Chinese Food Brands Thrive in Southeast Asia

Southeast Asia has become the "new stage" for Chinese food companies' exports

From Haidilao, Mixue, Luckin Coffee, and Chacha Food to Nayuki Tea, Chinese food brands are flourishing across Southeast Asia. By 2024, Mixue had nearly 3,000 stores in Southeast Asia; Haidilao reached 69 stores; and Luckin had 35 stores in Singapore.

With rising economic levels and the growth of the middle class, Southeast Asia, a booming market of 700 million people, is seeing its food economy rise. In the first half of 2024, China's food exports to Southeast Asia surpassed 20 billion RMB, with Malaysia, the Philippines, and Thailand being the main importers. Malaysia led with an import value of 8.78 billion RMB, followed by Thailand at 6.19 billion RMB and the Philippines at 5.29 billion RMB.

It’s also worth noting that Chinese food exports are showing a new trend, ranging from beverages and soups to snacks and ready-made meals. With the rising momentum, how should Chinese ready-made meal companies expand into the Southeast Asian market? What opportunities and challenges lie ahead, and how should they be navigated?

Recently, China Prepared Dishes Industry Alliance, Dongguan Pre-made Food Industry Association, and over 30 Chinese ready-made meal companies, went to Malaysia for an in-depth investigation, exploring the Southeast Asian food market and collecting firsthand market insights to signal the launch of ready-made meals in Southeast Asia.

Huge Market Potential for Pre-Made Meals in Southeast Asia

Economic growth and consumption upgrades in Southeast Asia have created a vast market for Chinese food exports. In 2023, Southeast Asia's GDP reached $3.81 trillion, with significant growth in the Philippines, Cambodia, Brunei, and Vietnam. The region, with a population of 683 million, also has 30.4 million Chinese immigrants, creating demand for Chinese-style ready-made meals.

Southeast Asia's restaurant service market is expected to grow from $192.43 billion in 2024 to $349.05 billion by 2029. The region's rising food demand, along with a boom in food delivery services, presents an opportunity for ready-made meals.

Chinese food companies like Haidilao, Mixue, and Luckin Coffee are already successful in Southeast Asia. Ready-made meals, with their convenience, are a popular solution for restaurants facing challenges like labor shortages and high costs.

Localizing the Entire Industry Chain Strategy

While Southeast Asian food preferences share similarities with China, there are still differences in ingredient choices, flavor intensity, and seasoning. Chinese food companies must research and adjust their products to meet local tastes.

"Malaysia prefers sweeter, saltier, and more sour flavors," says Lee Hao Ting, co-founder of RunningMan in Malaysia, emphasizing that Chinese ready-made meals need flavor adjustments to suit local preferences.

Respecting local religious and cultural practices is also vital. In Malaysia, halal certification is crucial for entering the market, as consumers are highly attentive to halal labels.

In conclusion, ready-made meals are emerging as a new trend in Malaysia, offering significant benefits for business owners. By adopting pre-served meals, businesses can reduce costs, eliminate the need to rely on chefs, and minimize food waste. Halal certification further ensures market acceptance, while customizable Chinese cuisine menus cater to local preferences. This trend not only boosts efficiency but also presents a sustainable and cost-effective solution for the growing foodservice industry in Malaysia.