• As of May 2017, the market size of non-commercial food services market specific to business and industry is $16.0 billion.

Break down of the non-commercial food services market in the U. S.

• The business and industry food service market size is $16.0 billion.
• The education food service market size is estimated at $39.1 billion.
• The healthcare food service market size equals $28.8 billion.
• The refreshment services market is valued at $24.7 billion.
• The military food service market is worth $4.0 billion.
• The correction's food service market size equals $4.1 billion.

Additional information

• The food service market as a whole is valued at $766 billion, according to Statista. According to the MAFSI food service market report, the size is $761.2 billion.
• The Restaurants and Bars Food Service market is valued at $494.3 billion.
• The Retail Food Service market size is $66.5 billion.
• The Travel and Leisure Food Service market is valued at $79.656 billion.
• The other food service markets are worth $4.2 billi on.
• The total US Non Commercial Food Service market size equals $116.6 billion.
• The CAGR for the US Food Service market is 5.56%, over the period 2019-2023.

FOOD INDUSTRY OVERVIEW

• The share of disposable income Americans are spending on food is declining by the day. Six decades ago, Americans spent 16.8% of their income on food. Today, this average has declined to only 10.1% of their income.
• While the expenditure on food is declining, the food services industry is growing.
• The restaurant industry has witnessed an upward growth for the last 10 years, averaging to 3.7% annually.
• Restaurant sales were estimated at $825 billion in 2018.

COLLEGE AND UNIVERSITY FOOD SERVICES

• As students have a busy academic and social life it is convenient for them to eat out. This is why more colleges and universities are making provision for student dining spaces than ever before.
• While some cafeterias are run by the institution, some have opted to contract the dining spaces to outside firms to improve on the attractiveness of these eating spaces.
• They also have to diversify their meals and compete with outlets operating just outside the institution.
• Restaurants and food outlets in colleges and universities depend on the student population. It means that the size and financial health of the non-commercial food sector in colleges and universities is determined by student expenditure.
• The average expenditure on food for a student depends on the location of the campus and the food choices made. For example, Wellesley College charges $3,495 each semester for a decent meal plan while Texas A&M quotes $2,305. Auburn is even cheaper because a student can feed themselves the entire semester with just $995.
• The discrepancies mean that the industry is clearly segmented but equality lucrative.

MARKET SHARE FOR DIFFERENT FOOD OUTLETS

• When looking at the non-commercial food industry in colleges and universities, one must take into account that schools run in semesters.
• There are also prolonged periods when students are not on campus and restaurants do not operate in these periods.
• A student's disposable income is another factor that affects pricing. Still, the high populations keep the numbers high and growing for outlets based in schools.
• While expenditures on food-away-from-home have grown over the years, the share taken by different outlets has not changed much over the last two decades.
• Full-service restaurants have maintained 35.8% of the market.
• Limited services restaurants have increased their share from 33.3% to 36.1% in 20 years.
• The market share for schools and colleges has declined from 8.5% in 1997 to 7.9% in 2017.
• Food furnished and donations fell from 6.8% to 5.1%.
• Hotels and motels lost 0.6% and currently stand at 4.2% from the 4.8% they previously had.
• Retail stores and vending grew their portion from 3.8% to 4.2% with recreation facilities adding 0.3% thus increasing their 3.3% share to 3.6%.
• Other outlets lost 0.6% and dropped to 2.6% from 3.2%.

MARKET SHARE FOR COLLEGES AND UNIVERSITIES

• Total expenditure on food in the U.S. was $1.71 trillion in 2018 and 54.4% of this amount went to food-away-from-home. This translates to $930.24 billion. [see calculations below]
• If colleges and schools took 7.9% of the food-away-from-home expenditure, the market size was worth $73.48 billion. [see calculations below]

RESEARCH STRATEGY

 PEPSICO: HELLO GOODNESS SNACKBOT

• Since most customers are looking for convenient ways to buy items using their smartphones, PepsiCo launched its first self-driving robot that delivers snacks to the students of the University of the Pacific in Stockton, California.
• Students can order snacks via an app on their smartphones, which will be delivered by a six-wheeled delivery bot called Snackbot to more than 50 locations inside the campus.
• Snackbot is still in its early stage with only three robots and three workers on the campus that refill snacks and replace batteries.

 ANHEUSER-BUSCH: SELF-DRIVING SEMI TRUCKS

• Anheuser-Busch, an American brewing company that owns a variety of beer brands, has placed a reservation for 40 self-driving trucks from automobile manufacturer Tesla. The main goal of this project is for the company to reduce its carbon footprint by 30%.
• In 2016, the company launched its first driverless delivery in partnership with Uber.
• The self-driving trucks can travel to up to 300 to 500 miles depending on its battery capacity and can hold to up to 51,744 12-ounce cans of Budweiser or Bud Light.

RESEARCH STRATEGY