APAC Foodservice Spending Surpasses Pre-Covid Levels in 2024

Monday, April 8th, 2024

While consumer foodservice value nears pre-pandemic levels in 2024, dining-in at restaurants will not return to pre-pandemic level until 2028 in Asia-Pacific, according to a Euromonitor expert.

After a disappointing 2022, when consumer foodservice was badly hit by stringent restrictions and economic challenges, its revenues grew 12 percent to surpass USD 1,210 billion in 2023. In transaction volumes, the market experienced 10 percent growth in 2023, outpacing the rate of new outlets opening, which remained at three percent growth.

However, it showed a slower increase in retail value sales per transaction by one percent growth, indicating that order sizes were not growing significantly despite more consumption throughout foodservice in 2023.

Euromonitor expected APAC consumer foodservice spending figures to be back to pre-Covid levels in 2024, both in foodservice value and transaction volumes.

Regular Dining Out Off the Menu for Cost-Conscious Consumers until 2028
Home delivery will continue to capture more share in the coming years due to continuous improvements in convenience and service while takeaway is already losing some of its gains after the pandemic.

The rapid growth of third-party delivery apps is also encouraging more consumers to have food delivered to enjoy a meal at home.

By 2028, delivery is expected to account for 23 percent of Asia-Pacific sales, compared to 21 percent in 2023. The share of eat-in is expected to stick at around 60 percent, with 66 percent in 2023 and 67 percent in 2028. The total percentage of eat-in spending in 2019 was 76 percent before the Covid-19 pandemic.

“From 2018-2023, the Asia-Pacific consumer foodservice market shrank by one percent CAGR growth. Losses made during the pandemic, from extended restrictions and economic challenges and the volatility of the industry’s supply chain and demand, overpowered growth experienced in 2018 and 2019,” said Emil Fazira, Food Insight Manager in Asia 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 with a range of options at different price points,” Fazira added.