B2B for Food in Foodservice Market Size, Share, Growth, and Industry Analysis, By Type (Fresh Food and Processed food), By Application (Restaurant, Hotel and Others), and Regional Forecast to 2032

B2B FOR FOOD IN FOODSERVICE MARKET OVERVIEW

The global B2B for food in foodservice market size expanded rapidly XX  in 2023 and is projected to grow substantially XX by 2032, exhibiting a prodigious CAGR XX during the forecast period.

The B2B foodservice market is dedicated to delivering food products, ingredients, and services to other businesses within the food service segment, including, restaurants, hotels, caterers and institutional kitchens. It is a B2B market of large and regular always specialized in large ordeers of products and solutions in most cases, logistics for professional kitchens. The stakeholders that are involved in this sector that emit a feeling of running food manufacturers, distributors, and wholesalers are more attracted to consistency, quality, and efficiency in delivery. Over the recent year, the application of digital technologies in the solution of ordering processes has become a critical solution in the ecosystem, real time inventory and the way suppliers and buyers interact.

One major shift in the B2B foodservice industry is that there is a huge increase in customer preference for fresh, locally sourced, and niche foods adopted on account of health consciousness and sustainable consumption of foods. The firms are also using technology to make future forecasts, to manage their stocks and to adopt customized marketing approaches to increase performance. In recent years, other factors such as the new foodservice aggregators and subscription-based supply models have added to the many ways of managing costs and bringing scalability for suppliers and food service operators.

GLOBAL CRISES IMPACTING B2B FOR FOOD IN FOODSERVICE MARKETCOVID-19 IMPACT 

B2B for food in foodservice Industry Had a positive Effect Due to increased digitalization during COVID-19 Pandemic

The B2B foodservice sector was negatively affected by the COVID-19 outbreak since it forced country-wide lockdowns and banned residential gatherings and restricted operations of restaurants, hotels, and catering services. This led to a reduced demand for bulk food supplies which causes suppliers to hold massive quantities of stocks and struggles with transportation. A lot of companies were forced to change the business model, switch from business to business (B2B) to business to consumer (B2C) or extend their product line with necessities. Also, the disruption of global supplies created adverse challenges such as delays, high costs and shortages that also played a stun on the market.

While the pandemic greatly contributed to advancing digital platforms in the B2B foodservice market. Such forms, as well as e-commerce solutions were adopted more actively for managing orders, inventory, and supply chain visibility, by both suppliers and foodservice operators. Consumers also earlier adoption of ready to cook and packed foods due to busy lifestyles also exerting pressure on the suppliers. With recovery on the horizon, new industry priorities for durability, greenness, and digitisation are defining the B2B foodservice market.

LATEST TREND

"Integration of Latest technologies to Drive Market Growth"

Another valuable latest trend in the B2B foodservice market is the use of Artificial Intelligence supply chain solutions. Companies are applying AI in inventory control, demand forecasting and in improving the ability to get orders right. These technologies help suppliers and food service operators to reduce waste levels, costs and improve on time delivery of goods and services. It also enables the tracking of new requests and trends and supply chain disturbances in real time with predictive analysis for timely responses. The occurrence of this trend in the corporate world is in line with the sector’s shift towards decentralization, effectiveness, and/emphasis on the use of statistics to make organizational decisions.

B2B FOR FOOD IN FOODSERVICE MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Fresh Food and Processed food

• Fresh Food :The fresh food refers to raw, un-adulterated or unprocessed foods such as fruits and vegetables, meats and dairy products. While processed foods preserve those nutrients and taste, they are assigned a relatively shorter lifespan. It is often used in fresh condition or lightly cooked so as to enhance the freshness of the products.
• Processed Food: Canned, frozen, and cooked food, as well as the food items in which preservatives have been added falls under processed foods. Such products include packaged biscuits and snacks, processed foods, canned and ready to cook meals, frozen foods etc. Although available, easy to prepare, and last longer than some of the more natural options they often contain extra sugars, salts, and preservatives.

BY APPLICATION

Based on application, the global market can be categorized into Restaurant, Hotel and Others

• Restaurant Application: Thus, B2B for food means the sale of the necessary products in large quantities of foods, non-alcoholic and alcoholic beverages, ready-to-cook or ready-to-eat products for restaurants. The suppliers offer the restaurants with commodities range from fresh produce to frozen food to ensure a proper running of the restaurant with regard to standardization. The various electronic tools have also favored the procedure of ordering of products whereby logistic functions can be easily coordinated and leading to just-in-time delivery functions.
• Hotel Application: Hotels use B2B food services ranging from catering, room service, and banquets to other demands of food. Foodservice market plays an added role of assisting hotels in the procurement of huge stocks of foods and beverages in accordance to guest preference and occasion requirements. Thus, according to quality, convenience, and reliability-oriented B2B suppliers, necessities, and foodservices for numerous departments on time are complex.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.     

DRIVING FACTORS

"Application of Technology to Boost the Market"

A factor in the B2B for food in foodservice market growth is the Application of Technology. Smart procurement, supply chain and demand management, digital platforms, AI and data analytics have enhanced the procurement, inventory management and demand forecast for food service operators. Increased functionality, coordination, and success in creating supplier-buyer relations are specific reasons why technology is implemented in B2B domains. 

"Extension of Operations of Foodservice Companies to Expand the Market"

The increase in restaurants, hotels and fast foods joints across the world has created market for quality and reliable supply of foods. The providers in B2B settings are critical in enhancing conformity across locations, as well as the punctual delivery, thus supporting market growth.  As the hospitality industry stabilises after the COVID-19 pandemic, the need for B2B food supplies has increased. Population growth, sedentary lifestyle leading to dining out, social and business gatherings, and enhanced tourism the demand for food procurement at industrial level.

RESTRAINING FACTOR

"Supply Chain Disruptions to Potentially Impede Market Growth"

Globalization and supply chain have their nemesis in unpredictable factors such as the current COVID-19 pandemic, political instabilities, natural calamities among others. Such interferences cause delays and higher costs, and insufficient inventory, and hence it becomes cumbersome for the suppliers to provide supply schedules. Changes in the cost of raw materials, fuel and transport affected operations costs greatly. This came about due to high logistics costs due to increased global supply chain issues and inflation that continues to affect profit margins for suppliers and food service operators which are major factors holding back the market growth.

OPPORTUNITY

"The increase in use of organic and locally sourced foods to Create Opportunity for the Product in the Market"

The increase in use of organic and locally sourced foods offers the B2B foodservice market a great opportunity. As customer awareness increases more and more suppliers offer only organic food produced by farm-to-table method and packaging materials. This policy follows global sustainable development agenda and builds brand reputation at the same time.

CHALLENGE

"Implementing advanced technologies like AI and IoT Could Be a Potential Challenge for Consumers"

One of the problems of implementing advanced technologies like AI and IoT is that they cost more, and require a certain level of technical knowledge to install, which can be difficult for smaller suppliers. Implementing these initiatives is crucial for maintaining market relevancy, but it forms a gap between multinational companies and SMEs which may cause market dominance.

B2B FOR FOOD IN FOODSERVICE MARKET REGIONAL INSIGHTS

• NORTH AMERICA 

North America is the fastest-growing region in this market. The United States B2B for food in foodservice market has been growing exponentially owing to multiple reasons. They reveal the fact that B2B foodservice in North America is influenced by the expansion of fast food chains, consumer preference for organic and sustainable food and technology integration in supply chain. Thus the need to have efficient ordering through the use of e-commerce platform. The increase in demand for hospitality is being further supported by post pandemic recovery.

• EUROPE

In Europe, the market is growing due to local, organic and green products. Marketing forces such as the implementation of food safety standards and the growing incorporation of automation in supply chain logistics are the growth drivers. Another reason for change in the suppliers is the increase in the number of health-conscious consumers. 

• ASIA

The Asian market is growing incredibly fast as the foodservice segment develops in such emerging markets as India and China. Population growth as well as urbanization, an increase in the per capita income, and differences in palates all contribute to consumption. Other growth enablers include digitalisation and governments investing and getting behind the agriculture and food sectors.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Key industry players are shaping the B2B for food in foodservice marketplace through strategic innovation and market expansion. These companies are introducing advanced techniques and processes to improve the quality and performance of their offerings. They are also expanding their product lines to include specialized variations, catering to diverse customer preferences. Additionally, they are leveraging digital platforms to increase market reach and enhance distribution efficiency. By investing in research and development, optimizing supply chain operations, and exploring new regional markets, these players are driving growth and setting trends within the B2B for food in foodservice market.

LIST OF TOP B2B FOR FOOD IN FOODSERVICE COMPANIES

• Domino’s [U.S.]
• Grubhub [U.S.]
• Pizza Hut [U.S.]
• Papa John’s International [U.S.]
• Jimmy John’s [U.S.]

KEY INDUSTRY DEVELOPMENT

February 2024: A new product that is within the B2B foodservice market is the Merrychef ConneX® oven that was released in early 2024. Created by Welbilt, it is used for rapid and versatile cooking in professional kitchen, having such trends as no-vent technique and adjustable programmes for various kinds of products. This product has improved working functionality especially in institutions with increased.usage like restaurants/catering.

REPORT COVERAGE

The study offers a detailed SWOT analysis and provides valuable insights into future developments within the market. It explores various factors driving market growth, examining a broad range of market segments and potential applications that may shape its trajectory in the coming years. The analysis considers both current trends and historical milestones to provide a comprehensive understanding of the market dynamics, highlighting potential growth areas.

The B2B for food in foodservice market is poised for significant growth, driven by evolving consumer preferences, rising demand across various applications, and ongoing innovation in product offerings. Although challenges such as limited raw material availability and higher costs may arise, the market's expansion is supported by increasing interest in specialized solutions and quality improvements. Key industry players are advancing through technological advancements and strategic expansions, enhancing both supply and market reach. As market dynamics shift and demand for diverse options increases, the B2B for food in foodservice market is expected to thrive, with continuous innovation and broader adoption fueling its future trajectory.