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Australia Foodservice Market Size

The Australia Foodservice Market is experiencing significant growth, with its market size expanding rapidly over the forecast period. The increase in consumer spending on dining out, driven by a rise in international tourist arrivals and a growing preference for fast food, has contributed to this expansion. Quick service restaurants hold a major portion of the market, while cloud kitchens are anticipated to grow at the fastest rate. Cafes and bars also maintain a substantial market share, influenced by the high coffee consumption among Australians.

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Market Size of australia foodservice Industry

Australia Foodservice Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 61.98 Billion
svg icon Market Size (2029) USD 101.68 Billion
svg icon Largest Share by Foodservice Type Quick Service Restaurants
svg icon CAGR (2024 - 2029) 10.41 %
svg icon Fastest Growing by Foodservice Type Cloud Kitchen
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Australia Foodservice Market Analysis

The Australia Foodservice Market size is estimated at 61.98 billion USD in 2024, and is expected to reach 101.68 billion USD by 2029, growing at a CAGR of 10.41% during the forecast period (2024-2029).

61.98 Billion

Market Size in 2024 (USD)

101.68 Billion

Market Size in 2029 (USD)

8.54 %

CAGR (2017-2023)

10.41 %

CAGR (2024-2029)

Largest Segment by Foodservice Type

38.79 %

value share, Quick Service Restaurants, 2023

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Australia is the second-largest meat consumer globally, with a per capita meat consumption of 89.6 kg, making meat-based fast food the most popularly ordered option in QSRs.

Largest Segment by Outlet Type

66.47 %

value share, Independent Outlets, 2023

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Australians consume six billion cups of coffee annually, with 40% ordering specialty beverages, resulting in cafes and bars dominating the independent outlets segment.

Fastest-growing segment by Foodservice Type

38.39 %

Projected CAGR, Cloud Kitchen, 2024-2029

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Cloud kitchens are majorly driven by the increasing usage of online food delivery apps, especially by millennials, who accounted for 48% of the online food orders received in 2022.

Fastest-growing segment by Outlet Type

10.56 %

Projected CAGR, Chained Outlets, 2024-2029

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Increasing investment directed toward the expansion of multinational brands and domestic franchises is one of the major drivers behind the segment's growth.

Leading Market Player

1.76 %

market share, McDonald's Corporation, 2022

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McDonald's Corporation is the leading player, operating over 1,000 restaurants nationwide. It is launching new products and adapting to changes in consumer trends.

The number if restaurant visits per month grew as a result of the national spread of fast food companies.

  • The overall market witnessed a hike of 30.7% in terms of sales value from 2019 to 2022. Owing to the increasing number of international tourist arrivals reaching over 1 million in 2022, consumer spending on dining out increased to USD 160 per week in 2022. However, FSR restaurants observed a significant growth of 18.14% in sales value during 2019-2022. The segment's growth can be attributed to the introduction of vegan, low-sugar, gluten-free options to traditional Asian dishes by restaurants.
  • Quick service restaurants accounted for the major share of the market, and they are further projected to witness a CAGR of 9.18%, by value, during the forecast period (2023-2029). Due to the increasing consumption of fast food in the country, more than 80 million people visit fast-food restaurants every month. Coles Group spends USD 15.2 million on digital ads, while Yum! Brands, which owns KFC, Pizza Hut, and Taco Bell, spends USD 14.9 million on its key marketing strategy.
  • Cloud kitchens are projected to witness the fastest CAGR of 38.64%, by value, during the forecast period. In 2022, delivery accounted for 30% of total restaurant sales, and over 5.5 million Australian consumers aged 14+ (26.5%) ordered food online in Australia in 2021.
  • However, cafes & bars also accounted for a prominent market share in 2022. Owing to the high consumption of coffee in the country, as around 75% of the population preferred to have coffee once or twice a day in 2022, people aged between 25-34 consumed most coffee in Australia. However, in 2021, around 78% of Australians considered taste and quality important when drinking coffee, which fueled the sales value of specialist coffee and tea shops in the country.
Australia Foodservice Market

Australia Foodservice Industry Segmentation

Cafes & Bars, Cloud Kitchen, Full Service Restaurants, Quick Service Restaurants are covered as segments by Foodservice Type. Chained Outlets, Independent Outlets are covered as segments by Outlet. Leisure, Lodging, Retail, Standalone, Travel are covered as segments by Location.

  • The overall market witnessed a hike of 30.7% in terms of sales value from 2019 to 2022. Owing to the increasing number of international tourist arrivals reaching over 1 million in 2022, consumer spending on dining out increased to USD 160 per week in 2022. However, FSR restaurants observed a significant growth of 18.14% in sales value during 2019-2022. The segment's growth can be attributed to the introduction of vegan, low-sugar, gluten-free options to traditional Asian dishes by restaurants.
  • Quick service restaurants accounted for the major share of the market, and they are further projected to witness a CAGR of 9.18%, by value, during the forecast period (2023-2029). Due to the increasing consumption of fast food in the country, more than 80 million people visit fast-food restaurants every month. Coles Group spends USD 15.2 million on digital ads, while Yum! Brands, which owns KFC, Pizza Hut, and Taco Bell, spends USD 14.9 million on its key marketing strategy.
  • Cloud kitchens are projected to witness the fastest CAGR of 38.64%, by value, during the forecast period. In 2022, delivery accounted for 30% of total restaurant sales, and over 5.5 million Australian consumers aged 14+ (26.5%) ordered food online in Australia in 2021.
  • However, cafes & bars also accounted for a prominent market share in 2022. Owing to the high consumption of coffee in the country, as around 75% of the population preferred to have coffee once or twice a day in 2022, people aged between 25-34 consumed most coffee in Australia. However, in 2021, around 78% of Australians considered taste and quality important when drinking coffee, which fueled the sales value of specialist coffee and tea shops in the country.
Foodservice Type
Cafes & Bars
By Cuisine
Bars & Pubs
Cafes
Juice/Smoothie/Desserts Bars
Specialist Coffee & Tea Shops
Cloud Kitchen
Full Service Restaurants
By Cuisine
Asian
European
Latin American
Middle Eastern
North American
Other FSR Cuisines
Quick Service Restaurants
By Cuisine
Bakeries
Burger
Ice Cream
Meat-based Cuisines
Pizza
Other QSR Cuisines
Outlet
Chained Outlets
Independent Outlets
Location
Leisure
Lodging
Retail
Standalone
Travel
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Australia Foodservice Market Size Summary

The Australia Foodservice Market is experiencing significant growth, driven by a surge in consumer spending on dining out and the increasing popularity of various foodservice segments. The market is characterized by a diverse range of offerings, including quick service restaurants (QSR), full service outlets, and cloud kitchens, each contributing to the overall expansion. QSRs hold a substantial share of the market, benefiting from the high demand for fast food and the convenience of quick dining options. The introduction of innovative menu items, such as vegan and gluten-free options, has further fueled the growth of full service restaurants, which are attracting customers with unique dining experiences and a broad range of international cuisines. Cloud kitchens are emerging as a rapidly growing segment, capitalizing on the rising trend of food delivery services.

The market landscape is fragmented, with major players like Competitive Foods Australia, Craveable Brands, Domino's Pizza Enterprises Ltd., McDonald's Corporation, and Yum! Brands, Inc. holding a modest share. The increasing number of international tourists and the high consumption of coffee and fast food are key factors driving market growth. The proliferation of franchise establishments and the expansion of popular food chains across the country underscore the dynamic nature of the market. As consumer preferences continue to evolve, the Australia Foodservice Market is poised for further expansion, with digital marketing strategies and innovative delivery solutions playing a crucial role in shaping its future trajectory.

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Australia Foodservice Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Foodservice Type

      1. 1.1.1 Cafes & Bars

        1. 1.1.1.1 By Cuisine

          1. 1.1.1.1.1 Bars & Pubs

          2. 1.1.1.1.2 Cafes

          3. 1.1.1.1.3 Juice/Smoothie/Desserts Bars

          4. 1.1.1.1.4 Specialist Coffee & Tea Shops

      2. 1.1.2 Cloud Kitchen

      3. 1.1.3 Full Service Restaurants

        1. 1.1.3.1 By Cuisine

          1. 1.1.3.1.1 Asian

          2. 1.1.3.1.2 European

          3. 1.1.3.1.3 Latin American

          4. 1.1.3.1.4 Middle Eastern

          5. 1.1.3.1.5 North American

          6. 1.1.3.1.6 Other FSR Cuisines

      4. 1.1.4 Quick Service Restaurants

        1. 1.1.4.1 By Cuisine

          1. 1.1.4.1.1 Bakeries

          2. 1.1.4.1.2 Burger

          3. 1.1.4.1.3 Ice Cream

          4. 1.1.4.1.4 Meat-based Cuisines

          5. 1.1.4.1.5 Pizza

          6. 1.1.4.1.6 Other QSR Cuisines

    2. 1.2 Outlet

      1. 1.2.1 Chained Outlets

      2. 1.2.2 Independent Outlets

    3. 1.3 Location

      1. 1.3.1 Leisure

      2. 1.3.2 Lodging

      3. 1.3.3 Retail

      4. 1.3.4 Standalone

      5. 1.3.5 Travel

Australia Foodservice Market Size FAQs

The Australia Foodservice Market size is expected to reach USD 61.98 billion in 2024 and grow at a CAGR of 10.41% to reach USD 101.68 billion by 2029.

In 2024, the Australia Foodservice Market size is expected to reach USD 61.98 billion.

Australia Food Service Market Report Snapshots

Australia Foodservice Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029