Technavio study expects U.S. fast-casual restaurant marketplace to reach $66.87 billion by 2020
Consumers’ affinity toward fast-casual restaurants continues grow, according to data from Technavio. In fact, Technavio projects fast-casual restaurants will experience a compound annual growth rate of 10.38 percent in the U.S. by the year 2020.
Technavio analysts provided insights into the top three product segments in the fast-casual market:
- North American food: This segment will continue to dominate, likely occupying a total market share around 56 percent of fast-casual restaurants by 2020 — a 10.39 percent CAGR. Predicted changes within the segment include more healthy meal options and a greater expansion of breakfast at fast-casual restaurants.
- Italian food: Likely to gain a total share of more than 16 percent by 2020, an almost 11 percent CAGR among fast-casual restaurants. Growing demand for customized fast-casual-style pizza was cited as driving growth in this segment.
- Mexican food. Identified as the fastest growing segment in the U.S., expected to reach total share of 15 percent of fast-casual restaurants by 2020, matching the Italian food market with an almost 11 percent CAGR. A big impact to this segment comes from the rising popularity of Tex-Mex cuisine, with demand for breakfast tacos and burritos an additional factor.