According to Bord Bia’s 2020 Irish Foodservice Market Insights Report, the value of the Irish foodservice industry for 2020 is estimated to be €4.5 billion, representing a drop of 47% against 2019 figures.
After eight years of consecutive growth, the report shows that the industry is expected to lose over €4 billion in consumer spending in 2020. However, it predicts that, even in a worst-case scenario, there will be some bounce back in terms of market recovery in 2021.
Acknowledging the hugely challenging environment that the industry has faced over the past seven months and the ongoing uncertainties as we head into 2021, the report looks to forecast what the future will hold for all involved in foodservice in Ireland. It also outlines key trends that foodservice operators and food suppliers should consider in order to ensure that their businesses remain relevant.
Maureen Gahan, Foodservice Specialist, Bord Bia said: “The performance of the foodservice industry is intrinsically linked to economic conditions, tourism and employment – all of which will continue to be challenged in 2021. The changing landscape will have a long-term impact on revenue and profitability - everything from the drive from consumers for keener value pricing, to the shift away from city centre and high street locations to the challenge of recruiting and training new staff.
We are predicting a bounceback in 2021 and have outlined three different scenarios within our report as to how this might play out. In a best-case scenario, the market could see an uplift of as much as 41%, however in a worst-case situation, we’re suggesting that growth on 2020 figures will be circa 16%. In order to prepare for market improvements, we have outlined a number of considerations for foodservice providers and food producers in order to best position their business for recovery and growth.”
The findings of the report were shared with almost 500 delegates at Bord Bia’s Virtual Foodservice Seminar, which was broadcasting live from the RDS, Dublin, earlier this week (11/11/2020).
Tara McCarthy, CEO, Bord Bia said: “Although 2020 has been a tough time for so many, we have also seen some amazing examples of resilience in the face of adversity. If you look at those participating on the panel at this year’s seminar, we have a restaurant chain driving increased sales through off premises activity and ‘cloud’ kitchens; a city centre based salad bar business partnering with a suburban coffee shop to reach customers that are working from home and a handmade dessert producer that has developed a direct-to-consumer channel. These are just some examples of the grit and determination that the Irish food and drink industry continues to display and ultimately a testament to those that rise to ongoing challenges day in, day out.”
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