Growth in Irish foodservice market
New report shows Ireland's foodservice market has grown from €6.07 billion in 2013 to €6.13 billion this year, with growth forecasts to almost €6.5 billion by the end of 2017
10 November 2014
Demand for value and high quality casual dining, takeaway and food-to-go options is increasing and accounts for over a third of consumer spend (38%).
Fast food is the fastest growing channel and there is rising consumer expectations around home delivery, mobile technology and snack-sized meals.
This is according a report published by Bord Bia on the Irish foodservice sector at its annual industry seminar in Dublin on 5 November.
The Foodservice Channel Insights Report reveals that the foodservice market has grown from €6.07 billion in 2013 to €6.13 billion this year, with growth forecasts to almost €6.5 billion by the end of 2017.
The report indicates that fast food continues to dominate Irish foodservice channels and that diners’ expectations include health, entertainment and unique offerings when eating out, although price is still a key consideration. Over 200 Irish food suppliers and foodservice trade buyers gathered to hear speakers from Topaz, Pallas Foods and Compass Ireland and UK.
Speaking at the seminar, Bord Bia’s foodservice specialist, Maureen Gahan said: “The sector has continued to experience moderate improvements in 2014, with a positive outlook expected over the next few years. Growth in consumer spending is predicted to be up 1.9% on a compound annual growth basis through to 2017.”
Optimistic indicators for the future of the foodservice market’s performance lie in the rise in disposable income, increasing consumer confidence and greater tourist numbers. The report mentions that agreement by the government to retain the 9% VAT rate for hospitality in this year’s budget will provide stability into 2015. With recent announcements by the likes of Subway, Caffé Nero and JD Wetherspoons to expand their operations in the Irish market, opportunities also exist for Irish food and drink suppliers that have the capacity to service these chains.
The Vintners’ Federation of Ireland (VFI) welcomed the study by Bord Bia which recognises the contribution of the Irish pub to the country’s food offering. Statistics from the study show that 25.3% of food consumed outside the home is consumed in Irish pubs.
Noreen O’Sullivan, president of the VFI commented; “This study serves to highlight the exceptional standard of food on offer in the pub. More and more publicans are focusing on changed offerings with a real emphasis being put on quality food. Further, the decision of the government to implement and maintain the 9% hospitality VAT rate is bearing fruit for both business owners and consumers.”