Street Vendors in the US Industry Market Research Report Now Available from IBISWorld

Demand for food trucks and street vendors has soared in the five years to 2011, and revenue will continue to grow steadily during the next five years. With consumer spending back on track, firms will incorporate unique and healthy food options to entice customers. Though competition from other restaurants and food establishments will remain strong, vendors will provide quality and personal service to gain revenue. For these reasons, industry research firm IBISWorld has added a report on the Street Vendors industry to its growing industry report collection.

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IBISWorld Market Research

IBISWorld Market Research

Unique foods and demand from metropolitan areas will sustain demand for the industry

Los Angeles, CA (PRWEB) August 12, 2012

During the past few years, the Street Vendors industry surged ahead because of new consumer demand for unique and gourmet food trucks. According to IBISWorld industry analyst Nima Samadi, “this trend gained momentum as the fast food and food-service industries slowed down significantly due to changing consumer tastes and a struggling economy.” Over the five years to 2012, IBISWorld expects that industry revenue will grow at an average annual rate of 8.4% to $1.5 billion. As the food truck craze took hold, revenue jumped 6.1% in 2008 to $1.1 billion and again in 2009, rising 9.5% to $1.2 billion. The trend hit its peak in 2010, reaching growth of 12.7%, underpinned by an influx of innovative products and attention to niche demands. As the craze begins to subside, growth is forecast to slow slightly in 2012, rising 4.2% for the year.

During times of low economic activity, consumers spend less on luxuries like eating out; when they do, they typically opt for lower-priced items. However, even fast-food restaurants have increasingly lost to home-cooked meals in the battle for business from cash-strapped consumers. In addition, the general trend toward healthy eating over recent years has hurt sales in the Street Vendors industry, which often serve greasy meals. Yet despite shrinking budgets and an increasingly health-conscious consumer base, renewed fascination with street foods in the US has offset some of these trends. “Moreover, a number of gourmet and specialty food trucks have opened over the last few years to cater to customers who want healthier options,” says Samadi. Because of the surge in demand for food trucks, industry employment has grown steadily over the five years to 2012. The Street Vendors industry's market share concentration has been somewhat stable due to the popularity of sole proprietors. However, from 2007 to 2012, the numbers of establishments and enterprises have risen aggressively, though at a slower rate for enterprises. This discrepancy reflects the growing popularity of franchise agreements among street vendors. Industry concentration is expected to be relatively stable over the next five years as well, only continue to increase marginally.

Food truck and street food vendors are increasingly investing in specialty, ethnic and fusion (e.g. Mexican and Korean combination) food. Many operations have grown strongly over the past few years and outperformed traditional industry operators. Despite this surge in demand, growth is expected to slow down over the next five years as America's sudden fascination slowly subsides. As such, revenue is projected to grow at a slower pace in the five years to 2017 than it did over the past five eyars. However, there are still opportunities for sustained growth in major metropolitan areas that can support the rush of interest that the industry has benefited from during the past five years. For more information, visit IBISWorld’s Street Vendors in the US industry report page.

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IBISWorld industry Report Key Topics

This industry comprises establishments primarily engaged in preparing and serving meals and snacks for immediate consumption from motorized vehicles or non-motorized carts. The establishment is the main location from which the caterer route is serviced, not each cart or vehicle. Included in this industry are establishments primarily engaged in providing food services from vehicles, such as hot dog carts and ice cream trucks.

Industry Performance
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Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


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