Uncovering top 3 growth trends in foodservice

| by Stephen Dutton
Uncovering top 3 growth trends in foodservice

Euromonitor International recently published a new edition of global consumer foodservice data, which offers a picture of global demand, key drivers and trends and forecast expectations through 2022. Below are key growth trends in the global consumer foodservice industry.  

1. Transactions expected to outpace global value growth
By all indicators, foodservice growth remained positive in 2017, with continued growth expected through 2022, according to Euromonitor International. While consumer spending is growing, the way consumers spend into foodservice is changing. When looking at the data in constant value terms to remove the effects of inflation, overall transactions growth consistently outpaces value sales, which means the average spend per transaction is expected to fall through 2022, according to Euromonitor. More consumers are spending into foodservice more frequently but often they are spending into less expensive categories. 

This is the case in most world regions, but especially in Asia Pacific, which is important since the region contributes the most to global sales growth. This shift is due in part to growing competition from local chains in countries like China. Local chains increasingly serve as a cheaper alternative to the more premium-priced multinational chains in quick-service categories. Additionally, the quality of offerings at less expensive formats in all world regions is improving, making it easier for consumers to trade down. This means that consumers no longer need to spend at pricey restaurants to guarantee an acceptable level of quality. That, coupled with convenience and affordability, has helped fuel sales in quick-service categories and in foodservice in general.
2. Global delivery sales grew 17 percent in 2017 
Delivery sales grew faster than any other dining occasion, drastically outpacing sales in eat-in, takeaway and drive-through occasions. Apart from the Netherlands where delivery grew a remarkable 43 percent, delivery grew fastest in the largest emerging markets of Russia, China, South Africa, India and Brazil, respectively, according to Euromonitor. At US$43 billion, the largest market by total value sales remains China with the US remaining a more distant second, according to Euromonitor. Delivery sales are accelerating as services get better and become more widespread. Consumers no longer need to sacrifice quality for convenience and can get restaurant quality meals delivered with the simple touch of a button.

With improved logistics and mobile technology, third-party players are driving growth by not only allowing more restaurants to participate but also by connecting more of these restaurants to more consumers. Delivery sales in the full-service restaurant category grew faster than any other foodservice category except street stalls and kiosks, where delivery sales grew rapidly but from a smaller base. 

3. Street stalls/kioskswasthe top performing foodservice category in 2017
Chains make up just 11 percent of total value sales in the street stalls/kiosks category, but chained concepts, specifically, grew 17 percent by value in 2017, which was faster than any other single foodservice segment globally, according to Euromonitor. Clear standouts in the category this year were Asia Pacific-based bubble tea chains led by Taiwan-based Yiddtea (Shenggen Enterprise Co Ltd) and China’s HEYTEA (Shenzhen Meixixi Food & Beverage Management Co Ltd). Yiddtea, in particular, grew from just 300 outlets in 2012, to over 3,500 in 2017 to become the world’s largest chain of street stalls/kiosks.

Chain-tea concepts in Asia Pacific have had a direct impact on the category’s positive performance overall, but consumers, in general, are increasingly drawn to the relative informality and on-the-go nature of these dining occasions. Street stalls and kiosks, as a category, captures everything from the street stalls of traditional food markets and hawker centers, to modern food halls and even food trucks. 

Topics: Food Trucks, Trends / Statistics

Stephen Dutton

As a Consumer Foodservice Analyst at Euromonitor, Stephen Dutton analyses the global foodservice industry, providing insight on key trends and markets, competitive landscape and growth opportunities to help companies make informed business decisions.

wwwView Stephen Dutton's profile on LinkedIn

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