Description

Chinese F&B brands have opened more than 6,100 outlets in Southeast Asia, which is home to a US$132.9 billion F&B industry    

This wave of expansion reflects the challenges Chinese F&B players face in their domestic market. Known for its intense competition, the Chinese F&B market saw over 1 million F&B businesses shutting down within just the first half of 2024 – a 70% increase from 2023. 

Such a cutthroat environment has forced many F&B ecosystem players to look beyond the domestic market for growth opportunities with Southeast Asia emerging as a hot destination for many Chinese brands.   

How would this shape the F&B landscape in Southeast Asia? Will these Chinese brands succeed in the long run?

Download Momentum Works’ Chinese F&B in Southeast Asia 2025 report for the breakdown of these numbers and gain insights into the strategies of Chinese F&B brands and practical considerations for navigating this dynamic market.

This report covers the following sections:

1. Introduction

• In recent years, we start to see Chinese F&B brands everywhere
• Southeast Asia is a particularly hot destination for Chinese F&B brands
• SG & MY host most Chinese F&B brands, while ID and VN have most outlets

2. Involuted F&B landscape in China

• F&B in China has evolved into a complex ecosystem
• F&B market in China totalled US$ 748 billion in 2023, 5.6 times that of Southeast Asia
• China’s F&B industry is cutthroat competitive
• Constantly shifting trends & consumer preferences make it harder for brands to stay popular
• 2024 is particularly tough for many F&B brands
• Players need to develop competitiveness in five key areas to survive and win
• There is a strong desire in Chinese F&B to expand overseas a.k.a chuhai (出海)

3. F&B landscape in SEA

• Although growth is moderating in 2024, SEA’s F&B market is attractive to Chinese players
• Southeast Asia’s F&B markets are very varied in maturity and stages of development
• Top F&B groups in Southeast Asia have been profitable
• Many SEA F&B brands have expanded outside their home turf
• Chinese style cuisines have cultural and historical links in Southeast Asia
• SEA consumers are increasingly receptive to new Chinese F&B tastes/cuisine types

4. Chinese F&B methodology in SEA: a case study

• Chinese F&B brands bring not only food, but also their methodologies
• Case study: Dian Xiao Er’s rebranding reflects methodologies used by Chinese F&B

5. Practical considerations

• Four practical considerations for F&B businesses entering Southeast Asia
• There are four main operating models, pick the most suitable one
• F&B brands have deployed different operating models in different SEA markets
• Choosing the right partner to work with for each market
• Supply chain considerations
• Overall F&B cost structure differ amongst SEA countries and with China
• Perspective from the POP-Leadership lens

6. Conclusion – will Chinese F&B succeed in Southeast Asia?