SINGAPORE | Delivery leads the consumer foodservice market in Asia Pacific, making 23 percent from 10 percent in 2019.
Euromonitor International’s World Market for Consumer Foodservice 2025 report highlighted that this is driven by robust growth in the Asia Pacific region, which contributed to 40 percent of global foodservice sales, with a 6 percent forecast value Compound Annual Growth Rate (CAGR) for 2029.
Globally, delivery makes up 21 percent of the global consumer foodservice market in 2024, up from 9 percent in 2019.
Despite economic uncertainties, the global consumer foodservice industry experienced growth in 2024, reaching a total market value of USD 3.2 trillion, a 5.5 percent increase from 2023. This indicated a continued path to recovery and growth opportunities.
The Asia Pacific foodservice industry reached a total market value of USD 1.3 trillion in 2024, a 6 percent increase from 2023, surpassing pre-COVID levels last year.
“Inflation and economic uncertainty remain major concerns for consumers. Despite global transactions recovering to pre-pandemic levels, indicating strong demand in the industry, consumers are still cutting back on spending and opting for more affordable options," said Rocio Franco, senior consultant at Euromonitor International.
Delivery is projected to account for 26 percent of Asia Pacific’s foodservice market by 2029, while eat-in is expected to see its share stagnate at 64 percent.
Offering convenience and value, third-party players have amplified this with aggressive discount competition and increased loyalty programme subscriptions, often removing delivery or service charges to enhance order frequency.
Limited-service restaurants are also experiencing a boom, appealing to cost-conscious diners as they offer a flexible range of products. By strategising on ‘snackification’ with options ranging from smaller-sized, budget-friendly products to more premium choices, this strikes a balance between value and quality for consumers.
“To retain customers, restaurant operators must strategise to offer value beyond price, focusing on enhancing experiences, embracing digitalisation, and building brand loyalty.”
Drink-related foodservice categories are booming in the Asia Pacific, with specialist coffee and tea outlets experiencing the highest growth at 13 percent in 2024, reaching a value of USD 39 billion.
Such products have become a popular “everyday luxury” in a cost-conscious environment, as they offer consumers an affordable indulgence and a way to socialise.
Driven by strategic initiatives such as expanding product offerings and increasing store counts domestically and internationally, such specialist coffee and tea operators are seeing significant growth in countries including Singapore.
The rapid expansion and competitive pricing of such operators have solidified their presence in Asia and beyond, intensifying the battle for growth opportunities and market dominance even with global rivals.
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