Korea’s catering industry faces fierce competition in 2026

(Pulmuone Food & Culture)

South Korean foodservice companies are focusing their management capabilities on capturing growth opportunities in anticipation of a surge in new contracts expected to come up for bidding from next year onward.

According to industry sources on Monday, Hanwha Group’s consecutive acquisitions of the catering businesses Ourhome and Shinsegae Food Inc. this year have reshaped the industry from a former system dominated by big five players into a big four system.

Competition is heating up further as mid-sized and latecomer players such as Dongwon, Pulmuone, and Bon Food actively join the bidding race.

The market’s main focus is the expanding volume of new contracts available for bidding. Newly bid catering contracts have grown from about 360 billion won ($243 million) in 2021 to an estimated 650 billion won this year.

Analysts say the figure could exceed earlier forecasts of around 700 billion won next year if parts of LG Group’s catering volume are put out to tender.

Ourhome is responsible for catering at about 110 LG, LS, and GS group sites, with annual contract volumes estimated at roughly 300 billion won. Catering contracts are typically reviewed upon expiration, and if renewal talks fail, they are opened to competitive bidding.

Major players such as Samsung Welstory Inc. and CJ Freshway Corp, along with mid-sized rivals, are strengthening bids based on service quality as well as pricing, sources said.