Digital orders propel Malaysia foodservice market to $30.7b by 2031

Independent outlets remain the market leader with 73.52% of sales in 2025.

The Malaysian foodservice market is projected to grow sharply, rising from $16.67b in 2026 to $30.74b by 2031, representing a compound annual growth rate (CAGR) of 13.05%.

According to the Research and Markets report, this growth is linked to rising consumer purchasing power, steady economic growth—as reflected in Malaysia’s 2025 GDP—and the growing use of digital technologies.

Key contributors to this expansion include mobile ordering apps, restaurant infrastructure improvements, and government policies supporting both large chains and smaller food businesses.

Digital adoption is reshaping how consumers order and how operators manage their businesses.

For instance, QSR Brands reported a 25% revenue increase in 2024 by implementing self-order kiosks and mobile apps.

The report also noted that digital tools improve order accuracy, cut costs, and allow operators to use analytics for personalised marketing and inventory management.

The government’s e-invoicing mandate in August 2024 has further encouraged digital payments, particularly amongst SMEs.

Cloud-based POS systems and delivery management platforms have made it easier for independent operators to compete with larger chains.

Urban consumers are increasingly ordering online, with bubble tea and fried chicken amongst the most popular items.

Independent outlets still dominate the market, accounting for 73.52% of sales in 2025, reflecting the entrepreneurial nature of Malaysia’s food industry and its diverse culinary preferences.

However, chain operators are growing rapidly at a 12.98% CAGR, leveraging financial resources, operational systems, and economies of scale to offer competitive pricing and consistent service.

Full-service restaurants held a 34.02% market share in 2025, reflecting Malaysia’s dining culture and adaptability to changing consumer habits.

Quick-service restaurants continue to expand via franchises and mall locations, whilst speciality cafes benefit from growing interest in coffee and bubble tea.

Digital tools also allow operators to launch virtual brands and experiment with concepts without investing in physical locations.

TamJai International, entering the market through a partnership with Hextar Retail, shows how international brands can navigate local regulations and consumer preferences by working with local partners.