Malaysia’s foodservice profit to see nearly 9% growth through 2026

It is expected to reach $23.5b in 2026. 

Malaysia’s foodservice profit to grow at a compound annual growth rate (CAGR) of 8.9% to reach $23.5b in 2026, GlobalData reported. 

This growth will be driven by a rebound in consumer confidence and as Malaysia sees stronger increase in travel. 

“The outbreak of the Delta variant of COVID-19 in the second half of 2021 resulted in the implementation of lockdown restrictions on restaurants; reduced tourist footfall; and increased health and safety concerns,” Biswarup Bose, Consumer Analyst at GlobalData, said. 

“Moreover, in 2020, profit sector channels were either operating under restrictions or were closed, leading to decreased dine-in occasions in the sector.”

Read more: Philippines foodservice profit sector to grow by 17.5% through 2026

Malaysia’s foodservice profit sector had seen a negative CAGR of 4.4% between 2016-2021 due to a decline in the number of transactions and outlets. 

In 2021, GlobalData noted full-service restaurant accounted for the largest foodservice profit sector channel in Malaysia in 2021 with a 39.8% share of the total profit sector revenue. 

This however declined at a CAGR of 2% between 2016 to 2021; whilst the travel and leisure channels likewise saw negative CAGRs of 24.2% and 17% over the same period. 

Globaldata noted that all foodservice profit sector channels in Malaysia are expected to experience growth in outlet count during 2021-26, with travel estimated to record the strongest increase in value at a CAGR of 39.5%.

“Operators’ initiatives to constantly expand their menus to include a wider variety of items will help attract consumers. Additionally, operators need to focus on offering healthy and freshly prepared products as consumers are attracted to healthy and nutritious menu offerings,” Bose said.