Summary

South American countries have witnessed significant economic growth, leading to increased urbanization and rising disposable incomes. As a result, people are more willing to spend on dining out and explore various culinary experiences. South American cuisine is heavily influenced by Indigenous, African, European, and Asian cultures, leading to a fusion of flavors and cooking techniques. This fusion has created unique and exciting dishes, blending various cultural influences. In major cities across South America, there has been an emergence of fine dining restaurants offering high-end, gourmet experiences. These establishments often blend traditional ingredients and techniques with modern culinary trends. Various cultural festivals in South America celebrate food and culinary traditions. Events like Peru's Mistura, Brazil's Festa Junina, and Argentina's Feria Masticar showcase the diversity and richness of regional cuisines. South America's culinary tourism is a significant driver of the food service market. Tourists are drawn to the region's diverse culinary heritage, seeking authentic dining experiences, and exploring a local specialty, which contributes to the market's growth. South America fosters an entrepreneurial environment, encouraging the growth of small and medium-sized food businesses. Innovations in food trucks, pop-up restaurants, and unique dining concepts contribute to the market's diversity. Restaurants are increasingly catering to special dietary requirements, such as gluten-free, vegetarian, and vegan options, accommodating diverse consumer needs and preferences. The impact of social media and online reviews on consumer choices cannot be understated. Platforms like Instagram, Yelp, and TripAdvisor significantly influence dining decisions and drive foot traffic to establishments.

According to the research report, “South America Food Service Market Outlook, 2028” published by Bonafide Research, the market is anticipated to add more than USD 1 Billion market size from 2023 to 2028. There has been a significant rise in demand for convenience in South America. This trend has been accelerated by the COVID-19 pandemic, prompting a surge in online food delivery services and apps. Companies like iFood in Brazil and Rappi in various South American countries have gained significant traction, offering a wide range of dining options for consumers. The food delivery sector has seen substantial growth and investment, resulting in a focus on improving delivery infrastructure. This includes optimizing logistics, implementing better packaging to retain food quality during delivery, and developing efficient last-mile delivery solutions to ensure timely and fresh delivery to customers. The concept of cloud or ghost kitchens centralized cooking facilities with no dining space, focused on fulfilling delivery orders has gained momentum. This model is cost-effective and caters specifically to the delivery market. South America's diverse culinary heritage attracts culinary tourists. Experiential dining, such as food tours, cooking classes, and immersive dining experiences, has become popular, contributing to the growth of the food service industry. Subscription-based meal services and meal kit delivery options have gained popularity in certain urban areas. These services offer convenience and flexibility, providing pre-portioned ingredients and recipes for consumers to cook at home. There's a notable shift in children's menus towards healthier options. Restaurants are reimagining kids' menus by offering nutritious, balanced meals with smaller portions, catering to parents' growing concerns about their children's diets.

According to the report, the countries covered in this report are the Brazil, Argentina and Colombia; among them, the Brazil is contributing the most significant market share. Brazil has the largest economy in South America and is one of the most populous countries on the continent. Its large consumer base and economic strength make it a significant player in the food service industry. The country's sheer size and population density contribute to the immense market potential for food service businesses. Brazil's tourism industry, with attractions like Rio de Janeiro, the Amazon rainforest, and the Pantanal, draws millions of visitors annually. Culinary tourism, featuring traditional Brazilian dishes like feijoada, churrasco, and various regional cuisines, is a significant draw for tourists, boosting the food service sector. Brazil has seen a rapid surge in the use of food delivery apps and services. Companies like iFood, Rappi, Uber Eats, and others have gained substantial traction in Brazil, offering a wide array of dining options and convenient delivery services. This has significantly contributed to the expansion of the food service market in the country. Brazil's street food culture is vibrant and diverse. Street vendors offer an array of traditional and innovative snacks and dishes, attracting locals and tourists. This culture contributes to the country's dynamic culinary scene and supports the growth of the food service market.

Based on the sector, which includes commercial and non-commercial, among them in South America, commercial is leading the market. The commercial segment comprises a vast range of establishments, including restaurants, cafes, fast-food chains, bars, catering services, hotels, and other commercial enterprises. This broad scope allows for a significant market presence and revenue generation. Commercial food service establishments cater to the extensive demand for dining out among consumers. South American societies often engage in social dining, celebrating occasions, hosting gatherings, or simply enjoying meals at restaurants, contributing to the market's growth. Commercial establishments offer diverse menus and dining experiences to cater to a wide range of consumer preferences. These include various cuisines, price points, ambiances, and service styles, addressing the diverse tastes and needs of customers. Commercial establishments offer a wide variety of dining options, ranging from quick-service restaurants to fine dining venues. This diversity caters to different customer segments, ensuring broad market coverage and larger consumer appeal. Commercial establishments often benefit from experienced management and operational expertise. This professionalism allows for efficient operations, consistent quality, and better customer service, distinguishing them in the market. Many commercial food service establishments operate on a franchising model, leading to widespread brand recognition. This strategy allows for rapid expansion, leveraging the established brand and operational systems, thereby attracting customers seeking familiar and trusted dining experiences.

According to the report, the system is segmented into the conventional foodservice system, the centralised foodservice system, the ready-prepared foodservice system, and the assembly-serve foodservice system. In South America the centralised foodservice system has the second highest market share. Centralized foodservice systems allow for efficient resource management. They streamline procurement, food production, and distribution, enabling better utilization of resources such as ingredients, equipment, and labor. These systems ensure consistency in food quality and menu offerings across multiple outlets or locations. Standardized recipes, production processes, and quality control measures guarantee uniformity, crucial for building a strong brand and customer loyalty. By centralizing operations, these systems benefit from economies of scale. Bulk purchasing, centralized kitchen production, and standardized processes lead to cost savings in purchasing, production, and distribution, allowing for more competitive pricing. Centralized systems are scalable and facilitate easier expansion. As they establish efficient operations, they can replicate and expand to new locations, maintaining consistency and quality throughout. Establishment of food innovation centers or R&D initiatives enables these systems to continuously explore new culinary trends, enhance recipes, and introduce novel products efficiently.

Based on the types of restaurants, there are full-service restaurants, quick-service restaurants, institutes, and others. Among them in South America, full-service restaurants lead the market. Full-service restaurants include all sit-down eateries with table service and meals of better quality than quick-service ones. It features both upscale dining and informal eating establishments. Furthermore, the staff is typically well-trained, and there is frequently a dress code for diners in order to attract more visitors to their restaurants. Consumers are getting increasingly adventurous in their food selections, seeking fresh and distinctive eating experiences. Full-service restaurants have adapted to this trend by providing a diverse selection of exotic and regional food alternatives, drawing both foodies and adventurous eaters. However, the market for quick-service restaurants is also likely to expand. However, it has a restricted menu and focuses on specific meals such as burgers, pizza, or chicken.

Companies Covered in this report:
McDonald's Corporation, Starbucks Corporation, Restaurant Brands International Inc., Domino's, Yum! Brands, Inc.,, Subway IP LLC, Compass Group plc , Sodexo, Aramark corporation, Bloomin' Brands, Inc., Papa John's International, Inc.

Considered in this report:
• Geography: South America
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• South America Food Service market with its value and forecast along with its segments
• Country-wise Food Service market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Country Covered in this report:
• Brazil
• Argentina
• Colombia

By Sector
• Commercial
• Non- Commercial

By System
• Conventional Foodservice System
• Centralized Foodservice System
• Ready Prepared Foodservice System
• Assembly-Serve Foodservice System

By Type of Restaurant
• Full service restaurants
• Quick service restaurants
• Institutes
• Other

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Food Service industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.




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