Market Size of malaysia foodservice Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2029 |
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Market Size (2024) | USD 13.11 Billion |
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Market Size (2029) | USD 23.95 Billion |
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Largest Share by Foodservice Type | Full Service Restaurants |
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CAGR (2024 - 2029) | 12.81 % |
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Fastest Growing by Foodservice Type | Cloud Kitchen |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Malaysia Foodservice Market Analysis
The Malaysia Foodservice Market size is estimated at 13.11 billion USD in 2024, and is expected to reach 23.95 billion USD by 2029, growing at a CAGR of 12.81% during the forecast period (2024-2029).
13.11 Billion
Market Size in 2024 (USD)
23.95 Billion
Market Size in 2029 (USD)
3.82 %
CAGR (2017-2023)
12.81 %
CAGR (2024-2029)
Largest Segment by Foodservice Type
34.52 %
value share, Full Service Restaurants, 2023
The increasing popularity is attributed to changing lifestyles and a growing demand for social spaces. The cafe culture has evolved into a workspace and networking hub.
Largest Segment by Outlet Type
73.81 %
value share, Independent Outlets, 2023
A diverse culinary landscape and the popularity of street food in the country, with increasing demand for convenience among consumers, are helping the growth trajectory.
Fastest-growing segment by Foodservice Type
15.76 %
Projected CAGR, Cloud Kitchen, 2024-2029
Increasing demand for cost-effective solutions, the existence of streamlined operations, greater flexibility, and efficient delivery are promoting growth.
Fastest-growing segment by Outlet Type
12.97 %
Projected CAGR, Chained Outlets, 2024-2029
Rising consumer demand for convenience and standardized quality and affordable and diverse food options offered by chained outlets are projecting upward growth.
Leading Market Player
3.40 %
market share, QSR Brands (M) Holdings Sdn Bhd, 2022
The company is a franchised owner of leading brands KFC and Pizza Hut, operating 200 and 380 outlets, respectively. It also maintained dominance by investing in product innovation.
Full service restaurants held the major share in the market owing to the higher preference for authentic cuisines
- The overall foodservice market saw significant growth and registered a CAGR of 1.93% from 2017-2022. This was attributed to the expansion of fast-food chains and the rising number of tourists, driven by the growth of the segments. The number of foodservice outlets increased from 8,706 in 2020 to 8,718 in 2022.
- The full-service restaurants (FSRs) segment holds the major market share with 34.58%. It is projected to register a CAGR of 13.03% by value during the forecast period. Increased visitors looking for authentic Asian cuisines especially for business visits will support the growth in the forecast period. For instance, as of 2022, more than 2.1 million immigrant workers in the region. Popular food dishes in the region are Roti Canai, Nasi Lemak, Hainanese Chicken Rice, Nasi Goreng Kampung, Char Kway Teow, among others.
- However, the cloud kitchen segment is the fastest growing segment in the region and is anticipated to register a value CAGR of 15.82% during the forecast period. The growth is expected to be boosted by the rising online food deliveries through smartphone applications. As of January 2022, there were 29.51 million internet users in Malaysia.
- Cafes & bars are followed by full-service restaurants, in which Asian full-service restaurants in standalone locations dominate the market, and they held a 48.37% share in 2022. The tendency of eating out frequently and exploring authentic cuisines by the Malaysians is majorly driving the growth of this segment. As of 2022, nearly 57% of the people living in urban areas ate outside food very frequently. Mee Goreng Mamak, Dumplings, Wontons, and Banana Leaf Rice are popular Asian cuisines. Zega, Lai Po Heen, and Marini's On 57 are popular fine dining restaurants in the nation that offer authentic Asian cuisines.
Understand The Key Trends Shaping This Market
