Market Trends of singapore foodservice Industry
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.
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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.
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