Singapore Foodservice Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Singapore Foodservice Market Trends

The foodservice industry in Singapore grows with an increase in full service restaurants and cafes

• The number of cloud kitchen outlets is anticipated to increase rapidly, with a CAGR of 8.80% during the forecast period. The rising demand for ghost kitchens and the increasing number of orders through online delivery apps are creating business opportunities with low investment and high revenue. However, the total number of orders reached 87,965 orders per year in 2022, which increased by around 40% from 2017 to 2022.
• The total number of foodservice outlets increased to over 29,067 in 2022, a hike of around 800 outlets from 2019 to 2022, as the number of orders per year increased to more than 0.35 million in 2022 from 0.26 million in 2017. By attracting customers with their menu options, full service restaurants provide more customer satisfaction, increasing the demand for FSRs in the country. The value of the on-premise eating experience was enhanced by the provision of a broad range of dishes by full service chains. However, in 2021, 50.5% of all foodservice establishments in Singapore were cafes, food courts, and other eating places, including hawker centers.
• The share for QSR outlets was high, which accounted for more than 24,585 outlets in 2022. However, the number of quick service franchisee establishments was low compared to other foodservice outlet types, which accounted for just 5.2% of foodservice establishments in 2021. As of December 2022, Subway had more than 50 outlets, McDonald's with 136 outlets, Starbucks with 141 outlets, Domino's with 38 outlets, and Pizza Hut with 30 outlets. McDonald's, KFC, Din Tai Fung, and 7-Eleven accounted for the highest market share among chained outlets.

Asian cuisines dominate with popular dishes like dim sum, roasted duck, Hokkien mee, and Indian curries

• The average value of full service was priced the highest at 30.66 in 2022. Asian cuisine is the most popular in the country, which held a greater market share of more than 50% in 2022. The most popular Asian cuisines in the country are Chinese, Indian, Japanese, and Malaysian. Chinese cuisine is characterized mainly by the North Indian approach to cuisine featuring dim sum and roasted duck. As of 2020, the Chinese made up 74.3% of the resident population in Singapore, followed by Malays at 13.5% and Indians at 9.0%. Therefore, in 2022, broad full service restaurants sold Asian foods like hokkien mee and Indian curries for USD 5.3 and USD 11.2 per 200 grams, respectively.
• The demand for online meal delivery has grown with the introduction of platforms like Grabfood, Deliveroo, and Foodpanda. The growth rate for online food ordering and home delivery was over 20% from 2017-2021. As a result, there is an increasing need for cloud kitchens. The average order value of cloud kitchens was USD 13.34 in 2022, and widely available dishes through cloud kitchens include fries, fish rice, pizza, chicken cutlets, and chicken popcorn.
• In quick service restaurants, the average order value was USD 10.79 in 2022. The number of quick service restaurants is rising in the nation, especially those serving Asian and Mexican cuisines that are different from the more conventional fast-food options, as tourists from the Asian region, mainly from China and India, are increasing in the country. In 2022, Singapore had over 3.6 million visitors from China. Additionally, the popularity of burgers, fried chicken, and pizza was fueled by the expansion of outlets and better sales at each location as customers upgraded to more exotic types.

Segment Analysis: Foodservice Type

Quick Service Restaurants Segment in Singapore Foodservice Market

Quick Service Restaurants (QSR) dominate the Singapore foodservice industry, commanding approximately 67% of the restaurant market share in 2024. The segment's strong performance is driven by the increasing demand for fast and convenient dining options, with around 40% of Singapore's population consuming fast food at least once per week. Popular QSR cuisines include pizza, burgers, and meat-based dishes, with major international chains like McDonald's, KFC, and Burger King maintaining a strong presence across the country. The segment's success is further bolstered by the rising adoption of digital ordering platforms and delivery services, with many QSR chains investing in technology-driven solutions to enhance customer experience and operational efficiency.

Cloud Kitchen Segment in Singapore Foodservice Market

The cloud kitchen segment is experiencing remarkable growth in the Singapore foodservice industry, projected to expand at approximately 20% annually from 2024 to 2029. This explosive growth is fueled by increasing internet penetration, with Singapore having around 5.45 million internet users, and the proliferation of food delivery smartphone applications. Major players like Foodpanda are actively expanding their cloud kitchen presence, while homegrown food tech businesses like TiffinLabs are making significant strides in the segment. The segment's growth is further supported by substantial investor interest, attracted by the low startup costs and scalability potential of the cloud kitchen business model.

Remaining Segments in Foodservice Type

The Singapore foodservice market's remaining segments include Full Service Restaurants (FSR) and Cafes & Bars, each playing distinct roles in the market's ecosystem. Full Service Restaurants cater to consumers seeking premium dining experiences, offering diverse cuisines ranging from Asian to European specialties. The segment particularly benefits from Singapore's multicultural population and robust tourism sector. Meanwhile, the Cafes & Bars segment serves the growing demand for casual dining and social gathering spaces, with a particular focus on specialty coffee, innovative beverages, and light meals, reflecting the evolving lifestyle preferences of Singaporean consumers.

Segment Analysis: Outlet

Independent Outlets Segment in Singapore Foodservice Market

Independent outlets dominate the Singapore restaurant market, holding approximately 67% market share in 2024. The segment's strong position is driven by local expertise, personalized service offerings, and unique menu options that cater to diverse consumer preferences. Independent enterprises such as restaurants, food trucks, and pop-up stores allow local chefs and business owners to promote their cuisine and reach a wider audience. These outlets enable cultural interaction through food while providing authentic and high-quality dining experiences. The success of independent outlets is further supported by their ability to quickly adapt to changing consumer preferences and incorporate local flavors into their menus, making them particularly attractive to both residents and tourists seeking authentic Singaporean culinary experiences.

Chained Outlets Segment in Singapore Foodservice Market

The chained outlets segment is projected to experience robust growth at approximately 18% during 2024-2029, emerging as the fastest-growing segment in the Singapore restaurant industry analysis. This growth trajectory is driven by several factors, including economies of scale, standardized offerings, and efficient operations supported by established parent companies. Chained outlets are increasingly focusing on menu innovation, incorporating healthier options and implementing advanced technologies for improved customer service. The segment's expansion is further bolstered by strong brand recognition, consistent quality standards across locations, and strategic positioning in high-traffic areas such as shopping malls, transportation hubs, and tourist destinations. Additionally, chained outlets are leveraging digital technologies and delivery partnerships to enhance their market presence and meet evolving consumer preferences.

Segment Analysis: Location

Standalone Segment in Singapore Foodservice Market

The standalone segment dominates the Singapore fast food market size, accounting for approximately 77% market share in 2024. Standalone restaurants in Singapore have established themselves as a popular dining option for both locals and tourists, offering unique dining experiences with distinct themes and cuisines. Many of Singapore's most renowned restaurants, like Burnt Ends, Tippling Club, Odette, and Candlenut, operate as standalone establishments, gaining strong reputations for their quality food and exceptional dining experiences. The segment's success is driven by factors like creative freedom in menu design, the ability to create a distinctive ambiance, and flexibility in operations. Standalone locations also benefit from their strategic positioning in high-traffic areas and popular neighborhoods, making them easily accessible to their target customers. The segment has shown remarkable resilience and continues to attract both established restaurateurs and innovative new concepts entering the market.

Lodging Segment in Singapore Foodservice Market

The lodging segment is projected to exhibit the strongest growth trajectory in the Singapore foodservice market, with an expected growth rate of approximately 20% during 2024-2029. This robust growth is being driven by the increasing integration of high-end and celebrity chef-driven restaurants within hotels and resorts, providing guests with unique and memorable dining experiences. The segment is witnessing significant innovation in dining concepts, with many hotels introducing multiple dining options ranging from casual cafes to fine dining establishments. The trend toward luxury and experiential dining in lodging locations is particularly evident in the rising number of Michelin-starred restaurants and innovative concept restaurants within hotels. Additionally, the segment is benefiting from the growing demand for comprehensive dining solutions among hotel guests who value convenience and quality dining options within their accommodation premises.

Remaining Segments in Location

The Singapore foodservice market's location segmentation is further complemented by retail, leisure, and travel segments, each serving distinct consumer needs. The retail segment, primarily comprising restaurants in shopping malls and commercial complexes, plays a crucial role in serving shopping center visitors and office workers. The leisure segment, which includes restaurants in entertainment venues, cinema halls, and recreational facilities, caters to entertainment-seeking consumers looking for convenient dining options. The travel segment, encompassing foodservice outlets at airports, railway stations, and other transportation hubs, serves travelers and commuters with quick and convenient dining solutions. These segments collectively contribute to the diverse and dynamic nature of Singapore's foodservice landscape, each adapting to specific consumer preferences and location-based requirements.

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We provide a complimentary and exhaustive set of data points on regional and country level metrics that present the fundamental structure of the industry. Presented in the form of 60+ free charts, the section covers difficult to find data on various countries on number of outlets, average order values, and menu analysis by foodservice channels, cuisine specific insights related to full service restaurants and quick service restaurants, market trends and market size insights on cafes, bars & pubs, juice/smoothies bars, specialty tea and coffee shops, and cloud kitchen etc.