Study Shows Fast Food Market To Grow By $119.6 Billion

Fast food consumption is on the rise, according to a recent study conducted by Technavio. Trends estimate a compound annual growth rate (CAGR) of 3%, or USD 119.6 billion, from 2025 to 2029. AI is a major driving force behind growth and market transformation, combined with an increase in diversity. However, despite impressive growth estimates, several factors present challenges. 

Fast food franchises and restaurants have expanded beyond food carts and traditional brick-and-mortar restaurants to include fast-casual eateries, cloud kitchens, and ready-to-eat meal kits — each available via online ordering and delivery apps that cater to a rising demand for convenient, affordable meal solutions. 

As a result, the market is more fragmented than ever, presenting a hurdle for vendors to overcome, compounded by consumers shifting towards healthy alternatives. Other factors that pose a challenge include supply chain disruptions and labor restraints. Nevertheless, market fragmentation is expected to accelerate due to advances in AI, automated contactless systems, and online ordering. 

Domino’s partnered with Menulog, an Australian online food and beverage ordering app and delivery service platform, and now leads in online ordering. Companies will have to adapt similarly to compete. A push to acquire partnerships with automotive, industrial, and commercial companies is also driving competitiveness — which the study says is a major point of focus for brands like Burger King, Dairy Queen, Chipotle, Auntie Annes, Pizza Hut, Starbucks, Subway, Jack in the Box, McDonald’s, and Papa John’s, including Domino’s Pizza.