Asia/Pacific to Drive Global Foodservice Revenue Growth Through 2024

The Asia/Pacific region, led by China, is expected to account for 64% of global foodservice revenue gains through 2024, according to a new Freedonia Group analysis. Despite temporary slowdowns due to the COVID-19 pandemic, major Asia/Pacific markets like China, Japan, and South Korea, appear to have brought the virus under control for the most part, allowing foodservice activities to resume, albeit with restrictions that could become the new normal in markets worldwide.

Global Foodservice, a new study from The Freedonia Group, examines these and other major trends affecting the $3.7 trillion global foodservice industry.

Also see the blog 4 Ways COVID-19 Is Impacting the Global Foodservice Industry.

Developing Asia/Pacific markets represent key drivers of global growth

Foodservice markets are rapidly expanding in large developing countries such as China, India, and Indonesia, where rising incomes and Westernizing dining customs are driving new demand for foodservice. In particular, these trends support strong growth opportunities for limited-service, as global chains – including KFC, McDonald’s, Pizza Hut, Starbucks, and Taco Bell – continue to target the region for expansion.

The dominant China market will account for the majority of regional gains as rising consumer incomes support continued robust growth in all segments and major international brands continue to expand their presence in the country. In addition, increasing investment in automated foodservice technologies and online food delivery infrastructure like cloud kitchens will help boost revenues.

Regional gains aided by healthy growth in mature markets

Regional revenue growth will also be supported by healthy (if more moderate) advances in mature markets such as Australia and Japan. Although the greatest absolute gains will come from the large but slow-growing full-service dining segment, more innovative areas are growing most quickly. Opportunities exist in investments that expand the use of self-service kiosks, vending machines, and food delivery robots in China, Japan, and South Korea.

Looking for more?

Global Foodservice is now available from The Freedonia Group. This study analyzes global foodservice revenues by region, major national market, and foodservice outlet (i.e., full-service restaurants; fast food and fast casual establishments; other eating and drinking places such as bakeries and coffee shops; and other foodservice outlets including catering, hotel, retail, and sports venue foodservice).