/pexels
Philippines foodservice profit sector to grow by 17.5% through 2026
This could reach $20b from $9.2b in 2021.
The Philippines’ foodservice sector could rise at a compound annual growth rate of 17.5% to $20b in 2026 from $9.2b, GlobalData reported.
In its latest report, GlobalData found the sector’s revenue declined at a negative CAGR of 9.2% between 2016 and 2021 due to a drop in the number of transactions and outlets.
“Owing to the rise in inflation and unemployment, consumers’ purchasing power declined amid the pandemic. As a result, they curtailed their spending on eating out in casual and fine dining restaurants,” Anjali Singh, Consumer analyst at GlobalData, said.
“Furthermore, international tourism, which plays a key role in driving restaurants’ sales, was hampered due to cross-border restrictions, which in turn, impacted profit sector sales.”
GlobalData further noted that quick-service restaurants (QSR) accounted for 56.1% of the industry’s profit in 2021.
Despite a negative CAGR of 5.4% between 2016 and 2021, QSR proved to be more resilient than other profit sector channels due to its higher penetration of take-aways and an established delivery network even before the pandemic.
