The Irish foodservice market will grow by 11% on last year to reach almost €5 billion by year-end, with an additional 56% (€2.8 billion) growth predicted for 2022.

Last year, following eight years of consecutive growth, the foodservice market fell by a stark 47% (from €8.5 billion to €4.5 billion) and Bord Bia believes it will be the end of 2022 before the majority of the industry could return to close to the pre-pandemic levels of trade.

In response to the ongoing impact of Covid-19 on Ireland’s foodservice industry and the knock-on effect on Irish food and drink producers, Bord Bia is today (Thursday, June 17) publishing revised outlooks and a new report charting growth forecasts for the remainder of 2021 and into 2022, as the industry moves towards a full reopening from July onwards.

The ‘Outlook on the Irish Foodservice Industry Post-Pandemic’ report, co-authored by global foodservice research specialists Technomic, has been developed to provide Irish food and drink suppliers servicing this market with up-to-date data and insights as they plan for the period ahead.

Adaptability, perseverance and tenacity to survive

Speaking today, Maureen Gahan, foodservice specialist with Bord Bia and report co-author said that foodservice in Ireland has “displayed resilience in the face of the most prolonged shutdown in modern memory”.

“Our end of year Market Insights report published in November 2020 documented the huge hit that the industry had taken as a result of Covid-19,” Gahan said.

“At that stage, we estimated that even in a worst case scenario, 2021 would see growth rates of 16% however, we had not anticipated the length nor depth of the lockdown that was to follow.

“This has resulted in a lowering of the overall expectation for growth in 2021 to 11%, lower than the ‘worst case scenario’ laid out late last year.

“The industry has shown adaptability, perseverance and tenacity to survive and, with the assumption that the worst part of the crisis has passed, will begin to emerge and grow again in 2021 and beyond.”

Strong second half to 2021

Gahan said that Bord Bia is forecasting a strong second half to 2021, as the vaccine rollout continues at pace, coupled with pent-up demand and consumer savings.

“As the economy recovers and consumers grow more confident living in the age of Covid-19, this will see a parallel recovery in the Irish foodservice market,” she added.

In the face of this outlook, the latest Bord Bia report outlines trends and recommendations for businesses as they forward plan and adapt their positioning, products and services, including:  

  • Taste continuing to be the most important driver for consumers, and ‘craveability’ should be a focus for product innovation and menu design;
  • Continued elevated growth in off-premise – even as dine-in reopens, there will be a need for offerings that can easily transition from on-premise to off-premise occasions;
  • Need for skilled labour – this was a concern pre-Covid-19, now further exacerbated due to job uncertainty experienced by many during the pandemic. Labour saving solutions will continue to be sought after by foodservice operators;
  • Safety – items that offer a lower touch / contactless experience will continue to be important. Technology developed now will remain and new products will evolve accordingly.

David Henkes, Technomic senior principal and report co-author believes that Ireland’s foodservice industry and the Irish food and drink suppliers servicing this market are facing prolonged and significant changes due to the global pandemic, and many of these shifts will be permanent.

Foodservice operators urged to stay informed

“With the strong demand for off-premise food [including delivery, takeaway and drive-thru], restaurant models are adapting to accommodate what is widely expected to be elevated demand, even as the pandemic ends,” Henkes said.

“Seating areas are being re-thought, with more outdoor space being added. For some quick-serve restaurants, dining areas are being reduced in size or eliminated altogether.

“Meanwhile, technology has been a key enabler for restaurant and foodservice operator survival and success during the pandemic.

“Further investment in this space will move forward at an accelerated pace while the importance of sustainability, particularly in packaging but also in food waste, local sourcing and other critical areas, is expected to return and accelerate.

“Many of these changes are here to stay and we would encourage all foodservice operators and suppliers to remain informed and use these insights to refocus and reboot the foodservice aspect of their business in order to best service their customers as the market reopens.”