Home delivery ‘instrumental’ in driving Australian foodservice market growth through 2025, report says
QSRs remained the most popular foodservice channel in 2020.
The growth in home deliveries is likely to be instrumental in driving growth in Australia’s foodservice sector in the next few years, according to a new report from data and analytics company GlobalData.
The country’s sector is expected to reach $88.7 billion (US$65.7bn) in 2025 from $57 billion (US$39.6bn) in 2020 at a compound annual growth rate (CAGR) of 9.3%.
GlobalData cited growing demand for convenience, owed to busy lifestyles of consumers and an increasing number of transactions will drive the industry’s growth.
The company’s report, ‘Australia – The Future of Foodservice to 2025’, also reveals that the quick service restaurant (QSR) segment remained the most popular foodservice profit sector channel in 2020, garnering around 45% of the market share, attributed to its “convenience and value for money attributes and safe delivery services.”
QSRs were the only channel to record growth amongst all foodservice channels GlobalData noted, albeit at a moderate CAGR of 1.4%. The QSR channel also led the industry growth in terms of the number of outlets in 2020.
“The declining performance of the Australian foodservice profit sector was mainly due to [the] decreasing number of transactions. Home deliveries and takeaways performed significantly in 2020, leading to a surge in businesses for food-delivery provider[s],” GlobalData consumer analyst Bijayalaxmee Pradhan said.
“During the forecast period, operators will depend more on deliveries to reduce their real estate expenses, leading to the emergence of new formats (such as the virtual kitchen) in the country. QSR operators are investing in virtual or dark kitchens to provide a variety of cuisines to consumers and gain from online food ordering,” she added.
