Market Trends of southeast asia foodservice Industry
Full service restaurants dominate the market and the rise of cloud kitchens indicate a growing trend in the food delivery industry
- The cloud kitchen sub-segment is growing rapidly in Indonesia. It is projected to register a CAGR of 6.75% in the forecast period. One of the factors contributing to the growth of cloud kitchens in Indonesia is the increasing demand for food delivery services. With the rise of e-commerce and the increasing popularity of food delivery apps such as GoFood, GrabFood, and Foodpanda, more consumers are opting for food delivery services rather than dining in at a physical restaurant. Several companies have already entered the cloud kitchen market in Indonesia, including Rebel Foods, which operates under the brand name Faasos, and KITCHEN by KONC, which is a partnership between KONC Ventures and Waresix. These companies are expanding their operations and opening new cloud kitchens in various cities across Indonesia to meet the growing demand for food delivery services.
- The FSR sub-segment held a major market share of around 53.4% in 2022. Indonesia is a diverse country with various regions and ethnicities, each with its unique cuisine. Full service restaurants offer a wide variety of cuisines, from local Indonesian to international, catering to different tastes and preferences. In major tourist places, a wide range of cuisines such as French, Italian, Thai, Chinese, and Indian food is available. QSR sub-segment is expected to register a sales growth of 6.86% in the study period. Quick service chains that offer burgers, pizza, fried chicken, and sandwiches are all very popular in Indonesia. McDonald's has been expanding its operations in Indonesia, and as of now, the company is operating 200 restaurants in the country. Burger King has been expanding its operations in the country and has around 175 outlets across 24 cities in Indonesia.
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Cloud kitchens in Vietnam witnessed highest average order value in 2022, driven by online meal delivery
- In Vietnam, the AOV was highest for the cloud kitchen, priced at 3.45 in 2022. The expansion of the cloud kitchen market is being driven by an increase in demand for online meal delivery. Overall spending on food delivery services in Vietnam reached USD 1.1 billion in 2022. Online meal ordering and delivery services grew in popularity after the pandemic. Popular dishes offered by cloud kitchens in Vietnam are pizza and pasta, which were priced at an average of USD 2.4 per 300 grams. In 2022, the cost of their most popular dishes was fixed at the average order value of USD 2.2.
- Vietnam is one of the affluent nations in the Asian region and a significant hub for travel. The gastronomic diversity that can be found throughout the country's numerous cantons serves to further emphasize its multi-ethnic and multilingual nature. Indian, Korean, and other Asian cuisines are more widely consumed throughout the nation. The average order value for meals of Asian cuisine is USD 1.75 per 300 grams.
- The full service restaurants' AOV is expected to record a CAGR of 2.45% in the study period. FSR is implementing new technologies and services to compete with customers that are becoming more accustomed to convenience. In full service areas of the market, mobile payments, internet ordering, and home delivery are becoming more prevalent. Due to the expanding number of dining options available to consumers, including pre-packaged restaurant meals, pricing is also becoming a more crucial problem. Emerging competitors, such as providers of subscription meal kits, could further disrupt the industry in the future.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Quick Service Restaurants in Malaysia Witness Increased Popularity Among Young People in Densely Populated Cities Like Kuala Lumpur, Kota Bharu, and Klang
- Foodservice industry in Singapore grows with an increase in full service restaurants and cafes
- Vietnamese quick service restaurant market is highly competitive, with local and international chains dominating
- Malaysia's cafes and bars see increased demand from tourists and locals, driven by the growing tourism industry, rising disposable incomes, and increasing popularity of alcoholic beverages
- Asian cuisines dominate with popular dishes like dim sum, roasted duck, Hokkien mee, and Indian curries
- Philippines' Quick Service Restaurants (QSR) dominate foodservice industry with strong growth potential
- Thailand's quick-service restaurant market is growing, driven by the young population and demand for fast food
- Full service restaurants lead the way with popular local dishes like nasi putih and ayam bakar
- Philippines' full service restaurants lead the way with popular asian dishes like pancit, kalderta, and Kare-Kare
- Full service restaurants lead the way with popular Asian dishes like pad Thai, tom yum, and tom kho gai
