Opportunities abound for frozen food manufacturers within the foodservice industry, reports Jonathan Thomas.
The global foodservice industry continues to expand, with market value currently estimated at between USD5trn and USD6trn.
Much of the current growth is being driven by factors such as the ongoing expansion of the quick service restaurant (QSR) sector, the surging demand for ethnic cuisine in dishes in western markets, the rising popularity of street food and online food delivery systems and the emergence of more foodservice operators catering to consumers following healthier or specific diets. Throughout much of the global market, consumers are seeking out convenient and affordable dining out options, many of which are prepared by operators using a wide variety of frozen foods.
Europe accounts for between 20% and 25% of the global foodservice industry, trailing regions such as the Asia-Pacific and North America. From a supply perspective, the European market is dominated by QSR operators and contract catering firms, both in terms of revenue and number of outlets. The market leader is McDonalds, for which Europe represents its second largest regional business, spanning more than 7,400 outlets. Some of the other leading foodservice operators within the European region include Yum! Brands (which includes the KFC and Pizza Hut chains), Restaurant Brands International (which includes the Burger King and Tim Hortons brands), Domino’s Pizza, Starbucks and contract caterers such as Sodexo, Compass Group and Elior Group.
Ethnic cuisine remains as popular as ever in many of the region’s largest foodservice markets, such as the UK, France and Germany. According to a recent survey on takeaway foods by delivery platform Just Eat, Italian is the UK’s favourite, scoring highly for England in general, as well as regions such as London, Yorkshire/Humberside and the North-East. Much of this is due to the enduring popularity of dishes such as lasagne and macaroni and cheese.
Elsewhere, Indian cuisine emerged as the favourite in Wales, Scotland and the West Midlands, with chicken tikka masala a popular option. Other preferred cuisines included Chinese in Northern Ireland, fast foods such as fish and chips in England’s South-West and Japanese in the South-East and Eastern England. Sushi emerged as the most popular type of Japanese dish. Certain frozen food manufacturers are thought to have benefited from changes in eating patterns taking place within the foodservice industry. In European markets such as the UK, one of the most noteworthy has been the increased tendency to eat out earlier in the day, rather than during lunchtime and evenings. While out-of-home breakfasting has always been hugely popular in the US, its appeal has also grown in Europe of late.
According to the Delifrance Breakfast Report 2022, 24% of UK consumers ate breakfast out of home during a typical week, a habit most apparent amongst people aged 18-24. Separate data from Lumina Intelligence found that breakfasts accounted for just over 4% of all out-of-home (OOH) eating occasions in the UK in 2022, up from 3.5% the previous year.
Food delivered to your doorstep
Brunch is also assuming greater significance as an eating occasion within the European foodservice industry, especially at weekends. The trend towards less structured and formal mealtimes has led to more people (particularly within the younger age groups) eating whenever the occasion suits them, while brunch occasions can help foodservice operators fill the traditional void which usually occurs prior to lunchtime.
According to a 2024 survey of 300 British adults carried out by Appinio for Aviko UK, 47% of respondents claimed to eat brunch at least once per week. The most popular time for eating brunch amongst these consumers appears to be between 10am and midday. Europe also represents one of the world’s fastest growing markets for online food delivery, accounting for almost a fifth of global sales.
Recent growth within the sector has been driven by increased penetration of smartphones and high-speed internet services, as well as the greater convenience offered by ordering and payment systems and the expansion of many industry leaders. Grand View Research expects the global market for online food delivery services to increase from almost USD74bn in 2024 to more than USD111.6bn by 2030, with annual growth averaging nearly 8% during the intervening years.
The sector continues to attract investment. During May 2025, the UK-based company Deliveroo was acquired by DoorDash, a US equivalent, in a deal valued at GBP2.9bn. This created a new entity with operations in more than 40 countries, serving approximately 50 million customers during an average month. Staying in the UK market, rivals Uber Eats reached a milestone of one billion UK deliveries during March 2025.
Around 40% of its orders are via grocery channels, where it operates in partnership with leading retailers such as Tesco, Waitrose, Co-op and Iceland Foods. Just Eat claims leadership of the UK market, offering online food delivery services from more than 30,000 restaurants and other foodservice outlets. Frozen foods represent an important component of expenditure within the foodservice industry, together with their ambient and chilled equivalents. Within the large UK market, for example, frozen varieties account for around a fifth of total expenditure on food, trailing ambient and chilled foods. Some of the most frequent frozen food purchases by foodservice operators include meat and seafood and potato-based products, both of which will now be analysed separately.
To read the entire article, please access your complimentary e-copy of Frozen Food Europe May-June, 2025 issue here.