China May Be Leading the $26 Trillion Foodservice Industry, But These Five Emerging Regions Are Coming in Hot

Worldwide, there was about $26 trillion (yes, that’s a “T”) spent in the global foodservice industry last year alone. And believe it or not, the United States isn’t at the center of it all. In fact, according to Michael Schaefer, Euromonitor International’s Global Food and Beverage Lead, a whopping 80 percent of global food sales are now outside of the United States.

So where is this $26 trillion coming from? Schaeffer said that China and southeast Asia are currently the biggest players, and in the next four years, the Chinese food market is expected to grow by more than $300 billion. That, Schaefer said, means that between now and 2020, the Chinese food market will grow “more than any other market on earth.”

But by no means is China the only country or region where growth in fast food businesses is on the verge of exploding. According the Schaefer, these are the five regions that smart investors will be keeping their eyes on: Indonesia, Thailand, Vietnam, the Middle East and Turkey.

And yet, despite the opportunity, Schaefer advises investors to approach these regions cautiously.

“The market for chains and other foodservice businesses outside the U.S. is a different beast entirely. Unlike the U.S. and much of the Western world—where chains and large combined entities like Yum! Brand reign—in Asia and Indonesia, the market is very fragmented,” Schaeffer said. “Instead, these markets are populated by many thousands of small mom-and-pop shops, including lots of street vendors, food kiosks and restaurateurs. This is how much of the world eats.”

To accentuate this fact, he highlighted that globally, just 15 mega-brands, like Yum! and McDonald’s, control about 10 percent of global food sales.

“It leaves a cavernous hole in the global market for new players to rush in, but only the strong and nimble will survive,” Schaeffer said.

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