Philippines Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Philippines Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Philippines foodservice market is expected to witness a CAGR of 4.67% during the forecast period, 2021 - 2026.

After the advent of COVID-19, the foodservice sector was majorly hit by the strict lockdown measures introduced in the Philippines to limit the spread of the virus. However, in June 2020, eateries in the capital Manila that can meet government safety protocols were allowed to reopen at 30% of their seating capacity, with strict hygiene and social distancing measures being a must. These measures were taken to improve the economy, which was foreseeing the downfall after the imposition of strict lockdown measures in the country.

The foodservice market in the Philippines is highly driven by the rise in value-conscious consumers willing to try new restaurants with a wide range of menu options, including interesting international and local cuisines, which also cater to increasingly busy lifestyles.

As per the data published by the United Nations, the average age of the population in the Philippines in 2015 was 24.1 years, and in 2020, it was expected to be 25.2 years. The majority of its population comprises millennials and they are known to be the biggest spenders. Due to this, most foodservice players focus on attracting this consumer group in the country. ​

Independent restaurants in the Philippines foodservice market are rapidly growing, which is expected to increase the number of foodservice establishments. The Philippines foodservice market has a strong preference for United States food chain brands. Chained restaurants are expanding their presence in developing countries like the Philippines to gain higher margins.​

Key Market TrendsStrategic Expansion in Online Foodservice Facilities, Home Delivery, and Take Away Services

The increase in internet penetration, quick access to smartphones, and simplified e-banking systems have resulted in more purchases through online channels. This has propelled several food chains in the Philippines to shift toward online portals to enhance online ordering by offering improved selection, convenience, transparency, and security to the customers.​

Online food delivery service providers rely on social media promotional campaigns as their main marketing strategy, where they use social media platforms to run their service promotions and campaigns. These platforms increase consumer engagement and create brand awareness. The growing digital platform and consumer engagement on social media platforms are some of the key factors that will have a positive impact on the online food delivery services market across the country. There have increasing developments in terms of online food service applications in the country, which is driving the market studied. Thus, with the growing number of online food service platforms and partnerships of restaurants with food delivery service providers, the foodservice market across the country is expected to grow at a faster pace.

Full-service Restaurants Hold the Major Share in the Philippines Market

On average, 20% of the food budget of a middle-income household would be spent on dining out, as per the study conducted by the Family Income and Expenditures Survey (FIES) of the National Statistics Office in 2017-18. ​

Therefore, most chained restaurants have a casual dining format to better identify with middle-income consumers. This segment is gaining popularity with the middle-aged demographic due to its affordable pricing, menu (which is better than what is offered by fast-food establishments), and overall dining experience. ​

Filipino customers perceive food as something to be savored and enjoyed and something that satisfies their need for indulgence. In response, manufacturers in full-service restaurants have developed strategies to provide more indulgent menu options in the form of more toppings, more flavors, and better ingredients.​ Therefore, this factor is driving the full-service restaurants in the country.

Competitive Landscape

The Philippines foodservice market is a highly competitive market. The majority of the share is held by some of the leading players, including McDonald's, Starbucks Corporation, and Jollibee Foods Corporation. ​

The key foodservice brands in the Philippines are embarking on market expansion and innovations in terms of online delivery of food service as some of their key strategies to achieve consolidation and optimize their offerings, respectively. For instance, the Indian online foodservice company Zomato has also made inroads in the Philippines for online food delivery.​

The key brands are embarking on mergers and acquisitions and new types of customer-friendly services infused with the latest technology as some of their key strategies to achieve consolidation. ​

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Jollibee Foods Corporation
Domino's Pizza Inc.
McDonald's Corporation
Starbucks Coffee Company
Yum! Brands RSC
Max's Kitchen Inc.
Chowing
Restaurant Brands International
Inspire Brands Inc.
MANG INASAL PHILIPPINES INC.

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