Gary Nonis, Head of Retail at JLL Singapore, said: “Population growth coupled with urbanization across the region are key factors driving the Southeast Asian food and beverage industry to be hotter than ever.”
Here are six major trends influencing the culinary landscape from countries in the region:
Healthy eating
People in Singapore's central business district, with their busy lifestyles, are increasingly focusing on health and aesthetics, which has fueled demand for healthy eating, evidenced by the proliferation of chilled juice bars. The food landscape has also rapidly changed, with more and more shops offering homegrown, organic, and made-to-order produce. Mr. Nonis stated, "Consumers in Singapore are becoming more conscious of their lifestyles – what they eat and where their food comes from."
The central area also saw a new trend with the seamless integration of healthy food stores, fashion boutiques, and gyms, aiming to provide consumers with an ideal location for well-being.
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High-quality food
The Indonesian middle class is increasingly opting for daily meals outside the home and embracing new food trends such as bubble tea. With a large working-class population and busy urban lifestyles, many choose to eat out for convenience and more leisure time. Nielsen Market Research estimates that the middle-income consumer segment in Indonesia will double by 2020, further driving demand for higher-quality food.
The trend of dining out has created numerous opportunities for both domestic and international food providers in major cities like Jakarta, Medan, Bandung, and Surabaya. James Austen from JLL Indonesia's Retail division stated, "All indicators point to strong growth in the food and beverage industry, with many new outlets opening annually in Indonesia."
Have meals at shopping malls.
With shopping malls springing up across Southeast Asia, food and beverage providers have quickly seized the opportunity to open outlets to cater to shoppers' dining needs. In Vietnam, particularly in Ho Chi Minh City, six major shopping malls that opened between 2014 and 2016 dedicated more than 25% of their space to this industry. Ms. Trang Bui, Director of Leasing at JLL Vietnam, stated: “With a young and dynamic demographic in Ho Chi Minh City, dining in shopping malls is a top choice for young people (especially on weekends and holidays) as more and more international food brands and chains enter the city. Besides food quality and service, entertainment areas, cinemas, and promotional programs are also factors that attract young people, their families, and friends to visit and dine in shopping malls more frequently.”
In Thailand, pop-up food stalls are also helping to increase the number of people visiting shopping centers and the amount of time they stay. Even shopping malls in Bangkok are utilizing their parking lots to host food festivals.
Purchase directly from the vehicle (Drive-thrus)
Drive-thrus is becoming increasingly popular in Bangkok because passengers can choose, buy, eat, and drink food right in their cars. Major brands like McDonald's – a pioneer in Bangkok's drive-thrus market – along with KFC, Starbucks, Burger King, and Dunkin' Donuts, are expanding their businesses throughout the city's suburban districts, where many people choose to live. With sales revenue from this service increasing 15% to 20% compared to traditional stores, primarily due to lower staff costs and less food waste, they also need to diversify their menus and shorten order fulfillment times to meet growing consumer demand.
Quick and simple
Fast-food restaurants offering high-quality products without table service are making inroads into the region. LionRock Capital, a Singapore-based company that owns and operates Artisan Boulangerie, Twelve Cupcakes, and Pizza Alt, has opened 40 stores across Asia in the past three years. Lion Capital co-founder Hari Kumar told CNBC that their differentiating factor is product quality, a wide selection of imported items, and keeping up with international trends. “Unlike other brands that adapt their products to suit the needs of each country, we are an international company, creating international trends and not just local products,” Kumar emphasized.
The penetration of international brands
With the growing café culture in Southeast Asia, major brands like Starbucks and Dunkin' Donuts are flocking to big cities. Asian food and beverage brands are also rapidly expanding across the region – for example, Singapore's Breadtalk and the Chinese restaurant Crystal Jade are also growing their business.
Not only in cities, but the popular tourist destination of Bali is also within the scope of business expansion for foreign brands, especially in the Seminyak and Ubud areas. The arrival of renowned local and international chefs such as Will Meyrick, Chris Salans, Nicolas Tourneville, and Said Alem has also contributed to Bali's culinary development. According to James Austen: “Most opportunities for international food and beverage brands are in luxury resorts, which have received a surge of interest in recent years. However, the arrival of prominent brands and international chefs also contributes to the development of surrounding areas.”

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