Philippines Foodservice Market - Growth, Trends, and Forecasts (2023 - 2028)

Philippines Foodservice Market - Growth, Trends, and Forecasts (2023 - 2028)

The Philippines foodservice market is valued at USD 10.37 billion in the current year and is expected to witness a CAGR of 7.83% in the next five years.

As the country's economy and supply chain is on the path to recovery, the foodservice industry has recovered in terms of demand. 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.

The increasing consumer preference for convenient, on-the-go food options has become another primary market driving factor. The changing food consumption patterns and the increasing influence of international cuisines on food consumption are prompting consumers to spend on various types of international cuisine-based foodservice restaurants.

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

Online food delivery service providers rely on social media promotional campaigns as their primary marketing strategy. They use social media platforms to run their service promotions and campaigns. These platforms increase consumer engagement and create brand awareness. The growing digital platforms and consumer engagement on social media platforms are key factors that will positively impact the online food delivery services market across the country. One-third of all meals consumed by Filipinos in 2021 were ordered from restaurants, while two-thirds were home-cooked. 50% of customers decide what they want to eat based on what they see on the app. Also, subscriptions to food delivery aggregators, like Grab Food and Food Panda, increased by 61% in 2020. Thus, with the growing number of online food service platforms and partnerships of restaurants with food delivery service providers, the food service market across the country is expected to grow at a fast pace.

Filipino food has been evolving. The influx of foreign cuisines has been compelling homegrown Filipino restaurants to raise not only their food quality and dining experience but also their recipes and presentation. For example, some Filipino restaurants serve fried chicken using the same caramel breading used by BonChon. New cooking techniques like sous-viding, smoking, and foam are also finding their way into local dishes.

In the Philippines, locals and foreigners are embracing Japanese food. Options range from luxury to fast food and street food, from franchised to homegrown, from traditional to progressive, from meals in a box to “conveyor-belt” sushi restaurants, and from hundred-set meal combinations to a la carte dishes. Chinese Filipino cuisine includes many types of food as part of Filipino cuisine in the Philippines because of the contribution of Chinese Filipino residents over centuries and generations. Many Chinese Filipinos have businesses involving Chinese cuisine. The Chinese restaurants in the country are also frequently seen serving Chinese Filipino cuisine; many have been established by Chinese Filipino restaurateurs.

This blend in cultures has increased the demand for food from around the world in the Philippines, which is expected to drive the market studied during the forecast period.

The Philippines foodservice market is highly competitive. Most of the market is held by some 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 online ordering as their key strategies to achieve consolidation and optimize their offerings. For instance, Foodpanda announced its expansion into more cities in the Philippines, solidifying the brand’s position as the biggest online food and grocery delivery service in the country. The key brands are embarking on mergers and acquisitions and new types of customer-friendly services with the latest technologies as key strategies to achieve consolidation. ​

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