Tourism fuels growth in Australia’s food service market

Foodservice is expected to be valued at $198b by 2034.

Australia’s food service market reached US$90.1b ($137b AUD) in 2025 and is projected to grow to US$130.4b ($198b AUD) by 2034, expanding at a compound annual growth rate (CAGR) of 4.07% from 2026, according to IMARC Group. 

Rising tourism is a major contributor, with visitors increasing footfall across restaurants, cafes, street food stalls, and quick-service outlets in major urban and coastal destinations.

IMARC Group noted that “tourists consistently seek local and international cuisines during travel, increasing footfall across restaurants, cafes, street food outlets, and quick-service establishments in major urban and coastal destinations throughout the country.”

This trend is prompting hospitality operators to enhance menu offerings, provide better customer service, and embrace multicultural cuisine diversity to cater to both local diners and international visitors.

Urban lifestyle shifts, including dual-income households and hybrid work patterns, are boosting demand for convenience-oriented dining formats such as grab-and-go meals and café breakfasts. 

The widespread adoption of digital ordering, contactless payment, and AI-driven personalisation is also reshaping the sector, while cloud and ghost kitchen models are gaining traction as capital-efficient, delivery-focused operations.

Health-conscious and organic food options are increasingly influencing menus, with plant-based dishes, gluten-free meals, and low-sugar alternatives becoming standard across restaurants and cafes. Experiential dining, food festivals, and tourism-linked hospitality offerings are further supporting sustained market growth.

Airports, hotels, and travel infrastructure are upgrading food service experiences to meet visitor expectations, integrating dining with tourism itineraries and reinforcing Australia’s reputation for culinary diversity.