Irish Foodservice Market Worth Nearly €8bn

08 Nov 2017 | 08.59 am

Irish Foodservice Market Worth Nearly €8bn

Cafes and coffee shops fastest growing sector, says Bord Bia

08 Nov 2017 | 08.59 am

Ireland’s foodservice market is now worth €7.8bn, according to Bord Bia. The food agency published the findings of its 2017 Irish Foodservice Channel Insights Report today, ahead of its annual foodservice seminar in Dublin.

The foodservice market includes all food consumed out of home, incorporating restaurants, pubs, hotels, coffee shops, workplace catering, hospitals, education and vending. It comprises more than 33,000 individual outlets in Ireland.

Bord Bia’s report, which also tracks consumer behaviour and sentiment when eating away from home, indicates that takeaway, or ‘grab-and-go concepts’, are one of the key drivers of foodservice growth, and that healthier foods are trending and influencing menu ideation.

Over one-third (35%) of consumer spend is found in limited service restaurants, which incorporates quick-service restaurants, fast-casual dining and food-to-go, with 12% attributed to full service restaurants.

Bord Bia also found that consumer spending in pubs (excluding alcohol) accounts for 17% of the market value and is showing a lower year-on-year growth rate than the overall market. This is being attributed in part to Brexit, which has decreased weekend trips and holiday visits to Ireland by UK travellers.

The two segments showing the biggest share gain are the hotel segment, accounting for 17% of total foodservice consumer spending, and the coffee shops and cafes, which now account for 6%.

Key foodservice trends identified by Bord Bia in its report include:

  • Coffee shops and cafes maintain their position as the fastest growing sector, and the investment in beverage has been seen across all segments. Flat whites are this year’s trending coffee beverage, with coffee perceived as an affordable luxury among consumers. Health-conscious consumers are also increasingly seeking out alternative milks.
  • A rise in fast-casual concepts (limited service but generally more upscale, offering higher quality ingredients and higher average spend than quick-service) to meet the consumer demand for higher-quality foods at an affordable price.
  • Technology is a foodservice-enabler, while third-party delivery is causing some disruption and seeing strong growth, particularly in major urban centres.
  • A focus on provenance can be seen, particularly with new chains finding success in labelling menu items as ‘fresh’ and ‘local’, which are often associated with ‘better for you’ items.
  • Large foodservice brands and forecourt stations are aligning to the consumer demand for healthier options, with a focus on fresh foods and made-to-order offers.
  • The introduction of new cuisines and variety into the Irish diet as a result of the continued entry of international brands into the Irish market.

Commenting on the report, Maureen Gahan, foodservice specialist in Bord Bia, said that the foodservice sector remains on track to grow at a compound rate of 4.9%, and to reach a value of €9bn by 2020.

“Ireland has started to become known as a ‘food destination’ and much of the investment operators have made in quality and service upgrades have helped fuel the foodservice growth witnessed in the island of Ireland,” she added.

 

 

Photo: Liam Cox (left), Deliveroo; Maureen Gahan and Jack Kirwan, Sprout, at Bord Bia’s Foodservice seminar (Pic: Chris Bellew/Fennell Photography)

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