Asia Pacific Food Service Market is anticipated to grow from USD 801.42 billion in 2024 to USD 1,908.59 billion by 2032 to develop a stunning growth rate of 11.46% throughout the forecast period 2024 to 2032.
The Asia Pacific food service market is quickly expanding owing to the increasing investments by prominent chain operations like Starbucks, Domino’s and McDonald’s. The regional industry is also growing due to the rising application of technological advancements. For instance, Uber Eats in Tokyo (Japan) launched a self-driving robot delivery service under its new initiative to enhance service productivity considering the constant labour scarcity. Moreover, the Asian food service profit industry growth will also be credited to the continuous rise of regional chain players to other nations to lower their risks because of the unstable macroeconomic situations. In addition, according to market experts, while customer food service value approaches pre-COVID-19 levels in 2024, however dining-in at restaurants won’t reach pre-pandemic performance until 2032 in APAC region.
The Asia Pacific food service market is driven by the trend of providing convenience food and services to customers, increased use of digital technologies,
Rapid urbanization and changing lifestyles. Moreover, the shift to plant-based foods is also propelling the regional industry. In 2024, this strong pattern is accelerating and is influenced by a growing focus on sustainability and the consumption of healthier food options. Technology integration is another factor contributing to the expansion of the regional market. One of the major developments in technology integration in this industry is the advent of AI-driven products and robots to solve the problem of labour shortages. In addition, as urbanization speeds up throughout the Asia Pacific nations the standards of living are evolving which results in the increased demand for handy and varied dining choices. The urban population, particularly millennials and the working class, want swift, different and on-the-go food services owing to time limitations. This consumption pattern has elevated the demand for food delivery platforms, quick-service restaurants and ready-to-eat food ranges, fulfilling the needs of the fast-moving urban lifestyle.
Labour scarcity is one of the main obstacles restricting the growth of the Asia Pacific food service market. For instance, around 51 per cent of Japanese companies have reported that they are struggling to get sufficient manpower, as per a survey. Also, 57 per cent of restaurants stated the shortage of full-time employees. Moreover, High-cost investment in advanced infrastructure also remains a major challenge for food chain operators. With the increasing number of fast food chains, organized food unions and food outlets, the pressure on the hotel industry has increased due to quality and service. Besides this, the supply chain interruptions and delays coupled with increasing food prices are also hindering the regional market growth.
The Asia Pacific food service market exhibits tremendous opportunities propelled by various factors. This comprises the area's rapid urbanization, rising middle-class population and evolving consumer preferences. In addition, emerging countries in the region present a favourable environment for expansion, registering an increase in consumption of different cuisines, quick-service restaurants and unique dining experiences. Furthermore, the growing integration of digital technologies, like online food delivery platforms and applications coupled with mobile ordering, shows potential for market players to move forward with the changing customer behaviour and choices.
The Asia Pacific food service market growth is facing challenges including time-consuming and complicated legal and regulatory requirements. Apart from this, economic slowdown and elevated inflation rate are further derailing the expansion of the regional market. Likewise, restaurants in New Zealand and Australia have been compelled to scale down as the world economy remains slow along with inflation which increases the living costs and other factors.
The quick service restaurants segment grabs the maximum portion of the Asia Pacific food service market and is expected to grow further during the forecast period. This can be attributed to their convenience, cheaper, and fast-moving service, adjusting well to the region's busy urban daily routines and developing consumer behaviour. Moreover, the QSR industry dynamics are changing due to sustainability, loyalty, inflation and digitalization. Also, these players provide fast, on-the-go food, serving a wide consumer base, and involving trained professionals, apprentices and families wanting swift yet satisfying eating experiences. Additionally, the QSR model's flexibility to integrate varied cuisines, along with the rapid growth of international companies, further strengthens its position as the biggest service type industry in the Asia-Pacific food service market.
Food junctions cafeterias/buffets are also a promising segment of the Asia Pacific food service market. This is because flourishing domestic players are giving a tough fight to international companies and brands by emphasising competitive prices, localization and functional productivity. Further, presently the penetration rate of this segment reveals a greater potential for expansion in the Philippines, Vietnam and Indonesia against matured industries like Singapore and Malaysia.
The educational premises segment is the biggest category of the Asia Pacific food service market. Food service chains for colleges are improving the eating experience on campuses by opening local restaurants. These assist community progress and launch different food items, serving different dietary demands and promoting inclusivity. Students love the easy availability of authentic, locally sourced foodstuffs, strengthening their college life and supporting domestic industry. Moreover, universities are offering tailor-made food initiates that depict the innovative culture of their establishment, using food as a medium for society building, cultural expression and a sense of belonging among students.
China dominated the food service market in Asia-Pacific with a share of 31.2 per cent due to the increase in the number of restaurants and the Western culture of cafes and salons. Also, China is the most substantial consumer and is determined to continue its maintenance over the calculated period due to the large population and the purchasing power of consumers. Leisure travel activities in China are growing considerably, leading to the expansion of the hotel industry.
Singapore is constantly growing with a 23.1% market share due to rising personal disposable income, increasing health awareness, time scarcity and lifestyle changes. Since it imports 90 per cent of its food in the coming years the industry will register further growth because the Singapore Food Agency in 2023 the new sources of mutton, eggs and live chicken from Spain, Turkey, and Indonesia, respectively. This will significantly boost the country’s market. Also, the increase in international players is accelerating the Singapore Industry. For instance, in February 2024, Nestlé Professional introduces a consumer engagement centre in Singapore. This will provide proficiency in food services, a comprehensive food & Beverage and hospitality portfolio along with providing industry knowledge.
On the other hand, India is the most opportunistic market with a compound annual rate of 9 per cent with the rise in catering applications like Swiggy, Zomato, etc. Recently, Swiggy has added nearly 5,000 restaurants with an estimated time of 30 minutes for delivery. As per industry experts, the Indian industry is anticipated to witness astonishing expansion during the forecast period. This upward trend is linked to the growing consumer base, expanding consumption patterns and a spike in the number of new eateries in the industry. Additionally, the surge in income levels, the increased pace of digitalisation, enhanced overall experience and the shift towards new cuisines have all contributed to the growth of the Indian market size.
Australia is expected to expand further during the forecast period for the Asia Pacific food service market. The demand for food service goods and solutions is high and depicts a big potential for New Zealand exporters. However, bear consumer confidence is dropping owing to elevated interest rates and the rising cost of living.
Key Players In Asia Pacific Food Service Market are Coffee Beanery, Coffee Day Enterprises, Tacos, Domino's Pizza, Doutor Coffee Shop, Ediya Coffee, Gloria Jean's Cafees, Jollibee Foods, J.CO DONUTS & CAFFEE, Krispy Kreme Donuts, Mad over Donuts, Monsieur Donut, MOS Food Services,M. Lee, specialty restaurants, Subway and Tully's Coffee.
Frequently Asked Questions
The Asia Pacific Food Service Market refers to the collective industry involved in providing food and beverages to consumers through various channels such as restaurants, cafes, fast food outlets, catering services, food trucks, and more.
Factors driving growth include changing consumer preferences, urbanization, rising disposable incomes, increasing demand for convenience, and the influence of globalization leading to a greater diversity of cuisines.
Challenges include intense competition, evolving consumer tastes, food safety and hygiene concerns, regulatory issues, rising costs (such as labor and rent), and the impact of events like natural disasters or pandemics.
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