The Away-from-Home (AfH) market across Europe’s top five countries has reached €364B in value and is expanding at 8% annually, far outpacing retail which grows at only 3%. This makes AfH the single most dynamic driver of category expansion for food and beverage brands.

Foodservice chains are generating higher total shareholder returns, stronger valuations, and richer multiples than traditional F&B players, showing that investors clearly see greater growth potential in AfH operators.

AfH consumption is primarily driven by enjoyment (70%) and convenience (30%), with dining out consistently ranked as the top way consumers “treat themselves.” This behavior underlines the emotional and experiential value AfH provides compared to groceries.

Europe still lags behind the US in AfH penetration, where away-from-home already accounts for 58% of food consumption and continues to grow. This gap highlights the significant runway for long-term growth in Europe as consumer behaviors converge globally.

AfH operators are reshaping expectations by mastering digital engagement (apps, loyalty, gamification), rapid menu innovation (limited-time offers, trend-led creations), experience-focused design (crafted, premium environments), and social media virality that can turn ordinary outlets into global sensations.

Traditional engagement in AfH has been limited to shelf space, pricing, and promotions, but the real opportunity is in co-developing exclusive products, embedding brands into experiential activations, and using AfH venues as live testbeds for innovation.

Brands that embrace true partnerships with AfH operators gain access to new consumers, unique differentiation, powerful brand-building opportunities, and faster product innovation that can feed back into retail success.

The urgency to act is increasing as AfH players expand into retail, chained operators consolidate a previously fragmented market, and private equity creates multi-brand AfH groups. Brands that delay risk losing influence and even facing AfH operators as direct competitors on retail shelves.

Leading companies are already showing the way: PepsiCo has built high-impact collaborations such as the Doritos × German Doner Kebab limited edition and the Lay’s Kitchen pop-up at Disneyland Paris, both of which combined consumer excitement with retail tie-ins.

Winning in AfH requires a structured strategic approach: setting a clear vision for AfH’s role in growth, defining the unique value proposition for partners and consumers, building a solid business case that proves ROI, and establishing an operating model designed to scale beyond pilots.