South Korea Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

South Korea Foodservice Market is segmented by Type (Full-service Restaurants, Self-service Restaurants, Fast Foods, Street Stalls and Kiosks, Cafes and Bars, and 100% Home Delivery Restaurants) and Structure (Independent Consumer Foodservice and Chained Consumer Foodservice). The report offers market size and forecasts in value (USD million) for the above segments.

Market Snapshot

Snapshot
Study Period: 2016 -2027
Base Year: 2021
CAGR: 4.63 %

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Market Overview

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

The COVID-19 pandemic has resulted in a devastating impact on South Korea's foodservice market as the number of people eating out decreased, causing sharp declines in sales. However, the country has witnessed an increase of over 90% in online food product transactions during the COVID-19 pandemic outbreak, but it continues to face trade-related challenges. According to a statement by the country’s Ministry of Trade, Industry and 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. COVID-19 also resulted in the acceleration of food technology in the market studied. Adding on robotics in foodservice operations has been expanded significantly.

Over the long term, the increasing Western influence would prompt South Korean consumers to opt for fusion foods and exotic blends of cuisines. The restaurants and cafes have quickly captured this trend and have modified their offerings to suit the evolving palates of consumers. The restaurant sector in the country includes a wide variety of operators, ranging from American-style fast-food chains to more traditional family-owned, single-outlet restaurants.

Quick service chain operators are well-represented in the channel. In the QSR channel, both domestic and international operators have a significant market share. A large proportion of channel visitors indicated brand familiarity and habit as critical drivers for their choice of store, in addition to convenience-based factors. South Korea has one of the most vibrant coffee scenes in the world, with its capital, Seoul, boasting over 18,000 cafes. Thus, the cafes and bars are projected to witness a significant growth rate during the forecast period.

Scope of the Report

Foodservice defines those businesses, institutions, and companies responsible for any meal prepared outside the home. The South Korea foodservice market is segmented by type and structure. By type, the market is segmented into full-service restaurants, self-service restaurants, fast food, street stalls and kiosks, cafes and bars, and 100% home delivery restaurants. By structure, the market is segmented into independent consumer foodservice and chained consumer foodservice. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

By Type
Full-service Restaurants
Shelf-service Restaurants
Fast Food
Street Stalls and Kiosks
Cafes and Bars
100% Home Delivery Restaurants
By Structure
Independent Consumer Foodservice
Chained Consumer Foodservice

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Key Market Trends

Growing Demand for Online Delivery Services of Meals

Convenience remains an important factor driving the eating habits of South Koreans with busy lifestyles. Hence, the foodservice operators and other food manufacturers are developing more convenient and healthier food delivery options via online delivery. Moreover, the COVID-19 restrictions accelerated the demand for online food delivery. Such evolving factors led to the emergence of several food delivery applications in the country, as consumers registered a burgeoning demand for online delivery of meals at their respective workplaces or homes. This trend created a great opportunity for the online food delivery applications to provide a differentiated order experience to the consumers by adopting various strategies, such as offering discounts. The food delivery app market in South Korea is majorly dominated by Woowa Brothers controls, followed by Delivery Hero. 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.

South Korea Foodservice Market1

Surge in Demand For Fast Food Among Consumers

The market for fast food was recorded as one of the fastest-growing segments in the foodservice market of South Korea. The increase in demand in 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 due to fast-food operators who are actively launching set-meal menus at competitive prices and constantly offering diverse promotional discounts throughout the year. The expansion of international chains in the country is influencing more young consumers, who are inclined toward Western trends, to visit the outlets. There are many fast-food restaurants in the country, especially from the United States, such as McDonald's, Burger King, KFC, and Pizza Hut, among others.

South Korea Foodservice Market2

Competitive Landscape

The South Korea foodservice market is highly competitive, with the dominance of independent restaurants by volume, as they offer the local cuisine. Local restaurants are trying to expand their presence by opening chain restaurants, wherein global players hold a significant market share by value and are trying to gain a competitive advantage by increasing the number of restaurants. Furthermore, in order 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, and Lotte Group are some prominent players in the market studied.

Recent Developments

  • In Jan 2022, Burger King South Korea launched a ‘Angry Truffle Whopper’ that reflects the tastes of domestic consumers. The new launch marks a start of the company’s plans to aggressively launch a new menu.
  • 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).
  • 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. The new item consists of three sections: the Appetizer section has tomato compote with white balsamic sauce and ricotta cheese, the Main Entree section consists of shrimp and flower squid and Korean beef barbeque. The Dessert portion is small cubes of cheesecake with sweet potato and fromage blanc cream cheese mousse.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Full-service Restaurants

      2. 5.1.2 Shelf-service Restaurants

      3. 5.1.3 Fast Food

      4. 5.1.4 Street Stalls and Kiosks

      5. 5.1.5 Cafes and Bars

      6. 5.1.6 100% Home Delivery Restaurants

    2. 5.2 By Structure

      1. 5.2.1 Independent Consumer Foodservice

      2. 5.2.2 Chained Consumer Foodservice

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Yum! Brands Inc.

      2. 6.4.2 Starbucks Corporation

      3. 6.4.3 McDonald's Corporation

      4. 6.4.4 Domino's Pizza Inc.

      5. 6.4.5 Restaurant Brands International Inc.

      6. 6.4.6 Balwoo Gongyang

      7. 6.4.7 CJ Group

      8. 6.4.8 Bloomin' Brands

      9. 6.4.9 SPC Group

      10. 6.4.10 Genesis BBQ Group

      11. 6.4.11 Lotte Group

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The South Korea Foodservice Market market is studied from 2016 - 2027.

The South Korea Foodservice Market is growing at a CAGR of 4.63% over the next 5 years.

Domino’s Pizza, Starbucks Corp., McDonald's Corp., Yum! Brands Inc., Restaurant Brands International Inc. are the major companies operating in South Korea Foodservice Market.

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