Thailand Foodservice Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Thailand Foodservice Market Trends

Thailand's quick service restaurant market is growing, driven by the young population and demand for fast food

• The number of QSR outlets in Thailand grew by 1.97% between 2017 and 2022. In Thailand, fast-food restaurants like McDonald's, KFC, and Burger King are well-known and prevalent in urban areas. Swensen's, MK Restaurant, and Yum Yum are a few of the regional QSR brands that serve Thai and other ethnic cuisines. The market is being driven by an influx of the young population. Young adults (18-35 years) enjoy eating out and consider fast food delectable. People in this age bracket are ideal customers for the QSR chain, making the growth of this sector more significant. The consumption of fast food was observed to be highest in Thailand in 2020, with 40% of consumers consuming fast food at least four times a week among Southeast Asians.
• Cloud kitchen outlets are the fastest growing. It is projected to register a CAGR of 15.65% during the forecast period. This will be supported by expansions and investments in the sector. Thailand’s leading fast-food restaurant chain, Central Restaurant Group, plans to set up 100 cloud kitchens by 2024 across the country. SET-listed developer Siamese Asset planned to invest USD 437.4 million to expand its cloud kitchen business between 2022 and 2026.
• Cafes & bars outlets held the second major share at 10.55% in the market in 2022. Coffee consumption is on the increase, as 15% more coffee is being consumed in the country every year, as an average person consumes 300 cups per annum. The tourism sector has expanded due to increased demand for cafes and bars. Thailand is a popular travel destination, and a significant number of visitors are attracted by the vibrant culinary industry there.

Full service restaurants lead the way with popular Asian dishes like pad thai, tom yum, and tom kho gai

• In Thailand, the average order was observed to be highest among the full service restaurants in 2022, compared to other foodservice types with a price of USD 12.8. Thai customers prefer Asian cuisine, thereby Asian full service restaurants are in high demand. One of the major factors influencing the expansion of the restaurant industry is the shabu and hot pot dining trend, which has grown in popularity during the previous two to three years. High-end or fine dining establishments provide distinctive cuisine and eating experiences. Chefs and customers are becoming more concerned with the origins of their products and cuisine, with "farm-to-table" becoming a prominent marketing factor. Popular dishes offered by the FSR cuisines are Pad Thai, Tom Yum, and Tom Kho Gai priced at USD 3.6, USD 6.5, and USD 4.4 per 300 gm, respectively.
• The Thai foodservice market has evolved and changed to meet customer demands and consumer behavior. QSRs have become increasingly popular in Thailand due to the growth of urbanization, the change in demographics and income, and the growing influence of Western lifestyles. Quick service average order value has seen a huge growth in the recent year in the country. Between 2019 and 2022, quick service restaurants registered an average order value growth of 9.53% in the country. The expansion of chained outlets has also helped the QSR industry. About 80% of Thailand's food franchises are associated with American and non-American brands, including McDonald's, KFC, Pizza Hut, Taco Bell, Domino Pizza, Au Bon Pain, Starbucks, Carl's Junior, Burger King, Baskin-Robbins, Dairy Queen, Auntie Anne's, and Chabuton Ramen. Popular dishes offered through QSRs include burgers and kebabs, priced at USD 6.8 and USD 8.15 per 300 grams, respectively.

Segment Analysis: Foodservice Type

Quick Service Restaurants Segment in Thailand Foodservice Market

Quick Service Restaurants (QSR) dominate the Thailand foodservice industry, commanding approximately 51% food market share in 2024. The segment's strong performance is driven by the increasing preference for chicken and pork-based fast food among Thai consumers, with per capita meat consumption reaching nearly 22 kg annually. The expansion of international chains and local QSR operators has significantly contributed to the segment's dominance, particularly in densely populated urban areas and tourist destinations like Bangkok, Pattaya, and Phuket. The segment's growth is further supported by the rising adoption of flexitarian diets among Thai consumers, with about 65% of the population embracing this dietary trend, prompting QSR chains to expand their plant-based menu offerings to cater to health-conscious consumers.

Cloud Kitchen Segment in Thailand Foodservice Market

The Cloud Kitchen segment is experiencing remarkable growth in Thailand's foodservice industry, projected to expand at approximately 26% CAGR during 2024-2029. This explosive growth is primarily fueled by the high internet penetration rate of around 78% of the total population, representing about 54.50 million internet users. The segment's expansion is further accelerated by the widespread adoption of food delivery applications, with major platforms like GrabFood boasting over 32.7 million active users, Food Panda with 74,085 active users, and Line Man exceeding 1 million active users. The increasing consumer preference for convenient dining solutions and the cost-effectiveness of the cloud kitchen business model have attracted both established restaurant chains and new entrepreneurs to invest in this segment.

Remaining Segments in Foodservice Type

The Full Service Restaurants (FSR) and Cafes & Bars segments play vital roles in Thailand's food service market. FSR establishments are particularly prominent in offering authentic Asian cuisines, with Japanese restaurants being highly preferred, followed by Italian, Chinese, American, and Vietnamese offerings. The Cafes & Bars segment has gained significant traction due to Thailand's evolving coffee culture and vibrant nightlife scene, particularly in urban areas and tourist destinations. Both segments have adapted to changing consumer preferences by incorporating health-conscious menu options and enhancing their dining experiences through innovative service concepts and ambiance improvements.

Segment Analysis: Outlet

Independent Outlets Segment in Thailand Foodservice Market

Independent outlets dominate the Thailand food industry market share, commanding approximately 74% market share in 2024. The segment's strong position is primarily driven by restaurant owners' ability to frequently modify their menu offerings based on consumer feedback and their investment in hiring executive chefs specialized in particular dishes such as sushi, pad Thai, kimchi, and other exotic food offerings. Independent Asian full-service restaurants particularly contribute to this dominance, with these establishments focusing on providing unique dishes rather than following static menus. These outlets maintain their competitive edge by offering prices 15-20% lower than chained establishments while maintaining high quality and speedy delivery. The segment's success is further bolstered by the increasing number of independent cloud kitchens, with entrepreneurs opening single-outlet operations featuring the nation's most consumed food items on their menus.

Chained Outlets Segment in Thailand Foodservice Market

The chained outlets segment is projected to experience robust growth with an estimated CAGR of approximately 8% during 2024-2029. This growth trajectory is primarily driven by well-known global brands such as BonChon Chicken, Burger King, Chester's Grill, and KFC, which continue to expand their presence across key locations including Bangkok, Pattaya, and Chiang Mai. The segment's expansion is particularly notable in the QSR sector, where rising demand for fast food and snacks as convenient breakfast and lunch options is driving growth. Chained outlets are actively adapting to changing consumer preferences by offering healthier versions of burgers, pizzas, and sandwiches, while maintaining competitive pricing and efficient delivery services. The segment's growth is further supported by strategic expansions in different cities and the introduction of innovative menu offerings to cater to evolving consumer tastes and preferences.

Segment Analysis: Location

Standalone Segment in Thailand Foodservice Market

Standalone locations continue to dominate the Thailand food market value, commanding approximately 90% market share in 2024. The segment's strong performance is driven by the high concentration of quick service restaurants, with meat-based cuisines holding over 51% share in standalone locations. Popular global fast-food chains like Burger King, KFC, Pizza Mania, BonChon Chicken, Pala Pizza, and Teddy's Bigger Burgers have established their presence in major cities like Phuket, Bangkok, and Pattaya. The segment's success is further bolstered by Thailand's vibrant nightlife, with high-spirited clubs, pubs, and go-go bars concentrated in popular areas like Khao San Road, Walking Street, and Patpong. The younger population's increasing consumption of alcohol, with approximately 16 million consumers aged 15 years and older, has encouraged pub owners to open standalone outlets in these areas, offering premium liquor and unique appetizers.

Travel Segment in Thailand Foodservice Market

The travel segment in Thailand's Thai food industry is projected to grow at approximately 11% CAGR from 2024 to 2029, making it the fastest-growing location type. This exceptional growth is driven by the expansion of foodservice outlets in the country's 39 international and commercial airports, particularly in major hubs like Suvarnabhumi Airport, Don Mueang International Airport, Phuket International Airport, and Hat Yai International Airport. The segment's growth is supported by robust domestic and international passenger traffic, with domestic airline passengers reaching 38.78 million and international passengers touching 24.1 million. Additionally, the railway sector contributes significantly to this growth, with monthly regional train passengers exceeding 1.5 million, creating opportunities for foodservice providers, especially specialty coffee and tea shops, to establish presence at railway stations and along highways.

Remaining Segments in Location

The retail, leisure, and lodging segments each play unique roles in Thailand's foodservice market. Retail locations benefit from the synergy between shopping and dining experiences, with foodservice outlets in supermarkets, grocery shops, convenience stores, and shopping malls. The leisure segment capitalizes on entertainment venues like movie theaters, amusement parks, and gaming areas, offering diverse dining options to entertainment seekers. The lodging segment serves hotels and resorts, particularly in tourist-heavy areas, providing both local and international cuisine options to accommodate diverse guest preferences. These segments collectively contribute to the market's diversity and cater to different consumer needs and occasions.

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We provide a complimentary and exhaustive set of data points on regional and country level metrics that present the fundamental structure of the industry. Presented in the form of 60+ free charts, the section covers difficult to find data on various countries on number of outlets, average order values, and menu analysis by foodservice channels, cuisine specific insights related to full service restaurants and quick service restaurants, market trends and market size insights on cafes, bars & pubs, juice/smoothies bars, specialty tea and coffee shops, and cloud kitchen etc.