The onboard rail catering market is expected to exhibit a growth rate of more than 5% during the forecast period (2020-2025).
- The improvement in service quality such as food, on time arrivals, availability, comfort, etc. is encouraging many passengers every year to take up the option of railway transport instead of road transport. The global rail passenger traffic increased from 2882.8 billion passenger kilometers in 2017 to 2949.39 billion passenger kilometers in 2018.
- The rail catering services across the globe are also preparing seasonal menus to ensure the availability of fresh and hygienic food to passengers throughout the year. Deutsche Bahn started a campaign between April 2017 and 2018 where signature dishes of food bloggers were introduced on the onboard menu. Eurostar and Great Western Railways have also collaborated with chefs like Raymond Blanc and Mitch Tonks to design the onboard menu for passengers.
- With the increasing penetration of internet and smartphones in emerging economies such as India, Thailand etc., people are now enjoying hassle free online food ordering during the rail commuting. Although in geographies such as Asia Pacific, the online food ordering is in an initial stage (Indian Railways Catering and Tourism Corporation receives 20,000 online food delivery requests everyday), it is expected to exhibit a high growth rate in future.
Key Market Trends
Growth in the number of passengers using rail catering services
Owing to the introduction of high-speed railways, metros and subway systems in many countries across the globe, many people are switching to rail transportation and this factor is leading to the growth of rail catering services market. Due to introduction of metros, static catering service market is on the rise. Many startups in emerging economies are taking advantage of the large data generated by the railway systems and innovations can be seen in spaces such as customer service management, payments, etc.
In 2019, Indian online payment platform Paytm saw the booking of 50,000 rail tickets daily. Catering companies are using information technology for robust feedback mechanism to improve the selection of raw materials, improvement of food quality. Use of RFID scanners is boosting the effectiveness of quality assessment programs by performing end to end tracking of meal from raw material form to consumption stage. This will ensure the availability of fresh quantity food in sufficient quantity.
People are also being provided with the option to choose from a variety of menus present onboard. Amtrak provides nearly 20 menus under traditional dining, flexible dining, Café and Acela dining categories.
Rail Catering services around the globe have started using latest technologies to ensure the best quality of food to its customers. After the reports of Indian Railways serving sub and below standard food “unfit for human consumption”, IRCTC have made major changes in policy such as separating food preparation and distribution operations and in July 2018, Indian Railways started the live streaming of its kitchens to its customers to regain their trust. Indian Railways is also using artificial intelligence to detect the presence of rodents, insects and rule violation by catering service staff.
Asia Pacific is the fastest growing market
Asia-Pacific dominates the rail infrastructure market. The region is expected to witness the fastest growth rate during the forecast period. In the Asia-Pacific region, India is one of the largest and fastest growing market for railway infrastructure and service after China. India is expected to witness the fastest growth during the forecast period.
India is making investments in catering service and improving its rail transportation system. Owing to the growth in population, increased intercity commuting and trade, upcoming metro projects (13 operational, 6 under construction, 7 in planning stage and 8 in proposed stage) and extension of existing lines, the Indian rolling stock market is witnessing a steady growth.
As of 2019, India has 716 km of operational metro lines. Indian Government is also considering a bullet train between Mumbai and Ahmedabad (Mumbai Ahmedabad High Speed Rail Corridor). The government’s Make in India initiative laid special emphasis on promoting development activities within the country. This, in turn, is expected to drive onboard rail catering market in India.
The Onboard Rail Catering Market is a fragmented one with various national operators being the major players. The market is dominated by players such as Newrest, Indian Railway Catering And Tourism Corporation Limited (IRCTC), Deutsche Bahn, etc.
In April 2019, Newrest Wagons-Lits in Austria reported a rise of 76% in per passenger turnover, owing the success to MyPOS sales tool through which all employees can make sale onboard.
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1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 Catering Service
5.1.1 Mobile Catering
5.1.2 Static Catering
5.1.3 Other Catering Services
5.2 Mode Of Booking
5.3 Commuting Distance
5.3.3 Long range
5.4.1 North America
18.104.22.168 United States
22.214.171.124 Rest Of North America
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
184.108.40.206 South Korea
220.127.116.11 Rest of Asia-Pacific
5.4.4 Latin America
18.104.22.168 Rest Of Latin America
5.4.5 Middle-East and Africa
22.214.171.124 United Arab Emirates
126.96.36.199 Saudi Arabia
188.8.131.52 Rest Of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 IRCTC Limited
6.2.2 Newrest Group Services SAS
6.2.3 Great Western Railways (FirstGroup plc)
6.2.5 Deutsche Bahn AG
6.2.7 Swiss Federal Railways
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.