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Friday, October 3, 2025

The Rise of Chinese F&B Chains in Southeast Asia

Faced with intense competition from Western Food & Beverage giants at home, Chinese food brands have ventured into Southeast Asia, where they are swiftly gaining market share through a winning combination of affordability, cultural ties, and tech-driven localization.

Chinese food and beverage chains are rapidly reshaping the culinary landscape across Southeast Asia, posing a strong challenge to long-dominant Western multinational giants.

According to the recent Chinese F&B in Southeast Asia 2025 report by Momentum Works, over 6,100 outlets from more than 60 Chinese F&B brands were operational in the region by the end of 2024. However, this success story goes beyond mere numbers—it unveils a deeper narrative of innovation, adaptability, and the transformative power of digitalization.

While South East Asia accounts for only 17% of China’s massive F&B market size, the region presents an appealing growth opportunity. Its geographical and cultural proximity, along with a relatively less competitive market environment, creates fertile ground for expansion.

The region’s tech-savvy middle class, vibrant Chinese diaspora, and robust economies further add to its allure. For instance, Singapore’s 63% ethnic Chinese population and Malaysia’s significant Chinese community offer a receptive customer base.

Social media platforms amplify this appeal, making Chinese F&B brands increasingly popular among younger audiences with trendy, accessible offerings.

What began as a survival strategy in their hyper-competitive domestic market has become a winning formula for Chinese brands as they aggressively target Southeast Asia’s $132.9 billion F&B market, which grew by 4.6% in 2024. Indonesia, Vietnam, Singapore, and Malaysia are emerging as key markets, with Vietnam and Indonesia hosting two-thirds of the region’s Chinese F&B outlets.

Back in China, the intensity of the rivalry with Western F&B giants forced many Chinese companies to innovate; in 2024 alone, over one million restaurants in China closed—70% more than the previous year. This challenging environment spurred operational refinements, supply chain efficiencies, and franchise innovations, all of which have become crucial advantages for their Southeast Asian ventures… to read more click here.