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Philippines Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 140 Pages
  • November 2022
  • Region: Philippines
  • Mordor Intelligence
  • ID: 4622373
The Philippines foodservice market was valued at USD 10,370.6 million in 2021 and is expected to witness a CAGR of 7.83% during the forecast period.

With the impact of COVID-19, the foodservice sector in the Philippines was majorly hit by the strict lockdown measures introduced in the Philippines to limit the spread of the virus. However, in June 2020, eateries in the capital Manila that can meet government safety protocols were allowed to reopen at 30% of their seating capacity, with strict hygiene and social distancing measures being a must. With these initiatives, the market started growing drastically.

The foodservice market in the Philippines is highly driven by the rise in value-conscious consumers willing to try new restaurants with a wide range of menu options, including interesting international and local cuisines, which also cater to increasingly busy lifestyles.

Moreover, increasing consumer preference for convenient, on-the-go food options has become another primary market driving factor. Changing food consumption patterns and the increasing influence of international cuisines on food consumption are moving towards consumer spending on various types of food service restaurants.

Key Market Trends

Increased preferences for online delivery of food

The increased internet penetration, quick access to smartphones, and simplified e-banking systems have resulted in more purchases through online channels. This has propelled several food chains in the Philippines to shift toward online portals to enhance online ordering by offering customers improved selection, convenience, transparency, and security.​

Online food delivery service providers rely on social media promotional campaigns as their primary marketing strategy, where they use social media platforms to run their service promotions and campaigns. These platforms increase consumer engagement and create brand awareness. The growing digital platform and consumer engagement on social media platforms are some of the key factors that will positively impact the online food delivery services market across the country. One-third of all meals consumed by Filipinos in 2021 were ordered from restaurants, while two-thirds were home-cooked. 50% of customers decide what they want to eat based on what they see on the app. Also, subscriptions to food delivery aggregators, like Grab Food and Food Panda, increased by 61% over 2020. Thus, with the growing number of online food service platforms and partnerships of restaurants with food delivery service providers, the food service market across the country is expected to grow at a faster pace.

Quick-Service Restaurants Hold the Major Share in the Philippines Market

The rising popularity of fast-food restaurants and growing preference for takeaway food and beverages are identified as key drivers of the quick service restaurant segment. Exposure to media advertisements has influenced the dining habits of Filipinos. Also, the increasing number of the millennial population seeking budget-friendly spaces to enjoy meals with their companions is boosting the market in the Philippines.

Moreover, the expansion of community shopping malls and hypermarket chains is anticipated to propel the growth of quick-service restaurants as malls have become a popular place for millennials to shop and eat. For instance, KFC Philippines operates franchised branches in Walter Mart Candelaria, Santiago Isabela, Walter Mart Capes, and Walter Mart Malolos. As a larger population is engaged in foreign fast food, local investors appreciate the market opportunities through franchising schemes. Key restaurants are targeting potential consumers with innovative and quality product offerings. Expansion of franchise stores discounted offers, and strategic promotion programs are key trends in the QSRs segment.

Popular quick-service restaurant chains in the Philippines include Shake Shack, MOS Burger, Jollibee, McDonald’s, Domino’s Pizza, and KFC. Jollibee is one of the leading QSRs in the Philippines, with around 1,400 restaurants nationwide.

Competitive Landscape

The Philippines foodservice market is highly competitive. Most of the share is held by some leading players, including McDonald's, Starbucks Corporation, and Jollibee Foods Corporation. The key foodservice brands in the Philippines are embarking on market expansion and innovations in terms of online delivery of food service as some of their key strategies to achieve consolidation and optimize their offerings, respectively. For instance, foodpanda announced its expansion to more cities in the Philippines in 2020, solidifying the brand’s position as the biggest online food and groceries delivery service in the country. The key brands are embarking on mergers and acquisitions, and new types of customer-friendly services infused with the latest technology as some of their key strategies to achieve consolidation. ​

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 By Type
5.1.1 Full-service Restaurants
5.1.2 Quick-service Restaurants
5.1.3 Street Stalls and Kiosks
5.1.4 Cafes and Bars
5.1.5 100% Home Delivery Restaurants
5.2 Structure
5.2.1 Independent Consumer Foodservice
5.2.2 Chained Consumer Foodservice
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Jollibee Foods Corporation
6.3.2 Domino's Pizza Inc.
6.3.3 McDonald's Corporation
6.3.4 Starbucks Corporation
6.3.5 Yum! Brands Inc.
6.3.6 Max's Kitchen Inc.
6.3.7 Century Pacific Food Inc.
6.3.8 Restaurant Brands International Inc.
6.3.9 Inspire Brands Inc.
6.3.10 The Figaro group

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Jollibee Foods Corporation
  • Domino's Pizza Inc.
  • McDonald's Corporation
  • Starbucks Corporation
  • Yum! Brands Inc.
  • Max's Kitchen Inc.
  • Century Pacific Food Inc.
  • Restaurant Brands International Inc.
  • Inspire Brands Inc.
  • The Figaro group