The U.S. fast casual market is increasing by $55.4 billion from 2022 to 2027, growing at a CAGR of 11.56%, according to report by Technavio, which said that the demand for innovation and customization in food menus was a key factor driving market growth.
The demand for new flavors, bold flavor combinations and premium alternatives is growing among all ages but is greatest among millennials, who want options to personalize food based on their daily calorie intake. The main driver for personalization is the growing awareness of nutrient-dense, low-calorie diets. In addition, consumers also personalize meals to their needs, regardless of the time of day or menu content. Getting the flavor right helps fast casual food companies increase the likelihood of repeat visits, according to the report.
The foodservice market size is estimated to grow at a CAGR of 28.35% between 2022 and 2027, and the dining out market size is estimated to grow at a CAGR of 53.21% over the same time period, according to Technomic.