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
Consumer foodservice records healthy growth in 2006
2006 saw a continuation of the growth recorded in 2005 after slower trends
during the previous two years. The performance of foodservice is closely
related to the economic climate and the rising living standards, as well as
ever more creative concepts introduced by industry players, certainly provided
a boost. The five-day working week legislation and the availability of premium
through to low-end brands, provided consumers from every demographic group the
opportunity to indulge in foodservice.
Wellbeing trend continues to impact foodservice
The wellbeing trend continued to influence the foodservice industry in 2006.
Players increasingly included healthy options in their menus, with seafood
being particularly popular. Legislation was also put in place covering safety
measures for children' s food. In addition to involving the prohibition of food
sales that can cause mental or physical harm to children, it also enforces the
provision of nutritional information on fast food, prohibits the offer of toys
as a promotional strategy and controls the advertising of food that contains a
lot of fat, sugar and sodium to children.
Increased polarisation between high- and low-end brands
Improvement in the economic climate, combined with the high level of
competition in the marketplace, encouraged many players to develop premium
products. This is a significant move away from the trend towards low-end
brands which endured during economic stagnation. Many burger fast food players
introduced premium range burgers in an attempt to attract consumers back to
this flagging format.
Chained operations continue to outperform independents
In a continuation of 2005, all areas of the foodservice industry continued to
see a rise in the share of chained units compared with independents. Chained
outlets are now consistently outperforming independents with the number
doubling since 2000. Much of this is due to the rapid development of
franchising in foodservice which resulted in a large number of start-ups.
Future growth dependent on innovation
As the consumer foodservice industry in South Korea is somewhat mature,
players will have to continue expanding and developing their menus in order to
remain competitive. Increasing consumer sophistication will lead to ongoing
demand for good quality products, the provenance of which will be important.
Lines will become increasingly blurred between the menus available via the
different foodservice concepts and the larger players will frequently update
their brands in order to keep abreast of current trends. Many will
increasingly tailor their offerings to suit specific demographic groups, such
as working women, and there will be continued emphasis on convenient, but
nonetheless healthy and tasty food choices.
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