Professional Documents
Culture Documents
January 2019
INTRODUCTION
REGIONAL OVERVIEW
LEADING COMPANIES AND BRANDS
FORECAST PROJECTIONS
COUNTRY SNAPSHOTS
INTRODUCTION
Scope
Disclaimer
Much of the information in this
briefing is of a statistical nature and,
while every attempt has been made
to ensure accuracy and reliability,
Euromonitor International cannot be
held responsible for omissions or
errors.
Figures in tables and analyses are
calculated from unrounded data and
may not sum. Analyses found in the
briefings may not totally reflect the
companies’ opinions, reader
discretion is advised.
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INTRODUCTION
Key findings
Fast food growth expected The wider choice in consumer foodservice, with a broad variety of food options
to slow down during the available for consumers, and the growing popularity of specialist coffee shops
forecast period, owing to among young consumers and white collar workers is expected to squeeze the
rising health concerns development of fast food over the forecast period, resulting in decelerating
among consumers value growth. This is also a sign of growing health consciousness among local
consumers, who usually associate fast food with unhealthy dishes, and are
increasingly opting for other choices which are considered healthier.
Increasing demand for Consumers are more knowledgeable and concerned about the ingredients in
healthier fast food options the foods they eat at fast food restaurants than ever before. They do not want
leads players to modify their simply to avoid fast food, and instead are voicing their opinions in the hope
menus and packaging that offerings will be adjusted. Hence, fast food chains in Asia Pacific are
having to adjust their offering based on changing consumer attitudes.
Convenience stores fast Convenience stores fast food is the fastest growing channel for the sale of fast
food continues to perform food in several countries in Asia Pacific, including Indonesia, the Philippines,
well in many markets South Korea, Taiwan and Thailand, which witnessed the strongest growth in
fast food sales via this channel in 2017. This was driven by low pricing,
accessibility and the availability of single-portion meals. India was the main
exception to this trend in Asia Pacific.
Domestic players dominate Asian-style fast food continues to dominate in China and India primarily owing
the Chinese and Indian to consumers’ preference for food from their own region. Furthermore, Asian
markets, as consumers in fast food operators continue to be primarily independents, and hence do not
these countries still prefer directly compete with other fast food formats.
regional flavours
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INTRODUCTION
REGIONAL OVERVIEW
LEADING COMPANIES AND BRANDS
FORECAST PROJECTIONS
COUNTRY SNAPSHOTS
REGIONAL OVERVIEW
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REGIONAL OVERVIEW
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REGIONAL OVERVIEW
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REGIONAL OVERVIEW
Rising incomes and the millennial population drive growth in fast food
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REGIONAL OVERVIEW
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REGIONAL OVERVIEW
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REGIONAL OVERVIEW
Asian fast food and convenience stores fast food drive growth
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REGIONAL OVERVIEW
Fast food in India continued to record healthy growth in 2017, thanks to a rising number of millennials, with
the median age in the country being 27. India has a relatively young population, with many of this
population choosing not to cook at home. These consumers are more open to the idea of trying new
cuisines, eating what they want and then exercising later, rather than restricting themselves to healthy
foods.
Japan was an anomaly in 2017. Despite having the oldest population in the world, with a median age of 47,
the country registered faster value growth than China, Taiwan and Singapore. The country has witnessed a
number of scandals concerning McDonald’s food, which the company finally resolved, and also tied up with
Pokémon Go to attract footfall back into its restaurants.
Latin American and Middle Eastern fast food have become quite popular in the region. With the younger
population travelling more, and being more experimental in their food habits and choices, Latin American
food experienced a good year in 2017, especially in India and Japan.
The changing perception of fast food over the years has compelled both chained and independent fast food
outlets to adapt to consumer demands and develop their menus. Operators have focused on creating
healthier menus with organic ingredients, natural flavoured water and healthy desserts. Salads, wraps,
paninis and crepes, along with beverages such as smoothies, frappes, natural juices and cold teas are
readily available at Latin America fast food outlets.
One of the key popular product formats in fast food in Asia Pacific is single boxed servings. Asia Pacific has
the largest number of single people in the world, and is expected to maintain this position, owing to its large
young consumer base. These consumers prefer an affordable meal, in a single serving, packaged in a box,
sometimes including plastic cutlery. In South Korea, convenience stores offer lunch boxes. In India, food
delivery aggregators have also started to push boxed meals. Companies in Asia Pacific have also started to
work on their menus to make them more relevant to the new urban and fast-paced consumer base, who are
looking for quick meals.
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REGIONAL OVERVIEW
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REGIONAL OVERVIEW
Fast food in Asia Pacific was dominated by the stand-alone channel over 2012-2017. The rising number of
independent fast food establishments in the region supported the channel’s growth. Among the non-stand-
alone channels, fast food through retail was the best performing channel, as retail channels like malls act
as a one-stop solution. Consumers no longer go to malls just to shop, but also to spend leisure time at a
café or restaurant. Sales through the retail channel are poised for further growth, as it is increasingly
common for consumers to shop in malls and supermarkets and then end their trip with dining out.
Retail locations gave strong competition to all other locations between 2012 and 2017, such as stand-
alone, travel, leisure and lodging. In many countries, retail is the leading location for fast food sales in value
terms, owing to the success of convenience stores.
Fast food outlets at retail locations have started to focus on creating a full menu, along with a greater
emphasis on hygiene, the speed at which food is served and also the health aspect. These fast food outlets
focus on value for money more than the ambience, which appeals to fast-paced urban millennials, who are
looking for the exact same combination for their meals across locations, without having to spend too much
time.
Prices in consumer foodservice outlets in retail locations are generally lower than those in stand-alone
outlets. This helps to attract a considerable proportion of the consumer base, especially consumers who
are younger and do not want to spend too much on a meal, but prefer eating out rather than cooking at
home. These restaurants serve food mostly for individual consumption, which is convenient for millennial
consumers, who typically prefer buying single-portion meals which can be consumed on the spot.
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INTRODUCTION
REGIONAL OVERVIEW
LEADING COMPANIES AND BRANDS
FORECAST PROJECTIONS
COUNTRY SNAPSHOTS
LEADING COMPANIES AND BRANDS
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LEADING COMPANIES AND BRANDS
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LEADING COMPANIES AND BRANDS
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LEADING COMPANIES AND BRANDS
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INTRODUCTION
REGIONAL OVERVIEW
LEADING COMPANIES AND BRANDS
FORECAST PROJECTIONS
COUNTRY SNAPSHOTS
FORECAST PROJECTIONS
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FORECAST PROJECTIONS
Asia Pacific registered strong growth in fast food in constant value terms over 2012-2017. This growth was
driven primarily by the new millennial demographic, who are young and less worried about the health
hazards of consuming fast food. However, over the forecast period, the median age of the region will
increase, while awareness of health and wellness will also increase considerably. This will lead to a
slowdown in the growth of fast food sales over 2017-2022.
The slowest growth rates in fast food are expected to be witnessed by Hong Kong, China, Singapore,
Japan and Taiwan. The biggest challenges the category faces are growing awareness of health and
wellness and rising competition from cafés and specialist coffee shops. Specialist coffee shops are
becoming increasingly popular places to socialise, to grab a quick bite to eat, or even just sit and work, as
most coffee shops provide Wi-Fi. The growth of these outlets will impact the growth of fast food, as they
offer quick meals at prices similar to those of fast food operators, and often have a wider range of healthy
choices than fast food restaurants.
Growth in fast food will come from less developed markets in Asia Pacific, such as Bangladesh,
Uzbekistan, Sri Lanka and Pakistan. These countries had low consumption of fast food in the review period,
owing to the lack of international players in these countries and lower per capita incomes, which meant that
eating out was not a very common option. As a result of this, with increasing globalisation, these markets
have significant growth potential, and chained players may become operational in these countries.
The forecast period 2017-2022 will also witness the growth of technology-driven food delivery. Food
delivery systems are already being used extensively in urban areas across Asia Pacific, with food being
ordered using mobile applications. The convenience of being able to order food and beverages by using a
smartphone will drive the growth of this channel in the forecast period.
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INTRODUCTION
REGIONAL OVERVIEW
LEADING COMPANIES AND BRANDS
FORECAST PROJECTIONS
COUNTRY SNAPSHOTS
COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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FOR FURTHER INSIGHT PLEASE CONTACT
Shekhar Anand
Analyst, Services and Payments
Shekhar.anand@Euromonitor.com
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