Philippines Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Philippines Foodservice Market is Segmented by Type (Full-service Restaurants, Self-Service Restaurants, Quick-service Restaurants, Street Stalls and Kiosks, Cafes and Bars, and 100% Home Delivery Restaurants) and Structure (Chained Restaurants and Independent Restaurants). The report offers market size and forecasts in value (USD million) for the above segments.

Market Snapshot

Philippines Foodservice Market Overview
Study Period: 2016- 2026
Base Year: 2020
CAGR: 4.67 %
Philippines Foodservice Market Key Players

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Market Overview

The Philippines foodservice market is expected to witness a CAGR of 4.67% during the forecast period, 2021 - 2026.

After the advent of COVID-19, the foodservice sector 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. These measures were taken to improve the economy, which was foreseeing the downfall after the imposition of strict lockdown measures in the country.

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.

As per the data published by the United Nations, the average age of the population in the Philippines in 2015 was 24.1 years, and in 2020, it was expected to be 25.2 years. The majority of its population comprises millennials and they are known to be the biggest spenders. Due to this, most foodservice players focus on attracting this consumer group in the country. ​

Independent restaurants in the Philippines foodservice market are rapidly growing, which is expected to increase the number of foodservice establishments. The Philippines foodservice market has a strong preference for United States food chain brands. Chained restaurants are expanding their presence in developing countries like the Philippines to gain higher margins.​

Scope of the Report

Foodservice defines those businesses, institutions, and companies responsible for any meal prepared outside the home. The Philippines foodservice market is segmented by type and structure. By type, the market is segmented into full-service restaurants, self-service restaurants, quick-service restaurants, street stalls and kiosks, cafes and bars, and 100% home delivery restaurants. By structure, the market is segmented into independent and chained. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

By Type
Full-service Restaurants
Self-service Restaurants
Quick-service Restaurants
Street Stalls and Kiosks
Cafes and Bars
100% Home Delivery Restaurants
Structure
Chained Restaurants
Independent Restaurants

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Key Market Trends

Strategic Expansion in Online Foodservice Facilities, Home Delivery, and Take Away Services

The increase in 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 improved selection, convenience, transparency, and security to the customers.​

Online food delivery service providers rely on social media promotional campaigns as their main 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 have a positive impact on the online food delivery services market across the country. There have increasing developments in terms of online food service applications in the country, which is driving the market studied. Thus, with the growing number of online food service platforms and partnerships of restaurants with food delivery service providers, the foodservice market across the country is expected to grow at a faster pace.

Philippines Foodservice Market Key Trends

Full-service Restaurants Hold the Major Share in the Philippines Market

On average, 20% of the food budget of a middle-income household would be spent on dining out, as per the study conducted by the Family Income and Expenditures Survey (FIES) of the National Statistics Office in 2017-18. ​

Therefore, most chained restaurants have a casual dining format to better identify with middle-income consumers. This segment is gaining popularity with the middle-aged demographic due to its affordable pricing, menu (which is better than what is offered by fast-food establishments), and overall dining experience. ​

Filipino customers perceive food as something to be savored and enjoyed and something that satisfies their need for indulgence. In response, manufacturers in full-service restaurants have developed strategies to provide more indulgent menu options in the form of more toppings, more flavors, and better ingredients.​ Therefore, this factor is driving the full-service restaurants in the country.

Philippines Foodservice Market Growth by Region

Competitive Landscape

The Philippines foodservice market is a highly competitive market. The majority of the share is held by some of the 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, the Indian online foodservice company Zomato has also made inroads in the Philippines for online food delivery.​

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. ​

Recent Developments

In December 2018, Starbucks opened the 4 newest Reserve store featuring masterpieces by Filipino Artist Patrick Cabral and also elevated coffee experiences through the Black Eagle espresso machine, along with bold, innovative offerings like the recently-launched Reserve ice cream and espresso beverages. This development was done so as to attract the younger population of the country toward its stores​.

In August 2018, Popeyes and Kuya J Holdings Group Inc. announced an exclusive master-franchise foodservice agreement to develop and grow the Popeyes brand in the Philippines.

In June 2018, the Filipino-owned food delivery app, Delivery Guy, was launched in the Philippines. This online-based foodservice is expected to compete with Singapore's Honestbee and GrabFood, Germany-based Foodpanda, and other players operating in this segment.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Full-service Restaurants

      2. 5.1.2 Self-service Restaurants

      3. 5.1.3 Quick-service Restaurants

      4. 5.1.4 Street Stalls and Kiosks

      5. 5.1.5 Cafes and Bars

      6. 5.1.6 100% Home Delivery Restaurants

    2. 5.2 Structure

      1. 5.2.1 Chained Restaurants

      2. 5.2.2 Independent Restaurants

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Jollibee Foods Corporation

      2. 6.4.2 Domino's Pizza Inc.

      3. 6.4.3 McDonald's Corporation

      4. 6.4.4 Starbucks Coffee Company

      5. 6.4.5 Yum! Brands RSC

      6. 6.4.6 Max's Kitchen Inc.

      7. 6.4.7 Chowing

      8. 6.4.8 Restaurant Brands International

      9. 6.4.9 Inspire Brands Inc.

      10. 6.4.10 MANG INASAL PHILIPPINES INC.

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Philippines Foodservice Market market is studied from 2016 - 2026.

The Philippines Foodservice Market is growing at a CAGR of 4.67% over the next 5 years.

Jollibee Foods Corporation, Domino's Pizza, Inc, McDonald’s Corporation, Starbucks Coffee Company, Yum! Brands RSC are the major companies operating in Philippines Foodservice Market.

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