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“Growing population and urbanisation across the region are key factors driving Southeast Asia’s food and catering industry,” said Gary Nonis, Head of Retail at JLL Singapore.
Here are six trends that are having a big impact on the culinary landscape from countries in the region:
Healthy diet
Busy urban Singaporeans are increasingly health-conscious and more concerned about their health and appearance, which has fuelled the demand for healthy eating, as evidenced by the proliferation of cold juice bars. The food scene has also changed rapidly, with more outlets offering homegrown, organic and made-to-order food. “Consumers in Singapore are becoming more conscious about their lifestyle – what they eat and where their food comes from,” says Mr Nonis.
The downtown area also saw a new move here with a harmonious combination of healthy food stores, fashion stores and gyms to help consumers have an ideal place for health.
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High quality food
Indonesia’s middle class is increasingly eating out and embracing new food products such as bubble tea. With a large number of working women and busy urban lifestyles, many are choosing to eat out for convenience and more leisure time. Nielson Market Research estimates that Indonesia’s middle-income consumer segment will double by 2020, driving demand for high-quality food.
The trend of dining out has created many opportunities for domestic and international food suppliers in major cities such as Jakarta, Medan, Bandung and Surabaya. “All indicators show strong growth in the food and beverage industry with many outlets opening every year in Indonesia,” said James Austen, Retail Manager at JLL Indonesia.
Dining at shopping malls
With shopping malls springing up across Southeast Asia, food and beverage providers have also been quick to seize the opportunity to open stores here to serve the dining needs of shoppers. In Vietnam, especially Ho Chi Minh City, there were six large shopping malls opened between 2014 and 2016, with more than 25% of their space dedicated to this industry. Ms. Trang Bui, Head of Leasing at JLL Vietnam, said: “With the young and dynamic demographic model in Ho Chi Minh City, dining in shopping malls is the top choice of young people (especially on weekends or holidays) when more and more international brands and food chains are entering here. Besides food quality and service quality, entertainment areas, cinemas or promotional programs are also factors that attract young people with their families and friends to visit and eat at shopping malls more often.”
In Thailand, pop-up food stalls are also helping to increase the number of people visiting malls and the length of time they stay. Shopping malls in Bangkok are even using their parking lots to host food festivals.
Drive-thrus
Drive-thrus are becoming more and more popular in Bangkok as people in cars can choose to buy as well as eat and drink right in their cars. Big brands such as McDonald's - the pioneer brand to develop drive-thrus in Bangkok, along with KFC, Starbucks, Burger King and Dunkin Donuts are also expanding their businesses throughout the city's suburban districts - where many people choose to live. While sales revenue from this service is increasing 15% - 20% higher than normal stores, mainly due to staff costs and low food waste rates, they also need to diversify their menus as well as shorten the time to complete an order to meet the increasing demand of consumers.
Quick and simple
Fast food restaurants that offer high-quality products but without table service are making inroads in the region. Singapore-based LionRock Capital, which owns and operates Artisan Boulangerie, Twelve Cupcakes and Pizza Alt, has opened 40 stores in Asia in the past three years under its Zest Group brand. LionRock Capital has opened 40 stores in Asia in the past three years. Lion Capital co-founder Hari Kumar told CNBC that what differentiates them is the quality of their products, the variety of imported items and their adherence to international trends. “Unlike other brands that tailor their products to suit the needs of each country, we are an international company that sets international trends and not local products,” Kumar stressed.
Penetration of international brands
With the growing café culture in Southeast Asia, big brands like Starbucks and Dunkin Donuts are flocking to major cities. Asian food and beverage brands are also spreading rapidly across the region – for example, Singapore’s Breadtalk and Chinese restaurant Crystal Jade are also expanding their businesses.
Not only in the cities, the famous tourist destination Bali is also in the scope of business expansion of foreign brands, especially in the Seminyak and Ubud areas. The appearance of famous local and international chefs such as Will Meyrick, Chris Salans, Nicolas Tourneville and Said Alem also contributes to the development of Bali's culinary sector. According to Mr. James Austen: "Most of the opportunities for international food brands are in luxury resorts, which have received a wave of interest in recent years. However, the appearance of famous brands and international chefs also contributes to the development of surrounding areas".
