13 May 2020
Posted in Consumer
New Zealand’s foodservice profit sector to be worth US$9.3bn in 2023, forecasts GlobalData
New Zealand’s foodservice profit sector is poised to grow at a compound annual growth rate (CAGR) of 1.1% from NZ$11.4bn (US$8.4bn) in 2018 to NZ$12.1bn (US$9.3bn) in 2023, according to GlobalData, a leading data and analytics company.
GlobalData’s report, ‘New Zealand – The Future of Foodservice to 2023’, reveals that full service restaurant (FSR) was by far the largest foodservice profit sector channel, cornering a third of the total sector sales in 2018. On the other hand, the mobile operator channel led the profit sector in terms of revenue growth during 2016-2018 with the channel benefiting from increasing desire for ‘ultra-convenience’ among consumers.
The report also states that profit sector sales growth is forecast to be driven mainly by increasing transactions, as opposed to outlet growth. Foodservice transactions in the sector are forecast to record a CAGR of 0.8% during 2018-2023. Meanwhile, outlet growth is forecast to grow at a CAGR of 0.6% during the same period.
Tanumoy Chattopadhyay, Consumer Analyst at GlobalData, says: “Growth in the foodservice profit sector parallel to economic improvement highlights the success operators have had in reacting reasonably to fluctuating desires for healthier options, whilst maintaining focus on the convenience and low prices, which make the channel so competitive in New Zealand.”
Takeaway is expected to outpace growth in dine-in over the forecast period. This largely reflects changing preferences of increasingly busy and connected consumers in the country and growing number of delivery apps and services.
Chattopadhyay concludes: “Foodservice sector in New Zealand has seen continuous improvement over the past couple of years due to the strong purchasing power of the consumers. Rising takeaways and growing popularity of casual dining formats will stand out as some of the key highlights of the sector over the next five years.”