in-flight catering services market from the others sub-segment is projected to be valued at over USD 1.9 billion by the end of 2027. Other food types include ice-creams, condiments, cheese, varieties of fruits, and so on.

From the regional perspective, the Middle East & Africa in-flight catering services market is anticipated to exceed a valuation of USD 2.65 billion by 2027. Augmenting air traffic in both regions, along with the thriving tourism business in the Middle East, is estimated to drive regional market growth in the future.