Malaysia’s foodservice sector sees rising transactions

More consumers are looking to takeaway food.

Malaysia’s foodservice sector is expected to grow to $27.08b (RM109.08b) in 2025 at a compound annual growth rate (CAGR) of 10.9%, as the industry growth sees a rising number of transactions amidst an economic recovery, according to a report from GlobalData.

A growing number of takeaways and the rising demand for dining out will drive the profit sector growth in Malaysia in coming years, the report noted.

With a 36.6% share, the full-service restaurant (FSR) channel remained the largest foodservice sector channel and is projected to record a CAGR of 11.5%. Its sales are expected to benefit from the growing consumer preference for home deliveries and takeaways.

Meanwhile, the quick-service restaurant (QSR) channel recorded the slowest decline among all the foodservice channels in 2015-2020 at a CAGR of just 0.05% as it provided value for money products. In terms of outlets, QSR was the only channel that registered growth by a CAGR of 0.1%, on the back of expansion plans of leading players.

Still, FSRs are expected to remain a leader in the profit sector in the post-pandemic period, which is expected to record a transaction growth of 5.9% during 2020-2025. Travel and ice cream parlour channels are expected to grow strongly in the next five years.

Operators are urged to innovate their menu options by following food trends such as plant-based, meat-free options, in order to stay relevant among the consumers, said GlobalData’s Consumer Analyst Bijayalaxmee Pradhan.

“FSR operators will focus on improving the convenience factor in their operations in the future by including takeaway and home delivery transactions. Also, there will be increased growth in chain operators, reflecting growing consolidation in the foodservice sector,” Pradhan added.