Food Trucks Market Size, Share & Trends Analysis Report By Type (Customized Trucks, Buses & Vans), By Food Type (Fast Food, Vegan & Meat Plant), By Size (Small, Medium), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global food trucks market size was valued at USD 3.93 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.8% from 2021 to 2028. A surge in gastronomy across the globe coupled with the rising preference of consumers between the age group of 16-34 years for new meal experience over conventional brick and mortar restaurant experience is expected to drive the market over the forecasted period. The COVID-19 outbreak decreased the market demand for food services including the food trucks industry globally. Primarily, countries, such as the U.S., China, and the U.K., have witnessed cancellations of events, such as, food festivals and parades, which has resulted in a decline in sales of food trucks. Store closures due to strict lockdown measures resulted in disastrous consequences, with sales decreasing by 50% from March to April 2020, globally.

The growing inclination of consumers towards gourmet offerings and unique food concepts is projected to propel the demand for food trucks. According to a survey on the most popular food trucks by The Restaurant Times U.S., more than 60% of millennials choose food trucks serving authentic as well as unique meal offerings over brick-and-mortar restaurants. For instance, Curry Up Now, U.S., gained huge popularity among consumers in California, when it launched a combination of Indian and Mexican burritos in 2018.

Furthermore, the cost of starting a food truck is significantly lesser than a brick-and-mortar restaurant. According to a study by Food Truck Operator, Inc., the average cost of starting a food truck business is around USD 0.05 million to USD 0.06 million, whereas the average revenue stream from the food truck is approximately USD 0.29 million. This is 10 times lower than the cost of opening a brick-and-mortar restaurant.

The study further revealed that gaining necessary food truck permits takes up to 37 days in the U.S., whereas the same for restaurants goes up to 3 months. Thus, the low startup cost coupled with ease of gaining business permits is one of the major factors contributing to a rise in demand for food trucks.

Moreover, there is a growing focus of well-established commercial restaurant chains in launching their food trucks at prime locations. For instance, major food joints, such as Dunkin Donuts, Starbucks, McDonald’s, Taco Bell, Pizza Hut, and Hard Rock Café, among others, expanded into the food truck industry. Based on a study by Mobile Cusine, Inc., in the U.S., up to 40% of conventional commercial restaurants entered into the food truck industry in 2015.

Also, a study by Epos Now stated that more than 30% of restaurants have abandoned conventional service models to meet consumer expectations, which has led to a rise in the popularity of food trucks. The study also revealed that the flexibility to move the kitchen to prime areas, as well as events, has resulted in the food truck industry outgrowing the restaurant industry by a profit margin of more than 7%.

Type Insights

The buses and vans segment held the largest revenue share of the global market of more than 39% in 2020 and is expected to maintain dominance over the forecast period. On the basis of type, the market is segmented into expandable, boxes, buses & vans, customized trucks, and others.

Food truck operators are increasingly adopting buses and vans due to easy mobility and lower costs as compared to an expandable or customized truck, which is significantly contributing to the segment growth. However, the customized trucks segment is projected to register the fastest CAGR during the forecast period. A rise in demand for a unique consumer experience is the major factor driving the growth of this segment.

Size Insights

The medium-sized food trucks segment accounted for the maximum share of more than 44% of the overall revenue in 2020. The segment is projected to retain its dominance during the forecast period on account of the high demand for these trucks due to the easy mobility and flexibility to move the kitchen to events, such as carnivals, parades, or promotional festivals.

However, the small size segment is projected to register the fastest CAGR during the forecast period. There has been a growing inclination of food truck operators to establish a unique theme and overall experience for their customers. This has led to an increase in the adoption of boxes as food trucks, as customizing them is more budget-friendly than a medium- or large-sized food truck.

The large size segment is also estimated to have a significant growth from 2021 to 2028 as these food trucks are gaining popularity across the globe, especially in countries of Asia Pacific and the Middle East & Africa, due to a rise in large-scale cultural and commercial events in these regions.

Food Type Insights

The fast-food segment made the largest contribution to the global market of over 33.0% in 2020. Fast-food consumption has significantly increased over the past 5 years owing to the factors, such as convenience and low cost, and a variety of menus & flavors offered. Thus, the rise in fast food consumption is anticipated to boost the growth of this segment over the forecast period.

The vegan & meat plant segment is projected to grow at the fastest CAGR of 9.8% from 2021 to 2028. A rise in demand for vegan products as well as plant-based meat is anticipated to fuel the growth of this segment across the globe. Food truck operators are coming up with unique vegan meat blend menus for attracting millennials. For instance, Soulgood, U.S., offers plant-based Mexican food including tacos, tamales, and burgers, and has served more than a million consumers since its launch in 2019.

The barbecue & snacks segment is projected to register a significant CAGR from 2021 to 2028. Barbecue food trucks have gained significant popularity in the past couple of years, with major truck operators offering a unique fusion of barbecue food to gain customers from younger generations. This has led to a rise in demand for customized food trucks specializing in barbecue menus. King of Pops, Bacon Bacon, and The People’s Pig are a few of the major U.S.-based operators offering a unique fusion of barbecue food.

Regional Insights

Europe accounted for the largest revenue share of 29% of the global market in 2020 owing to a rise in events and festivals in the region. Based on a study by Le Cordon Bleu, owing to the growing passion for international cuisine, food festivals and street food events doubled in 2019, which led to increased demand for food trucks in the region. Few of the major street food events in the U.K. in 2021 that include more than 5 grand food trucks include Taste of London, Country to Country, and Oktoberfest.

Asia Pacific is expected to witness the fastest CAGR from 2021 to 2028. Consumers in Asian countries, such as China, Japan, and South Korea, have a higher preference for fast food from the streets, which is anticipated to increase the product demand in the region. The presence of well-established manufacturers in Asia Pacific, such as Hanyi Machine and Ante Trailers, along with the growing demand for street food, is expected to support the market growth.

Key Companies & Market Share Insights

The market is characterized by the presence of a few established players and new entrants. Companies have been focusing on signing new food truck contracts to widen their consumer base. For instance, in April 2019, Custom Concessions U.S., received a contract from Beyond Meat, U.S., to design and manufacture an expandable custom truck for storing and offering vegan meat food products. This helped Custom Concessions in enhancing its customer base in the U.S. Some of the key players operating in the global food trucks market include:

• Prestige Food Trucks

• United Food Trucks United, LLC

• M&R Trailers

• VS VeicoliSpeciali

• MRA

• Futuristo Trailers

• MSM Catering Trucks Manufacturing

• The Fud Trailer Company

• Food Truck Company B.V.

• Bostonian Body, Inc.

Food Trucks Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global food trucks market report on the basis of type, size, food type, and region:

• Type Outlook (Revenue, USD Million, 2016 - 2028)

  • Expandable

  • Boxes

  • Buses & Vans

  • Customized Trucks

  • Others

• Size Outlook (Revenue, USD Million, 2016 - 2028)

  • Small

  • Medium

  • Large

• Food Type Outlook (Revenue, USD Million, 2016 - 2028)

  • Barbecue & Snacks

  • Fast Food

  • Desserts & Confectionary

  • Bakery

  • Vegan & Meat Plant

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • UAE