South Korea Foodservice Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

South Korea Foodservice Market Analysis

The South Korea Foodservice Market size is estimated at 125.8 billion USD in 2025, and is expected to reach 290.3 billion USD by 2030, growing at a CAGR of 18.20% during the forecast period (2025-2030).

The South Korean foodservice industry is experiencing rapid digital transformation, driven by widespread technology adoption and changing consumer preferences. With approximately 46.81 million internet users as of January 2022, the market has witnessed substantial growth in online food delivery platforms and digital ordering systems. Major foodservice operators are increasingly implementing digital solutions, from mobile ordering apps to contactless payment systems, enhancing operational efficiency and customer experience. The integration of artificial intelligence and data analytics is enabling personalized customer experiences and optimized inventory management, while cloud kitchens are emerging as a significant business model catering to the digital-first consumer base.

The coffee culture in South Korea continues to flourish, establishing the country as one of the world's leading coffee markets. South Korean adults consumed an average of 12.3 cups of coffee per week in 2022, with 70% drinking at least one cup daily. This robust coffee consumption has led to remarkable café expansion, with the number of coffee shops reaching nearly 99,000 by the end of 2022. Major chains like Ediya Coffee and Starbucks have expanded their presence significantly, while independent cafés continue to innovate with unique concepts and specialized offerings, contributing to the diverse café landscape.

The market is witnessing a significant shift towards healthier and more sustainable dining options, reflecting evolving consumer preferences and growing health consciousness. As of 2022, approximately 2.5 million South Koreans identified as vegan, prompting restaurants in South Korea to expand their plant-based offerings and develop innovative meat alternatives. Major quick-service chains are introducing healthier menu items, while full-service restaurants are incorporating more organic ingredients and offering customizable nutritional options. This health-conscious trend has also led to the rise of specialized health-focused eateries and the integration of functional ingredients in traditional Korean dishes.

The South Korean foodservice landscape is becoming increasingly diverse, with a growing appetite for international cuisines alongside traditional Korean fare. Full-service restaurants in South Korea are expanding their menus to include fusion dishes that blend Korean flavors with international culinary traditions, particularly Asian and North American influences. Independent restaurants are experimenting with unique flavor combinations and innovative presentation styles, while international chains are adapting their menus to local tastes. This culinary diversification is particularly evident in urban areas, where restaurants are creating distinctive dining experiences that cater to both traditional preferences and contemporary tastes.

South Korea Foodservice Market Trends

Full service restaurants dominate the South Korean foodservice market, with increased demand for local and international cuisines

• Foodservice outlets in South Korea are dominated by full service restaurants, followed by cafes & bars and quick service restaurants. FSR outlets in the country are expected to record a CAGR of 4.48% during the study period. This is associated with more FSR businesses focusing on providing an adequate dine-in experience for customers, especially since people are seeking a better experience post the COVID-19 pandemic. The offering of a diverse menu by full service chains enhances the value of the on-premise dining experience. The demand for local dishes like Kimchi, Bibimbap, Bulgogi, Korean Stew, Jajangmyeon, Bibim Nengmyung, and other international cuisines has increased over recent years.
• Cloud kitchens are anticipated to grow the fastest, with the number of outlets projected to record a CAGR of 9.37% during the forecast period. The segment is expanding as a result of technological advances, which offer cloud kitchens several advantages over traditional kitchens, such as larger profit margins and greater flexibility in managing the outlet from anywhere. The increased integration of point-of-sale (POS), kitchen display systems (KDS), and inventory management technology to speed up various kitchen activities, improve communication, and avoid order-taking delays is propelling market expansion. In the cafes & bars segment, around 90% of the outlets were cafes and bars and pubs in 2022, with cafes accounting for 67% of the outlets alone. Cafes are increasing due to increased demand for take-out since social distancing measures were imposed during the pandemic. Popular chains, including Ediya Coffee, Mega Coffee, Compose Coffee, Paik's Coffee, and The Venti, have 3,000, 2,000, 1,720, 1,100, and 1,000 outlets, respectively, in the country.

Average order value is highest in full service restaurants in South Korea, driven by Asian and North American cuisines

• In South Korea, the average order value was observed to be the highest among the FSR segment in 2022 compared to other foodservice outlet types, amounting to USD 21.4. The FSR segment in the country is dominated by Asian and North American cuisines, which held shares of 34.73% and 15.33%, respectively, in 2022. The demand for FSR is expected to increase due to the increase in tourists' preference for exploring the local cuisine of the country. Popular dishes offered by the FSR outlets are Kimchi, Bulgogi, and Kalbi, which are priced at USD 10.5, USD 8, and USD 10 per 300 gms, respectively.
• The demand for QSR is also expected to increase due to changes in consumer behavior, people's busy schedules, and growing e-commerce channel penetration. QSR chains in the country are introducing menu items tailored to local preferences, such as bulgogi burgers and kimchi pizza, to increase sales. The expansion of international chains like McDonald's, Lotteria, KFC, and Burger King in the country is influencing more young consumers, inclined toward Western preferences, to visit the outlets. Thus, the number of QSR outlets in South Korea rose by 11.78% from 2017 to 2022. Popular cuisines served in the QSR segment are burgers and pizza, priced at an average of USD 7.6 and USD 5 per 300 gm, respectively.
• The average number of orders through cafes and bars in South Korea increased by around 19.36% between 2019 and 2022. This is attributed to increased coffee consumption. South Koreans consume 367 cups of coffee annually, ranking second in the world. In South Korea, there are 1,384 coffee shops for every million residents. In 2022, around 70% of South Korean adults drank more than one cup of coffee daily. Popular servings at cafes and bars include coffee, which costs around USD 3.6 per 150 ml, and tea, which costs roughly USD 3.75 per 150 ml.

Segment Analysis: Foodservice Type

Full Service Restaurants Segment in South Korean Foodservice Market

Full-service restaurants (FSR) dominate the South Korea foodservice market, commanding approximately 63% market share in 2024. The segment's strong position is primarily driven by the increasing consumer preference for authentic regional cuisines like kimchi and bulgogi, along with Japanese cuisines such as sushi and tempura. While traditional Korean foods remain highly popular, dietary trends are evolving to embrace new and international preferences. FSR operators are actively introducing more vegan, low-sugar, and gluten-free options to classic Korean cuisine, contributing to the segment's continued dominance. Asian and North American cuisines together account for over 50% of the FSR segment, reflecting South Korean consumers' strong appetite for both traditional Asian flavors and Western dining experiences.

Cloud Kitchen Segment in South Korean Foodservice Market

The cloud kitchen segment is experiencing remarkable growth in South Korea's foodservice market, projected to expand at approximately 35% annually from 2024 to 2029. This explosive growth is primarily fueled by the rising adoption of online food delivery services and changing consumer preferences. South Korea's strong delivery culture, with many consumers preferring to order food online for home delivery, perfectly aligns with the cloud kitchen business model. These establishments offer significant operational flexibility, allowing operators to quickly adjust their menus to meet evolving consumer preferences while optimizing costs. Major providers like Baedal Minjok, Yanojla, and DeliveroHero are supporting this growth by offering comprehensive services including shipping, cleaning, and electronic systems to help control operations and costs effectively.

Remaining Segments in Foodservice Type

The quick service restaurants (QSR) and cafes & bars segments play vital roles in South Korea's foodservice market ecosystem. QSRs are particularly notable for their extensive network of franchised operations offering affordable dining options, with a strong focus on meat-based cuisines, burgers, and localized menu items. The cafes & bars segment has established itself as a significant market force, driven by South Korea's robust coffee culture and evolving social dining preferences. Both segments are characterized by their ability to adapt to local tastes while maintaining operational efficiency through standardized processes and innovative service models.

Segment Analysis: Outlet

Independent Outlets Segment in South Korean Foodservice Market

Independent outlets dominate the South Korean foodservice market, holding approximately 73% market share in 2024. These outlets, typically consisting of one to two locations, maintain their strong presence across the country due to their ability to offer authentic local cuisines and personalized dining experiences. Full-service restaurants form the largest component within independent outlets, particularly those specializing in traditional Korean and international cuisines. The segment's strength lies in its diverse offerings, from traditional Korean dishes like kimchi and bibimbap to various international cuisines, catering to evolving consumer preferences. Independent operators have also adapted to changing market dynamics by incorporating technological advancements and expanding their delivery capabilities to meet growing consumer demands for convenience and accessibility.

Chained Outlets Segment in South Korean Foodservice Market

The chained outlets segment is projected to experience robust growth during 2024-2029, with an expected growth rate of approximately 19%. This growth is primarily driven by the segment's ability to adapt quickly to changing consumer preferences and market conditions through standardized operations and economies of scale. Chained full-service restaurants, particularly those offering Korean and international cuisines, are leading this expansion with innovative menu items and promotional campaigns. The segment's growth is further supported by increasing investments in technology systems, especially in fine-dining operations, enabling better customer service and operational efficiency. Major chains are also focusing on expanding their presence in key locations while maintaining consistent quality and service standards across their networks.

Segment Analysis: Location

Standalone Segment in South Korea Foodservice Market

The standalone segment dominates the South Korean foodservice market, commanding approximately 92% market share in 2024. This significant market position is driven by the millennial population's evolving food habits and growing taste for international cuisines. The segment's growth is further supported by continuing investment in new locations and innovative dining concepts. Standalone restaurant operators are increasing their technology investments, with fine-dining operators making the most substantial commitments. These establishments offer a wide range of traditional Korean cuisines including kimchi, Korean BBQ, bibimbap, and jjigae, while also incorporating international flavors to cater to diverse consumer preferences.

Travel Segment in South Korea Foodservice Market

The travel sector-based restaurants are experiencing remarkable growth, projected to achieve approximately 25% growth rate during 2024-2029. This exceptional growth is primarily driven by significant investments in airport infrastructure development and expansion projects. The growth potential is particularly evident at major transportation hubs like Incheon International Airport, which continues to develop its logistics infrastructure and networks. The segment's expansion is further supported by the rising demand for grab-and-go food options such as sandwiches, coffee, wraps, and burgers at airports, especially given that many flights don't offer onboard meals or charge premium prices for in-flight dining.

Remaining Segments in Location

The other location segments - retail, leisure, and lodging - each play distinct roles in shaping the South Korean foodservice market. The retail segment benefits from the strategic positioning of restaurants in shopping centers and convenience stores, offering consumers convenient dining options while shopping. The leisure segment capitalizes on entertainment venues such as cinemas, museums, and cultural centers, providing specialized dining experiences for entertainment seekers. The lodging segment, primarily comprising hotels and resorts, focuses on delivering premium dining experiences through both traditional Korean cuisine and international offerings, catering to both domestic and international travelers.

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We provide a complimentary and exhaustive set of data points on regional and country level metrics that present the fundamental structure of the industry. Presented in the form of 60+ free charts, the section covers difficult to find data on various countries on number of outlets, average order values, and menu analysis by foodservice channels, cuisine specific insights related to full service restaurants and quick service restaurants, market trends and market size insights on cafes, bars & pubs, juice/smoothies bars, specialty tea and coffee shops, and cloud kitchen etc.