Thai fried chicken market sizzles as competition heats up

Competition in Thailand’s fried chicken market is surging, with major players from South Korea and China entering the fray. 

The intense rivalry has prompted KFC, the long-standing market leader, to ramp up its marketing efforts and expand its reach across the country.

Fried chicken is still king in Thailand’s fast-growing quick-service restaurant (QSR) sector. In 2024, the QSR market was valued at 47.7 billion baht, with fried chicken accounting for 58% or 27.6 billion baht, followed by burgers (23%) and pizza (20%).

KFC remains top in the pecking order despite fierce competition from new brands vying for a slice of this lucrative pie. KFC maintained its market share of 52% last year through its three franchisees: The QSR of Asia, Central Restaurants Group, and Restaurants Development.

Piyapong Jitjamnong

KFC’s recipe for success?

Piyapong Jitjamnong, KFC senior executive vice president, puts it down to a focus on product quality, affordability, menu variety, and extensive distribution channels. He also highlighted the brand's adaptation to changing consumer demands – particularly for delivery services.

However, KFC is also paddling fast just to stay ahead of the competition, continuously introducing new menu items and expanding its digital shop window, he told Thansettakij.

"KFC is more than just a fried chicken restaurant – it's a lifestyle brand. From a small fried chicken shop, we have become a beloved food brand across Thailand," he said.

KFC faces stiff competition from new entrants, particularly South Korean and Chinese giants. Brands like Bonchon, BHC Chicken, and Pelicana have made significant inroads into the Thai market, offering distinctive flavours and dining experiences.
 

Zhengxin Chicken Steak has also been making waves with affordable prices and an extensive menu. The Chinese brand's aggressive expansion strategy has put pressure on existing players to lower their prices or differentiate their offerings.

The intense competition in the fried chicken market will benefit consumers with more choices and better value. However, established brands will need to innovate and adapt to changing consumer preferences to stay at the top of the pecking order.