June 8, 2023
(press release)
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The Philippines’ foodservice profit sector is set to grow at a compound annual growth rate (CAGR) of 13.7% from PHP568.8 billion ($10.4 billion) in 2022 to PHP1,080.8 billion ($18.7 billion) in 2027, predicts GlobalData, a leading data and analytics company. GlobalData’s report, ‘Philippines – The Future of Foodservice to 2027’,” reveals that the quick-service restaurant (QSR) was the largest channel in the country, accounting for 55.8% of its total value sales in 2022. The channel has remained popular among consumers because of its convenience, value-for-money offerings, and secure delivery services. Following the onset of the pandemic, QSR operators offered a wide range of food options through quick delivery, take-away, and drive-thru services. The foodservice profit sector revenue in the Philippines declined at a negative CAGR of 6.3% during 2017–22, led by a reduced number of transactions and outlets. Pub, club & bar, and workplace channels were hit hard by forced closures and operational restrictions during 2020 and 2021. Savitha Kruttiventi, Consumer Analyst at GlobalData, comments: “The COVID-19 pandemic sparked a significant shift in consumer behavior, as people have become increasingly health conscious and are demanding products that promote well-being. Simultaneously, the economic uncertainty resulting from high inflation and unemployment has led consumers to seek out value-for-money options. Hence, operators focused on offering healthy menu options to consumers and also attracted them through various promotional activities and loyalty programs.” All channels recorded a decline in their value sales during 2017–22, amid the economic uncertainties hampering consumer spending in the profit sector. The pub, club & bar channel registered the sharpest decline in value sales, at a negative CAGR of 15.3%, as restrictions on operational hours and occupancy led to reduced customer inflow. The workplace and leisure channels recorded declines of 15% and 13.8%, respectively. GlobalData forecasts all profit sector channels in the Philippines to register growth and see an increase in outlet count through 2027 in line with the country’s rebound in consumer confidence and growth of tourism activity. Chain operators will grow at a higher rate compared to independent operators across restaurant channels. Savitha concludes: “With the rebound of tourism activity, the foodservice profit sector is expected to witness significant growth in value sales through 2027. Furthermore, an increasing inclination towards healthy and nutritious food options made with fresh and natural ingredients will be on the rise in channels such as QSR and full-service restaurant (FSR). As a result, operators in the country need to respond by adapting their strategies, such as introducing healthier products or menu items at discounted prices, to cater to the needs of consumers who seek affordable, yet nutritious choices.”
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