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What’s in store for Australia’s nearly $50b foodservice market?
Key market growth factors are changing consumer behaviour and demand for convenience.
The Australian foodservice market size is expected to increase by $47.14b (US$30.45b), at a CAGR of 11.6% between 2024 and 2028, a report by Technavio revealed.
The growth in the foodservice market is driven by evolving consumer preferences and advancements in food preparation, handling, cooking, storing, and delivering. The report identified that the key growth factors are Australia’s changing lifestyles and an increasing demand for convenient food options.
Additionally, consumers are increasingly opting for gluten-free fast foods, reflecting a shift towards healthier eating habits. Furthermore, the growing preference for home-cooked meals has led to a swell in demand for meal kit services and ready-to-cook food offerings.
Restaurants, cafes, and bars continue to adapt to these trends, implementing innovative solutions to meet consumer demands. For instance, restaurants are investing in advanced cooking equipment and technology to streamline operations and improve food quality.
Notably, KFC and Oliver’s have made investments in AI to help streamline drive-thru operations. Oliver’s is also mulling to incorporate its AI assistant, Ollie, in its kiosks, depending on the results of its trial.
Meanwhile, cafes and bars are focusing on offering unique experiences, such as customisable menus and sustainable sourcing, to differentiate themselves.
However, the report said foodservice industry faces challenges such as food safety concerns, increasing labor costs, and the need for efficient supply chain management.
