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South Korea - The Future of Foodservice to 2021

South Korea - The Future of Foodservice to 2021


Korea is a wealthy nation with the world’s 11th largest economy. Due to recent political and economic uncertainty due to high-profile scandals, GDP growth in the Korean economy fell in late 2016. Despite this, as domestic and international uncertainty dissipates, growth is projected to rise to 2.8% in 2018, buoyed by rising consumer confidence and exports. Overall, the economy remains healthy and will accommodate inflation and household debt over 2017.

Overall revenue in the South Korean profit foodservice sector grew at a CAGR of 3.5% between 2014 and 2016; growth in overall sector revenue is forecast to 2021 at a CAGR of 3.6%. Growth in all channels between 2014 and 2016 was driven to a greater extent by growth in transaction numbers than growth in outlet numbers. Low outlet growth across many channels is reflective of the maturity of the South Korean economy and demographic trends impacting the sector.

QSR channel is the third-largest in the Korean profit foodservice sector, representing 18% of total sector revenue with an overall value of KRW 12,975.8 billion in 2016. Growth in the channel is being driven by growth in transactions due to increasing time scarcity amongst consumers, who see this channel as a convenience option. The channel has a high penetration of chain operators. Both locally grown and international operators have significant shares in the QSR channel. In addition to convenience-based factors, a significant proportion of consumers visiting the channel cited brand familiarity and routine as key drivers for their choice of outlet.

In 2016, the FSR channel was the largest channel in the Korean profit sector by revenue. The channel witnessed a 3.0% CAGR in total revenue between 2014 and 2016 and is expected to growth at a 2.9% CAGR between 2016-2021. Key FSR players in South Korea include global and local businesses. The five largest FSR brands are VIPS (CJ Group), Outback Steakhouse (Bloomin' Brands), T.G.I. Fridays (Sentinel Capital Partners & TriArtisan Capital Partners), Pizza Hut (Yum! Brands, Inc.), and Seven Springs (Samyang).

Coffee and tea shop channel is relatively small, accounting for only 4.2% of total sector revenue. Between 2014 and 2016 the coffee and tea shop channel saw the second highest rate of channel revenue growth behind only QSR. However the channel saw among the slowest outlet growth, reflective of a market that is becoming increasingly overcrowded and oversaturated.

The report South Korea - The Future of Foodservice to 2021 provides extensive insight and analysis of the South Korean Foodservice market over the next five years (2016-2021) and acts as a vital point of reference for operators or suppliers.

In particular, this report provides the following -

  • Overview of South Korea's macro-economic landscape: Detailed analysis of current macro-economic factors and their impact on the South Korean foodservice market including GDP per capita, consumer price index, population growth and annual household income distribution.
  • Growth Dynamics: In-depth data and forecasts of key channels (QSR, FSR and Coffee & Tea Shops) within the South Korean foodservice market, including the value of the market, number of transactions, number of outlets and average transaction price.
  • Customer Segmentation: Identify the most important demographic groups, buying habits and motivations that drive out-of-home meal occasions among segments of the Bulgarian population.
  • Key Players: Overview of market leaders within the three major channels including business descriptions and number of outlets.
  • Case Studies: Learn from examples of recent successes and failures within the South Korean foodservice market.
Companies mentioned in this report: McDonald's, MPK Group, Mr. Pizza, Jessica's Kitchen, Manoffin, Pelicana, LOTTE, Lotteria, Genesis BBQ, VIPS, Bibigo, Cheijemyunso, China Factory, Seasonstable, T.G.I. Fridays, Pizza Hut, KFC, Taco Bell, Samyang F&B, Seven Springs, Starbucks, Ediya Coffee, Caffe Bene, Hollys Coffee, Angel-us-coffee.

  • The increased use of mobile technology has allowed operators to maximize efficiency and value, as well as offering consumers ‘smart experiences’. This is particularly prominent within the QSR market, with operators seeking to target time-poor but tech savvy urbanites.
  • Low birth rates, combined with longer life expectancies, have boosted the importance of the country’s elderly population.
  • A ‘Westernization’ of the foodservice market has seen operators increasingly feature steaks, grills and American style pizzas as part of their menus. This trend has been primarily driven by younger generations, with these products being associated with aspirational American ‘lifestyles’.
Reasons to buy
  • Specific forecasts of the foodservice market over the next five years (2016-2021) will give readers the ability to make informed business decisions through identifying emerging/declining markets.
  • Consumer segmentation detailing the desires of known consumers among all major foodservice channels (QSR, FSR and Coffee & Tea shops) will allow readers understand the wants and needs of their target demographics.
  • Relevant case studies will allow readers to learn from and apply lessons discovered by emerging and major players within the South Korean foodservice market.

  • Introduction
    • Report Guide: Main Sections
    • Report Guide: Sub-Sections
  • Executive Summary
  • Executive Summary: Consumer Trends
  • Macroeconomic context
    • Macroeconomic Overview
    • Demographic Overview: Population
    • Demographic Overview: Income Bands
  • Introducing consumer segments
    • Introducing Consumer Segments: Constructing the Segments
    • Introducing Consumer Segments
    • Introducing Consumer Segments: Frugal Convenience-Seekers
    • Introducing Consumer Segments: Time-Poor Experimenters
    • Introducing Consumer Segments: Sporadic Splurgers
    • Introducing Consumer Segments: Regimented Routiners
    • Introducing Consumer Segments: Inbetweeners
    • Introducing Consumer Segments: Key Channel Overview
  • Profit sector
    • Profit Sector Metrics
      • Table Value and experience seekers drive the growth of QSR and pub, club & bar channels
    • Profit Sector: Value and Share by Channel
    • Profit Sector: Outlets and Growth by Channel
    • Profit Sector: Transactions and Growth by Channel
    • Profit Sector: Operator Buying Volumes and Growth by Channel
    • Profit Sector: Operator Buying Volumes and Growth by Channel
    • Profit Sector: Channel Historic Growth Dynamics
    • Profit Sector: Channel Future Growth Dynamics
    • Profit Sector: Restaurant: Outlet-Type Growth Dynamics
      • Table Restaurant outlet types 2016 value growth
    • Profit Sector: Restaurant: Type of Ownership Growth Dynamics
      • Table Restaurant owner types 2016 value growth
  • Quick service restaurants (QSR)
    • QSR: Summary
    • QSR: Metrics: Growth Dynamics
      • Table QSR channel value is set to rise but outlet growth will experience a slowdown
    • QSR: Key Players
    • QSR: Key Consumers: Segment Overview
    • QSR: Key Consumers: Frugal Convenience Seekers
    • QSR: Key Consumers: Time-Poor Experimenters
    • QSR: Key Consumers: Sporadic Splurgers
    • QSR: Key Consumers: Regimented Routiners
    • QSR: Key Consumers: Inbetweeners
    • QSR: Key Consumers: Opportunity Areas
    • QSR: Why?
    • QSR: What?: McDonald's Case Study
    • QSR: What?: McDonald's: Trends Targeted
    • QSR: What?: McDonald's: How?
    • QSR: What?
    • QSR: What?: Food and Drink Splits
      • Table Food records the fastest growth since drinks are readily available elsewhere
    • QSR: Where?
    • QSR: What Next?
  • Full service restaurants (FSR)
    • FSR: Summary
    • FSR: Metrics: Growth Dynamics
      • Table Slow growth in FSR is likely to continue till 2021
    • FSR: Key Players
    • FSR: Key Consumers: Segment Overview
    • FSR: Key Consumers: Frugal Convenience Seekers
    • FSR: Key Consumers: Time-Poor Experimenters
    • FSR: Key Consumers: Sporadic Splurgers
    • FSR: Key Consumers: Regimented Routiners
    • FSR: Key Consumers: Inbetweeners
    • FSR: Key Consumers: Opportunity Areas
    • FSR: Why?
    • FSR: Why?: Seven Springs Case Study
    • FSR: Why?: Seven Springs: Trends Targeted
    • FSR: Why?: Seven Springs: How?
    • FSR: What?
    • FSR: What?: Food and Drink Splits
      • Table Alcoholic drinks led other categories in terms of OBP value growth
    • FSR: Where?
    • FSR: What Next?
  • Coffee and tea shops
    • Coffee & Tea Shops: Summary
    • Coffee & Tea Shops: Metrics: Growth Dynamics
      • Table Overcrowded marketplace forces operators to choose between quality or price propositions
    • Coffee & Tea Shops: Key Players
    • Coffee & Tea Shops: Key Consumers: Segment Overview
    • Coffee & Tea Shops: Key Consumers: Frugal Convenience Seekers
    • Coffee & Tea Shops: Key Consumers: Time-Poor Experimenters
    • Coffee & Tea Shops: Key Consumers: Sporadic Splurgers
    • Coffee & Tea Shops: Key Consumers: Regimented Routiners
    • Coffee & Tea Shops: Key Consumers: Inbetweeners
    • Coffee & Tea Shops: Key Consumers: Opportunity Areas
    • Coffee & Tea Shops: Why?
    • Coffee & Tea Shops: Why?: Starbucks Case Study
    • Coffee & Tea Shops: Why?: Starbucks: Trends targeted
    • Coffee & Tea Shops: Why?: Starbucks: How?
    • Coffee & Tea Shops: What?
    • Coffee & Tea Shops: What?: Food and Drink Splits
      • Table Coffee and tea shops are experiencing slow growth due to competition from other channels
    • Coffee & Tea Shops: Where?
    • Coffee & Tea Shops: What Next?
  • Pubs, clubs and bars
    • Pubs, Clubs & Bars: Summary
    • Pubs, Clubs & Bars: Metrics: Growth Dynamics
      • Table Negative outlet growth reflects glaring oversaturation of South Korean pub, club & bar market
    • Pubs, Clubs & Bars: Key Consumers: Segment Overview
    • Pubs, Clubs & Bars: Key Consumers: Frugal Convenience Seekers
    • Pubs, Clubs & Bars: Key Consumers: Time-Poor Experimenters
    • Pubs, Clubs & Bars: Key Consumers: Sporadic Splurgers
    • Pubs, Clubs & Bars: Key Consumers: Regimented Routiners
    • Pubs, Clubs & Bars: Key Consumers: Inbetweeners
    • Pubs, Clubs & Bars: Key Consumers: Opportunity Areas
    • Pubs, Clubs & Bars: Why?
    • Pubs, Clubs & Bars: What?
    • Pubs, Clubs & Bars: What?: Food and Drink Splits
      • Table Alcohol to cement its position in the channel as wine gains in popularity
    • Pubs, Clubs & Bars: Where?
    • Pubs, Clubs & Bars: What Next?
  • Cost sector
    • Cost Operator Trends: Historic Growth
    • Cost Operator Trends: Future Growth
    • Cost Operators: Data Breakdown
      • Table Just over 40% of cost sector OBP share is accounted for by the education channel
  • Appendix
    • Trade and Sectors Definitions
    • Channel Definitions
    • Other Definitions
    • Key Components - Market Intelligence

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