Why the U.S. Healthcare Food Services Market Is Becoming a Strategic Pillar for Patient Care and ROI

The US Healthcare/Hospital Food Service Market is projected to reach USD 33.57 billion by 2029 from USD 19.84 billion in 2024, at a CAGR of 11.1% during the forecast period. The growing demands for patient-centered healthcare, increased focus on nutrition for recovery and compliance with dietary standards and regulations are some of the major drivers behind the growth of the US healthcare/hospital food service market. Hospitals are giving priority to high-quality and customized meal plans that may foster increased patient satisfaction and better health outcomes. The rise in chronic diseases, along with diabetes and cardiovascular conditions, has also increased awareness toward the use of specialized diet programs. Other accelerators have encompassed technological advancements, growth in food service management, sustainability efforts, and the usage of organic and locally grown ingredients.

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The prominent players in the US healthcare/hospital food service market are Compass Group PLC (UK), Sodexo (France), Aramark (US), Elior Group (France), ISS World (US), Healthcare Services Group (US) and Performance Food Group (US).

Chief among them the increased focus on patient-centered care and the need for nutritionally appropriate meals to help patients recover. There is increasing focus on quality, tailored meal plans that mirror individualized nutritional requirements, aimed at improving patient satisfaction and patient outcomes. The increased prevalence of chronic conditions such as diabetes, cardiovascular diseases, and obesity has further raised the need for diet programs specialized in low-sodium, diabetic, and heart-healthy fare. Food service management innovations like automated meal tracking systems, AI menu planning, and online ordering systems have optimized processes and improved efficiency. Sustainability initiatives like the shift to organic, locally grown ingredients and recycling programs are also gaining traction as hospitals seek to meet environmental goals while providing good-quality food. Furthermore, increased emphasis on food safety, infection prevention, and employee training in hospital kitchens also supports market growth, upholding health standards and food quality levels. These combined influences are profoundly impacting the development of the US healthcare/hospital food service industry.

Patient & Dining Services segment is expected to account for the largest share, by type in the US healthcare/hospital food services market during the forecast period.

The patient & dining services setting segment is the largest in the US healthcare/hospital food service market, because of their prime position in patient care, satisfaction, and recovery. Hospitals are focusing more on the quality, personalized meal service for optimal patient experience and respective nutritional requirements for quick recovery. The increasing incidence of chronic illnesses, including diabetes, cardiovascular disease, and obesity, has increased the need for specialized diet programs according to the health needs of each individual. The regulatory agencies like the Centers for Medicare & Medicaid Services (CMS) and The Joint Commission also require hospitals to have strict dietary standards, with the provision of nutritionally adequate meals to the patients. The adoption of new food service models, such as on-demand meal ordering, room service-type eating, and dietitian-prepared meal planning, has also propelled market growth by enhancing efficiency and patient satisfaction. In addition, food service automation investments, increased menu diversity, and the increasing demand for organic, locally sourced, and sustainable ingredients are transforming hospital dining experiences, solidifying the segment's leading market position.

Acute Care settings segment is expected to account for the largest share, by setting in the US healthcare/hospital food services market during the forecast period.

The acute care setting segment is the largest in the US healthcare/hospital food service market, fueled by high patient volumes, extended inpatient stays, and the critical nature of dietary management. Acute care facilities such as general hospitals, trauma centers, and specialty medical institutions serve patients with serious conditions, post-surgical recoveries, and critical illnesses, all of which necessitate regular, nutritionally optimized meal services. Furthermore, increased incidence of chronic diseases such as diabetes, cardiovascular disease, and obesity-related conditions has increased the demand for special diet programs such as low-sodium, low-sugar, and high-protein food. In a bid to enhance patient experience, many hospitals have implemented room service-type dining models and high-end food service management systems that enable more tailored meals. In addition, deep capital investments from large healthcare chains in cutting-edge food service technology, sustainability efforts, and alignments with local food suppliers also finance the acute care segment's leadership in the market.

Compass Group PLC (UK) accounted for the largest share of the US healthcare/hospital food service market in 2023. Compass Group is a giant in healthcare food service. They work with support service specialists in healthcare. The services include Morrison Healthcare, Morrison Living, Medirest, Unidine, and Crothall for patient and senior living, ranging from a restaurant-style cafe to in-room patient dining and specialist feeding. Crothall specializes in support service for healthcare clients and provides seven core support services: Environmental Services, Patient Transportation, Healthcare Technology Solutions, Facilities Management, Ambulatory Services, Laundry Services, and Sterile Processing Services. Morrison Healthcare is a member company of Compass Group North America, a major company in food and support services. Through Morrison Healthcare and Unidine, Compass Group provides healthcare food services. Morrison Healthcare got its start with a small restaurant in Mobile, Alabama, US. Morrisons cafeteria began taking contract foodservice orders in the 1950s, supplying hospitals, businesses, and education with food, nutrition, and dining services in the area. It was in 1990 that the company and educational divisions were sold, leaving Morrison with about 300 health care accounts across the US. The company emphasizes the provision of quality, value, and extraordinary patient experience through specialized services and protocols in more than 2,200 hospitals and health systems in 45 states in the US.

Sodexo (France) accounted for second largest share of the US healthcare/hospital food service market in 2023. A leading provider of integrated food, facilities management, healthcare equipment, technology management, employee benefits, and personal services. There are three business activities-on-site services, benefits and rewards, and personal services-include the components. The On-site Services division comprises the Business and Administration, Healthcare and Seniors, and Education functions. In addition to the provision of food services, the Healthcare and Seniors business segment has been involved in health care and senior services. Other professional services delivered to clients also include reception services, maintenance, cleaning, and management of the equipment.

Sodexo provides quality food services to companies, hospitals, schools, universities, and a range of other organizations. Its expertise also includes retail services, food delivery, meals, and food vouchers, as well as digital food ordering services and apps. The company offers three different styles of service: tray line, bedside host, and room service.

Sodexo is the world leader in quality-of-life services serving 80 million consumers at 27,000 sites in 45 countries. The company operates in North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

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Key Market Players:

The key players in the US healthcare/hospital food services market are Compass Group PLC (UK), Sodexo (France), Aramark (US), Elior Group (France), ISS World (US), Healthcare Services Group (US), Performance Food Group (US), AVI Foodsystems, Inc (US), Whitsons Culinary Group (US), Metz Culinary Management (US), The Nutrition Group (US), HHS (US), Culinary Services Group (US), Prince Food Systems (US) and Food Management Group, Inc. (US)

Compass Group PLC (UK) accounted for the largest share of the US healthcare/hospital food service market in 2023. Compass Group is a giant in healthcare food service. They work with support service specialists in healthcare. The services include Morrison Healthcare, Morrison Living, Medirest, Unidine, and Crothall for patient and senior living, ranging from a restaurant-style cafe to in-room patient dining and specialist feeding. Crothall specializes in support service for healthcare clients and provides seven core support services: Environmental Services, Patient Transportation, Healthcare Technology Solutions, Facilities Management, Ambulatory Services, Laundry Services, and Sterile Processing Services. Morrison Healthcare is a member company of Compass Group North America, a major company in food and support services. Through Morrison Healthcare and Unidine, Compass Group provides healthcare food services. Morrison Healthcare got its start with a small restaurant in Mobile, Alabama, US. Morrisons cafeteria began taking contract foodservice orders in the 1950s, supplying hospitals, businesses, and education with food, nutrition, and dining services in the area. It was in 1990 that the company and educational divisions were sold, leaving Morrison with about 300 health care accounts across the US. The company emphasizes the provision of quality, value, and extraordinary patient experience through specialized services and protocols in more than 2,200 hospitals and health systems in 45 states in the US.

Sodexo (France) accounted for second largest share of the US healthcare/hospital food service market in 2023. A leading provider of integrated food, facilities management, healthcare equipment, technology management, employee benefits, and personal services. There are three business activities-on-site services, benefits and rewards, and personal services-include the components. The On-site Services division comprises the Business and Administration, Healthcare and Seniors, and Education functions. In addition to the provision of food services, the Healthcare and Seniors business segment has been involved in health care and senior services. Other professional services delivered to clients also include reception services, maintenance, cleaning, and management of the equipment.

Sodexo provides quality food services to companies, hospitals, schools, universities, and a range of other organizations. Its expertise also includes retail services, food delivery, meals, and food vouchers, as well as digital food ordering services and apps. The company offers three different styles of service: tray line, bedside host, and room service.

Sodexo is the world leader in quality-of-life services serving 80 million consumers at 27,000 sites in 45 countries. The company operates in North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.