Food Trucks in the US Industry Market Research Report from IBISWorld Has Been Updated
The Food Trucks industry has only grown in strength over the past five years, and is one of the best-performing segments in the broader food-service sector. The industry's remarkable rise has been largely attributable to changing consumer preferences in favor of unique, gourmet cuisine at budget-conscious prices. "Cities such as Portland, OR, Los Angeles and Austin sought to differentiate themselves by crafting laws and creating areas specially designed for mobile food trucks," according to IBISWorld Industry Analyst Andrew Alvarez. These trends have been a boon for the Food Trucks industry, as consumers sought to maximize their disposable income by indulging in small conveniences such as affordable gourmet food. As a result, industry revenue has increased at an impressive annualized rate of 9.3% over the five years to 2015.
Despite strong industry-wide performance, some food truck operators have been held back by municipal regulations, increased competition and low profit margins. Laws governing food trucks differ between cities, with most specifying the hours during which food trucks can operate and the distance they must be from the nearest brick-and-mortar restaurant. "Food trucks compete directly with the broader food-service sector, and some brick-and-mortar establishments have lobbied against the industry," says Alvarez. Also, in many cities, the industry has begun to reach a saturation point, resulting in lower profit margins for some operators. As a result, growth has slowed over the past few years. In 2015 the industry is expected to grow at rate slower than the recent average, posting a 3.5% gain to reach $856.7 million.
The industry will face various challenges over the next five years, especially regulatory hurdles, which have restricted the industry's growth over the past five years. Parking laws and other ordinances are still evolving in many cities to catch up with the industry's transformation. Industry associations will need to work closely with city governments and other restaurateurs to resolve these issues if food trucks are to play a larger role in the food-service sector. Still, growing household incomes and changing consumer preferences toward healthy and gourmet cuisine will spur growth over the next five years.
For more information, visit IBISWorld's Food Trucks in the US industry report page.
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IBISWorld industry Report Key Topics
The industry comprises establishments primarily engaged in preparing and serving meals from a mobile truck. Food is normally prepared, stored and cooked on the truck. The truck may or may not use the same location each day and does not sell alcoholic beverages.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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