The desire for work/life balance and prepackaged meals that require little or no kitchen time are leading consumers around the world to a surprising new destination for breakfast, lunch and dinner: the neighborhood convenience store.

According to the U.S. Meat Export Federation (USMEF), convenience stores are offering a wide selection of entrée and full-meal options that are winning over customers and creating more demand for U.S. red meat. Every gourmet hot dog sold in a South Korean store, every bowl of beef noodle soup ladled from a 7-Eleven hot food counter in Taiwan and every pork sausage sandwich pulled from a shelf in a Mexican Oxxo outlet provides another trade opportunity for the U.S. beef and pork industries.

Working to stay a step ahead of the competition for this rapidly growing sector, USMEF has been using the U.S. Department of Agriculture's Market Access Program, the Beef Checkoff Program and the National Pork Board to promote U.S. beef and pork. A particular focus has been placed on processed beef and pork items but also raw material for further processing for the centerpieces of convenience store fare in several international markets.

“Just as important as promoting existing products, we are developing brand new ideas for packaged meals and protein snack items featuring U.S. beef and pork that fit well with consumer trends in each individual market,” USMEF president and chief executive officer Dan Halstrom said. “USMEF recognizes the scope of this opportunity and the enormous demand that is driving it. As the convenience store sector has taken off in various parts of the world, suppliers realize they need products to help meet the demand for these meat snacks and packaged meals. The trend is toward high-quality meat, and that is definitely an advantage for U.S. beef and pork.”

Halstrom said USMEF staff around the world report encouraging developments in this sector, including the fact that convenience stores in many Asian markets not only offer high-quality food but allocate considerable shelf space to beef and pork items such as prepackaged lunch boxes and beef bowls.

Further, USMEF said there are solid data to support its pursuit of a larger share of the bustling global convenience store market.

According to a 2019 report by Euromonitor, which tracks retail sales and maintains a category dedicated specifically to convenience stores, per capita spending on foodservice products at convenience stores increased 14% worldwide between 2013 and 2018 and is projected to increase another 11% by 2023. USMEF relayed that South Korea has led the way, experiencing a whopping 142% increase in per capita convenience store foodservice spending from 2013 to 2018, with another 47% increase projected by 2023.

Japan, Taiwan, the Association of Southeast Asian Nations (ASEAN) region and Mexico are other fast-growing markets identified by Euromonitor, while a USDA report suggests that China’s convenience store chains, which have historically focused on lower-priced processed foods, are beginning to expand their premium and imported food offerings. This trend is likely to continue as younger Chinese consumers shift away from traditional retail outlets, USMEF noted.

The numbers lend further perspective to the Euromonitor data: In 2018, the average American spent $44.50 on foodservice items at a convenience store, which ranks fourth globally. Japanese consumers ranked first with an average of $240.80, followed by Taiwan at $80.70 and Norway at $72. The average Korean consumer spent only $39.70 last year, ranking in fifth place on the list, but projected growth puts spending at $58.40 by 2023. If these projections hold true, USMEF said Korea will move ahead of the U.S., which is expected to reach $54.60 by 2023.

Even in less-developed markets, spending is on an impressive trajectory, according to USMEF.  In Thailand, for example, the average consumer forked over $28.80 on convenience store foodservice items in 2018 (reaching number six on Euromonitor’s list), but the amount is projected to exceed $50 within the next five years.

“Obviously, there is tremendous potential for U.S. beef and pork in the convenience store sector, but competition is intense, so we must focus our efforts on identifying ways to highlight the advantages of U.S. products,” Halstrom said. “The quality and consistency that U.S. beef and pork deliver in processed products are really what set us apart. USMEF staff on the ground in these markets are doing a great job of conveying this message to distributors and their clientele, and this puts more U.S. beef and pork at the center of the world’s convenience store offerings.”

The following is a glimpse of some of the markets where the convenience store trend is strongest, along with USMEF’s promotional efforts in these destinations:

Japan

Though it is by far the leader in per capita spending on foodservice products at convenience stores, Japan still has room for growth. Euromonitor indicates that spending increased 16% between 2013 and 2018 and is expected to rise another 7% by 2023.

As a pioneer, of sorts, in the prepacked, ready-to-eat meal business, Japan’s convenience stores often resemble a supermarket/restaurant combination. There are 20,000-plus 7-Eleven stores in Japan, competing with major chains Lawson and Family Mart.

Both beef and pork are well utilized in Japan’s convenience store offerings, which range from bento boxes to beef bowls, sandwiches and noodle dishes.

Mexico

In Mexico, demand has increased for convenience foods and prepared meals due to population shifts toward urban centers and more women entering the workforce.

According to Euromonitor, per capita spending on convenience store food items rose 24% between 2013 and 2018 to $8.90 and is expected to expand another 12% over the next five years. Euromonitor also reported that the packaged food market in Mexico is expected to reach $53.5 billion by 2022. High-growth categories in this forecast include processed meat and seafood snacks and “ready” meals such as prepackaged sandwiches, entrees and side items.

Oxxo is the largest convenience store chain in Mexico, with more than 17,000 locations throughout the country, and USMEF is working behind the scenes with companies that supply Oxxo stores.

“One of the hottest trends in convenience stores across Mexico is the emergence of uniform sandwiches and meal items,” said Gerardo Rodriguez, USMEF marketing director in Mexico, Central America and the Dominican Republic. “Until recently, if you bought a sandwich at a convenience store here, you really had no idea what you were going to get. That is no exaggeration, but the consistency of U.S. ham, for example, has made sandwiches more reliable. That may not sound like a big thing in the U.S., but in Mexico, it has made a huge difference that the consumer definitely notices. For them, consistency is the key. It doesn’t matter when or where you buy the product; it must be exactly the same.”

South Korea

There were only about 10,000 convenience stores in South Korea in 2007, but that number tripled over the next decade. Recent growth has been even more aggressive.

“With lifestyle changes among Koreans, coupled with a growing number of single households, convenience store expansion accelerated rapidly, and by the end of 2018, there were more than 40,000 stores in the country,” USMEF director in Korea Jihae Yang said.

Korea’s home meal replacement market more than doubled between 2011 and 2018, and meal kits – a supermarket and wholesale chain store item now offered by convenience stores – continue to gain popularity.

“Continuous lifestyle changes for Koreans have created great demand for convenience foods,” Yang said. “The popularity of meal kits is driving demand for meat products, so USMEF has been working hard to demonstrate how U.S. pork and beef work well as centerpieces of these kits. Koreans are looking for quick meals that require no preparation, and we are coming up with new ideas and new products to meet this demand.”

Another development is the protein snack boom among Korean Millennials.

“Convenience stores in Korea have aggressively touted snacks made with sausage and processed meat ingredients,” Yang said. “Protein snacks are mostly dominated by pork, often manufactured from mixed pork ingredients from U.S. and the [European Union] as well as domestic pork, but USMEF has launched premium brands of U.S. processed pork products that have been very well received by consumers who are looking for something that really stands out among numerous sausage items.”

Beef is in the mix, too. USMEF teamed with Korea’s second-largest convenience store chain and a U.S. red meat supplier to launch a cube steak promotion aimed at Korean consumers who pick up their lunches at convenience stores.

Taiwan

Recent data show that there are nearly 11,000 convenience stores in Taiwan, or one for every 2,222 people. This is the second-highest density worldwide, according to Taiwan’s Ministry of Economic Affairs. Taiwan trailed only South Korea, with one store for every 1,452 people, and was ahead of Japan, at one store for every 2,248 people.

Besides 7-Eleven (5,281 outlets as of mid-2018) and Family Mart, the other major convenience store chains in Taiwan are Hi-Life and O.K. Mart. Taiwan’s consumers have labeled 7-Eleven stores as “food heaven.”

“You can pick up a ready-to-go meal -- something like pork chop rice or beef noodle soup -- or grab something from the refrigerated case and heat it up in the in-store microwaves,” said Alex Sun, USMEF marketing manager in Taiwan. “Consumers in Taiwan are looking for quick meal solutions but want something fresh.”

China

A recent USDA Global Agriculture Information Network report described China’s convenience store sector as 100,000 strong and “one of the most rapidly developing retail models in China, with sales of more than $28 billion in 2017.” Meiyijia, Family Mart, 7-Eleven and Lawson are the top chains, with locations spread across the country.

In its 2019 report, Euromonitor showed that per capita spending on convenience store foodservice items in China increased 50% between 2013 and 2018 and projected a 67% increase by 2023.

Ming Liang, USMEF marketing director in China, said consumers in many regions of China still buy meat and other foods at traditional markets, while modern supermarkets and butcher shops are more prevalent in more urban settings.

However, retail trends are changing with a new generation. According to statistics from Family Mart, younger Chinese consumers are a major force in the convenience store market, with those born in the 1980s and 1990s accounting for 88.4% of total customers. Statistics from 7-Eleven indicate that consumers ages 20-40 make up 88% of its customer base.

Both companies report that most of their customers in China are office workers.

“Younger people are more concerned about time and less inclined to go through a long process when shopping for food,” Liang said. “We’ve seen this happen in other Asian cultures such as Japan and Korea, where people want quick and easy meals instead of spending time going to the market. Chinese consumers are looking for these same options.”

South America

Once concentrated only in urban areas, convenience stores are becoming more and more popular in South America, especially in Colombia and Peru. South American convenience store chains have been reluctant to offer ready-to-eat meals, but Jessica Julca, USMEF representative in South America, said the Mexican chain Oxxo is expanding rapidly in the region, creating potential for future partnerships.

Meanwhile, USMEF has been working on strategies for other players in the convenience store sector in South America.

ASEAN

Consumer demand for convenience has not skipped Southeast Asia, which has roughly 73,000 convenience stores across the region. According to the recent “What’s Next for Southeast Asia?” report from Nielsen, the number of convenience stores are increasing 10% year over year in the ASEAN region. In addition, the number of mini-market stores in the region, which currently stands at 50,000, is growing nearly 5% annually.

Euromonitor reported that per capita spending on foodservice products in convenience stores rose 87% in Malaysia between 2013 and 2018 and is projected to increase another 139% over the next five years. The Philippines saw a 93% jump the past five years and is expected to achieve another 81% growth by 2023.

Convenience stores in the region have moved from providing impulse products such as snacks, beverages and tobacco to competing against quick-service restaurants by expanding their range of ready-to-eat food items.