GROWTH in the Philippine food services industry is projected at 20% this year amid a revival of hotels and tourism, according to the United States Department of Agriculture (USDA).
“With the recovery in the service industry, restaurants and hotels are expected to become more profitable in 2023,” the USDA said in a report.
It added that dining in restaurants, catering, and events will continue to boost sales, with food delivery also established as a convenient option for consumers.
Restaurant chains are also seen continuing to open new stores and franchises.
The USDA also sees full-service restaurants overhauling limited-service restaurants in terms of sales, with growth of 25% in 2023.
Limited-service restaurants, which accounts for more than half of the industry, are expected to post sales growth of 20% this year.
Café and bar sales, on the other hand, are estimated to expand 20% as more establishments open. The forecast suggests a slowdown from the 26% reported in 2022.
The USDA said sales growth of street stalls and kiosks is expected to decelerate during the year, due to the “higher cost of raw materials and thrifty spending by consumers.”
“The USDA projects the Philippine food service industry to recover to pre-pandemic levels by 2024,” it said.
It said that the Philippines presents “a substantial opportunity” for US processed food, with the country becoming the seventh-largest export market for the US in 2022.
US consumer-oriented exports to the Philippines were the highest in Southeast Asia last year at $1.6 billion. — Adrian H. Halili