Malaysia foodservice sector to grow at CAGR 8.9% through 2026

The growth is driven by a rebound in consumer confidence.

Malaysia’s foodservice sector will grow at a compound annual growth rate (CAGR) of 8.9% from $15.2b in 2021 to $23.5b in 2026, driven by a rebound in consumer confidence, data and analytics firm GlobalData said.

According to its report, the profit sector revenue registered a negative CAGR of 4.4% from 2016 to 2021, due to a decrease in the number of transactions and the number of outlets.

“The outbreak of the Delta variant of COVID-19 in the second half of 2021 resulted in the implementation of lockdown restrictions on restaurants; reduced tourist footfall; and increased health and safety concerns. Moreover, in 2020, profit sector channels were either operating under restrictions or were closed, leading to decreased dine-in occasions in the sector,” Biswarup Bose, Consumer Analyst at GlobalData said.

Full-service restaurants (FSR) remained the largest foodservice profit sector channel in Malaysia in 2021, accounting for 39.8% of the total profit sector revenue. However, the channel declined at a CAGR of 2% from 2016 to 2021. The travel and leisure channels recorded negative CAGRs of 24.2% and 17% during the 2016–21 period, respectively, due to a drop in tourism activities amid periods of lockdown.

According to GlobalData, all foodservice profit sector channels in Malaysia are expected to experience growth in outlet count from 2021 to 2026, with travel estimated to record the strongest increase in value at a CAGR of 39.5%.

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