In a remarkable shift, delivery has emerged as the leading channel in Asia Pacific’s foodservice market, skyrocketing from 10% in 2019 to a projected 23% by 2024, according to the latest insights from Euromonitor International. This evolution is part of a larger trend, with the region now accounting for a staggering 40% of global foodservice sales and poised to grow at an impressive 6% compound annual growth rate (CAGR) through 2029.
Globally, the appetite for delivery services has also doubled, constituting 21% of the market in 2024, up from just 9% in 2019. Even against a backdrop of inflation and economic uncertainty, the global foodservice sector expanded by 5.5% in 2024, reaching a hefty $3.2 trillion. Asia Pacific contributed significantly, hitting $1.3 trillion— a 6% increase from 2023 and surpassing pre-pandemic levels.
“Inflation and economic uncertainty weigh heavily on consumers,” remarked Rocio Franco, senior consultant at Euromonitor International. “While transaction levels have rebounded to pre-pandemic figures, signaling robust demand within the industry, consumers are increasingly selective, opting for budget-friendly dining choices.”
Looking ahead, delivery is expected to climb to 26% of Asia Pacific’s foodservice market by 2029, while traditional dine-in options will likely plateau at 64%. The surge is largely fueled by third-party delivery apps that entice customers with aggressive discounts, loyalty incentives, and waived service fees, driving order frequency through the roof. Limited-service restaurants are also thriving, catering to price-sensitive consumers with smaller, more affordable menu items.
“For restaurant operators, the challenge lies not only in competitive pricing but also in creating memorable experiences, embracing digital strategy, and fostering brand loyalty,” Franco added, shedding light on the new rules for thriving in this dynamic market.
Among the standout segments, specialist coffee and tea shops experienced an impressive 13% growth in 2024, totaling $39 billion in the Asia Pacific region. Seen as affordable luxuries, these establishments are rapidly proliferating, particularly in cities like Singapore, as they expand their offerings and footprint.
What is the current market share of delivery services in Asia Pacific’s foodservice sector?
Delivery services have surged to account for 23% of Asia Pacific’s foodservice market in 2024, a significant increase from just 10% in 2019.
How has the global foodservice market performed in the face of economic uncertainties?
Despite inflation and economic challenges, the global foodservice industry grew by 5.5% in 2024, reaching $3.2 trillion, with Asia Pacific seeing a robust growth to $1.3 trillion.
What strategies should restaurant operators consider to remain competitive?
Operators are encouraged to focus on providing value beyond just price, enhancing customer experiences, harnessing digital tools, and cultivating brand loyalty to thrive in the current market landscape.
