According to the new market research report “US Healthcare/Hospital Food Services Market by Type (Patient Dining (Clinical Nutrition, Regular Diet), Retail Services, Vending, Shops), Settings (Acute Hospitals, ASC, Long-term Care, Nursing and Rehabilitation Centers, Non – acute) – Forecast to 2026″, published by MarketsandMarkets™, the US Healthcare Food Services Market is projected to reach USD 22.8 billion by 2026 from USD 13.2 billion in 2021, at a CAGR of 11.5% during the forecast period.
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The growth of this US Hospital Food Services Market is mainly attributed to the increasing prevalence of and awareness about chronic diseases, growing focus on improved patient food experience, availability of customized food options based on diet requirements, hospital restrictions for outside food items, and the cost-effectiveness of foodservice outsourcing. On the other hand, the reluctance among OPD patients to pay for food services, pricing challenges, and the shortage of staff are expected to restrain the growth of this market.
The hospital food service industry has been negatively impacted by the pandemic. A reduction in the number of hospitalizations (due to the postponement of elective surgeries in the first 2 quarters of 2020) reduced the overall patient pool, including outpatient visits for consultations. Also, with the increasing requirement of cleanliness and disinfection to reduce the spread of the virus, operational costs increased for hospitals. In this scenario, hospitals adopted creative solutions to address the restrictions and limitations. For instance, hospitals turned to pre-packaged, grab-and-go options throughout the pandemic to sustain their ability to serve customers while decreasing contact. Some facilities began taking advanced to-go orders for team members, patients, and customers to reduce long lines and bottlenecks during peak rush times. Many hospitals have also transformed their self-serve stations into an assembly-line format. Team members handle each step in the process to help consumers customize their meals while minimizing the risk for cross-contamination. Due to the disruptions in the supply chain, many hospitals narrowed their food options and undertook a more need-based approach. This strategy helped hospital foodservice operations sustain retail sales while becoming more efficient in purchasing and inventory.
Food distribution and meal ordering were the two aspects most impacted by COVID-19. Foodservice staff was not allowed into wards with COVID-19 patients to hand out meals. As a result, nursing staff working in these wards were required to perform this task. Hospitals that had been using tablets to take meal orders from patients were forced to change to paper menus that could be discarded after use to minimize the risk of spreading the virus. Some hospitals also created meal-ordering applications for mobile devices, or they would call patients on phones to take their meal orders without any face-to-face interactions. All COVID-19 hospitals were concerned about the safety of kitchen staff during the dishwashing process. To overcome this, some hospitals replaced reusable crockery and cutlery with disposable cutlery and crockery. However, it resulted in increased plastic waste.
Based on type, the US healthcare/hospital food services market is segmented into patient & dining services, retail services, vending & shops (micro-markets), and other services. In 2020, The increasing demand for nutritious food among patients, convenience and comfort provided by room services, availability of customized food options based on diet requirements, and hospital restrictions on outside food items are the major factors driving the growth of this market segment. The retail services segment is estimated to grow at the highest CAGR during the forecast period. The high growth of this segment can be attributed to the increasing availability of various healthier food options with improved quality and taste, ease of accessibility to nutritious meals for hospital staff and visitors, and the growing patient flow in healthcare facilities.
Major Players:
The prominent players in the US healthcare/hospital food services market are Compass Group plc (UK), Sodexo (France), Aramark (US), Elior Group (France), Healthcare Services Group, Inc. (US), ISS World (US), Culinary Services Group (US), Metz Culinary Management (US), AVI Foodsystems, Inc. (US), Thomas Cuisine (US), Hospital Housekeeping Systems (HHS) (US), Whitsons Culinary Group (US), The Nutrition Group (US), Food Management Group, Inc. (FMG) (US), and Prince Food Systems (US).
The US healthcare/hospital food services market is witnessing robust expansion, projected to surge from $13.2 billion in 2021 to $22.8 billion by 2026, driven by a remarkable 11.5% compound annual growth rate (CAGR). This burgeoning market is fueled by several key factors, including the rising prevalence of chronic diseases, heightened awareness about the pivotal role of nutrition in healthcare, and a growing emphasis on enhancing the patient dining experience.
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Chronic ailments such as heart disease, type 2 diabetes, and obesity have become increasingly prevalent, underscoring the urgent need for improved dietary practices. Hospitals and healthcare facilities are recognizing the transformative power of “food as medicine,” prompting them to offer customized meal options tailored to diverse dietary requirements. Simultaneously, restrictions on outside food items and the cost-effectiveness of outsourcing food services have further propelled the market’s expansion.
However, challenges persist, including the reluctance of outpatient clients to pay for food services, pricing complexities, and staffing shortages. Nonetheless, the market’s future remains promising, buoyed by the growing adoption of innovative and diverse menus catering to patients’ evolving preferences, such as gluten-free, vegetarian, and vegan options.
Navigating the intricate landscape of patient nutritional needs poses a formidable challenge for healthcare food service providers. Factors like dental problems, dysphagia, addiction, dementia, depression, and loneliness can profoundly impact patients’ appetites and willingness to consume nourishing meals, necessitating personalized care approaches.
Key players in the US healthcare/hospital food services market include industry giants like Compass Group plc, Sodexo, Aramark, Elior Group, and Healthcare Services Group, Inc., among others. These companies are leveraging strategic acquisitions and collaborations to bolster their market foothold and enhance their culinary and operational excellence.
Sodexo is the second-leading player in the US healthcare/hospital food services market. Sodexo provides catering, facilities management, employee benefits, and personal home services. Sodexo provides quality food services to companies, hospitals, schools, universities, and a range of other organizations. Its expertise also includes retail services, food delivery, meal and food vouchers, as well as digital food ordering services and apps. Sodexo offers healthy, varied, balanced meals with seasonal produce while balancing the use of natural resources with clients’ operating contexts and guests budgets. The company offers three different service styles, namely, tray line, bedside host, and room service. Sodexo has strengthened its customer base in food services across the globe through inorganic growth strategies such as acquisitions and partnerships. The company is planning to include 33% of plant-based dishes in its menus by 2025. For this initiative, the teams at Sodexo have designed an on-site production space, which is focused on reinventing the supply of vegetables for the preparation of vegetarian and vegan dishes.
Aramark is the third-leading player in the US healthcare/hospital food services market. Aramark is a global provider of food, facilities, and uniform services to education, healthcare, business & industry, and sports, leisure & corrections clients. The company operates its business in three segments, namely, Food and Support Services United States, Food and Support Services International, and Uniform and Career Apparel. The company’s Food and Support Services segments manage various interrelated services, including food, hospitality, procurement, and facility services for schools, colleges, and universities; healthcare and senior living facilities; businesses, sports, entertainment, and recreational venues; conference & convention centers; national & state parks; and correctional institutes. The company provides a wide range of non-clinical food and food-related support services to approximately 573 healthcare and senior living clients and more than 651 facilities across the globe. The company’s food-related services include patient food and nutrition, retail food, environmental services, and procurement services.
As the healthcare landscape continues to evolve, the US healthcare/hospital food services market stands poised to play an increasingly pivotal role in promoting holistic patient well-being, underscoring the profound link between nourishment and healing.