[Vnbiz] SE ASIA FOOD SEVICE REPORT

[Craig Stevenson]

Asia Pulse
*October* 5, 2006 Thursday 2:55 PM EST
*SECTION:* NATIONWIDE INTERNATIONAL NEWS

*LENGTH:* 502 words

*HEADLINE:* FEAST OF OPPORTUNITIES IN SE ASIA'S FOODSERVICE MARKET: REPORT

*DATELINE:* SYDNEY Oct 5

*BODY:*


The popularity of international cuisine throughout Southeast Asia offers a
golden opportunity for foreign companies looking to enter the region's
US$25.6 billion food service market, a new study has found.

According to report publisher BIS Shrapnel, Southeast Asia provides some of
the best opportunities for growth in the global foodservice sector, with the
region as a whole currently boasting over 1.1 million food outlets to
service a total population of 482 million in addition to 48 million tourist
arrivals each year.

The study, entitled `Foodservice Strategies in Southeast Asia, 2006 to 2010'
covers foodservice markets in Singapore, Thailand, Malaysia, the
Philippines, Vietnam and Indonesia, BIS Shrapnel said in a release issued
today.

It identifies Singapore as the region's most mature foodservice market,
followed by Thailand, Malaysia, Indonesia, the Philippines and Vietnam.

"The size of the foodservice market in Southeast Asia represents a huge
potential for food and beverage suppliers," BIS Shrapnel said, estimating
the industry was worth US$25.6 billion at current consumer prices and
US$16.5 billion in terms of total food and beverage purchases by foodservice
operators this year.

The sector is also tipped to expand strongly over the next five years, with
the report forecasting an annual growth rate of 4.5 per cent to 2010, as
strong tourist numbers help the industry forge ahead.

"Excluding the Philippines, all six countries have experienced steady growth
in tourist arrivals, while tourist numbers in Vietnam have increased
exponentially," BIS Shrapnel said.

Cultural practices are also seen as offering a favourable environment for
future growth, with the report finding a large proportion of everday meals
are currently served by street stalls and that families regularly dined out
in the evening.

"In Asia, a large percentage of households have very limited cooking
facilities at home which also encourages eating out," BIS Shrapnel's project
leader and business unit manager Sissel Rosengren revealed.

The report noted that while each country's foodservice market has its own
unique and traditional cuisine, across the region various foreign cuisines
are making inroads in the restaurant market.

"Italian cuisine, including both pasta and pizza, has been well liked for
the last 10 to 15 years and is well established," Rosengren noted, adding
that while Southeast Asian markets tended to be faddish, ice cream was
currently hugely popular in the Vietnam and Thailand.

"It can be very difficult to gauge if a trend is a longer-term phenomenon,
or only a fad," Ms Rosengren said, noting that the beverage sub-sector was
notoriously difficult.

Street vendors dominate the foodservice market throughout the region,
accounting for some 90 per cent of all commercial outlets. Full service
restuarants are the second largest channel, comprising about five per cent
of total commercial outlets, while fast food shops account for just one per
cent of Southeast Asia's commercial foodservice sector.

*LOAD-DATE:* October 6, 2006
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