Onboard Rail Catering Market

Market Definition

The market comprises food and beverage services provided to passengers on trains, including full-service dining, snack bars, and pre-packaged meals, addressing diverse customer preferences and enhancing travel experiences.

By ensuring convenience, quality, and variety, onboard catering contributes to passenger satisfaction, boosts railway revenue, supports tourism, and adds value to rail travel, making it a key component of the transportation industry. It also improves long-distance travel comfort, promotes regional cuisine, and adapts to evolving consumer dietary trends.

Onboard Rail Catering Market Overview

Global onboard rail catering market size was valued at USD 17.52 billion in 2023 and is projected to grow from USD 18.17 billion in 2024 to USD 24.29 billion by 2031, exhibiting a CAGR of 4.23% during the forecast period. This robust growth is driven by evolving consumer expectations, surging passenger traffic, and continuous investments in technology and infrastructure, enhancing service delivery and operational efficiency.

Major companies operating in the onboard rail catering industry are National Railroad Passenger Corporation, GWR, Deutsche Bahn AG, Newrest Group Services SAS, Swiss Federal Railways, Gruppo FS Italiane, Eurostar International Ltd., Select Service Partner UK Limited, Cremonini S.p.A, servair.

Rapid urbanization and rising disposable incomes have significantly influenced passenger preferences, leading to higher demand for diverse, high-quality food options during rail travel.

Additionally, the expansion of high-speed rail networks and the modernization of existing railway infrastructure are fostering growth opportunities for onboard catering service providers.

Key Highlights:

1. The onboard rail catering industry size was recorded at USD 17.52 billion in 2023.
2. The market is projected to grow at a CAGR of 4.23% from 2024 to 2031.
3. Europe held a share of 37.32% in 2023, valued at USD 6.54 billion.
4. The mobile catering segment garnered USD 10.04 billion in revenue in 2023.
5. The economy class segment is expected to reach USD 13.91 billion by 2031.
6. The offline booking segment is projected to generate a revenue of USD 13.43 billion by 2031.
7. Asia Pacific is anticipated to grow at a CAGR of 5.03% over the forecast period.

Market Driver

“Improved Rail Infrastructure and Rail Modernization”

Rapid urbanization and rail modernization are contributing significantly to the growth of the onboard rail catering market. As cities grow and governments invest heavily in railway modernization, more people are opting for trains over other modes of transportation due to speed, affordability, and environmental benefits. 

The development of high-speed rail networks has led to an increase in passenger traffic, boosting the demand for onboard food services. Moreover, improved rail connectivity between cities has promoted more intercity and long-distance travel, increasing the demand for meal solutions that cater to different dietary and cultural preferences.

• As of April 2024, the India Brand Equity Foundation (IBEF)reported that Indian Railways operates a 132,310-kilometre network, with 58,074 kilometres electrified. To enhance passenger experience, it is introducing innovative services focused on comfort and convenience. Notably, the food-on-demand feature enables passengers to order meals via a mobile app, delivering a personalized dining experience directly to their seats.

Market Challenge

“Timely Delivery and Logistical Hurdles”

A major challenge hampering the development of the onboard rail catering market is maintaining food quality and safety while ensuring timely delivery in transit.

Rail operators face logistical hurdles in food preparation, storage, and distribution, particularly on long-haul routes where ensuring freshness and variety is critical. Factors such as fluctuating passenger demand, temperature control, and regulatory compliance further complicate operations.

This challenge can be addressed by leveraging advanced supply chain management, including AI-driven inventory tracking, real-time demand forecasting, and automated restocking systems.

Partnerships with local suppliers can enhance freshness while reducing dependency on centralized kitchens. Implementing strict quality controls, standardized packaging, and sustainable storage solutions can further mitigate risks.

Market Trend

“Rising Health Awareness and Digital Pre-Ordering Systems”

A growing emphasis on health-conscious and environmentally friendly dining is reshaping the onboard rail catering market. Consumers are increasingly seeking organic, locally sourced, and plant-based meal options due to rising health awareness and sustainability concerns.

Additionally, digital pre-ordering systems are transforming onboard rail catering by enhancing efficiency, reducing waste, and improving customer experience. These systems allow passengers to browse menus, customize meals, and place orders before their journey via mobile apps, railway websites, or self-service kiosks at stations.

Onboard Rail Catering Market Report Snapshot

Segmentation	Details
By Service Type	Mobile Catering, Static Catering
By Passenger Class	First Class/Business Class, Economy Class
By Mode of Booking	Offline Booking, Online Booking
By Region	North America: U.S., Canada, Mexico
	Europe: France, U.K., Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Service Type (Mobile Catering and Static Catering): The mobile catering segment earned USD 10.04 billion in 2023 due to its flexibility in serving passengers directly at their seats, enhancing convenience and accessibility. It is particularly favored for long-distance and high-speed trains, where in-seat meal delivery is preferred over visiting dining cars.
• By Passenger Class (First Class/Business Class and Economy Class): The economy class segment held a share of 58.28% in 2023, attributed to the large passenger volume. This demand is largely fueled by cost-conscious travelerspreferring affordable, pre-packaged meal options.
• By Mode of Booking (Offline Booking and Online Booking): The offline booking segment is projected to reach USD 13.43 billion by 2031, propelled by continued reliance on traditional purchasing methods, particularly in developing regions. Many passengers continue to prefer onboard or station kiosk meal purchases due to limited digital access or last-minute decisions.

Onboard Rail Catering Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

Europe onboard rail catering market captured a share of around 37.32% in 2023, valued at USD 6.54 billion. This dominance is reinforced by the well-established and high-speed rail networks across countries such as Germany, France, the UK, and Spain.

The presence of premium rail operators such as Eurostar, Deutsche Bahn, SNCF, and Trenitalia has fueled the demand for high-quality onboard catering services, including gourmet meals, regional cuisines, and sustainable food options.

The increasing adoption of digital meal ordering systems, contactless payment solutions, and AI-driven menu customization is further enhancing the onboard dining experience.

High-speed rail expansion, government support for railway modernization, and growing passenger expectations for premium, health-conscious, and customizable meal options are key factors propelling regional market growth.

Asia Pacific onboard rail catering industry is set to grow at a CAGR of 5.03% over the forecast period. This is due to the expansion of high-speed rail networks in China, Japan, and India. China's extensive high-speed rail system has created a strong demand for mobile catering services, with digital meal ordering gaining widespread adoption.

Leading railway operators are partnering with technology firms to streamline ordering processes and enhance passenger convenience. In India, the Indian Railway Catering and Tourism Corporation (IRCTC) is upgrading onboard food services by integrating app-based pre-ordering and meal customization.

• For instance, in September 2024, Zomato partnered with IRCTC to deliver food at 100 railway stations, highlighting the growing integration of online food services in onboard rail catering. This effort enhances passenger convenience, expands meal choices, and aligns with the trend of digital pre-ordering in railway food services.

Regulatory Frameworks

• In the U.S., the Food and Drug Administration (FDA) regulates the onboard rail catering, overseeing inspections of trains, aircraft, buses, and passenger vessels, and their support facilities.
• In India, the onboard rail catering market is regulated by the Indian Railway Catering and Tourism Corporation (IRCTC), a public sector entity under the Ministry of Railways. IRCTC holds exclusive rights to onboard catering services across all Indian Railways trains, including pantry car operations on long-distance routes and food services at railway stations.

Competitive Landscape

The onboard rail catering industry comprises established corporations and emerging players. Leading companies are driving innovation by integrating digital solutions, AI-powered analytics, and mobile ordering systems to enhance operational efficiency and passenger experience.

Catering to a wide range of service segments, including quick-service snack bars and full-service dining, the market is fueling advancements in automation, food safety, and seamless payment processing.

As demand surges, businesses are expanding regionally by tailoring offerings to local rail networks while scaling globally. Strategic collaborations, product diversification, and continuous technological enhancements remain pivotal to maintaining a competitive edge in this evolving industry.

List of Key Companies in Onboard Rail Catering Market:

• National Railroad Passenger Corporation
• GWR
• Deutsche Bahn AG
• Newrest Group Services SAS
• Swiss Federal Railways
• Gruppo FS Italiane
• Eurostar International Ltd.
• Select Service Partner UK Limited
• Cremonini S.p.A
• servair

Recent Developments (M&A)

• In October 2024, Ixigo acquired a 51% stake in Zoop, marking its entry into the train food delivery business to capitalize on the rapidly growing the market and enhance service for Indian Railways passengers.