25 Jun 2021
Posted in Foodservice
Foodservice profit sector in New Zealand to grow strongly at 7.7% CAGR during 2020-2025, says GlobalData
New Zealand’s foodservice profit sector is forecast to grow strongly from NZ$8.3bn (US$5.8bn) in 2020 to NZ$12.1bn (US$8.8bn) in 2025 at a compound annual growth rate (CAGR) of 7.7%, says GlobalData, a leading data and analytics company.
During 2015–2020 period, the profit sector revenue fell by a CAGR of -5.6%. Closures of restaurants, cafes and bars during 2020 were instrumental in pulling the profit sector revenue down. Takeaways and deliveries alleviated the loss to some extent.
GlobalData’s report, ‘New Zealand – The Future of Foodservice to 2025’, reveals that the full-service restaurant (FSR) channel remained the largest foodservice profit sector channel in 2020. At a CAGR of -5%, the channel registered a significant decline in its sales in 2015–2020, owing to consumers’ reluctance to eat out amid the pandemic in 2020.
The pub, club & bar channel recorded the sharpest decline at a CAGR of -11.7% during 2015–2020, concurrent with a decline of 7.6% in its number of transactions – the steepest among all profit sector channels. However, with the rebound in consumer confidence in coming years post COVID-19, all profit sector channels are projected to register growth during 2020–2025.
Ravi Teja, Consumer Analyst at GlobalData, says: “Amplified price sensitivity of consumers, especially during the pandemic, inspired QSR operators to focus on their campaigns on value promotions.”
GlobalData forecasts that all foodservice profit sector channels will experience outlet and transaction growth during the forecast period. Chain operators will grow at a higher rate compared to independent operators across restaurant channels.
Mr Teja concludes: “More international brands are likely to enter New Zealand’s foodservice market. Consumers are expected to grow more inclined towards standardized offerings of chain operators.
“In the future, the foodservice industry’s dependence on technology will increase, with technological advancements featuring prominently in every stage of foodservice operations, from supply chain management to delivery. Mobile delivery apps such as UberEats and Delivereasy are expected to become even more widespread in New Zealand.”