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81 Important Food Industry Statistics: 2024 Data Analysis and Market Share

The food industry is continuously growing. But with so many competitors, you have to know how to stay afloat at all times. This is why it’s essential to keep an eye on relevant food industry statistics

To help you get an idea of what’s going on in the food industry, we put together some relevant research findings. Bookmark or save this report compilation, it’ll come in handy when you need to present data and proofs of concept on the food industry to your bosses, colleagues, or clients.

food industry market data

1. General Restaurant Statistics

Managing a restaurant is more than just serving food. It also involves knowing how much the food industry is worth and the food industry’s market size. With a good overview of everything happening in your business, you can plan well and execute right.

  • Before the pandemic, more than one million restaurants were operating in the United States. After the novel coronavirus hit, 110,000 dining and drinking venues closed down temporarily—or for good—as of Dec. 1, 2020. (Biz New Orleans, 2021)
  • Restaurant sales dropped $240 billion in 2020. Previous projections hit $899 billion. (Biz New Orleans, 2021)
  • Over 200 million US consumers went to a sit-down restaurant in 2018. (Statista, 2021)
  • 65% of restaurant guests like to control how much they tip, rather than adopt the tip-free movement. (7Shifts)
  • 13% of consumers are brand loyal to their preferred restaurants. (Facebook, 2019)
  • People in Alaska spend the most money on dining out, as they shell out an average of $3,572 per year. (Business Insider, 2019)
  • 60% of restaurants that offer delivery generated incremental sales. (Restaurant Business)
  • The average American household spends an average of $3,008 per year dining out. (CNBC)
  • 39% of adults are not eating out at restaurants as often as they would like. (NetWaiter, 2020)
  • 72% of diners prioritize the quality of food above other conditions when choosing a restaurant to dine in. (NetWaiter, 2020)
  • With the cannabidiol or CBD industry flourishing, the restaurant industry is also exploring its creative uses in food and drink. Indeed, 75% of chefs said that CBD-infused drinks are trending in the sector. (NetWaiter, 2020)
  • Gen Zers make up 10% of foodservice traffic. (Meat+Poultry, 2019)
  • 5% of operators opened virtual or ghost kitchens since the start of the pandemic. (Nation’s Restaurant News, 2021)
  • Nearly 64% of consumers would still prefer going to a restaurant over delivery and ordering via smartphone or tablet. (Nation’s Restaurant News, 2021)

Source: Nation's Restaurant News, 2021

Restaurants in the Time of the Pandemic

The restaurant industry also experienced sweeping changes because of the novel coronavirus. Even before the US enforced a lockdown, the sector was already experiencing what would be the first effects of the pandemic.

  • There was only a 38% increase in searches on Yelp for Chinese food around Lunar New Year in 2020. (Eater, 2020)
  • Chinese restaurants’ share of phone calls, website clicks, delivery orders, reviews, and similar decreased by 20% in the first three weeks of February 2020. (Eater, 2020)
  • People reduced their visits to casual dining restaurants; visits declined 8% to 12% around February 24, 2020. (Eater, 2020)
  • Full-service restaurants also experienced a 31% drop by March 3, 2020. (Eater, 2020)

Though some of the heavier Covid-19-related restrictions have been lifted in the US and elsewhere in the world, the restaurant industry continues to struggle to get back to a semblance of normalcy.

  • Restaurant sales are anticipated to rise 10.2% in 2021. However, this may not be enough to help the industry recover from pandemic-induced losses. (Nation’s Restaurant News, 2021)
  • Visits to full-service restaurants in the United States have declined by nearly 50% because of Covid-19 restrictions and fears. (Statista, 2021)
  • As of February 2, 2021, the global year-on-year change in seated restaurant diners is -65.19%. (OpenTable, 2021)
  • As of January 25, 2021, the year-on-year daily change in seated restaurant diners in the US is -65.91%. (OpenTable, 2021)
  • From March 21, 2020 to April 30, 2020, the year-on-year daily change figure was 100% because of the total lockdown in the United States enforced due to Covid-19. (OpenTable, 2021)
  • The United Kingdom and Germany are the worst off with almost 100% year-on-year daily change as of February 2, 2021. This coincides with the tighter restrictions in the two countries due to rising cases as well as new variants of Covid-19. (OpenTable, 2021)
  • Globally, as of February 2, 2021, the percentage of diners at restaurants open for reservations is 55.33%. The highest it has been so far is 91.46% on January 31, 2021. (OpenTable, 2021)

2. Digital Marketing Statistics for Restaurants

Almost everybody has a smartphone. This is why it only makes sense for businesses to use the internet’s digital platform to get their business to where people can easily notice you.

  • 56% of traffic to food brand websites comes from search engines, making SEO the best marketing strategy for their business. (The Business Journals)
  • 88% of restaurants use a marketing service to advertise their store. (National Restaurant Association, 2020)
  • 90% of customers take the time to research a restaurant before dining. (Upserve, 2019)
  • Local searches for restaurants using mobile devices are increasing 50% faster than overall mobile searches. (NetWaiter, 2020)
  • Google search for the string “Can you freeze” hit an all-time high of 99.62% sometime after March 15, 2020. This is most likely due to people wanting to extend the shelf-life of foodstuffs they bought. (Eater, 2020)

Additionally, when you pair your efforts with the best marketing system or CRM solution, you can then extend your reach and even grow your business with ease.

Social media in the food industry

Social media use is at an all-time high at 243.6 million users in the United States last year. It is the current and future battlefield to gain customer trust.

  • Facebook ($6.28 CPM), Instagram ($5.68) and LinkedIn ($2 CPM) are the best ways to advertise your business at a low cost. (Small Business Trends)
  • 79% of Americans currently active on social media. (Edison Research, 2019)
  • 67% of restaurants pay for social media ads in 2019. (Toast, 2019)
  • 33% of restaurants use Instagram as their social media platform of choice. (Toast, 2018)

Utilizing social media in your marketing efforts, aided by a social media management tool, will give your customers a chance to reach out to you about their experience in your store, providing valuable food industry data in the process.

Restaurant review statistics

User reviews are more than ever critical to your business today. Make sure you have a strategy to manage your online customers.

  • 92% of diners read restaurant reviews before visiting. (Upserve, 2019)
  • 77% of restaurant-goers trust peer reviews rather than critic reviews. (Upserve, 2019)
  • 33% of consumers refuse to go to restaurants that have fewer than four stars on their reviews. (Upserve, 2019)
  • 35% of diners say that online reviews help influence their decision when choosing a place to dine. (Toast, 2019)
  • 84% of consumers trust online reviews as much as they trust their friends’ opinions. (NetWaiter, 2020)

can you freeze serp

3. Fast Food Industry Statistics

The fast food industry keeps growing despite the general public’s newfound surge to go organic and healthy. McDonald’s is the most popular in this field, no surprise there, although one data below puts it in an interesting perspective.

  • The fast-food industry revenue in the US alone makes about $110 billion annually. (Statistic Brain)
  • 50 million Americans eat fast food every day. (Statistic Brain)
  • A complete fast food meal is 37% of your daily calories. (Statistic Brain)
  • McDonald’s is more recognized than the Christian Cross. 88% of individuals in a survey correctly identified the fast-food giant’s logo compared to 54% who recognized the Christian symbol. (Marketing Week)
  • Fast food restaurants are expected to keep growing at 2% annually through 2020. (Brandon Gaille)
  • There are nearly 200,000 fast-food franchises in the US as of 2020. (Statista, 2020)

Since fast food’s introduction in 1921, it has become one of America’s preferred ways to dine. One of the reasons service in these establishments is fast is thanks to their POS systems that keep lines short.

Source: IBISWorld, 2020

4. Retail Food Industry Statistics

Food manufacturers should pay attention, not only to what is changing, but what isn’t changing. International food products are popular with Millennials and grocery stores along with coupons aren’t going anywhere despite the online shopping revolution, for instance.

  • $2.97 billion was spent on ads for grocery stores in 2019. (Schonfeld & Associates, 2020)
  • 4.8 million people are currently employed in the grocery industry in the United States. (Brandon Gaille)
  • Grocery stores hold a 92.4% market share in traditional food store sales. Brandon Gaille)
  • 50% of US households spend $110 a week on food at their local supermarket. (Brandon Gaille)
  • 21% of shoppers frequently use coupons for their food delivery purchases. (Brandon Gaille)
  • 79% of Millennials like to experiment with products from different countries. (Global Data)
  • Retail and grocery store industry earned a total of $660.6 billion in revenues in 2018. (Plunket Research)
  • 50% of shoppers and diners prefer printed receipts, 36% digital receipts, and 14% don’t want a receipt at all. (Toast, 2019)
  • When cities started preparing to enforce full lockdowns, visits to bulk-buy grocery stores such as Costco and Sam’s Club spiked. In Seattle, San Francisco, Los Angeles, and New York City, visits were up almost 39% from February 19 to March 13, 2020. (Eater, 2020)

grocery stores visits

The Packaged Food Industry Statistics

  • Packaged Food Industry is valued at $377 billion. (Supermarket News)
  • Packaged food sales in the US reached $372.77 billion in 2017. (Brandon Gaille)

5. Food Industry Employee Statistics

The food industry is one of the employment cornerstones in the U.S. However, it has its own problems, not the least the high turnover rate and dearth of team bonding.

  • There are 15.1 million restaurant industry employees in the United States. (National Restaurant Association, 2020)
  • 10% of the overall US workforce is in the restaurant industry. (National Restaurant Association, 2020)
  • 70% of restaurant employees want hands-on training with their managers. (7Shifts)
  • 40% of restaurant employees say there is a lack of team-building events and activities. (Upserve, 2020)
  • 1 in 3 Americans worked in a restaurant for their first job- 6 in 10 adults worked in a restaurant at some point. (National Restaurant Association, 2019)
  • Restaurants in the US have a 75% turnover rate, an all-time high. (Toast, 2019)
  • 53% of restaurants in the US offer food safety and alcohol certification training. (Toast, 2019)
  • The total number of hours worked for restaurants dropped by 40% by March 17, 2020, as restaurants were ordered to close. (Eater, 2020)
  • The number of hourly workers in restaurants went down by 45%. (Eater, 2020)
  • The food industry lost almost 2.5 million jobs in 2020. (Biz New Orleans, 2021)

Everyone needs a job. Because of the food industry market size, it needs people to help keep it running. Nevertheless, no matter the size of your business, choosing one of the best HR solutions can help you recruit, screen, and evaluate potential employees.

source: chooserestaurants.org

6. Food Industry Tech Statistics

The majority of restaurants agree tech will improve the business. This statement is no clearer than when we look at the tech investments in this industry from mobile ordering to waiting tables to digital registries. Central to this is the adoption of software solutions for restaurant management, which provide support from point-of-sale transactions to staffing.

  • 80% of restaurants are turning to technology to reach more customers. (National Restaurant Association)
  • 6% of orders placed in restaurants are made via smartphones. (Fortune)
  • 68% of customers say that a server tablet improves their experience. (Fast Casual)
  • Online grocery shopping is expected to be a $100 billion industry by 2020. (Supermarket News)
  • 37% of restaurant operators consider customer orders as the most crucial area of technology development. (National Restaurant Association)
  • 81% of restaurants use an electronic register system. (National Restaurant Association)
  • Digital ordering and delivery saw a 300% increase since 2014. (National Restaurant News)
  • 45% of consumers agree that mobile ordering and loyalty programs make them more likely to do business with a store often. (National Restaurant News)
  • 47% of restaurant owners say that if they had the resources, they would update or repair their current equipment. (Toast, 2019)
  • Only 31% of restaurants offer a mobile payment option for their customers. (Toast, 2019)
  • 73% of diners say that restaurant technology helps improve their dining experience. (Toast)
  • 21%–that is the average increase in orders in restaurants after they utilized in-house kiosks. (NetWaiter, 2020)
  • A digital menu board can increase sales anywhere from 3% to 5%. Customers’ perceived waiting time reduces by around 40% with this technology. (NetWaiter, 2020)
  • Instacart, a grocery delivery app, had a 215% increase in downloads between February 14 and March 15, as Americans started choosing to eat inside the house rather than dining out. (Eater, 2020)
  • 25% of restaurant owners enabled customers to order through apps after the pandemic hit. (Nation’s Restaurant News, 2021)

Part of the food industry market growth is incorporating the top accounting software. And so, together with state-of-the-art hardware, it helps keep your business up and running smoothly. 

electronic register system

How can sustainability impact the food industry in 2025?

With growing awareness around environmental issues, the food industry is increasingly focusing on sustainability to meet consumer demands and improve brand reputation. Implementing sustainable practices can positively impact both the planet and a company’s bottom line, as more consumers seek eco-friendly choices and are willing to pay a premium for them.

  • Reduced Environmental Footprint: Sustainable practices like reducing food waste, sourcing local ingredients, and minimizing plastic packaging help decrease the industry’s overall environmental impact. By implementing eco-friendly packaging and waste reduction systems, companies can appeal to eco-conscious consumers and contribute to environmental preservation.
  • Consumer Preference for Sustainable Brands: Modern consumers are prioritizing brands that demonstrate a commitment to sustainability. Studies show that 66% of consumers are willing to pay more for products from sustainable brands. Food businesses can leverage this by highlighting their eco-friendly practices, such as sourcing from ethical suppliers or reducing carbon emissions.
  • Operational Cost Savings: Sustainable practices can lead to long-term cost savings. For instance, energy-efficient kitchen equipment, water-saving technologies, and waste management programs can lower operating expenses while reducing environmental impact.
  • Compliance with Environmental Regulations: Governments worldwide are tightening environmental regulations, and the food industry is no exception. Businesses that proactively implement sustainable practices may find it easier to comply with evolving regulations, avoiding potential fines or legal issues.
  • Enhanced Brand Loyalty and Reputation: Sustainability efforts can boost brand loyalty. When consumers perceive a brand as socially responsible, they are more likely to support and recommend it. Highlighting sustainability initiatives in marketing efforts can improve public perception and foster customer loyalty.
  • Growth in Plant-Based and Alternative Products: The rise in plant-based and alternative food products is another aspect of sustainability in the food industry. As consumers reduce meat consumption to lower their carbon footprints, food companies can tap into this trend by offering plant-based alternatives.
  • Innovation and Product Development: Sustainability drives innovation, leading to new product lines and business models. For example, some companies are exploring food innovations like lab-grown meat or insect protein, which require fewer resources and produce lower emissions than traditional agriculture.

Most Popular Restaurant Management Software

  1. Upserve. Upserve, a restaurant point-of-sale software, has built-in payments and restaurant-grade terminals. Learn more in our full Upserve review.
  2. Clover. Clover is an integrated POS software that supports small and medium restaurants. Our Clover review touches on some of its key features.
  3. Sapaad. an affordable, user-friendly POS software designed for restaurants, cafes, and fast-food chains of all sizes and hosted in the cloud. We discuss more of its capabilities in our Sapaad review.
  4. Oracle Hospitality. Our Oracle Hospitality review details its features designed to help businesses in the hospitality industry streamline operations and elevate the guest experience.
  5. Revel Systems POS. An intuitive POS tool for re-shaping your business, whether in food or retail. Our Revel Systems POS review reveals its complete feature set.

Use the Numbers to Your Advantage

In conclusion, customers listen more to their peers than critics when deciding to visit restaurants for themselves. Furthermore, it’s important for restaurant owners to provide good service and food. As the customer’s experience will play a big role if they will return or not.

Meanwhile, promoting your business through social media is easier than ever. More people are checking their social media accounts daily, and so, posting relevant photos and posts about your service can help bring attention to your store. So, keep social media accounts active and answer any messages that come your way.

Lastly, to ensure customer satisfaction, offer the latest technology at your stores and place of business. Offer digital options that offer convenience to customers. For one, getting a top restaurant management system can go a long way in terms of faster service, smoother kitchen-waiting operation, and more accurate reporting.

Key Insights

  • Impact of COVID-19: The pandemic caused a significant decline in the restaurant industry, with sales dropping by $240 billion in 2020 and over 110,000 dining and drinking venues closing temporarily or permanently.
  • Digital Transformation: Many restaurants are turning to technology to stay afloat and attract customers. Digital ordering, delivery services, and the use of mobile apps have seen substantial growth, with a 300% increase in digital ordering and delivery since 2014.
  • Consumer Preferences: Despite the rise in digital options, 64% of consumers still prefer dining in at restaurants over ordering takeout or delivery. Additionally, food quality remains the top priority for 72% of diners when choosing a restaurant.
  • Fast Food Industry Resilience: The fast-food sector continues to thrive, with nearly 200,000 fast-food franchises in the US and 50 million Americans eating fast food daily. McDonald’s remains a highly recognized brand, with its logo being more recognized than the Christian cross.
  • Retail and Packaged Food: The retail food industry is robust, with grocery stores holding a 92.4% market share in traditional food store sales. Packaged food sales in the US reached $372.77 billion in 2017.
  • Technology Adoption: Restaurants are increasingly adopting technology to enhance customer experience and operational efficiency. For example, 68% of customers say that server tablets improve their dining experience, and a digital menu board can increase sales by 3% to 5%.
  • Employee Challenges: The restaurant industry employs 15.1 million people in the US, but it faces high turnover rates, with a 75% turnover rate, an all-time high. Training and team-building events are crucial for employee retention and satisfaction.

FAQ

  1. How has the COVID-19 pandemic affected the restaurant industry? The COVID-19 pandemic has severely impacted the restaurant industry, causing sales to drop by $240 billion in 2020. Over 110,000 dining and drinking venues have closed temporarily or permanently.
  2. What are the current trends in restaurant technology? Restaurants are increasingly adopting digital ordering, delivery services, and mobile apps. Digital ordering and delivery have seen a 300% increase since 2014. Additionally, technologies like server tablets and digital menu boards are improving customer experiences and boosting sales.
  3. What is the consumer preference for dining in versus takeout or delivery? Despite the rise in digital options, 64% of consumers still prefer dining in at restaurants over ordering takeout or delivery. The quality of food remains the top priority for 72% of diners when choosing a restaurant.
  4. How resilient is the fast-food industry? The fast-food industry continues to grow, with nearly 200,000 fast-food franchises in the US and 50 million Americans eating fast food daily. McDonald’s remains a highly recognized brand, more so than the Christian cross.
  5. What is the market share of grocery stores in traditional food store sales? Grocery stores hold a 92.4% market share in traditional food store sales. The retail and packaged food industries are substantial, with the US packaged food sales reaching $372.77 billion in 2017.
  6. How are restaurants using technology to improve customer service? Restaurants are using technology like server tablets, digital menu boards, and mobile payment options to enhance customer service. These technologies help in reducing waiting times, improving order accuracy, and providing a better overall dining experience.
  7. What challenges does the restaurant industry face with employee retention? The restaurant industry faces high turnover rates, with a 75% turnover rate, an all-time high. Providing hands-on training, team-building events, and improving working conditions are crucial for retaining employees.
  8. How important are online reviews for restaurants? Online reviews are critical for restaurants, with 92% of diners reading reviews before visiting. Additionally, 77% of restaurant-goers trust peer reviews over critic reviews, and 33% of consumers refuse to visit restaurants with fewer than four stars.
  9. What role does social media play in restaurant marketing? Social media is a powerful tool for restaurant marketing. Platforms like Facebook, Instagram, and LinkedIn offer cost-effective advertising options. Engaging with customers through social media helps in building brand loyalty and attracting new patrons.
  10. What are the projected trends for the restaurant industry post-pandemic? Post-pandemic, the restaurant industry is expected to see a rise in sales by 10.2% in 2021. However, challenges remain in fully recovering from the losses experienced during the pandemic. Embracing digital transformation and enhancing customer experiences will be key to future growth.

References:

  1. 7Shifts (2018). 15 Restaurant Statistics That Will Shape the Industry in 2018. Retrieved from 7Shifts
  2. Biz New Orleans (2021). Report: Restaurant Sales Dropped by $240 Billion in 2020. Retrieved from Biz New Orleans
  3. Bose, S. (2021). Where Should Food Businesses Advertise for Biggest Impact? (Infographic). Retrieved from Small Business Trends
  4. Brandon Gaille (2018). 27 Retail Grocery Industry Statistics, Trends & Analysis. Retrieved from Brandon Gaille
  5. Dixon, V. (2020). By the Numbers: COVID-19’s Devastating Effect on the Restaurant Industry. Retrieved from Eater
  6. Edison Research (2019). The Infinite Dial 2019. Retrieved from Edison Research
  7. Everett, H. (2019). Digital Marketing for Restaurants: How to Get Found Online. Retrieved from Upserve
  8. Facebook (2019). Facebook’s 2019 Restaurant Trends and Insights Report. Retrieved from Facebook
  9. Fantozzi, J. (2021). Restaurant sales projected to climb 10.2% in 2021, but not enough to recover from devastation of COVID-19, National Restaurant Association says. Retrieved from Nation’s Restaurant News
  10. Fast Casual (2017). Restaurant industry upbeat for 2017; big year for digital marketing. Retrieved from Fast Casual
  11. Global Data (2017). Millennials are the most experimental consumers, with seniors least likely to try new products. Retrieved from Global Data
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  13. Lock, S. (2021). Restaurant industry in the U.S. – statistics & facts. Retrieved from Statista
  14. Marketing Week (1995). McDonald’s ‘bigger than Jesus Christ’. Retrieved from Marketing Week
  15. Martin, E. (2017). 90% of Americans don’t like to cook—and it’s costing them thousands each year. Retrieved from CNBC
  16. National Restaurant News (2016). Restaurant takeout and delivery are taking a bite out of dine-in traffic. Retrieved from National Restaurant News
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  19. NetWaiter (2020). 21 Eye-Popping Restaurant Industry Statistics (2020 Update). Retrieved from NetWaiter
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  21. OpenTable (2021). State of the Industry: The restaurant industry in recovery. Retrieved from OpenTable
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James Anthony

By James Anthony

A senior FinancesOnline writer on SaaS and B2B topics, James Anthony passion is keeping abreast of the industry’s cutting-edge practices (other than writing personal blog posts on why Firefly needs to be renewed). He has written extensively on these two subjects, being a firm believer in SaaS to PaaS migration and how this inevitable transition would impact economies of scale. With reviews and analyses spanning a breadth of topics from software to learning models, James is one of FinancesOnline’s most creative resources on and off the office.

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1 Comments »
Lydia says:

Hi,
I am searching for food production statistics by country. For example, what is the market size of agriculture in the US? I am finding a market size for tractors, and agricultural technology more often than hard numbers for the food itself. Thank you!

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