Australia Foodservice Market Size

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).

Want to share this? Click here to share on social media or embed it on your website.

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

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

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

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

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

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.

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.