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Report

A Fresh Look into the Korean Food Service – Why is it dominating?

18 February 2022 by Mordor Intelligence

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Is South Korea the Next Big Foodservice Market?

– The South Korean foodservice market is projected to witness a CAGR of 4.63% during the forecast period, 2022 – 2027.

– The South Korean foodservice market reflects global trends. According to food consumption trends, South Korea is Asia’s third-largest economy, and people in South Korea are switching from traditional to western diets.

– Consumers maintain strong attention to new international food and consumption trends as their exposure to foreign food culture expands. Due to the rapid economic expansion in South Korea, many foreign branded operators entered its foodservice sector.

– In January 2022, US-based Restaurant Brands International’s food chain, the Popeyes brand, and a subsidiary of Silla Co. Ltd entered into a master franchise and development agreement to open hundreds of restaurants across South Korea.

Korea – A New Food Service Destination (The Land of Kimchi)

– Convenience remains an important factor driving the eating habits of South Koreans with busy lifestyles.

– The foodservice operators and other food manufacturers are developing more convenient and healthier food delivery options via online delivery.

– In 2022, according to a statement by the country’s Ministry of Trade, Industry & Energy (MOTIE), the online sales of food products rose by 92.5% in February when COVID-19 infections were at their peak in South Korea.

– The food delivery apps are expanding their services as a part of their marketing strategy to penetrate the digital food market and capitalize on their position. In Dec 2021 Genesis BBQ Group announced that it enhanced its own app (BBQ app) by adding a new feature of using the Gifticon (E-coupon).

Korea’s Outstanding Foodservice Market Opportunities to Watch Out

– In the quick service restaurant (QSR) channel, both domestic and international operators have a significant market share.

– Franchising and sub-franchising have become very popular tools for multinational and local players.

– The growth in QSRs, coupled with the increasing out-of-home consumption, is mainly attributed to the working-class population seeking grab-and-go meals at a reasonable rate. Also, the increasing number millennial population seeking budget-friendly spaces to enjoy meals with their companions is boosting the market growth.

South Korea Foodservice Industry- Competitor’s Capsule

– The South Korea foodservice market is highly competitive, with the dominance of independent restaurants by volume, as they offer the local cuisine.

– To attract a higher number of consumers, an increasing number of foodservice providers are actively developing new products and launching innovative services, like online food ordering and customizing meal options.

– McDonald’s Corporation, SPC Group, Starbucks Corporation, Domino’s Pizza and Lotte Group are some prominent players in the market.

– In Dec 2021 Domino’s started offering a three-course meal in the form of a pizza with its new Master Triple Course Pizza in South Korea.

This report was contributed by knowledge partner: