Name: Harmony Tee Jing Yi

Student ID: 159293

Subway International
1. What are market trends and consumption behavior towards fast food in the Asia Pacific and
Latin America?
To analyse the market trends towards fast food in Asia Pacific, there is a need to first separate
the countries into two large categories developing Asia (the Philippines, Indonesia,
Thailand, Malaysia, Vietnam, Pakistan, India and China), and affluent Asia (Japan, Korea,
Taiwan, Hong Kong, Singapore, Australia, New Zealand and Macau.
In developing Asia, circumstances are changing radically and hence expenditures on food
would likely also change although traditionally, people spend a smaller proportion of their
income on food. In contrast, in affluent Asia, there is a potential for a decreased in demand for
fast food although demand have been strong. In affluent Asia, majority of the people live in
urban areas, where fast food restaurants are easily available. People in affluent Asia also has
the purchasing power to spend on fast food. However, because nearly half of the population is
40 years of age and above, demand for fast food might drop because fast food is not a popular
choice among this group. This is especially so since many countris in affluent Asia, like Japan
and Singapore are experiencing a severe aging population.
In general, both affluent and developing Asia has rice and chicken as the main ingredients of
their diets.
There is an increaed demand for fast food as a way of lifestyle, where a quick meal can be
obtained in a fast-paced society today. Also, people use fast food as a way to socialise by
eating with friends in the restaurant. This alternative is affordable and convenient.
This is just a general overview of the market trends in Asia. In the table below, market trends
and consumption behavior towards fast food has been identified for the Asian countries.
Countries
Japan

China

Market Trends And Consumption Behavior

Increaing trend of women working and postponing childbearing.
This has created a market of professional consumers who are more
keen in their jobs and social lives than tradtional food preparation.
This causes an increaed demand for fast food since it is an
affordable and convneint way to socialise and it is a clean
environment as well.
Japanese tend to share their fast food at gatheirngs.
However, there is also a growing market of people coming to dine
alone. This is mainly due to more individuals living alone in Japan.
This could probably be attributed to its aging population. This
increases demand for fast food since these people want to have
meals fast and conveniently.
The eat-out market was estimated at $132 billion in 2007, with 97%
of Chinese consumers eating at fast food restaurants.
Increase in dual-income households with little time and more
disposable incomes. However, cost is an issue for Chinese when it
comes to eating and hence fast food restaurants are adapting by
offering cheaper options.
In China, dining in fast food restaurants is seen as a status symbol in
a way because not everyone can afford to eat in fast food

India

restaurants. It is a seen as a luxury and it is common for teenagers to

choose fast food restaurants as a place to socialise.
Cleanliness and safety of fast food restaurants also encourages
Chinese consumers to dine there.
Chinese consumers like to drive their new cars through fast food
drive-through restaurants to get their food and the increased set-ups
of more drive-through fast food restaurants might increase fast food
sales.
People are generally experiencing increasing income and there is a
growing middle class.
Change in preference from home cooked males to eating out due to
more women working and better salaries.
However, Indians prefer vegetarian food and hence, many fast food
companies seek to include more vegetarian options in their menu.
Food consumption in general differs greatly within the country. The
west likes fish while the eat ans south likes rice and the north likes
wheat.

Nexr we will look at the market trends towards fast food in Latin America in general.
One market trend towards fast food in Latin America in general is an increased interest in
dining outside of homes as more people are accepting and adopting the North American ways
of food consumption. This is mainly due to a change of a substantial amount of the population
from rural to urban, in search of work, wealth and success in the cities. Increased
urbanisation, coupled with more women entering the workforce has increased the dispoable
income of the population in Latin America in general. The five-day work week policy, with
shorter lunches naturally caused the demand for eating out to increase as people seek faster
and convenient ways of eating. This also translates into higher demand for fast food.
Another market trend towards fast food in Latin America is the increased demand for better
environments for dining, together with a better quality of fast food. In general, consumers are
attracted by the food quality and sanitary conditions that they experience when they dine. This
is because consumers want to reduce the chances of contracting gastro-intestinal illnesses that
is common in the region.
More women are entering the workforce, leaving them with less time at home, much less to
cook. This, coupled with increased purchasing power of these women has caused the demand
for fast food to increase.
The increased worries of obesity has caused more people to demand healthier food options
which is also why fast food chains are coming up with healthier menu options.
The consumption behavior and market trend towards fast food in Latin America will be
analysed in greater detail by breaking the analysis down by specific countries, as shown in the
table below:
Countries
Market Trend And Consumption Behavior
Brazil
Expenditure for eating out for all types of food grew at 33% from
2005-09.
Business lunch is the most important meal for both meeting and
socializing.
Due to wide variety of food provided by fast foods, interest in
them grew because variety was taken as a sign of affluence and

Mexico

Argentina

Venezuela

Chile

Santiago

Colombia

Peru

this gave consumers a sense of being free to choose the restaurant

and the meal.
Most important segment is the lunch market. The urban congestion
induces most Mexicans to eat breakfast and dinner at home. Most
Mexicans eat breakfast, which lasts them throughout the day till
about 2 p.m., before they have their lunch.
In particular, speed and affordability are important for lower paid
office workers, which is a positive sign for fast food.
Most locals have a budget for eating out all types of food.
With improvement of its economy in the early 2000s,
Argentineans picked up their once-busy lives and intense social
lifestyle, causing expenditure on eating out to increase.
Fast food mini-outlets are growing as more people demand for
prepared foods to take out and home delivery.
Fast food consumptions market share of total food consumption
remained relatively stable at 16%.
Younger populations are attracted to fast food.
Eating out take long durations as there is often no clear distinction
between business and socializing.
Traditionally, Chile already has an eating-out market, where the
lunch segment is most popular. Chileans often look for fast and
nutritious options.
Socialisation often occurs over lunch.
Locals enjoy various meats like beef, pork, chicken and seafood.
However, the fast food market is maturing after years of expansion
in the 1990s.
There is an increased use of coupons to eat fast food as well.
Over 75% of residents eat at least one meal outside everyday, with
a huge preference for fast food (73% of the time).
Socialization and family gatherings often take place at fast food
restaurants that is why many fast food brands provide sit-down
areas in Santiago.
Increase in eating out due to increasing wealth and lower terrorism
threat.
Demand is stimulated during the business week, with fast food
restaurants partnering banks and credit cards as a forms of
promotion.
Peruvians prefer seafood and vegetarian options.
Peruvians also eat out frequently daily.

As can be seen, the general trend towards fast food in both Asia Pacific and Latin America is
quite similar. Basically, people are earning more due to urbanization and have more to spend
on food. Hence, they demand better quality for food and better dining experiences (clean
environment for dining). Also, there is an increased participation of women in the workforce,
and long working hours with short breaks for meals. This triggers the need to obtain food fast
and conveniently, giving rise to an increase in demand for fast food.
However, there are also stark and subtle differences in market trends and consumption
behavior towards fast food between the individual countries as shown in the tables above.
Hence, business and marketing strategies cannot be entirely standardized but have to be
customized to a certain extend to meet the different needs of the locals in the different
countries.