25 Jun 2021
Posted in Foodservice
Philippines foodservice profit sector to move further towards digitalization, says GlobalData
The Philippines’s foodservice profit sector is projected to recover strongly at a compound annual growth rate (CAGR) of 11.6% from ₱578.1bn (US$10.8bn) in 2020 to ₱1,002.3bn (US$18.5bn) in 2025. Convenience is the major factor of growth as the industry is likely to witness a growing shift towards outlet digitalization along with adoption of new formats such as cloud kitchens, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘The Philippines – The Future of Foodservice to 2025’, reveals that the quick service restaurant (QSR) channel remained the largest foodservice profit sector channel. At a moderate CAGR of -1.7%, the channel was more resilient compared to other major profit sector channels. The channel’s resilience was largely supported by the established presence of online deliveries and takeaways prior to the lockdown.
The travel channel recorded the sharpest decline at a CAGR of 9.1% during 2015–2020. However, as the consumer confidence returns, all foodservice channels are projected to register growth during 2020–2025, the highest being in ice cream parlors due to increased product innovations.
Bijayalaxmee Pradhan, Consumer Analyst at GlobalData, says: “A drastic drop in the consumer confidence played a key role in the decline in sales across different profit sector channels.”
GlobalData forecasts that all foodservice profit sector channels will experience outlet and transactions growth during the forecast period. Both large and mid-sized players are focusing on attracting transactions by offering comfort and convenience to consumers.
Ms Pradhan concludes: “Owing to a shift in consumer eating patterns during the pandemic, QSR operators are compelled to invest in digital platforms for better operational efficiency and online presence to meet the customer demand. The outlet digitalization will help popularizing new formats like cloud kitchens in the country.
“As the economy recovers, consumers will experiment with different dining options as per their convenience. Operators are further expected to focus on food safety, hygiene and sanitization practices to attract health and safety-oriented customers.”