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South Korea Foodservice Market Size and Trends by Profit and Cost Sector Channels, Consumers, Locations, Key Players, and Forecast, 2021-2025

The foodservice profit sector in South Korea was valued at $87.4 billion in 2020. The market is projected to grow at a CAGR of more than 11% during the period 2021-2025. In the profit sector, full-service restaurants (FSR) was the leading channel in 2020 followed by quick service restaurants (QSR); pub, club & bar; and coffee & tea shop. The Military & civil defense segment dominated the cost sector, followed by education; healthcare; and welfare & services. Takeaways and deliveries played a crucial role in mitigating losses of foodservice businesses, especially in the QSR channel, due to convenience, and digital & technological advancements. The decline in the foodservice profit sector was due to the substantial reduction in the number of transactions in 2020 due to strict operational restrictions on restaurants, cafés, and bars amid the COVID-19 outbreak.

Overview of the foodservice market in South Korea

Overview of the foodservice market in South Korea

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What are the market dynamics in South Korea’s foodservice market?

Strict restrictions on seating capacities and operating hours of restaurants, cafés, and eateries, along with the fear of COVID-19 infection, discouraged people from visiting restaurants and other food outlets. As a result, consumers switched toward food delivery services to eat meals at home. The popularity of cooking meals at home from scratch and ordering takeaway/delivery increased due to COVID-19. Hectic lifestyles, along with long working hours, are urging consumers to choose convenient and affordable meal options that resonate with their lifestyles. Takeaways and deliveries will remain crucial as home consumptions is expected to prevail in the country. In addition, solo dining will grow owing to the increasing ‘Sampo generation’ and social distancing norms, forcing operators to focus on “one-person menus”.

In South Korea, mingling with co-workers over drinks after work, usually, once a month, known as Hoesik, was part of the corporate culture. However, the pandemic adversely affected this practice. Restrictions on pub, club, & bar combined with social distancing norms negatively impacted the Hoesik culture. In addition, consumers are expected to reduce their alcohol consumption in line with the global health trend. Consumers will either opt for low/no-alcohol drinks or premium and craft drinks.

What are the sector classifications in South Korea’s foodservice market?

The foodservice market is segmented into the profit sector and cost sector. The cost sector typically represents the state’s foodservice operators while the profit sector represents the commercial operators.

Profit Sector:

Quick service restaurants market in South Korea

Chain operators are prominent in the channel. Standalone establishments are most popular among South Korean consumers followed by shopping arcades. The American chain, McDonald’s, is the key player in the channel, followed by Toreore, Issac Toast, Pizza School, and Kyochon. Online ordering, takeaways, and deliveries supported the QSR channel immensely, especially during the COVID-19 outbreak. At-home consumption will continue to prevail in the country and operators need to focus on catering to these needs.

Full-service restaurants market in South Korea

The channel is fragmented and is dominated by independent operators. Some large players include Bloomin’ Brands, Nolboo, Bon IF, Yum! Brands, Inc., and CJ Foods. The impact of COVID-19 on FSR was significant as dine-in services were either banned or allowed for limited time periods. As a result, most restaurant facilities focused on takeaway orders and deliveries. Several restaurants introduced meal kits to provide restaurant food for at-home consumption, while others focused on menus suitable for delivery services.

Coffee & tea shop market in South Korea

The channel is relatively consolidated with dine-in occasions dominating the channel. However, takeaways are becoming popular. Starbucks leads the channel, and other key players include CJ Group, Ediya Coffee Company, and Lotte Group. The channel is widely utilized as a neutral meeting place, for socializing with friends or colleagues. Convenience, greater variety of dishes, and superior taste/quality are main reasons for visits to the channel.

Pub, club & bar market in South Korea

Independents dominate the channel. Delivery and takeaways are not currently provided by the majority of outlets. Independent operators benefit from consumers’ growing interest in craft or niche food & drink offerings. With the rising popularity of home delivery or takeaway of alcohol and growth of home consumption of alcohol in 2020, convenience and online ordering will be crucial for consumers. Frequent visitors to these outlets are likely to be attracted by a greater variety of cuisines/dishes and superior quality/taste.

Foodservice market in South Korea, by profit sector

Foodservice market in South Korea, by profit sector

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Cost Sector:

Healthcare foodservice market in South Korea

Healthcare, the third-largest channel, recorded growth in both transaction and outlet numbers during 2015–2020. The increasing elderly population in South Korea as well as COVID-19 infected people seeking medical attention drove the healthcare spending, with rising demand for residential care and long-term hospital stays.

Education foodservice market in South Korea

Education, the second-largest channel, registered declines in both transactions and outlets due to the closure of educational institutions during 2020 amid COVID-19 restrictions. The channel registered a steep fall in the number of transactions during 2015-2020 and a decline in outlet numbers.

Military & civil defense foodservice market in South Korea

Military & civil defense was the largest channel in the South Korean cost sector. The military & civil defense channel is forecast to remain the largest channel in the South Korean foodservice cost sector in terms of OBP value. Furthermore, the channel is also expected to see the lowest growth in terms of transactions and marginal outlet growth, during 2020-2025.

Welfare & services foodservice market in South Korea

Welfare & services channel registered the fastest growth in transactions during 2015-2020. It registered growth in both the number of transactions and outlets during 2015-2020. Welfare & services channels are expected to record marginal outlet growth, during 2020-2025.

Foodservice market in South Korea, by cost sector

Foodservice market in South Korea, by cost sector

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Who are the major market players in the foodservice market in South Korea?

In the QSR channel, McDonald’s Corporation is the leading market player followed by Toreore, Issac Toast, Pizza School, and Kyochon. Bloomin’ Brands dominates the FSR channel, which includes players such as Nolboo, Bon IF, Yum! Brands, Inc., and CJ Foods. The coffee & tea shop channel comprises players such as CJ Group, Ediya Coffee Company, Lotte Group, and Starbucks Corporation.

QSR foodservice market in South Korea, by key players

QSR foodservice market in South Korea, by key players

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Market report scope

Market size of profit sector (Year – 2020) $87.4 billion
Growth rate of profit sector CAGR of >11% from 2021 to 2025
Base year for estimation 2020
Market segments by profit sector Quick Service Restaurants (QSR), Full-Service Restaurants (FSR), Coffee & Tea Shop, and Pub, Club & Bar
Market segments by cost sector Education, Healthcare, Military & Civil Defense, and Welfare & Service
Forecast period 2021-2025
Key players McDonald’s Corporation, Nonghyup Mokwoochon, Isaac, Bloomin’ Brands, Yum! Brands Inc., Nolboo, Starbucks Corporation, CJ Group, Lotte Group, Ediya Coffee Company, Dunkin’ Brands Group Inc.

This report provides a comprehensive analysis of the foodservice market in South Korea.

  • Overview of South Korea’s macro-economic landscape: Detailed analysis of current macro-economic factors and their impact on South Korea’s 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, coffee & tea shops, and pubs, clubs & bars) within South Korea’s 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 South Korea’s population.
  • Key players: Overview of market leaders within the four major channels including business descriptions and number of outlets.
  • Case Studies: Learn from examples of recent successes and failures within South Korea’s foodservice market.

Reasons to Buy

  • Specific forecasts of the foodservice market will give readers the ability to make informed business decisions by identifying emerging/declining markets.
  • Consumer segmentation detailing the desires of known consumers among all major foodservice channels (QSR, FSR, coffee & tea shops, pubs, clubs & bars) will allow readers to 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 South Korea’s foodservice market.

Key Players

McDonald’s Corporation

Nonghyup Mokwoochon

Isaac

Pizza School

Kyochon F&B Co. Ltd.

Bloomin’ Brands

Nolboo

Bon IF

Yum! Brands Inc.

CJ Foods

Starbucks Corporation

Ediya Coffee Company

Lotte Group

Table of Contents

Table of Contents

Introduction

Report Guide

Executive Summary

Macroeconomic Context

Macroeconomic Overview

Trends Landscape

Profit Sector Impact of COVID 19

Profit Sector Metrics

Key Metric Highlights

Value Share and Growth by Channel

Outlets and Transactions Growth by Channel

Operator Buying Volumes and Growth by Channel

Channel Historic and Future Growth Dynamics

Outlet Type and Type of Ownership Growth Dynamics

Quick Service Restaurant (QSR)

Summary and Key Take-Out

Metrics

Key Players

Who?

Why?

What?

Where?

What Next?

Coffee & Tea Shop

Summary and Key Take-Out

Metrics

Key Players

Who?

Why?

What?

Where?

What Next?

Full-Service Restaurant (FSR)

Summary and Key Take-Out

Metrics

Who?

Why?

What?

Where?

What Next?

Pub, Club & Bar

Summary and Key Take-Out

Metrics

Who?

Why?

What?

Where?

What Next?

Cost Sector Metrics

Cost Operator Trends – Historic and Future Growth

Data and Channel Share Breakdown

Appendix

Frequently Asked Questions

The foodservice profit sector in South Korea was valued at $87.4 billion in 2020.

The foodservice profit sector in South Korea is projected to grow at a CAGR of more than 11% during the period 2021-2025.

Key channels in South Korea’s foodservice profit sector include quick service restaurants (QSR), full-service restaurants (FSR), coffee & tea shop, pub, club & bar.

Key channels in South Korea’s foodservice cost sector include education, healthcare, military & civil defense, and welfare & service.

In the QSR channel, McDonald’s Corporation is the leading market player while Bloomin’ Brands dominates the FSR channel. Starbucks leads the coffee & tea shop channel.

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