US Food Truck Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the US Food Truck Market is expected to record a CAGR of 6.38% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 4.52 Billion. By 2033, the valuation is anticipated to reach USD 7.89 Billion.

Per Capita Sale of Food Away from Home

Source: According to International Coffee Organization

The food truck market refers to a segment of the food industry that is a popular trend in the restaurant industry due to their mobility and ability to change demand patterns. It encompasses a diverse range of food truck operators and owners, vehicles and equipment, support vehicles, kitchen equipment, and others.

The food truck is distinguished by its emphasis on mobility, varied cuisine, lower overhead costs, higher customer interactions and engagements, operational flexibility, and community and cultural influence.

The market is driven by the growing popularity of street food and beverages, shifting consumer tastes, urbanization, and an increase in working women. Food trucks are considered a popular trend in the restaurant industry due to their mobility and ability to adapt to changing demand patterns.

Food Truck Market – Significant Growth Factors

The food truck market presents significant growth opportunities due to several factors:

• Consumer Preference for Convenience: The increasing pace of modern life has heightened the demand for convenient dining options, driving many consumers to seek out food trucks for quick and accessible meals. With food trucks strategically stationed in high-traffic areas like city centers, business districts, and college campuses, they offer a convenient solution for busy professionals, students, and on-the-go individuals looking to grab a satisfying meal without sacrificing time or quality.

• Rising Popularity of Street Food Culture: In recent years, there has been a notable rise in the popularity of street food culture, fueled by a growing appreciation for unique and authentic culinary experiences. This trend is particularly pronounced among younger demographics, including millennials and Gen Z, who are drawn to the novelty and diversity offered by food trucks. From artisanal tacos to gourmet burgers, food trucks embody the spirit of street food, providing an exciting alternative to traditional dining establishments.

• Urbanization and Infrastructure Development: Rapid urbanization and infrastructure development in major cities like New York, Los Angeles, and Chicago create opportunities for food trucks to cater to busy city dwellers seeking quick and convenient meals.

• Cost-Effectiveness: One of the primary drivers behind the popularity of food trucks is their cost-effectiveness, both for entrepreneurs and consumers alike. Compared to opening a brick-and-mortar restaurant, launching a food truck requires significantly lower startup costs, making it a more accessible option for aspiring chefs and restaurateurs.

• Entrepreneurial Opportunities: The relatively low barriers to entry and availability of great locations to start food truck operations attract aspiring chefs and food entrepreneurs, fostering innovation and creativity in menu offerings and concepts.

• Growing Socia Media and Digital Marketing: Social media platforms have played a pivotal role in the success of food trucks, providing operators with powerful tools to connect with customers, build brand awareness, and drive sales. By leveraging platforms like Instagram, Facebook, and Twitter, food trucks can share mouthwatering photos of their dishes, announce their locations in real time, and engage directly with their audience, creating a loyal and engaged customer base.

• Growing Popularity of Themed Food Trucks: The growing popularity of themed food trucks catering to unique and niche markets creates opportunities for operators to create memorable experiences and expand their reach.

US Food Truck Market – Mergers and Acquisitions

The food truck market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the food truck market include:

• In February 2024, Cousins Maine Lobster is celebrating the grand opening of their second food truck in Virginia, marking a significant milestone in the brand’s expansion. The expansion, led by brothers Yunus and Thameem Shahul, will take place at Patch Brewing Company in Gordonsville, VA, a popular beer and family-friendly venue.

• In May 2023, US Foods is set to acquire New York-based Renzi Foodservice, marking its first acquisition since April 2020. The move will expand US Foods’ service area into central upstate New York, where Renzi currently operates a 110,000-square-foot facility. The acquisition follows US Foods’ recent announcement of “opportunistically pursuing” acquisitions.

• In April 2023, Penske Truck Leasing is set to acquire Star Truck Rentals, Inc., a transportation services company with over 1,900 vehicles in Michigan and Indiana. The deal is subject to regulatory approvals and closing conditions.

These mergers and acquisitions helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the food truck market. The trend is expected to continue as companies seek to gain a competitive edge in the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

US Food Truck Market – Significant Threats

The food truck market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Growing Online Food Delivery Services: Online food delivery platforms have reshaped consumer behavior, encouraging a preference for on-demand delivery over traditional dining experiences. This shift in consumer preferences reduces foot traffic and customer visits to food truck locations, limiting their revenue potential.

• Higher Competition from Other Players: Food trucks now contend not only with other mobile vendors but also with a myriad of restaurants and eateries that partner with online delivery platforms. This heightened competition for consumer attention and spending makes it harder for food trucks to attract and retain customers.

• Seasonal and Weather Dependency: Food truck operations are often weather-dependent, with sales fluctuating based on seasonal factors and adverse weather conditions. Inclement weather, such as rain, snow, or extreme heat, can significantly impact foot traffic and sales, leading to revenue losses for operators.

• Limited Operating Hours and Locations: Unlike brick-and-mortar restaurants that can operate during fixed hours, food trucks may face restrictions on operating hours imposed by local ordinances or event organizers. Additionally, limited access to prime locations with high foot traffic can constrain revenue opportunities for food truck operators.

• Limited Access to Financing: Securing financing and capital investment can be challenging for aspiring food truck entrepreneurs, especially those with limited credit history or collateral. Banks and lenders may perceive food truck businesses as high-risk ventures, leading to difficulties in obtaining loans or lines of credit.

• Health Concerns and Food Safety Perceptions: Despite stringent health and safety regulations, some consumers may perceive food trucks as less hygienic or sanitary compared to brick-and-mortar restaurants. Negative perceptions related to food safety or cleanliness issues can deter potential customers and undermine trust in food truck operators.

Category-Wise Insights:

By Food Type

• Barbecue & Snacks: Food trucks specializing in barbecue dishes and snacks offer a variety of grilled meats, sandwiches, burgers, ribs, and sides like fries and coleslaw. These trucks appeal to customers seeking Savory, hearty meals and indulgent treats. Barbecue food trucks often utilize smoking techniques and signature sauces to differentiate their offerings and attract barbecue enthusiasts.

• Fast Food: Fast food trucks serve familiar favourites such as burgers, hot dogs, tacos, pizza, and fried chicken, providing quick and convenient meal options for on-the-go consumers. With an emphasis on speed and efficiency, these trucks often feature streamlined menus and efficient cooking methods to meet high demand during peak hours.

• Desserts & Confectionary: Food trucks specializing in desserts and confectionery offer a tempting array of sweet treats, including ice cream, cupcakes, cookies, doughnuts, and specialty desserts. These trucks cater to customers with a sweet tooth, providing indulgent desserts and gourmet confections that are perfect for satisfying cravings or celebrating special occasions.

• Bakery: Bakery food trucks feature freshly baked goods such as bread, pastries, cakes, and pies, showcasing artisanal craftsmanship and premium ingredients. These trucks offer a wide selection of baked treats for breakfast, brunch, or afternoon snacks, appealing to customers seeking high-quality baked goods with artisanal flair.

• Vegan & Meat Plant: Food trucks specializing in vegan and plant-based cuisine offer a range of meat-free alternatives, including plant-based burgers, tacos, wraps, salads, and bowls. These trucks cater to health-conscious consumers, vegetarians, and vegans, providing flavorful and nutritious options that are sustainably sourced and environmentally friendly.

• Others: This category encompasses a diverse range of food truck concepts that may include ethnic cuisines, gourmet fusion dishes, regional specialties, and niche food trends. These trucks offer unique and innovative food experiences, ranging from Korean BBQ tacos to gourmet grilled cheese sandwiches, catering to diverse tastes and preferences.

By Truck Type

• Vans: Food vans represent a segment of the US food truck market characterized by their smaller, more maneuverable size. These vehicles are particularly well-suited for navigating tight urban spaces and parking in high-traffic areas where larger vehicles might struggle. The compact nature of vans allows operators to quickly set up and move between locations, making them ideal for serving bustling city streets, festivals, and smaller events. They also tend to have lower fuel and maintenance costs, which can be a significant advantage for operators looking to minimize expenses. However, the limited kitchen and storage space within a van can restrict the variety and volume of food that can be prepared and served, potentially limiting their ability to cater to high-demand situations or offer extensive menus.

• Trailers: Food trailers offer another segment within the food truck market, characterized by their larger size and the necessity of being towed by another vehicle. These trailers provide a more spacious kitchen area, which allows for more elaborate culinary operations and the ability to serve a higher volume of customers. This increased capacity makes trailers suitable for larger events where demand is high. Additionally, trailers offer flexibility as they can be detached and left at a location, freeing up the towing vehicle for other uses. The greater space within trailers also facilitates the inclusion of specialized kitchen equipment, enabling a wider range of menu options. However, the mobility of trailers is less than that of self-contained food trucks and vans, and they require additional time for setup and breakdown, which can be a disadvantage in certain situations.

• Trucks: Traditional food trucks are the most common and recognizable segment in the US food truck market. These self-contained units combine the mobility of vans with the space and capacity of trailers, providing a versatile solution for a variety of events and locations. The integrated kitchen within a food truck allows for efficient preparation and service of a wide range of menu items, catering to both small and large crowds. Food trucks often have a larger exterior, which is beneficial for branding and advertising purposes, enhancing their visibility and market presence. Despite their advantages, food trucks come with higher initial costs and maintenance expenses compared to smaller vans. Additionally, their larger size can present challenges in finding suitable parking in densely populated urban areas with strict parking regulations.

• Others: The “Others” category in the food truck market includes unconventional models like food carts, bicycles, and modified vehicles. These unique vehicles offer extreme mobility, lower operating costs, and lower food preparation and serving volume. However, they also face space limitations and are more susceptible to adverse weather conditions, impacting their operation and customer turnout.

By Size

• Small: Small food trucks are compact vans and carts with high mobility, allowing them to operate effectively in diverse settings like city streets, parks, and events. They have lower operating costs, including fuel, maintenance, and staffing, making them a cost-effective option for entrepreneurs. However, limited kitchen and storage space may limit menu items and food volume, potentially limiting revenue potential during peak times or large events. Small food trucks are ideal for solo entrepreneurs or small teams serving high foot traffic areas.

• Medium: Medium-sized food trucks are versatile vehicles that balance mobility and capacity, offering more kitchen and storage space than smaller trucks. They are easy to maneuver and park, making them suitable for various events. Despite higher initial investments and operating costs, they provide a good balance for operators looking to grow their business. They may face more complex regulations and permitting processes but are well-suited for expanding culinary offerings without incurring full overhead costs.

• Large: Large food trucks are trucks with extensive kitchen facilities, offering a wide variety of menu items and serving a high volume of customers. They are ideal for large events and festivals but can be challenging to operate due to high initial investment, higher operating costs, and regulatory requirements. These trucks are best suited for established businesses or food truck operators looking to scale up and provide a comprehensive dining experience at large-scale events and busy urban locations.

By Operating Model

• Independent Operators: Independent operators in the US food truck market are single-unit owners who manage their businesses, handling menu creation, cooking, marketing, and financial management. This model offers creative freedom and lower overhead costs, allowing operators to innovate and personalize their offerings. However, limited resources and capacity can pose challenges in scaling the business, and heavy workloads can lead to burnout. Despite these challenges, independent operators thrive on adapting to market trends and customer preferences, making them ideal for passionate food enthusiasts and entrepreneurs.

• Fleet Operators: Fleet operators manage multiple food trucks under a single brand or management team, offering economies of scale, cost efficiencies, and increased brand visibility. They can cover more locations simultaneously, diversify the business portfolio, and cater to different cuisines or market segments. However, managing a fleet requires sophisticated logistical, administrative, and operational capabilities, leading to increased complexity and high-risk ventures. Experienced operators are best suited for fleet operations to scale their business and leverage operational efficiencies across multiple units.

• Franchise Models: Franchise models in the food truck market allow independent operators to license a successful brand and business model, providing comprehensive training, marketing support, and operational assistance. This model offers advantages such as brand recognition, reduced risk for new operators, and standardized quality and service. However, initial franchise fees and ongoing royalties can reduce profit margins. Operators must adhere to the franchisor’s rules, limiting their ability to innovate or customize offerings. The success of franchisees depends on the franchisor’s business model, support, and overall brand health.

Report Scope

Competitive Landscape – US Food Truck Market

The US food truck market is highly competitive, with a large number of manufacturers operating across the US. Some of the key players in the market include:

• All American Food Trucks
• Bostonian Body Inc.
• Cart Concepts International
• Custom Concessions
• Farber Specialty Vehicles
• Golden State Trailers
• M&R Specialty Trailers and Trucks
• MSM Catering Trucks Mfg. Inc.
• Prestige Food Trucks
• Sizemore Ultimate Food Truck
• The Fud Trailer Company
• Titan Food Trucks MSG
• United Food Truck United LLC.
• US Food Truck Factory
• US Food Truck Manufacturing
• Others

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships.

New players entering the food truck market are adopting innovation and development to differentiate themselves and gain traction. These players often focus on various technology adoption, customization and flexibility of menus, and adoption of more sustainable and eco-friendly practices.

Food truck operators are leveraging technology to streamline operations, enhance customer engagement, and expand their reach. This includes mobile apps, online ordering systems, and social media platforms to manage orders, track inventory, and communicate with customers.

The US Food Truck Market is segmented as follows:

By Food Type

• Barbecue & Snacks
• Fast Food
• Desserts & Confectionary
• Bakery
• Vegan & Meat Plant
• Others

By Truck Type

• Vans
• Trailers
• Trucks
• Others

By Size

• Small
• Medium
• Large

By Operating Model

• Independent Operators
• Fleet Operators
• Franchise Models