Fast Food in Asia Pacific

FAST FOOD IN ASIA PACIFIC
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.
Fast food in Asia Pacific is

being driven by the popularity of
Asian fast food, which has
grown significantly across the
entire region. The rising
population of millennials and
their busy lifestyles have
supported the rapid growth of
fast food. Further, rising
disposable incomes and the
appeal of local cuisines,
especially Chinese fast food, in
major markets such as China
and India, have supported the
development of this category.
© Euromonitor International CONSUMER FOOD SERVICE: FAST FOOD IN ASIA PACIFIC PASSPORT 3
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
INTRODUCTION
REGIONAL OVERVIEW
COUNTRY SNAPSHOTS
REGIONAL OVERVIEW
Asia Pacific leads growth in fast food
 North America continued to account for the

largest share of value sales of fast food
globally in 2017, owing to high per capita
spend, as a result of better economic
conditions. Also, North Americans prefer fast
food owing to its convenience and low
prices.
 Asia Pacific was the fastest growing region
over the review period, driven primarily by
the increased acceptance of fast food in the
everyday lives of consumers, who are
cooking less often. Growth is, however,
expected to slow in the coming years, owing
to rising health awareness among
consumers, as well as the availability of a
rich variety of other consumer foodservice
choices.
 The key regional markets in value terms are
China, Japan and India. China and India
remain highly fragmented, owing to the
presence of many independent players.
Japan, South Korea and Thailand are
largely dominated by global brands.
REGIONAL OVERVIEW
Fast food to see slower growth owing to rising health concerns
 The availability of a wider choice in consumer

foodservice, the convenience of home-delivered
dishes from third party ordering/delivery service
providers and the growing popularity of
specialist coffee shops among young
consumers and white collar workers will
squeeze the development of fast food over the
forecast period, resulting in decelerating value
growth. This is also a sign of growing health
consciousness among consumers, who usually
associate fast food with unhealthy dishes and
are shifting to healthier choices.
 Rising health awareness among consumers, as
well as the rich variety of other consumer
foodservice choices, is projected to continue to
dampen the value growth of fast food over the
forecast period.
 Fast food in the region has been growing
steadily, but at a slowing pace, although a
marginal spike in growth was seen in 2017.
Fast food is expected to see a continued
slowdown in the growth rate over the forecast
period.
REGIONAL OVERVIEW
China, India and Japan dominate regional consumption of fast food
 China and Japan are amongst the most

developed fast food markets in Asia Pacific.
The presence of fast food companies and
knowledge regarding this type of food
amongst consumers are stronger in these
countries.
 India has been slower to see a move towards
fast food, as Indian consumers typically
consume a lot of street food, which competed
for the same dining occasions as fast food.
Fast food has, however, seen growth pick up,
owing to the large millennial population, who
are conscious about health and wellness but
also keen to consume fast food.
 Latin American fast food outlets are likely to
debut during the forecast period in China and
Japan, as the presence of Taco Bell is
expected to increase with the opening of more
outlets. The wider presence of Latin American
fast food in China and Japan is expected to
enhance awareness among locals, and further
boost sales over the forecast period.
REGIONAL OVERVIEW
Rising incomes and the millennial population drive growth in fast food
 Asia Pacific was the fastest growing region

globally for fast food in 2017. The
Philippines, India and Malaysia have seen
particularly rapid growth. The growth
opportunities in these markets are much
larger, as they are relatively small markets
in the region.
 These three countries were also amongst
the fastest growing in terms of disposable
income over 2012-2017. With increasing
modernisation and rising incomes, the lack
of time amongst the young population has
led a considerable number of people to opt
for fast food.
 Furthermore, the growing millennial
population in the region, and rising
incomes, have led to an increase in the
importance of hygienically prepared food.
This has favoured the growth of the well-
known fast food chains over street stalls,
which traditionally have been frequented
on a regular basis in many Asia Pacific
markets.
REGIONAL OVERVIEW
Asian fast food continues to be the leading choice in Asia Pacific
 Fast food consumption in Asia Pacific is primarily

driven by the younger population. The older
generation continues to prefer home-cooked
meals. However, despite the younger generation
driving fast food sales, in terms of cuisine, Asian-
style fast food continues to dominate, owing
primarily to consumers’ preference for food from
their own region. Asian fast food operators
continue to be primarily independents, with
chains having more of a presence in other fast
food categories, notably burger and chicken.
 Asian fast food offers an appealing blend of taste
and quick bites, which appeals to consumers.
Furthermore, Asian fast food is less bread-
oriented and more noodles/rice-centric, which are
common preferences in the region.
 Japan is an exception, as convenience stores
fast food is preferred to Asian fast food. This is
the result of the continued expansion of outlets
by convenience store players like 7-Eleven,
Family Mart and Lawson, which offer a greater
variety of fast food than other chains in Japan.
REGIONAL OVERVIEW
Convenience stores is the fastest growing channel for fast food
 Convenience stores fast food led growth in the

majority of countries in Asia Pacific over 2012-2017.
This is largely because convenience stores fast food
appeals to white collar workers who need to eat
quickly during the short lunch break, when traditional
dining places are usually crowded.
 The two convenience store brands which
revolutionised this channel over 2012-2017 were 7-
Eleven and Circle K. Both of these brands invested
heavily in increasing expanding their numbers of
outlets and their menus to reach out to the ever-
growing urban consumer base.
 Convenience stores have been able to attract new
consumers who would probably not usually step into
a fast food outlet. However, whilst shopping for
groceries they might be hungry, and hence opt for
convenience stores fast food. Furthermore, these
stores have started to offer freshly prepared food
and not just boxed food, which is generally heated
and served. The availability of good quality freshly
prepared fast food has made convenience stores
fast food popular amongst a wider range of
consumers.
REGIONAL OVERVIEW
Asian fast food and convenience stores fast food drive growth
REGIONAL OVERVIEW
Young consumers base expected to drive the growth of fast food
 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.
REGIONAL OVERVIEW
Fast food through retail contributes substantial sales
REGIONAL OVERVIEW
Retail channel gains popularity as it offers a one-stop solution
 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.
INTRODUCTION
REGIONAL OVERVIEW
COUNTRY SNAPSHOTS
Domestic players dominate in India and China
 Two of the largest fast food markets

in the region, China and India, are
highly fragmented. Smaller operators
dominate the category, which mainly
comprises independent and local
players. However, aggressive
marketing strategies are expected to
deliver results for the top ranked
companies in the forecast period.
 Independent players are mostly
providers of Asian fast food, primarily
Chinese. Chinese is one of the most
popular cuisines for many Indians,
including millennials and baby-
boomers. This can be attributed to
Chinese cuisine enjoying a first
mover advantage among non-Indian
cuisines in the country.
 The other countries are more
concentrated, with the top five
leading companies accounting for a
significant share of fast food sales.
Japanese retailers hold the highest regional shares
 Fast food through convenience stores is

currently the most best performing category in
the region. The convenience store fast food
brands 7-Eleven, FamilyMart and Lawson are
among the top five brands in the Asia Pacific
region. These players mostly operate in Japan,
China, Malaysia, Indonesia, South Korea, the
Philippines, Taiwan and Vietnam.
 McDonald’s and Yum! Brands are the other two
top five players in the region. These global
players lead burger and chicken fast food,
respectively. They are well-known amongst
consumers for their good quality food; however,
they have lost some credibility over the years,
owing to scandals regarding the hygiene aspect
of their food.
 Yum! Brands Inc had a rocky performance in the
Asian market over 2012-2017, mainly owing to
the brand’s struggles in China, where a food
safety scandal tarnished its reputation. As a
result of this, the company decided to
refranchise its company-owned outlets to a
domestic franchisee, called Yum! Brands China.
Japan’s chains contribute to high share for top regional players
 Of the top five regional players,

three of them derived their
sales only from Japan in 2017.
This can be attributed to the
more organised market
landscape in Japanese fast
food, which has allowed key
players to consolidate market
share. Consumers in Japan
prefer branded chains, as a
result of their preference for
high quality food and nutritional
value, and other health
concerns.
 Yum! Brands Inc’s sales are
distributed across the region,
though the majority of its sales
come from China. It is focusing
on establishing its brand name
in emerging markets, such as
India, because of the rise in the
number of millennials opting to
dine out in these markets.
Convenience stores retailers lead in the region
 7-Eleven is the clear leader in fast food in Asia Pacific,

and continues to gain share. This convenience store
player continues to expand its store network rapidly.
The company is not counting on network expansion
alone, however, with a focus on quality also being used
to attract consumers and build loyalty. Fast food
remains a core focus, with 7-Eleven likely to continue to
revamp its bento lunch box meals and other
foodservice options frequently.
 Convenience store retailers have tapped into the strong
culture of snacking or grabbing a quick meal while
shopping. In Hong Kong, Convenience Retail Asia
opened a two-storey Circle K Flagship outlet in the
middle of a busy shopping street. Most of these
convenience stores have started to focus on coffee and
other café-related items, to fight the growing
competition from coffee shops.
 While leader 7-Eleven continues to gain share in
overall fast food, Lawson achieved the strongest share
gain in 2017 over the previous year, with an increase of
almost a percentage point to reach 11% of value.
Lawson will continue to have a strong emphasis on
healthy food, and is increasingly focusing on
automation.
INTRODUCTION
REGIONAL OVERVIEW
COUNTRY SNAPSHOTS
China and India will continue to witness strong growth
Fast food in Asia Pacific is set to witness a slowdown in growth
 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.
INTRODUCTION
REGIONAL OVERVIEW
COUNTRY SNAPSHOTS
COUNTRY SNAPSHOTS
China: market context
COUNTRY SNAPSHOTS
China: competitive and retail landscape
COUNTRY SNAPSHOTS
Japan: market context
COUNTRY SNAPSHOTS
Japan: competitive and retail landscape
COUNTRY SNAPSHOTS
South Korea: market context
COUNTRY SNAPSHOTS
South Korea: competitive and retail landscape
COUNTRY SNAPSHOTS
Taiwan: market context
COUNTRY SNAPSHOTS
Taiwan: competitive and retail landscape
COUNTRY SNAPSHOTS
Thailand: market context
COUNTRY SNAPSHOTS
Thailand: competitive and retail landscape
COUNTRY SNAPSHOTS
India: market context
COUNTRY SNAPSHOTS
India: competitive and retail landscape
COUNTRY SNAPSHOTS
Singapore: market context
COUNTRY SNAPSHOTS
Singapore: competitive and retail landscape
COUNTRY SNAPSHOTS
Indonesia: market context
COUNTRY SNAPSHOTS
Indonesia: competitive and retail landscape
COUNTRY SNAPSHOTS
Hong Kong, China: market context
COUNTRY SNAPSHOTS
Hong Kong, China: competitive and retail landscape
COUNTRY SNAPSHOTS
Malaysia: market context
COUNTRY SNAPSHOTS
Malaysia: competitive and retail landscape
COUNTRY SNAPSHOTS
Philippines: market context
COUNTRY SNAPSHOTS
Philippines: competitive and retail landscape
COUNTRY SNAPSHOTS
Vietnam: market context
COUNTRY SNAPSHOTS
Vietnam: competitive and retail landscape
FOR FURTHER INSIGHT PLEASE CONTACT
Shekhar Anand
Analyst, Services and Payments
Shekhar.anand@Euromonitor.com
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Fast Food in Asia Pacific

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FAST FOOD IN ASIA PACIFIC

Fast food in Asia Pacific is

Asia Pacific leads growth in fast food

 North America continued to account for the

Fast food to see slower growth owing to rising health concerns

 The availability of a wider choice in consumer

China, India and Japan dominate regional consumption of fast food

 China and Japan are amongst the most

 Asia Pacific was the fastest growing region

Asian fast food continues to be the leading choice in Asia Pacific

 Fast food consumption in Asia Pacific is primarily

Convenience stores is the fastest growing channel for fast food

 Convenience stores fast food led growth in the

Young consumers base expected to drive the growth of fast food

Fast food through retail contributes substantial sales

Retail channel gains popularity as it offers a one-stop solution

Domestic players dominate in India and China

 Two of the largest fast food markets

Japanese retailers hold the highest regional shares

 Fast food through convenience stores is

Japan’s chains contribute to high share for top regional players

 Of the top five regional players,

Convenience stores retailers lead in the region

 7-Eleven is the clear leader in fast food in Asia Pacific,

China and India will continue to witness strong growth

Fast food in Asia Pacific is set to witness a slowdown in growth

China: market context

China: competitive and retail landscape

Japan: market context

Japan: competitive and retail landscape

South Korea: market context

South Korea: competitive and retail landscape

Taiwan: market context

Taiwan: competitive and retail landscape

Thailand: market context

Thailand: competitive and retail landscape

India: market context

India: competitive and retail landscape

Singapore: market context

Singapore: competitive and retail landscape

Indonesia: market context

Indonesia: competitive and retail landscape

Hong Kong, China: market context

Hong Kong, China: competitive and retail landscape

Malaysia: market context

Malaysia: competitive and retail landscape

Philippines: market context

Philippines: competitive and retail landscape

Vietnam: market context

Vietnam: competitive and retail landscape

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