Outlet digitalization fuels Philippines’ foodservice growth

Consumers will experiment with different dining options as economy recovers.

The Philippines’ foodservice profit sector is projected to recover at a compound annual growth rate (CAGR) of 11.6% from $10.8b (₱578.1b) in 2020 to $18.5b (₱1t) in 2025, as the industry is likely to witness a growing shift towards outlet digitalization, according to a report from GlobalData.

Quick service restaurant (QSR) channel remained the largest foodservice profit sector channel. At a moderate downward CAGR of 1.7%, the channel was more resilient compared to other major channels, largely supported by the established presence of online deliveries and takeaways prior to the lockdown.

Meanwhile, the travel channel recorded the sharpest drop at a CAGR of 9.1% during 2015-2020. However, all foodservice channels are projected to register growth during 2020-2025, the highest being in ice cream parlours due to growing product innovations.

All foodservice sector channels are expected to experience outlet and transaction growth during the forecast period, and both large and mid-sized players are focussing on attracting transactions by offering comfort and convenience to consumers.

“As the economy recovers, consumers will experiment with different dining options as per their convenience. Operators are further expected to focus on food safety, hygiene and sanitization practices to attract health and safety-oriented customers,” GlobalData’s Consumer Analyst Bijayalaxmee Pradhan commented.