South Korea’s foodservice industry thriving despite rumours
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Rumors that South Korea’s foodservice industry is in a slump have been scotched by new data showing the sector is actually growing at a steady 9 percent annually
And it’s the thriving coffee sector which is driving much of the growth.
Analysts say the gap between business sentiment and the real economy is widening as the polarisation between sectors is deepening.
According to a survey conducted by Kim Young-gap, a professor at Hanyang Cyber University, using a big data business analysis system from consulting firm Nice Genie Data, the size of the Korean foodservice industry was estimated to exceed US$155.2 billion last year.
Unlike other sluggish industries, the coffee and beverage sectors grew at a fast pace of more than 20 percent, leaving other industries far behind.
The growth rates of carb food, accounting for 15.2 percent, Chinese food, accounting for 14.3 percent, and bakeries, accounting for 11.7 percent, were also notable.
On the other hand, bars saw a negative growth of -1.3 percent, buffets grew by 0.5 percent and Western food grew by 3.8 percent, which also illustrates poor growth.
The total number of restaurants rose 3.2 percent annually from about 604,000 in 2016 to about 663,000 last year.
In the number of restaurants, coffee and beverage companies also ranked first with a 19-per-cent increase, far ahead of the confectionery, baking, rice cake, and cake industries with an 8.7 percent increase.
Major customers of South Korea’s foodservice industry are likely to be reorganized into those in their 20s and 50s and 60s.
In terms of the rate of increase and decrease for consumers by gender and age at food service establishments, the number of people in their teens and 30s and 40s declined, while that of men in their 50s and 60s and 20s increased.
This trend translated into an increase in the number of customers in their 20s, mainly at fast-food restaurants, as well as a growing number of customers in their 50s and 60s opting for Korean food, according to Kim.
Questions & Answers
Q.Which specific sectors within South Korea’s foodservice industry are experiencing significant growth?
Which specific sectors within South Korea’s foodservice industry are experiencing significant growth?
The coffee and beverage sectors grew rapidly at over 20 percent. Other notable areas include carb food, Chinese food, and bakeries, all showing significant positive growth rates.
Q.Are there any parts of the foodservice industry in South Korea that are struggling?
Are there any parts of the foodservice industry in South Korea that are struggling?
Yes, some sectors are experiencing poor growth or decline. Bars saw a negative growth of -1.3 percent, while buffets grew by only 0.5 percent and Western food by 3.8 percent.
Q.Which age groups are now the primary customers for the South Korean foodservice industry?
Which age groups are now the primary customers for the South Korean foodservice industry?
The customer base is shifting, with those in their 20s and 50s and 60s becoming the major customers. There was an increase in men in their 50s and 60s, and customers in their 20s.
Q.How has the total number of restaurants in South Korea changed in recent years?
How has the total number of restaurants in South Korea changed in recent years?
The total number of restaurants has increased steadily. It rose by 3.2 percent annually, growing from approximately 604,000 in 2016 to about 663,000 last year.
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