Quick-serve restaurants now account for a third of all spending in Ireland’s foodservice industry while coffee shops are the fastest growing segment of the market, a report by Bord Bia has revealed.

The term “quick serve” encompasses everything from fast food chains such as McDonalds to more upmarket eateries like the Chopped salad stores.

Spending in this sector is expected to hit a record €2.6 billion this year, making it the largest single component of the industry.

Pubs, meanwhile, accounted for 18 per cent, or €1.3 billion, of the consumer spend (excluding alcohol), with food-led pubs seeing the biggest return.

The report found the strongest growth was in the coffee shop channel, although this was from a low base.

According to Bord Bia,the value of the foodservice industry here grew to a record €7.5 billion in 2016, and is forecast to grow to over €9 billion by 2020.

Foodservice or “out of home” describes all food consumed away from home, which includes everything from restaurants, hotels, coffee shops and bars to workplace catering, hospitals and schools.

The industry has benefitted from better-than-expected economic growth, buoyant consumer confidence, recovery in tourism and the continuation of 9 per cent VAT for hospitality, Bord Bia said.

The group’s report, which was presented at its annual foodservice industry seminar in Dublin, also highlighted some notable trends and consumer preferences.

While consumers crave indulgence, health and authenticity were now top priorities.

“This may not necessarily mean lower fat or lower calories, but rather more on the types of ingredients, the transparency of the menu and how much of a menu item can be described as natural,” the report said.

It also noted that fast food restaurants continue to be a target for criticism regarding obesity.

“The potential mandatory inclusion of calorie counts on menus, as well as a tax on sugar sweetened drinks coming into effect in 2018 will put pressure on these outlets to consider healthier menu items that are cohesive with their offering,” Bord Bia said.

Speaking at the seminar, Bord Bia's foodservice specialist Maureen Gahan said: "It has been a bumper year for foodservice in Ireland. "