The South Korean foodservice market is expected to witness a CAGR of 3.47% during the forecast period (2020 - 2025)
- The consumers' shift toward western cuisines and increased online food orders are the key factors driving the South Korean foodservice market. This is increasing the demand for the 100% home delivery/take away segments, as they are highly associated with the convenience factor.
- South Korean consumers have an inclination toward cheaper options when dining out. Amidst the continued fall of the domestic economy, fast-food outlets in South Korea, and other consumer foodservice restaurants that offer a diverse range of menus at lower prices, registered faster sales growth than other consumer foodservice outlets.
Key Market Trends
Preferred Cuisines by South Koreans
The most preferred cuisines by South Koreans are Korean food, Chinese food, Gimbap/flour-based food, fast food, and fried chicken. The most preferred among all is Korean food itself, which includes popular foods, like Kimchi, Bibimbap, Bulgogi, Japchae, etc. A large number of consumers show their interest in Chinese food because of its indifferent flavors and style of cooking. After the growth in the popularity of fast food, such as pizza and fried chicken, over the past few years, many South Korean consumers have been driving the demand for “Hansik”, a traditional Korean food. This trend has accompanied the recent theme of eating healthy.
Surging Demand For Fast Food Among South Koreans
Fast food was recorded as one of the fastest-growing segments in the foodservice market of South Korea. The increase in the demand for the fast-food segment is highly associated with the convenience factor. As Koreans are working for longer hours, they are increasingly valuing the convenience of fast food, while also incorporating healthy eating habits. The fast-food outlets in South Korea and other quick foodservice restaurants that offer a diverse range of menus at lower prices registered faster sales growth than other consumer foodservice outlets. The South Korean foodservice market is growing by fast-food operators who are actively launching set-meal menus at competitive prices, and constantly offer diverse promotional discounts throughout the year.
The South Korean foodservice market is highly fragmented, with the dominance of independent restaurants by volume, as they offer local cuisine. Local restaurants are trying to expand their presence by opening chain restaurants. Global players record a high market share by value and are trying to gain a competitive advantage by increasing the number of restaurants. To attract a higher number of consumers under the economic slowdown in the country, an increasing number of foodservice providers are actively developing new products and launching innovative services, like online food ordering and customizing meal options.
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