Malaysia Foodservice Market Size

The Malaysia Foodservice Market is experiencing significant growth, with the market size expected to expand substantially over the forecast period. The expansion is driven by the increasing number of foodservice outlets and the rising popularity of fast-food chains, alongside a surge in tourism. The full-service restaurant segment holds a major portion of the market share, supported by the demand for authentic Asian cuisines. Additionally, the cloud kitchen segment is emerging as the fastest-growing area, fueled by the rise in online food deliveries. The trend of dining out and exploring diverse cuisines is a key factor contributing to the market's growth trajectory.

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Market Size of malaysia foodservice Industry

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Malaysia Foodservice Market Summary
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https://s3.mordorintelligence.com/study%20period/1629296433432_test~study_period_study_period.svg Study Period 2017 - 2029
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Size (2024) USD 13.11 Billion
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Size (2029) USD 23.95 Billion
https://s3.mordorintelligence.com/hydraulic_fluids/1629285650767_test~hydraulic_fluids_hydraulic_fluids.svg Largest Share by Foodservice Type Full Service Restaurants
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg CAGR (2024 - 2029) 12.81 %
https://s3.mordorintelligence.com/hydraulic_fluids/1629285650767_test~hydraulic_fluids_hydraulic_fluids.svg Fastest Growing by Foodservice Type Cloud Kitchen

Major Players

Malaysia Foodservice Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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Malaysia Foodservice Market Analysis

The Malaysia Foodservice Market size is estimated at 13.11 billion USD in 2024, and is expected to reach 23.95 billion USD by 2029, growing at a CAGR of 12.81% during the forecast period (2024-2029).

13.11 Billion

Market Size in 2024 (USD)

23.95 Billion

Market Size in 2029 (USD)

3.82 %

CAGR (2017-2023)

12.81 %

CAGR (2024-2029)

Largest Segment by Foodservice Type

34.52 %

value share, Full Service Restaurants, 2023

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The increasing popularity is attributed to changing lifestyles and a growing demand for social spaces. The cafe culture has evolved into a workspace and networking hub.

Largest Segment by Outlet Type

73.81 %

value share, Independent Outlets, 2023

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A diverse culinary landscape and the popularity of street food in the country, with increasing demand for convenience among consumers, are helping the growth trajectory.

Fastest-growing segment by Foodservice Type

15.76 %

Projected CAGR, Cloud Kitchen, 2024-2029

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Increasing demand for cost-effective solutions, the existence of streamlined operations, greater flexibility, and efficient delivery are promoting growth.

Fastest-growing segment by Outlet Type

12.97 %

Projected CAGR, Chained Outlets, 2024-2029

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Rising consumer demand for convenience and standardized quality and affordable and diverse food options offered by chained outlets are projecting upward growth.

Leading Market Player

3.40 %

market share, QSR Brands (M) Holdings Sdn Bhd, 2022

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The company is a franchised owner of leading brands KFC and Pizza Hut, operating 200 and 380 outlets, respectively. It also maintained dominance by investing in product innovation.

Full service restaurants held the major share in the market owing to the higher preference for authentic cuisines

  • The overall foodservice market saw significant growth and registered a CAGR of 1.93% from 2017-2022. This was attributed to the expansion of fast-food chains and the rising number of tourists, driven by the growth of the segments. The number of foodservice outlets increased from 8,706 in 2020 to 8,718 in 2022.
  • The full-service restaurants (FSRs) segment holds the major market share with 34.58%. It is projected to register a CAGR of 13.03% by value during the forecast period. Increased visitors looking for authentic Asian cuisines especially for business visits will support the growth in the forecast period. For instance, as of 2022, more than 2.1 million immigrant workers in the region. Popular food dishes in the region are Roti Canai, Nasi Lemak, Hainanese Chicken Rice, Nasi Goreng Kampung, Char Kway Teow, among others.
  • However, the cloud kitchen segment is the fastest growing segment in the region and is anticipated to register a value CAGR of 15.82% during the forecast period. The growth is expected to be boosted by the rising online food deliveries through smartphone applications. As of January 2022, there were 29.51 million internet users in Malaysia.
  • Cafes & bars are followed by full-service restaurants, in which Asian full-service restaurants in standalone locations dominate the market, and they held a 48.37% share in 2022. The tendency of eating out frequently and exploring authentic cuisines by the Malaysians is majorly driving the growth of this segment. As of 2022, nearly 57% of the people living in urban areas ate outside food very frequently. Mee Goreng Mamak, Dumplings, Wontons, and Banana Leaf Rice are popular Asian cuisines. Zega, Lai Po Heen, and Marini's On 57 are popular fine dining restaurants in the nation that offer authentic Asian cuisines.
Malaysia Foodservice Market

Malaysia 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 foodservice market saw significant growth and registered a CAGR of 1.93% from 2017-2022. This was attributed to the expansion of fast-food chains and the rising number of tourists, driven by the growth of the segments. The number of foodservice outlets increased from 8,706 in 2020 to 8,718 in 2022.
  • The full-service restaurants (FSRs) segment holds the major market share with 34.58%. It is projected to register a CAGR of 13.03% by value during the forecast period. Increased visitors looking for authentic Asian cuisines especially for business visits will support the growth in the forecast period. For instance, as of 2022, more than 2.1 million immigrant workers in the region. Popular food dishes in the region are Roti Canai, Nasi Lemak, Hainanese Chicken Rice, Nasi Goreng Kampung, Char Kway Teow, among others.
  • However, the cloud kitchen segment is the fastest growing segment in the region and is anticipated to register a value CAGR of 15.82% during the forecast period. The growth is expected to be boosted by the rising online food deliveries through smartphone applications. As of January 2022, there were 29.51 million internet users in Malaysia.
  • Cafes & bars are followed by full-service restaurants, in which Asian full-service restaurants in standalone locations dominate the market, and they held a 48.37% share in 2022. The tendency of eating out frequently and exploring authentic cuisines by the Malaysians is majorly driving the growth of this segment. As of 2022, nearly 57% of the people living in urban areas ate outside food very frequently. Mee Goreng Mamak, Dumplings, Wontons, and Banana Leaf Rice are popular Asian cuisines. Zega, Lai Po Heen, and Marini's On 57 are popular fine dining restaurants in the nation that offer authentic Asian cuisines.
Foodservice Type
Cafes & Bars
By Cuisine
Bars & Pubs
Cafes
Juice/Smoothie/Desserts Bars
Specialist Coffee & Tea Shops
Cloud Kitchen
Full Service Restaurants
By Cuisine
Asian
European
Latin American
Middle Eastern
North American
Other FSR Cuisines
Quick Service Restaurants
By Cuisine
Bakeries
Burger
Ice Cream
Meat-based Cuisines
Pizza
Other QSR Cuisines
Outlet
Chained Outlets
Independent Outlets
Location
Leisure
Lodging
Retail
Standalone
Travel
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Malaysia Foodservice Market Size Summary

The Malaysian foodservice market is experiencing robust growth, driven by the expansion of various segments such as full-service restaurants, cafes, bars, and the rapidly growing cloud kitchen sector. The market is characterized by a diverse range of dining options, with full-service restaurants holding a significant share due to the increasing demand for authentic Asian cuisines, particularly among business visitors and immigrants. The trend of dining out frequently and exploring diverse cuisines is further bolstered by the rising number of tourists and urban residents who prefer eating outside. The popularity of quick service restaurants is also on the rise, especially among young people who favor fast food for its convenience and affordability. This growth is supported by the expansion of major chains in densely populated areas, enhancing their reach and sales.

The cloud kitchen segment stands out as the fastest-growing category, fueled by the surge in online food delivery services and the widespread use of smartphones and the internet. The post-pandemic shift towards food deliveries and takeaways has significantly increased the number of cloud kitchen outlets, reflecting a broader trend towards digitalization in the foodservice industry. Cafes and bars are also witnessing a positive growth trajectory, driven by increased alcohol consumption and the popularity of themed cafes and nightclubs. The market remains fragmented, with major players like Domino's Pizza Enterprises and QSR Brands leading the charge, while new entrants continue to expand their footprint across the country. This dynamic landscape is marked by strategic expansions and acquisitions, as companies seek to capitalize on the growing demand for diverse and convenient dining options in Malaysia.

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Malaysia Foodservice Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Foodservice Type

      1. 1.1.1 Cafes & Bars

        1. 1.1.1.1 By Cuisine

          1. 1.1.1.1.1 Bars & Pubs

          2. 1.1.1.1.2 Cafes

          3. 1.1.1.1.3 Juice/Smoothie/Desserts Bars

          4. 1.1.1.1.4 Specialist Coffee & Tea Shops

      2. 1.1.2 Cloud Kitchen

      3. 1.1.3 Full Service Restaurants

        1. 1.1.3.1 By Cuisine

          1. 1.1.3.1.1 Asian

          2. 1.1.3.1.2 European

          3. 1.1.3.1.3 Latin American

          4. 1.1.3.1.4 Middle Eastern

          5. 1.1.3.1.5 North American

          6. 1.1.3.1.6 Other FSR Cuisines

      4. 1.1.4 Quick Service Restaurants

        1. 1.1.4.1 By Cuisine

          1. 1.1.4.1.1 Bakeries

          2. 1.1.4.1.2 Burger

          3. 1.1.4.1.3 Ice Cream

          4. 1.1.4.1.4 Meat-based Cuisines

          5. 1.1.4.1.5 Pizza

          6. 1.1.4.1.6 Other QSR Cuisines

    2. 1.2 Outlet

      1. 1.2.1 Chained Outlets

      2. 1.2.2 Independent Outlets

    3. 1.3 Location

      1. 1.3.1 Leisure

      2. 1.3.2 Lodging

      3. 1.3.3 Retail

      4. 1.3.4 Standalone

      5. 1.3.5 Travel

Malaysia Foodservice Market Size FAQs

The Malaysia Foodservice Market size is expected to reach USD 13.11 billion in 2024 and grow at a CAGR of 12.81% to reach USD 23.95 billion by 2029.

In 2024, the Malaysia Foodservice Market size is expected to reach USD 13.11 billion.

Malaysia Food Service Market Report Snapshots

Malaysia Foodservice Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029