US Healthcare/Hospital Food Services Market Size To Hit USD 55.74 BN By 2032
The US healthcare/hospital food services market size was estimated at USD 18.6 billion in 2022 and is expected to hit around USD 55.74 billion by 2032, poised to reach at a notable CAGR of 11.6 % during the forecast period 2023 to 2032.
The growth of this 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 healthcare food services market.
US Healthcare/Hospital Food Services Market Report Scope
| Report Attribute | Details |
| Market Size in 2023 | USD 20.76 Billion |
| Market Size by 2032 | USD 55.74 Billion |
| Growth Rate From 2023 to 2032 | CAGR of 11.6 % |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | By type and By Settings |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Key Companies Profiled | 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). |
COVID-19 Impact on US Healthcare/Hospital Food Services 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.
US Healthcare/Hospital Food Services Market Dynamics
Drivers: Increasing prevalence of and awareness about chronic diseases
Good nutrition is an integral component of patient care. Not only does eating correctly provide substantial physical benefits, but it also ensures psychological comfort throughout hospital admission. The World Health Organization termed 2016 to 2025 as the ‘United Nations decade of action on nutrition.’ The collective acknowledgment of the concept of ‘food as medicine’ has driven the focus on nutrition and dietetics both inside and outside the healthcare sector.
Poor diets lead to chronic illnesses such as heart disease, Type II diabetes, and obesity. Foods obtained at work are generally high in calories, sodium, solid fat, added sugars, and refined grains. Also, American diets are generally poor in nutritional quality and do not align with the dietary guidelines for Americans. Urbanization, changing lifestyles, and changing trends toward ready-to-eat food (junk food) have led to an increase in the prevalence of chronic diseases, such as cardiovascular disease (CVD), neurological disorders, cancer, diabetes, chronic respiratory diseases, renal disorders, and digestive diseases. Almost half of the total chronic deaths are attributable to cardiovascular diseases, obesity, and diabetes.
Restraints: Reluctance among OPD patients to pay for food services and pricing challenges
Food operators provide menus with a reasonable price and different ranges of choices. The target customers for food in public hospitals are mainly hospital staff, visitors, and patients. In hospitals, food operators need to fulfill the demand for customized meals and control their costs as they cannot charge a high price to their customers. As price is an important factor in food choice, especially for low-income consumers, Medicare Parts A and B cover hospital and inpatient meals. However, they do not cover meal delivery services. Part A covers reimbursement to food for medically necessary inpatient hospital care. Each plan differs; some plans offer a service temporarily with a specific number of meals for a specific amount of time. Patients must be formally admitted into the hospital by a physician for care to be considered inpatient hospital care. Outpatients (OPD) care may include different costs. Hence, outpatients are more reluctant to pay for food. Moreover, low-income consumers differ in their preferences for pricing strategies. This is a major challenge for healthcare food service market providers.
Opportunities: Rising adoption of newer and different food menus for patients
Over the last several decades, healthcare reforms, restructuring, and constrained budgets have forced the examination of all costs in the healthcare system in the US. In the era of very limited budget increases, hospitals and healthcare food service providers are pressured to cut costs and find efficiencies while enhancing service deliveries and improving patient outcomes. At the same time, there has been an increasing focus on patient-centered care and value-based health care, as hospitals are ever more attentive to their impact on patients, staff, communities, the health system, the environment, and society at large.
There is an increased understanding that patients need nutritious, appealing food that tastes good, helps regain strength, and assists in faster healing. There is also an increasing acceptance that healthy food can be good tasting. Patients value food, want to be healthier, and want some control over their food experience (fresher food, more choices, and dietary preferences such as gluten-free, vegetarian, and vegan food). This represents significant growth opportunities for players operating in the US healthcare/hospital food services market.
Challenges: Complexity of patient nutritional issues
Providing comfort through food can be a challenge as many hospitalized patients are required to adhere to a strict diet. It is challenging for healthcare food service providers to practice individualized nutritional care due to the complexity of the patients’ nutritional problems and constraints in the way of nutritional care to a large number of patients. Healthcare professionals and healthcare foodservice providers describe providing nutritional care to older patients as challenging because nutritional problems are often multifactorial and complex. It has been observed that physical, psychological, and social issues like dental problems, dysphagia, addiction, dementia, depression, and loneliness can affect the appetites of patients and their ability and willingness to eat.
Recent Developments
Some of the prominent players in the US Healthcare/Hospital Food Services Market include:
Segments Covered in the Report
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the US Healthcare/Hospital Food Services market.
US Healthcare/Hospital Food Services Market, by Type
US Healthcare/Hospital Food Services Market, by Settings
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers