Note: This report includes forecasting data that is based on baseline historical data.
Executive summary
South Korea's foodservice industry is undergoing significant transformation, driven by rising incomes, evolving consumer preferences, and rapid digital adoption. Per capita disposable income is projected to accelerate, fostering increased spending on foodservice, supported by a growing interest in health- and eco-friendly products amid a fast-paced lifestyle and a burgeoning solo economy.
South Korea's consumer foodservice market grew from US$75,518.0 million in 2020 to US$78,909.6 million in 2024, with a 1.1% compound annual growth rate (CAGR). From 2024 to 2029, total foodservice sales are expected to grow at 2.9% CAGR, reaching US$90,935.6 million. Breaking down consumer foodservice sales by type, cafés and bars contracted until 2024 but are expected to rebound by 2029, driven by robust growth in specialist coffee and tea shops. Full-service restaurants are growing modestly, with Asian operators leading, while limited-service restaurants are expanding more rapidly, buoyed by strong performance in chicken, burger, and convenience formats. Self-service cafeterias and street stalls/kiosks are also experiencing notable growth, reflecting evolving consumer preferences and a shift toward convenience.
Digital transformation is reshaping foodservice fulfillment, as online takeaway ordering and delivery channels, particularly through third-party platforms, exhibit robust expansion, while traditional offline ordering declines. Drive-through and first-party delivery channels are also growing, underscoring a broader shift toward off-premise dining.
Amid these changes, competition is intensifying as economic pressures blur traditional category lines. Major players such as Starbucks, Paris Baguette, and McDonald's maintain strong positions, with Starbucks recording US$1,915.8 million in sales (2.4% market share) and Paris Baguette closely following. However, the competitive landscape is also being reshaped by the rise of convenience stores and niche operators in sectors like specialist coffee shops, street stalls, and kiosks. In this dynamic environment, success will hinge on operators' ability to differentiate their offerings, improve operational efficiency, and drive innovation in digital fulfillment to both navigate challenges and capitalize on emerging opportunities.
Macroeconomic and consumer foodservice trends
South Korea's per capita disposable income grew modestly from US$17,313.4 in 2020 to US$17,905.2 in 2024 (0.8% CAGR) but is set to accelerate, reaching US$22,127.4 in 2029 (4.3% CAGR). Higher incomes could drive increased spending on dining out and premium foodservice experiences.
Food expenditure declined from US$1,834.1 in 2020 to US$1,722.8 in 2024 (−1.6% CAGR) but is expected to rebound to US$2,100.0 by 2029 (4.0% CAGR). Spending on beverages is also set to rise.
Foodservice spending grew from US$1,538.5 in 2020 to US$1,852.0 in 2024 (4.7% CAGR) and is projected to reach US$2,369.4 in 2029 (5.1% CAGR). This reflects a shift toward convenience and experiential dining, benefiting restaurants and delivery services.
Despite a shrinking population, rising incomes and evolving consumer preferences will sustain demand, pushing foodservice businesses to focus on differentiation, efficiency, and automation to address demographic and labor challenges.
| Category | 2020 | 2024 | CAGR* % 2020-2024 | 2025 | 2029 | CAGR* % 2024-2029 |
|---|---|---|---|---|---|---|
|
Disposable Income (US$) |
17,313.4 |
17,905.2 |
0.8 |
18,461.9 |
22,127.4 |
4.3 |
|
Expenditure on food (US$) |
1,834.1 |
1,722.8 |
−1.6 |
1,775.1 |
2,100.0 |
4.0 |
|
Expenditure on non-alcoholic drinks (US$) |
145.5 |
145.3 |
0.0 |
150.3 |
181.2 |
4.5 |
|
Expenditure on alcoholic drinks (US$) |
128.9 |
127.2 |
−0.3 |
129.1 |
148.0 |
3.1 |
|
Expenditure on foodservice (US$) |
1,538.5 |
1,852.0 |
4.7 |
1,922.0 |
2,369.4 |
5.1 |
|
Total Population (million) |
51.83 |
51.76 |
−0.03 |
51.67 |
51.32 |
−0.17 |
|
Source: Euromonitor International, 2025 *CAGR: Compound Annual Growth Rate |
||||||
South Korea's consumer market is projected to grow by 11.3% in real terms from 2023 to 2028, with Gyeonggi-do accounting for 26.7% of total expenditure by 2028 (Euromonitor International, July 2024). A fast-paced lifestyle, long working hours, and a growing solo economy are reshaping food and dining habits, driving demand for convenient options such as food delivery, fast food, meal kits, and ready-to-eat meals. According to Euromonitor's survey, 27% of Koreans find food delivery more convenient than dining out, compared to 17% globally. Additionally, 44% of Gen Z orders home delivery at least weekly, even as 63% of consumers cook at home and 23% still enjoy dining out. Consumers increasingly pay a premium for health- and eco-friendly food and beverages, with 24% favoring eco-friendly products and 33% seeking nutritional benefits, trends fueled by heightened health awareness amid the COVID-19 pandemic and rising chronic diseases (Euromonitor International, November 2024). Meanwhile, concerns over health, high food prices, and sustainability have led 18% of consumers to reduce meat consumption–11% eating meat and fish only occasionally–and inflationary pressures have driven 21% to seek private-label, low-cost products (Euromonitor International, June 2024).
In 2024, South Korea's consumer foodservice sector faced economic stagnation, prompting businesses to adopt cost-cutting strategies while making dining out more affordable to sustain consumer spending. With inflation pushing menu prices beyond consumers' expectations, demand has shifted toward processed food alternatives, and foodservice operators have responded by introducing single-serve meals to appeal to price-sensitive and solo diners. Meanwhile, rising operational costs have driven the adoption of food tech solutions, with advancements shifting from kitchen automation to smart ordering and payment systems, as major fintech and delivery platforms like Toss, Coupang, and Baemin lead the industry's digital transformation (Euromonitor International, March 2025).
South Korea foodservice market overview
South Korea's total foodservice sales of food and drink products grew from US$75,518.0 million in 2020 to US$78,791.4 million in 2024, reflecting a modest 1.1% CAGR. This growth was primarily driven by food sales, which increased from US$46,987.7 million to US$52,002.5 million (2.6% CAGR), while drink sales declined from US$28,530.3 million to US$26,789.0 million (−1.6% CAGR). However, between 2024 and 2029, total foodservice sales are expected to decline, falling from US$78,791.4 million to US$74,493.7 million, reflecting a −1.1% CAGR. This decline is attributed to the expected decrease in both food and drink sales, with food sales projected to drop from US$52,002.5 million to US$48,776.3 million (−1.3% CAGR) and drink sales to decrease slightly from US$26,789.0 million to US$25,717.4 million (−0.8% CAGR).
| Type | 2020 | 2024 | CAGR* % 2020-2024 | 2025 | 2029 | CAGR* % 2024-2029 |
|---|---|---|---|---|---|---|
|
Food |
46,987.7 |
52,002.5 |
2.6 |
51,254.6 |
48,776.3 |
−1.3 |
|
Food share breakdown |
62.2 |
68.9 |
2.6 |
67.9 |
64.6 |
−1.3 |
|
Drink |
28,530.3 |
26,789.0 |
−1.6 |
26,322.2 |
25,717.4 |
−0.8 |
|
Drink share breakdown |
37.8 |
35.5 |
−1.6 |
34.9 |
34.1 |
−0.8 |
|
Total |
75,518.0 |
78,791.4 |
1.1 |
77,576.7 |
74,493.7 |
−1.1 |
|
Source: Euromonitor International, 2025 *CAGR: Compound Annual Growth Rate |
||||||
South Korea's consumer foodservice market grew from US$75,518.0 million in 2020 to US$78,909.6 million in 2024, with a 1.1% CAGR, driven by strong performance in the leisure (8.6% CAGR, from US$2,492.1 million to US$3,472.0 million) and travel (11.1% CAGR, from US$2,643.1 million to US$4,024.4 million) sectors, reflecting post-pandemic recovery in consumer spending and travel. However, standalone outlets saw a slight decline (−0.2% CAGR, from US$61,547.2 million to US$61,154.9 million), though they continued to hold the largest market share. From 2024 to 2029, total foodservice sales are expected to grow at 2.9% CAGR, reaching US$90,935.6 million, with leisure (7.2% CAGR) and travel (4.7% CAGR) leading the growth, while retail and lodging will also see steady increases. Standalone outlets are forecast to recover with a 2.3% CAGR, reaching US$68,536.7 million by 2029, driven by a broader post-pandemic rebound.
| Category | 2020 | 2024 | CAGR* % 2020-2024 | 2025 | 2029 | CAGR* % 2024-2029 |
|---|---|---|---|---|---|---|
|
Total |
75,518.0 |
78,909.6 |
1.1 |
81,073.5 |
90,935.6 |
2.9 |
|
Standalone |
61,547.2 |
61,154.9 |
−0.2 |
62,484.7 |
68,536.7 |
2.3 |
|
Leisure |
2,492.1 |
3,472.0 |
8.6 |
3,740.9 |
4,921.1 |
7.2 |
|
Retail |
7,702.8 |
8,916.8 |
3.7 |
9,220.4 |
10,644.9 |
3.6 |
|
Lodging |
1,132.8 |
1,341.5 |
4.3 |
1,422.8 |
1,759.7 |
5.6 |
|
Travel |
2,643.1 |
4,024.4 |
11.1 |
4,204.6 |
5,073.2 |
4.7 |
|
Source: Euromonitor International, 2025 *CAGR: Compound Annual Growth Rate |
||||||
South Korea's consumer foodservice market showed mixed performance from 2020 to 2024. Cafés/Bars declined (−1.4% CAGR), driven by steep drops in bars/pubs (−7.0% CAGR) and juice/smoothie bars (−16.1% CAGR), while specialist coffee and tea shops expanded (6.0% CAGR). Full-service restaurants (FSR) grew modestly (1.1% CAGR), led by North American FSR (8.5% CAGR), though pizza FSR declined sharply (−11.2% CAGR). Limited-service restaurants (LSR) performed well (2.5% CAGR), with strong growth in convenience stores LSR (10.6% CAGR) and burger LSR (5.8% CAGR), while self-service cafeterias expanded at 7.8% CAGR. Street stalls/kiosks surged (12.4% CAGR), signaling a shift toward convenience-driven consumption.
From 2024 to 2029, specialist coffee and tea shops (8.0% CAGR) and pizza LSR (8.1% CAGR) are expected to drive growth in cafés/bars and LSR, alongside chicken LSR (7.4% CAGR) and convenience stores LSR (6.5% CAGR). FSR will see modest gains (0.9% CAGR), with North American FSR (2.2% CAGR) leading the segment. Self-service cafeterias will continue growing (1.9% CAGR), while street stalls/kiosks (5.3% CAGR) are set to expand further, reflecting sustained demand for quick and accessible food options.
| Category | 2020 | 2024 | CAGR* % 2020-2024 | 2025 | 2029 | CAGR* % 2024-2029 |
|---|---|---|---|---|---|---|
|
Total |
75,518.0 |
78,909.6 |
1.1 |
81,073.5 |
90,935.6 |
2.9 |
|
Cafés/Bars |
15,488.4 |
14,664.4 |
−1.4 |
15,229.4 |
17,717.5 |
3.9 |
|
Bars/Pubs |
9,012.0 |
6,730.6 |
−7.0 |
6,618.8 |
6,377.4 |
−1.1 |
|
Cafés |
1,372.7 |
1,533.3 |
2.8 |
1,603.5 |
1,923.8 |
4.6 |
|
Juice/Smoothie Bars |
70.6 |
35.0 |
−16.1 |
36.2 |
42.7 |
4.1 |
|
Specialist Coffee and Tea Shops |
5,033.1 |
6,365.5 |
6.0 |
6,970.8 |
9,373.5 |
8.0 |
|
Full-Service Restaurants (FSR) |
40,341.8 |
42,178.4 |
1.1 |
42,559.1 |
44,128.0 |
0.9 |
|
Asian FSR |
37,489.2 |
38,999.9 |
1.0 |
39,321.2 |
40,654.5 |
0.8 |
|
European FSR |
792.4 |
793.2 |
0.0 |
809.7 |
871.2 |
1.9 |
|
North American FSR |
1,263.4 |
1,747.8 |
8.5 |
1,790.0 |
1,950.9 |
2.2 |
|
Pizza FSR |
153.1 |
95.1 |
−11.2 |
90.5 |
78.9 |
−3.7 |
|
Other FSR |
643.6 |
542.4 |
−4.2 |
547.7 |
572.4 |
1.1 |
|
Limited-Service Restaurants (LSR) |
18,987.9 |
20,965.2 |
2.5 |
22,124.4 |
27,678.3 |
5.7 |
|
Bakery Products LSR |
3,849.1 |
3,855.2 |
0.0 |
3,981.2 |
4,501.0 |
3.1 |
|
Burger LSR |
2,640.6 |
3,305.7 |
5.8 |
3,508.7 |
4,413.2 |
5.9 |
|
Chicken LSR |
6,944.4 |
7,234.0 |
1.0 |
7,734.3 |
10,347.3 |
7.4 |
|
Convenience Stores LSR |
1,460.1 |
2,187.0 |
10.6 |
2,348.6 |
3,001.4 |
6.5 |
|
Ice Cream LSR |
846.5 |
782.7 |
−1.9 |
776.2 |
757.0 |
−0.7 |
|
Pizza LSR |
1,663.6 |
1,757.5 |
1.4 |
1,893.0 |
2,592.1 |
8.1 |
|
Other LSR |
1,583.7 |
1,843.1 |
3.9 |
1,882.5 |
2,066.3 |
2.3 |
|
Self-Service Cafeterias |
64.0 |
86.5 |
7.8 |
88.0 |
94.9 |
1.9 |
|
Street Stalls/Kiosks |
635.8 |
1,015.1 |
12.4 |
1,072.6 |
1,316.8 |
5.3 |
|
Source: Euromonitor International, 2025 *CAGR: Compound Annual Growth Rate |
||||||
In 2024, South Korea's cafés and bars faced shifting market dynamics. Cafés led growth, but intense competition and market saturation pressured both chained and independent coffee shops. To stay competitive, many brands expanded their offerings beyond beverages to include bakery items and meal options. Low-cost coffee chains struggled against rising competition from limited-service restaurants and street stalls, while premium brands relied on customer loyalty. Meanwhile, bars and pubs saw slow recovery as consumer preferences shifted toward lighter drinks, such as highballs and cocktails, leading to regulatory changes that now allow alcohol sales by the glass. Looking ahead, cafés and bars are expected to innovate with specialty alcoholic beverages and enhanced smart ordering systems to attract customers (Euromonitor International, March 2025).
In 2024, South Korea's full-service restaurant sector faced declining transactions due to shifting consumer habits, including fewer family dining occasions, rising menu prices, and competition from packaged meals. High-end restaurants struggled, while buffet-style establishments saw growth. The market also witnessed a shift toward one-bowl meals, driven by the rise of single-person households and cost-saving measures. Restaurants relying on processed ingredients risk losing customers as demand for fresh, high-quality meals increases. To enhance efficiency, table-ordering systems are expanding, with AI-powered solutions improving service. Looking ahead, introducing new North American and European cuisines could help revitalize the sector by appealing to younger consumers seeking novelty (Euromonitor International, March 2025).
In 2024, South Korea's limited-service restaurant sector rebounded following a weaker prior year, driven by celebrity endorsements and media collaborations to boost consumer engagement amid persistent inflation. Chains like Burger King and Lotteria leveraged pop culture and star partnerships to attract customers, while brands faced increasing competition from higher-quality packaged food. In response, operators focused on improving product quality and tailoring offerings for single-person households, as seen in McDonald's "Loconomics" strategy and single-serve pizza options. The rising costs of third-party delivery platforms pushed major brands to enhance their proprietary apps, though challenges remain in shifting consumer behavior. Moving forward, pricing flexibility, fulfillment efficiency, and a strong value proposition compared to packaged foods will be critical for sustained growth (Euromonitor International, March 2025).
In 2024, independent self-service cafeterias in South Korea sustained strong growth, driven by the popularity of Korean buffets offering generous portions at reasonable prices, attracting a broader customer base, including office workers. However, competition from company-owned cafeterias, which provide efficiency and diverse menus, poses a challenge. Ikea Restaurant, the sole chained self-service cafeteria brand, is shifting to plant-based options and integrating urban farms to counter declining foot traffic, though its performance remains tied to Ikea's overall sales. Looking ahead, rising costs are pressuring independent cafeterias to adjust pricing and menus, potentially eroding their value proposition. While delivery and takeaway services are gradually expanding, the sector remains largely offline, with future growth hinging on fulfillment improvements. Meanwhile, Ikea's limited expansion suggests constrained prospects for chained self-service cafeterias in South Korea (Euromonitor International, March 2025).
In 2024, South Korea's dessert trends shifted from tanghulu, which saw a rapid decline after its 2023 peak, to new offerings such as yoghurt ice cream, Dubai chocolate, and handmade confectionery. Yoghurt ice cream, in particular, gained significant traction due to its customizability and health appeal, with brands like Yoajung and Yogurt World expanding rapidly. Meanwhile, traditional street snacks, including fish-shaped bread and walnut snacks, resurged due to affordability and evolving flavors, contributing to consistent growth in independent street stalls/kiosks. The sector also saw a rise in single-item specialists, like bagel and cookie stalls, driven by low start-up costs, though high closure rates make trends unpredictable. Street stalls/kiosks remain well-positioned for growth as takeaway and delivery gain traction, yet structural challenges like business turnover and declining food truck interest limit long-term scalability. However, their agility in introducing new desserts may influence broader foodservice trends, appealing to younger demographics and driving innovation in the industry (Euromonitor International, March 2025).
Foodservice sales: chained versus independent
South Korea's consumer foodservice market reflects shifting dynamics between chained and independent operators from 2020 to 2029. Chained operators, growing at a 2.1% CAGR from US$34,089.0 million in 2020 to US$37,021.4 million in 2024, are expected to accelerate to a 5.3% CAGR, reaching US$47,899.8 million by 2029. Their market share has increased from 45.1% in 2020 to 46.9% in 2024 and is projected to rise further to 52.7% by 2029, reflecting a 2.3% CAGR increase. In contrast, independent operators experienced marginal growth at a 0.3% CAGR, reaching US$41,888.2 million in 2024, and are forecasted to grow at a 0.5% CAGR, reaching US$43,035.8 million by 2029. However, their market share is set to decline from 54.9% in 2020 to 53.1% in 2024, further shrinking to 47.3% by 2029.
| Category | 2020 | 2024 | CAGR* % 2020-2024 | 2025 | 2029 | CAGR* % 2024-2029 |
|---|---|---|---|---|---|---|
|
Chained Foodservice |
34,089.0 |
37,021.4 |
2.1 |
39,036.8 |
47,899.8 |
5.3 |
|
% breakdown |
45.1 |
46.9 |
1.0 |
48.1 |
52.7 |
2.3 |
|
Independent Foodservice |
41,429.0 |
41,888.2 |
0.3 |
42,036.7 |
43,035.8 |
0.5 |
|
% breakdown |
54.9 |
53.1 |
−0.8 |
51.9 |
47.3 |
−2.3 |
|
Total |
75,518.0 |
78,909.6 |
1.1 |
81,073.5 |
90,935.6 |
2.9 |
|
Source: Euromonitor International, 2025 *CAGR: Compound Annual Growth Rate |
||||||
South Korea's chained foodservice sector grew at a 2.1% CAGR from US$34,089.0 million in 2020 to US$37,021.4 million in 2024, with stronger growth expected at 5.3% CAGR, reaching US$47,899.8 million by 2029. Chained cafés/bars expanded modestly at 1.2% CAGR (2020-2024) but are set for a stronger 5.7% CAGR, led by specialist coffee and tea shops, which are projected to grow at 8.2% CAGR to US$8,902.1 million by 2029. In contrast, bars/pubs and juice/smoothie bars declined, with limited recovery ahead. Chained full-service restaurants (FSR) saw slow growth at 1.3% CAGR (2020-2024) and will maintain moderate expansion at 2.8% CAGR, with Asian FSRs leading, North American FSRs slowing, and pizza FSRs continuing to decline. Limited-service restaurants (LSR) drive the sector's expansion, growing at 2.5% CAGR (2020-2024) and accelerating to 6.1% CAGR, reaching US$25,530.6 million by 2029, with pizza (9.1% CAGR), chicken (7.6% CAGR), and convenience store LSRs (6.5% CAGR) fueling growth. Self-service cafeterias and street stalls/kiosks also showed strong performance, with self-service cafeterias maintaining a 6.2% CAGR and street stalls/kiosks growing at 5.5% CAGR through 2029. Overall, South Korea's chained foodservice market is shifting toward quick-service formats, convenience-driven options, and premium coffee experiences, while alcohol-centric and traditional full-service formats face ongoing challenges.
| Category | 2020 | 2024 | CAGR* % 2020-2024 | 2025 | 2029 | CAGR* % 2024-2029 |
|---|---|---|---|---|---|---|
|
Chained Foodservice |
34,089.0 |
37,021.4 |
2.1 |
39,036.8 |
47,899.8 |
5.3 |
|
Chained Cafés/Bars |
8,265.7 |
8,671.5 |
1.2 |
9,219.3 |
11,437.0 |
5.7 |
|
Bars/Pubs |
3,490.1 |
2,637.3 |
−6.8 |
2,598.7 |
2,492.2 |
−1.1 |
|
Juice/Smoothie Bars |
70.6 |
35.0 |
−16.1 |
36.2 |
42.7 |
4.1 |
|
Specialist Coffee and Tea Shops |
4,705.1 |
5,999.2 |
6.3 |
6,584.3 |
8,902.1 |
8.2 |
|
Chained Full-Service Restaurants (FSR) |
8,038.7 |
8,449.9 |
1.3 |
8,724.3 |
9,681.3 |
2.8 |
|
Asian FSR |
7,138.3 |
7,346.1 |
0.7 |
7,606.7 |
8,514.3 |
3.0 |
|
European FSR |
282.9 |
219.9 |
−6.1 |
229.7 |
264.3 |
3.7 |
|
North American FSR |
478.5 |
795.7 |
13.6 |
804.1 |
831.8 |
0.9 |
|
Pizza FSR |
101.5 |
59.8 |
−12.4 |
55.8 |
45.1 |
−5.5 |
|
Other FSR |
37.5 |
28.3 |
−6.8 |
28.0 |
25.6 |
−2.0 |
|
Chained Limited-Service Restaurants (LSR) |
17,169.2 |
18,945.9 |
2.5 |
20,082.8 |
25,530.6 |
6.1 |
|
Bakery Products LSR |
3,849.1 |
3,855.2 |
0.0 |
3,981.2 |
4,501.0 |
3.1 |
|
Burger LSR |
2,640.6 |
3,305.7 |
5.8 |
3,508.7 |
4,413.2 |
5.9 |
|
Chicken LSR |
6,645.1 |
6,950.8 |
1.1 |
7,447.3 |
10,043.9 |
7.6 |
|
Convenience Stores LSR |
1,460.1 |
2,187.0 |
10.6 |
2,348.6 |
3,001.4 |
6.5 |
|
Ice Cream LSR |
842.9 |
779.2 |
−1.9 |
772.6 |
753.1 |
−0.7 |
|
Pizza LSR |
1,323.7 |
1,440.1 |
2.1 |
1,565.4 |
2,225.6 |
9.1 |
|
Other LSR |
407.7 |
427.8 |
1.2 |
459.0 |
592.5 |
6.7 |
|
Chained Self-Service Cafeterias |
30.8 |
46.0 |
10.5 |
49.5 |
62.1 |
6.2 |
|
Chained Street Stalls/Kiosks |
584.6 |
908.1 |
11.6 |
960.9 |
1,188.8 |
5.5 |
|
Source: Euromonitor International, 2025 *CAGR: Compound Annual Growth Rate |
||||||
In 2024, independent foodservice operators in South Korea faced challenges from weak consumer sentiment, leading to stagnant outlet growth and a slight decline in transaction volumes. While some independent establishments attracted consumers with unique storytelling, local appeal, and distinctive interiors, their overall market impact remained limited. The sector saw a rise in single-owner startups, expanding beyond coffee shops and kiosks into full-service restaurants, particularly offering one-bowl meals. Despite adopting food tech solutions to enhance efficiency, independents struggled with higher costs and limited marketing reach, making it difficult to compete with franchise chains and achieve profitability (Euromonitor International, March 2025).
South Korea's independent foodservice sector grew at a modest 0.3% CAGR from US$41,429.0 million in 2020 to US$41,888.2 million in 2024, with slight growth expected at 0.5% CAGR, reaching US$43,035.8 million by 2029. Independent cafés/bars faced challenges, particularly bars/pubs, which contracted at a 7.2% CAGR from 2020 to 2024, but cafés and specialist coffee and tea shops showed steady growth, with specialist coffee and tea shops projected to expand at 5.2% CAGR, reaching US$471.4 million by 2029. Independent full-service restaurants (FSR) grew slightly, at 1.1% CAGR (2020-2024), with Asian FSRs leading, while North American FSRs saw faster growth at 4.9% CAGR. However, pizza FSRs continued to decline. Independent limited-service restaurants (LSR) saw steady growth at 2.7% CAGR (2020-2024), with pizza LSRs recovering modestly at 2.9% CAGR, and other LSRs performing relatively well. Self-service cafeterias showed positive growth at 5.1% CAGR in the historical period but are expected to face a decline at −4.1% CAGR by 2029. In contrast, independent street stalls/kiosks experienced strong expansion, growing at a 20.2% CAGR from 2020 to 2024 and forecast to continue growing at 3.6% CAGR. Overall, South Korea's independent foodservice market is characterized by moderate overall growth, with street stalls/kiosks and specialist coffee shops showing notable strength, while traditional bars/pubs and pizza FSRs face ongoing declines.
| Category | 2020 | 2024 | CAGR* % 2020-2024 | 2025 | 2029 | CAGR* % 2024-2029 |
|---|---|---|---|---|---|---|
|
Independent Consumer Foodservice |
41,429.0 |
41,888.2 |
0.3 |
42,036.7 |
43,035.8 |
0.5 |
|
Independent Cafés/Bars |
7,222.6 |
5,992.9 |
−4.6 |
6,010.1 |
6,280.4 |
0.9 |
|
Bars/Pubs |
5,521.9 |
4,093.3 |
−7.2 |
4,020.1 |
3,885.3 |
−1.0 |
|
Cafés |
1,372.7 |
1,533.3 |
2.8 |
1,603.5 |
1,923.8 |
4.6 |
|
Specialist Coffee and Tea Shops |
328.0 |
366.3 |
2.8 |
386.6 |
471.4 |
5.2 |
|
Independent Full-Service Restaurants (FSR) |
32,303.1 |
33,728.5 |
1.1 |
33,834.8 |
34,446.8 |
0.4 |
|
Asian FSR |
30,351.0 |
31,653.8 |
1.1 |
31,714.5 |
32,140.2 |
0.3 |
|
European FSR |
509.5 |
573.4 |
3.0 |
580.0 |
606.9 |
1.1 |
|
North American FSR |
784.9 |
952.1 |
4.9 |
985.9 |
1,119.1 |
3.3 |
|
Pizza FSR |
51.6 |
35.2 |
−9.1 |
34.7 |
33.8 |
−0.8 |
|
Other FSR |
606.2 |
514.0 |
−4.0 |
519.7 |
546.8 |
1.2 |
|
Independent Limited-Service Restaurants (LSR) |
1,818.7 |
2,019.3 |
2.7 |
2,041.6 |
2,147.8 |
1.2 |
|
Chicken LSR |
299.3 |
283.2 |
−1.4 |
287.0 |
303.5 |
1.4 |
|
Ice Cream LSR |
3.6 |
3.5 |
−0.7 |
3.6 |
3.9 |
2.2 |
|
Pizza LSR |
339.9 |
317.4 |
−1.7 |
327.6 |
366.6 |
2.9 |
|
Other LSR |
1,176.0 |
1,415.2 |
4.7 |
1,423.5 |
1,473.8 |
0.8 |
|
Independent Self-Service Cafeterias |
33.2 |
40.5 |
5.1 |
38.5 |
32.8 |
−4.1 |
|
Independent Street Stalls/Kiosks |
51.3 |
107.1 |
20.2 |
111.7 |
128.0 |
3.6 |
|
Source: Euromonitor International, 2025 *CAGR: Compound Annual Growth Rate |
||||||
Foodservice fulfillment
South Korea's consumer foodservice sales by fulfillment are expected to experience substantial growth from US$82,566.5 million in 2024 to US$133,158.8 million by 2029, reflecting a strong 10.0% CAGR over the forecast period. Takeaway sales grew at a robust 6.5% CAGR from US$11,944.7 million in 2020 to US$15,374.5 million in 2024, with online takeaway ordering seeing explosive growth, driven by a 42.2% CAGR in the same period, and is projected to continue expanding at 28.0% CAGR, reaching US$24,763.9 million by 2029. On the other hand, offline takeaway ordering is declining, with a −5.4% CAGR from 2020 to 2024, and only a slight increase of 0.5% CAGR thereafter. The delivery segment has shown consistent growth, with a 9.0% CAGR from US$19,984.0 million in 2020 to US$28,197.5 million in 2024, and online ordering has been a key driver, experiencing 9.8% CAGR from 2020 to 2024, and projected to continue at 18.3% CAGR, reaching US$63,345.2 million by 2029. Third-party delivery services dominate the delivery segment, growing at 9.6% CAGR and expected to see further expansion at 18.9% CAGR to US$59,802.9 million by 2029. In contrast, offline delivery ordering is declining with a −8.4% CAGR through 2024, continuing its downward trend through 2029. Drive-through sales also show strong growth, expanding at 17.0% CAGR from US$643.8 million in 2020 to US$1,206.7 million in 2024, and expected to continue growing at 7.5% CAGR. The eat-in segment, however, faces a decline, with −3.9% CAGR expected through 2024, and a further reduction of −2.0% CAGR through 2029, highlighting the shifting preferences towards more convenient fulfillment methods. Overall, takeaway and delivery fulfillment methods are expected to continue their dominance in the South Korean foodservice sector, with online ordering playing a significant role in driving growth.
| Category | 2020 | 2024 | CAGR* % 2020-2024 | 2025 | 2029 | CAGR* % 2024-2029 |
|---|---|---|---|---|---|---|
|
Foodservice by Fulfillment |
76,822.9 |
82,566.5 |
1.8 |
88,703.8 |
133,158.8 |
10.0 |
|
Takeaway |
11,944.7 |
15,374.5 |
6.5 |
17,512.1 |
33,124.7 |
16.6 |
|
Takeaway Online Ordering |
1,764.7 |
7,217.1 |
42.2 |
9,319.4 |
24,763.9 |
28.0 |
|
Takeaway Offline Ordering |
10,180.0 |
8,157.4 |
−5.4 |
8,192.7 |
8,360.7 |
0.5 |
|
Delivery |
19,984.0 |
28,197.5 |
9.0 |
33,133.6 |
64,125.5 |
17.9 |
|
Delivery Online Ordering |
18,818.5 |
27,377.2 |
9.8 |
32,325.3 |
63,345.2 |
18.3 |
|
First-Party Delivery Services |
1,354.0 |
2,222.6 |
13.2 |
2,422.8 |
3,542.3 |
9.8 |
|
Third-Party Delivery Services |
17,464.5 |
25,154.6 |
9.6 |
29,902.5 |
59,802.9 |
18.9 |
|
Delivery Offline Ordering |
1,165.5 |
820.3 |
−8.4 |
808.3 |
780.3 |
−1.0 |
|
Drive-Through |
643.8 |
1,206.7 |
17.0 |
1,307.4 |
1,729.4 |
7.5 |
|
Eat-In |
44,250.4 |
37,787.8 |
−3.9 |
36,750.8 |
34,179.3 |
−2.0 |
|
Source: Euromonitor International, 2025 *CAGR: Compound Annual Growth Rate |
||||||
South Korea's foodservice fulfillment is undergoing significant changes as businesses adapt to evolving consumer preferences and operational challenges. In the coffee sector, smart ordering remains a key driver of convenience, with most customers still collecting their orders in-store due to the widespread presence of coffee shops. As specialist coffee chains enhance their digital experiences, app functionalities are expected to improve, allowing customers to modify or cancel orders before preparation, further streamlining the process. Meanwhile, full-service restaurants, particularly Asian establishments, are shifting their focus to appeal to Millennials and Generation Z by incorporating novel North American and European cuisines. This trend aligns with a broader movement toward culinary innovation and unique dining experiences that emphasize novelty and freshness (Euromonitor International, March 2025).
In South Korea's limited-service restaurant sector, the dominance of third-party delivery platforms is creating financial strain as rising commission fees increase operational costs. To counteract this, major brands like Burger King and Papa John's are strengthening their proprietary apps, optimizing user interfaces, and offering incentives to encourage direct ordering. Takeaway demand continues to rise, while drive-through investments are proving less cost-effective amid reduced consumer spending on external activities. As a result, first-party apps are becoming a strategic priority to balance delivery, takeaway, and in-store traffic. Self-service cafeterias, traditionally centered on eat-in services, are seeing potential growth in delivery and takeaway, particularly with the rise of single-person households. However, their expansion may require a shift toward a B2C franchise model. Meanwhile, street stalls and kiosks, which already rely heavily on takeaway and delivery, are well-positioned for steady growth as consumer demand for off-premise dining continues to rise (Euromonitor International, March 2025).
Competitive landscape
In 2024, South Korea's consumer foodservice industry experienced intensified competition as economic pressures and the rise of single-person households drove shifts in consumer preferences. Traditional category boundaries blurred, with convenience stores expanding into fresh food and beverages, challenging both limited-service and full-service restaurants. Specialist coffee and tea shops faced growing competition from restaurants and convenience stores offering machine-brewed coffee, while bakery and ice cream chains struggled against street stalls and convenience store desserts. Brands like McDonald's and Lotteria adapted by offering affordable yet high-quality options, while full-service restaurants embraced simpler one-bowl meals. With evolving consumer demands, foodservice players continue to refine their strategies to remain competitive (Euromonitor International, March 2025).
In 2024, South Korea's consumer foodservice market is led by a few prominent players across various categories. Starbucks leads the overall foodservice sector with US$1,915.8 million in sales, holding 2.4% market share, followed by Paris Baguette (SPC Group) at US$1,872.3 million (2.4%) and McDonald's (McDonald's Corp) at US$1,092.0 million (1.4%). The ccafés/bars category is similarly dominated by Starbucks (13.1% market share), with Mega MGC Coffee (5.5%) and A Twosome Place (4.3%) also notable. In the full-service restaurants segment, Myeong Ryun Jinsa Galbi and Outback Steakhouse have smaller shares, with others comprising 96.1% of the market. In the limited-aervice restaurants, Paris Baguette (8.9%) and McDonald's (5.2%) lead, while others dominate with 73.1%. The self-service cafeterias category is primarily led by Ikea restaurant (53.2%), and street stalls/kiosks is driven by Gong Cha (17.7%) and Isaac Toast (14.2%), with others holding the majority.
| Category | Brand | Company | 2024 | Market share % |
|---|---|---|---|---|
| Foodservice (total) |
Starbucks |
Starbucks Corp |
1,915.8 |
2.4 |
|
Paris Baguette |
SPC Group |
1,872.3 |
2.4 |
|
|
McDonald's |
McDonald's Corp |
1,092.0 |
1.4 |
|
|
Lotteria |
Lotte Group |
920.4 |
1.2 |
|
|
BHC |
BHC Co Ltd |
911.4 |
1.2 |
|
|
Others |
72,197.7 |
91.5 |
||
|
Total |
78,909.6 |
100.0 |
||
| Cafés/Bars |
Starbucks |
Starbucks Corp |
1,915.8 |
13.1 |
|
Mega MGC Coffee |
Ann House Co Ltd |
813.4 |
5.5 |
|
|
A Twosome Place |
CJ Foodville Corp |
627.3 |
4.3 |
|
|
Compose Coffee |
JM Coffee Co Ltd |
514.9 |
3.5 |
|
|
Ediya Espresso |
Ediya Co Ltd |
387.2 |
2.6 |
|
|
Others |
10,405.8 |
71.0 |
||
|
Total |
14,664.4 |
100.0 |
||
| Full-Service Restaurants |
Myeong Ryun Jinsa Galbi |
Myeong Ryun Dang Co Ltd |
395.0 |
0.9 |
|
Outback Steakhouse |
Bloomin' Brands Inc |
363.6 |
0.9 |
|
|
Ashley |
E-Land Group |
300.7 |
0.7 |
|
|
Bon Juk & Bibimbap |
Bonif Co Ltd |
293.6 |
0.7 |
|
|
QooQoo |
QooQoo Franchise Group |
271.1 |
0.6 |
|
|
Others |
40,554.4 |
96.1 |
||
|
Total |
42,178.4 |
100.0 |
||
| Limited-Service Restaurants |
Paris Baguette |
SPC Group |
1,872.3 |
8.9 |
|
McDonald's |
McDonald's Corp |
1,092.0 |
5.2 |
|
|
Lotteria |
Lotte Group |
920.4 |
4.4 |
|
|
BHC |
BHC Co Ltd |
911.4 |
4.3 |
|
|
BBQ |
Genesis Co Ltd |
851.5 |
4.1 |
|
|
Others |
15,317.6 |
73.1 |
||
|
Total |
20,965.2 |
100.0 |
||
| Self-Service Cafeterias |
Ikea Restaurant |
Inter IKEA Systems BV |
46.0 |
53.2 |
|
Others |
40.5 |
46.8 |
||
|
Total |
86.5 |
100.0 |
||
| Street Stalls/Kiosks |
Gong Cha |
Gong Cha Korea Co Ltd |
179.2 |
17.7 |
|
Isaac Toast |
Isaac Co Ltd |
144.1 |
14.2 |
|
|
Myungrang Hot Dog |
Myung Rang Inc |
76.6 |
7.5 |
|
|
Dalkom Wang Ga Tanghulu |
Dalkomnara Alice Co Ltd |
37.3 |
3.7 |
|
|
Bongousse Bap Burger |
Rich Neighbor Co Ltd |
34.4 |
3.4 |
|
|
Others |
543.5 |
53.5 |
||
|
Total |
1,015.1 |
100.0 |
||
|
Source: Euromonitor International, 2025 *CAGR: Compound Annual Growth |
||||
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For additional information on Seoul Food & Hotel 2025, please contact:
Michelle Jardine, Deputy Director
Indo-Pacific Market Development and Promotion
Agriculture and agri-food Canada
michelle.jardine@agr.gc.ca
Resources
- Euromonitor International, 2025
- Euromonitor International March 2025: Consumer Foodservice in South Korea
- Euromonitor International March 2025: Cafés/Bars in South Korea
- Euromonitor International March 2025: Full-Service Restaurants in South Korea
- Euromonitor International March 2025: Limited-Service Restaurants in South Korea
- Euromonitor International March 2025: Self-Service Cafeterias in South Korea
- Euromonitor International March 2025: Street Stalls/Kiosks in South Korea
- Euromonitor International June 2024: Consumer Lifestyles in South Korea
- Euromonitor International July 2024: Income and Expenditure: South Korea
- Euromonitor International November 2024: Megatrends in South Korea
Sector Trend Analysis – Foodservice in South Korea
Global Analysis Report
Prepared by: Zhi Duo Wang, Market Analyst
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