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The Channel market value (OSP) of the foodservice industry in Malaysia (2020 - 2028, USD million)

Industry: Foodservice
Current: Market Sizing & Shares

The Channel market value (OSP) of the foodservice industry in Malaysia reached USD 21,541.63 million in 2023
The indicator recorded a historical growth (CAGR) of 12% between 2020 to 2023 and is expected to grow by ...
GlobalData projects the indicator to grow ...

The Channel market value (OSP) of the foodservice industry in Malaysia (2020 - 2028, USD million)

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Malaysia foodservice market analysis

Malaysia's foodservice profit sector declined in value sales during 2015 –2020. The closure of restaurants, cafés, bars due to the implementation of an intense lockdown in 2020 led to a fall of sales during 2020, but the growth of transactions via takeaways, delivery services, and drive-thru softened the impact of the pandemic. The profit sector in the Malaysia foodservice market is forecast to recover strongly by recording growth at double-digit CAGR during 2020 –2025 and the growth will be driven by an increasing amount of transactions. Both sales and the number of transactions are expected to grow during 2020 –2025, as the economy is expected to recover from the COVID -19 pandemic. Increasing takeaways and rising demand for dining out will drive the profit sector growth in Malaysia in the coming years. The rising demand for convenience and increasingly busy lifestyles of consumers have increased the demand for virtual restaurants in the country and the food delivery partners like GrabFood and Foodpanda are growing amid the growing demand for deliveries/takeaways from consumers.

Quick service restaurants: The QSR channel generated revenue declined marginally during 2015–2020 owing to lockdown restrictions during 2020. The modest decline of the channel was supported by its value for money and convenient nature, as during the pandemic, consumers opted for convenient and affordable food options. Delivery and takeaway recorded strong growth during 2015–2020 and are further expected to record significant growth during 2020–2025 depicting the convenience-driven nature of consumers.

Full-service restaurants: FSR is the largest foodservice channel in Malaysia, recorded sales decline between 2015 and 2020, with takeaways and delivery services alleviating the adverse impact of the pandemic and the lockdown. Home delivery and takeaway are expected to grow in the FSR channel owing to the rising demand for convenience among consumers. Operators need to invest in delivery services and offer online ordering services to consumers in addition to fine dining post-pandemic as well.

Coffee & tea shop: Malaysia's coffee & tea shop market is a relatively small part of the country's profit sector, although the country has a long-standing tea culture. The coffee & tea shop channel is the country’s sixth-largest channel in terms of sales value. The coffee & tea shop channel offers limited food offerings along with drinks, keeping it separate from mainstream food outlets. Therefore, coffee shops in Malaysia need to add more food options to make them viable eatery options for consumers, with consumers having meals and enjoying a casual ambience.

Channel future growth highlights

The foodservice profit sector is forecast to grow during 2020–2025, driven mainly by the growth in the number of transactions across all channels. The number of transactions will grow the fastest in the travel channel, during 2020–2025, followed by the ice cream parlor and accommodation channels. The FSR channel will continue to lead the profit sector, owing to the channel’s offering of higher quality food and drinks options with superior ambience. Outlet growth will be the fastest in the ice cream parlor channel during 2020–2025, due to the rising popularity and success of the channel. QSR is expected to remain the second-largest channel in the Malaysian foodservice industry.

Operator selling prices (OSP) represent the amount that the consumer spends on food and drinks in foodservice channels, once the foodservice operator has added on any fees and levies, and their margin. This is often known as “retail sales equivalent” and represents the end value of the foodservice market.