Overall, the foodservice industry's revenues have risen in recent years, a positive change after the massive drop caused by pandemic restrictions and economic challenges.
In 2023, revenues grew 12 percent, reaching over USD $1,210 billion. By 2024, APAC's consumer foodservice had surpassed pre-COVID levels, reaching USD $1,300 billion.
Although consumer food service has risen dramatically, restaurant dining is not expected to return to pre-pandemic levels until 2028. Eat-in sharing similar struggles is expected to return to 67 percent of pre-pandemic levels in 2028.
"From 2018 to 2023, the Asia-Pacific consumer foodservice market shrank by 1 percent CAGR growth," said Emil Fazira, food insight manager at Euromonitor International.
"Besides improving their point of sale and order fulfilment methods, foodservice operators also enhanced the perceived value of dining out, with full menus and a range of options at different price points."
This is partly attributed to rising costs, with consumers avoiding dining in and opting for delivery.
During the pandemic in Hong Kong, delivery services accounted for 10 to 20 percent of the overall business. With gradual recovery from lockdown restrictions, restaurants are compensating for the loss of demand for delivery.
Coffee and tea shops have also boomed, with global chains entering APAC and expanding rapidly. Southeast Asia accounts for USD $4.4 billion of this growth and is set to grow 8 percent between 2023 and 2028.
In Singapore, China's Luckin Coffee has expanded by more than 20 outlets in less than a year. Other popular coffee shops such as Tim Hortons, Compose Coffee, and Kopi Kenangan have also had similar success.
"To thrive in the long term, regional coffee shops must have strong investor funding and launch innovations while constantly ensuring taste acceptability with affordable pricing to appeal to local consumers," said Nathanael Lim, beverage insight manager at Euromonitor International.
"They must expand further into new channels such as vending, drive-thru and subscription services."
Although the growth of the food service industry is expected to rise, brands must continue to navigate the ever-changing challenges within the market to continue with this positive change.
To read more global news, click here.
