Inside Malaysia's F&B Sector: Key Stats, Consumer Shifts, and Future Outlook

The Malaysian restaurant industry is experiencing significant growth and evolution, with a projected total value of the foodservice sector to reach .5 billion by 2030, up from .75 billion in 2025. This growth is underpinned by the services sector's 7.6% year-on-year growth as of Q3 2023, indicating a steady recovery post-pandemic.

Key Segments and Growth Drivers:

• Full-Service Restaurants (FSRs) hold the largest market share, at 36.6% in 2022.

• Quick-Service Restaurants (QSRs) accounted for 24.5% of the total foodservice market value in 2022 and are growing faster, especially the cafe and fast-food segments. 

• Cloud Kitchens are the fastest-growing segment, boasting a 15.8% Compound Annual Growth Rate (CAGR), largely driven by the surge in food delivery apps and high smartphone penetration.

Major factors contributing to this expansion include:

• Economic recovery and increased disposable income.

• A booming tourism sector.

• Widespread adoption of digital ordering and cloud kitchens.

• A growing consumer trend towards health-conscious eating.

Consumer Behavior and Future Trends:

• Younger demographics show a strong preference for street food and hawker stalls.

• Older consumers tend to favor food courts.

• Online food delivery is a significant channel, with fast food making up 78% of delivery orders.

Looking ahead, the industry is poised for further advancements with a focus on innovative and flexible packaging, along with the increasing use of Artificial Intelligence (AI) for forecasting and enhancing operational efficiency.

Sources:
https://www.mordorintelligence.com/industry-reports/malaysia-foodservice-market 
Malaysia Restaurant Statistics: Market Size, Growth Trends & Consumer Insights by Restroworks