Thailand Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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

Market Snapshot

Thailand Foodservice Market Overview
Study Period: 2016 - 2026
Base Year: 2020
CAGR: 4.19 %
Thailand Foodservice Market Major Players

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Market Overview

The Thailand foodservice market is projected to register a CAGR of 4.19% during the forecast period, 2021-2026.

The market has witnessed a certain impact due to the COVID-19 outbreak on the overall foodservice business in Thailand, with various types of foodservice establishments such as full-service restaurants being affected in varying degrees in the country. The pandemic also created a huge disruption in the supply chain across the country due to various trade restrictions across various countries. Food supply chains have demonstrated remarkable resilience in the face of these stresses. In-restaurant dining has been the worst-hit segment, largely due to the travel curbs and a general avoidance of people in getting into larger gatherings and social distancing regulations, closing down millions of restaurants. Such factors resulted in consumers switching from in-dining to online food delivery services. Accordingly, many restaurants shifted their focus to delivery and takeaway, which have become vital sales drivers.

Thailand is one of the major countries in the consumer foodservice industry among the Southeast Asian countries. Over the medium term, the country’s tourism industry is likely to be one of the primary factors of growth for its foodservice industry once the situation gets better. According to the country’s Department of Tourism, such significant growth in tourism is attributed to domestic stability, the development of low-cost airlines, and considerable government measures to boost tourism.

Additionally, social networking sites, such as Facebook, Twitter, and Instagram, played a crucial role in augmenting the growth of the Thailand foodservice market. Celebrities from the entertainment industry have been posting images and providing feedback about their healthy lifestyles, which have contributed to and boosted the health and wellness trend in Thailand. The growing health and wellness trend in the country provided an opportunity for restaurants offering vegan and organic food menus. Moreover, in order to cater to consumers’ needs, various foodservice establishments in the country are providing customized meals based on the consumers’ preferences and diets.

Scope of the Report

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

By Type
Full-service Restaurants
Quick-service Restaurants
Street Stalls and Kiosks
Cafes and Bars
100% Home Delivery Restaurants
By Structure
Independent
Chained

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Key Market Trends

Full-service Restaurants are Gaining Popularity in Thailand

Full-service restaurants have a significant share in the restaurant industry. In Thailand, Japanese restaurants are highly preferred by the consumers, followed by Italian, Chinese, American, and Vietnamese restaurants. ​While chained full-service restaurants make up just over a third of the full-service sector, these restaurants are growing due to increased consumer preference for convenience, hygiene, and high-quality standards. High-end restaurants attract teenagers and young professionals by offering high-quality food in a unique ambiance. Many full-service restaurant chains offer takeout and delivery options, which are also popular. The country shows potential in terms of price competitiveness, health and hygiene, ICT (Information and Communication Technology) readiness, business environment, and tourist service infrastructure.

Thailand Foodservice Market Key Trends

Rapid Expansion of Quick-service Restaurants

Yum! Brands, one of the largest foodservice providers in Thailand, with popular brands, such as KFC and Pizza Hut, is embarking on huge expansion plans across the country to effectively penetrate its presence in targeted cities, such as Bangkok, Pattaya City, Chiang Mai, Phuket, Mueang Chiang Rai, Hat Yai, etc. For instance, in 2018, Yum Restaurants International Thailand, the operator of the KFC fast-food chain, signed a franchise agreement worth THB 11.3 billion with The QSR of Asia (QSA), an indirect, wholly-owned subsidiary of ThaiBev, to operate 240 KFC stores in Thailand. The move put KFC branches under three franchisees, which include the Central Restaurant Group, Restaurant Development Co., and QSA. ​Moreover, consumers have strong access to social media and the Internet, which further exposes them to various international products, activities, and lifestyles, including the newly opened foodservice providers, driving sales through QSR.

Thailand Foodservice Market Growth Rate

Competitive Landscape

The market is highly competitive with the presence of prominent companies, including Yum! Brands Inc., Starbucks Corporation, MK Restaurants Co. Ltd, McDonald's Corp., Seven & I Holdings Co. Ltd, Minor International PCL, and Thai Beverage PCL. Companies are focusing on investing in small to medium-sized acquisitions or start-ups to further strengthen their organic growth capabilities.

Furthermore, players are expanding their presence in the country to gain more consumer attraction and have a competitive advantage over other players. MCTHAI Co., the licensed operator of McDonald’s restaurants in Thailand, set its 2020 vision to invest THB 5 billion and significantly increase the number of stores from 227 at present to 400 in five years. The company may also recruit 1,000 new staff every year over the next five years.

Recent Developments

  • In 2019, Starbucks Thailand introduced three flavors of Frappe drinks, namely Double Ristretto Blended Cream, Matcha Blended Cream, and Teavana Frozen Mango Hibiscus Tea With Pomegranate Pearls, and it also relaunched green tea pudding in the country.
  • In 2019, Taco Bell opened its first restaurant in Thailand in partnership with its franchise partner, Siam Taco Co. Ltd, a joint venture between Thoresen Thai Agencies Public Co. Ltd and experienced food and beverage operators.
  • In 2018, Minor Food opened 83 new equity stores and 76 franchise stores in Thailand, operated under the brands, The Pizza Company, Swensen’s, Sizzler, Dairy Queen, Burger King, The Coffee Club, and Thai Express.

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

    1. 3.1 Market Overview

  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 Quick-service Restaurants

      3. 5.1.3 Street Stalls and Kiosks

      4. 5.1.4 Cafes and Bars

      5. 5.1.5 100% Home Delivery Restaurants

    2. 5.2 By Structure

      1. 5.2.1 Independent

      2. 5.2.2 Chained

  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 MK Restaurants Co. Ltd

      5. 6.4.5 Minor International Public Company Limited

      6. 6.4.6 Thai Beverage PLC

      7. 6.4.7 Seven & I Holdings Co. Ltd

      8. 6.4.8 Central Restaurants Group Co. Ltd

      9. 6.4.9 ZEN Corporation Group Public Company Limited

      10. 6.4.10 MK Inter Food Co. Ltd

    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 Thailand Foodservice Market market is studied from 2016 - 2026.

The Thailand Foodservice Market is growing at a CAGR of 4.19% over the next 5 years.

Yum! Brands, Starbucks Corporation, MK Restaurants Co. Ltd, McDonald's Corp., Thai Beverage PCL are the major companies operating in Thailand Foodservice Market.

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