Thailand - The Future of Foodservice to 2020
Although economic growth in Thailand will be weaker than in neighbouring countries such as Vietnam and Thailand, economic growth will still be robust, helping the foodservice sector expand. Continued urbanization will be a crucial factor in the growth of foodservice in Thailand. Bangkok will remain the leading urban center for foodservice operators, but growing populations, affluence, and tourism numbers in other urban centers means future growth will be dependent on the development of provincial cities.
Quick Service Restaurants (QSR) is the largest channel in the Thai foodservice industry, worth THB244 in 2015, and forecast to record a CAGR of 3.3% during 2015-2020. Operators of international franchise brands and “Western” style outlets have the largest market share, though the market is highly fragmented and consumers want a wider variety of cuisines, particularly Asian cuisines.
The channel has also continued to benefit from Thailand’s burgeoning street food scene which, despite some increases in government regulation, has continued to be a crucial aspect of the Thai food scene. However, as operators who have made names for themselves begin to establish more permanent locations, the number of transactions and average transaction values for Quick Service Restaurants (QSR) will continue to rise faster than outlet growth.
Although slightly smaller than the Quick Service Restaurants (QSR) channel in 2015, sales through Full Service Restaurants (QSR) will grow faster than through Quick Service Restaurants (QSR), with a CAGR of 3.8% during 2015-2020. This faster growth rate is due to Full Service Restaurants (QSR)’s ability to target families, offering a quality main meal, often at weekends. While this will ensure strong growth to 2020, Full Service Restaurants (QSR) needs to take steps to counter Quick Service Restaurants (QSR) encroaching on this space by offering more casual dining formats.
“American-style” coffee chains such as Café Amazon, Starbucks, Dunkin Donuts, Black Canyon Coffee and BlueCup Coffee dominate the channel. However, future success will rely on effective localization of menus to local tastes, especially as the channel expands its food options in order to compete more fully with the Quick Service Restaurants (QSR) channel.
The report Thailand - The Future of Foodservice to 2020 provides extensive insight and analysis of the Thai Foodservice market over the next five years (2015-2020) and acts as a vital point of reference for operators or suppliers.
In particular, this report provides the following -
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