Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Consumer foodservice by chained/independent; Consumer foodservice by type;
Consumer foodservice by type and chained/independent
Executive summary
Moderate growth witnessed as independent players rule
During the review period, value sales growth of consumer foodservice in
Thailand increased at a moderate rate. Since the majority of Thai citizens are
of middle- to low-income, they typically patronise independents such as
"mom-and-pop" food outlets and street stalls or kiosks, which dominate the
industry in terms of both outlets and value sales. These outlet types
experienced a relatively small increase from a large base over the review
period. Due to their immense proportion, the slow growth of these outlet types
strongly influenced growth of the overall consumer foodservice industry.
Street stalls/kiosks dominate the market
For decades, street stalls/kiosks have been the most important foodservice
channels in Thailand. Set up costs of street stalls/kiosks are so cheap that
many poor people work as street vendors. Stalls/kiosks are plentiful in urban
areas to serve the needs of low-income labourers, who move into the cities for
better job opportunities. Cheap foods from street vendors are popular among
such workers. With the large size of both demand and supply, the number of
outlets, transactions, and value sales of street stalls/kiosks outperform
other subsectors in Thailand' s consumer foodservice.
Cafés/bars demonstrated strongest growth in 2005
Rapid development of the cafés/bars subsector was driven by the sound
performance of both specialist coffee shops and independent other cafés/bars.
During the review period, drinking specialist coffee and socialising in trendy
coffee shops became an important fashion for the new generation. This fashion
was introduced by major multinational players such as Starbucks Coffee. Trying
to follow in the successful footsteps of Starbucks Coffee, a great number of
newcomers, both local and international, stepped in to enjoy the opportunities
available in specialist coffee shops. Also, due to sustainable demands from
high-income consumers and tourists, the operators considerably increased their
prices. Both factors had direct impact on the positive value sales growth of
cafés/bars in the review period.
Local chained operators maintained the leading position
Due to the huge customer base of street stalls/kiosks, the franchises issued
by operators in this sector led value sales company share of the market. These
operators have limited investments in every aspect. Their success is due to
development from independent to chained, which allows them to become
franchisers and expand the network by establishing their own franchising
scheme. Finally, the number of outlets of these operators exceeded all other
sectors, as did transactions and value share in 2005.
Opportunities in Thai market will decrease in forecast period
In the forecast period, value growth of the market will be lower than during
the review period as the industry will continue to mature, influenced by small
growth in major sectors namely casual dining FSR and street stalls/kiosks.
However, good opportunities will be available in certain subsectors including
chained other FSR and independent specialist coffee shops. High growth is
predicted for chained other FSR because more newcomers will enter this
fashionable subsector, whilst independent specialist coffee shops will
mushroom as the subsector is stimulated by Starbucks Coffee.
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