New Zealand’s foodservice sector to profit in 2020-2025
Chain operators are especially expected to grow at a higher rate.
New Zealand’s foodservice profit sector is projected to grow strongly from NZ$8.3b (US$5.8b) in 2020 to NZ$12.1b (US$8.8b) in 2025 at a CAGR of 7.7%, amidst a rebound in consumer confidence in the coming years, according to a report from GlobalData.
During the 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, though takeaways and deliveries alleviated the loss to some extent.
The full-service restaurant channel remained the largest foodservice profit sector channel in 2020. At a negative CAGR of 5%, the channel saw a decline in its sales in 2015-2020, owing to consumers’ reluctance to eat out amid the pandemic in 2020.
Meanwhile, the pub, club, and bar channel recorded the sharpest decline at a negative 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.
In light of the price sensitivity of consumers especially during the pandemic, quick-service restaurant operators were inspired to focus on their campaigns on value promotions, said GlobalData’s consumer analyst Ravi Teja.
All foodservice profit sector channels are expected to experience outlet and transaction growth during the period. Chain operators will especially grow at a higher rate compared to independent operators across restaurant channels.
“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,” Teja said.