When savoring a Big Mac, one may not realize its potential as a tool for understanding global economics. In a previous article, we introduced the Food Delivery Big Mac Index, which monitored Big Mac prices on food delivery platforms across 35 countries for three quarters in 2022. This index helps us comprehend variations in purchasing power, currency value, and inflation. Building on this topic, in this new article, we focus on the last quarter of 2022 and the first quarter of 2023, analyzing how Big Mac prices have evolved worldwide. Our analysis uncovers interesting trends among countries and discusses the implications of these patterns for the food and beverage industry. To provide a comprehensive perspective on global prices and their economic relevance, we compare our findings with The Economist's Big Mac research.
In our previous article, we mentioned that the Big Mac is great for comparisons because it's widely available and consistent worldwide . The index can help us understand currency values by comparing burgers in two countries, showing if a currency might be over or undervalued . The Big Mac Index not only simplifies the concept of exchange rates but also shows how burger prices change over time, revealing inflation. By converting all Big Mac prices into a single currency, the index emphasizes cost differences around the world, giving insights into costs like rent, equipment, labor, and other factors.
Why is this important for those in the food and beverage industry? The Big Mac Index is relevant because it helps global companies develop pricing strategies, enabling them to adjust prices based on currency values. For example, a company may decide to charge a higher price for their product in a country with an overvalued currency, like Switzerland, compared to a country with a lower currency value, such as Indonesia.
Our data showed that in Q1 2023 the maximum price of a Big Mac in France is around €8.8 ($9.66), making it one of the most expensive, while in Indonesia, the same burger is only IDR 37,130 ($2.48). This big difference shows the variety in economic conditions and buying power in different countries. The average Big Mac price worldwide is around $5.43, with prices varying greatly among countries, reflecting various factors like local production costs, taxes, and consumers' willingness to pay. This information emphasizes the importance of understanding the economic landscape when studying Big Mac prices worldwide.
Poland saw a significant 66.85% increase from Q1 2022 to Q1 2023. Its non-Euro currency, the Polish zloty, reached record lows against the euro and dollar in 2022  and factors like the war in Ukraine and a deteriorating economy contributed to currency fluctuations. Turkey's Big Mac price jumped by a huge 154.63% during this time, reflecting worries about inflation and economic stability in the country. France, which already had high Big Mac prices, experienced a 24.51% increase from €7.10 in Q1 2022 to €8.84 in Q1 2023. This could mean the French economy is growing as prices usually go up when the demand for goods and services increases.
Norway, also known for high Big Mac prices, had a 21.99% increase from $6.30 in Q1 2022 to $7.61 in Q1 2023. This might indicate economic growth in Norway and a higher willingness to spend on fast food. However, since Norway had one of the highest Big Mac prices in Q1 2022, the increase could also be due to other factors, like changes in taxes or ingredient costs.
In contrast, Brazil and South Africa showed negative growth rates of -1.30% and -4.81%, signaling unique economic situations. The fast food industry has grown recently in both countries [4,5]. In Brazil, this growth is driven by a rising middle class with more disposable income. Meanwhile, South Africa's competitive hospitality sector, the largest food service market in Africa, is expected to grow despite economic challenges. The growing demand for diverse fast food options has boosted the industry in both countries.
What does The Economist  think about all this? They've also been tracking Big Mac prices and believe that the cost of the burger reflects wider inflation trends. Our findings match their observation that the average price of a Big Mac in the US has gone up more than 6% to $5.36 over the past two years. However, we discovered that some countries like France, Poland, and Turkey have seen even bigger price increases. This interesting Big Mac story highlights the need to understand global prices and their effects on the food and beverage industry.
For professionals in the food and beverage industry, knowing these global price trends is essential. The Big Mac Index is an easy and engaging way to compare costs across countries, helping businesses make smart decisions in a complicated economic world. The data on Big Mac price changes from Q1 2022 to Q1 2023 provides valuable insights into economic health, consumer preferences, and more, allowing industry stakeholders to make well-informed decisions regarding pricing, marketing, and other aspects of their business.
Dashmote is the leading big data and AI analytics company in the food & beverage industry. We help F&B enterprises by empowering leaders and analysts to track and analyze publicly available data to contribute to making strategic decisions for your brand. Want to know more about retrieving market insights across food delivery and F&B?
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Southeast Asia is known for its vibrant and diverse food culture, offering a unique blend of flavors and dishes. The region is a melting pot of culinary delights, with each nation embracing its own traditions while also exploring regional and global flavors. In this exploration, we analyzed data from locations on food delivery across six countries to uncover their culinary preferences and discover which nations have the most adventurous palates.
In Thailand1, the unwavering love for its local cuisine is evident, with Thai dishes representing over 69% of digital storefronts. This preference is not only due to the delicious flavors and fresh ingredients but also the support from the Thai government, which promotes Thai cuisine through ‘gastrodiplomacy’. Accompanying this love for local cuisine is a fondness for freshly prepared meals such as cooked-to-order (20%).
Meanwhile, Malaysia's culinary scene is often thought to be predominantly local. However, our research underscores the nation’s love of fusion cuisine. As journalist and author Dawn Tan notes in Food From the Heart: Malaysia’s Culinary Heritage (2004), "Malaysian cuisine defines fusion. And it’s been that way for over a hundred years. An early convergence of cultures from different worlds..." The quote emphasizes Malaysia's adventurous palate, which is always eager to explore new flavors and ingredients. This open-mindedness is reflected in the diverse array of Malaysian (51%), Chinese (10%), and other Asian dishes (81%) found in the country's digital storefronts.
Singapore, a true melting pot of cultures, is home to people of various nationalities, each with their own unique cuisine preferences. The Singaporean food landscape reveals this diversity with a vast array of culinary offerings from different cultures. From Asian (25%) and Chinese (20%) to Western (15%) and Japanese (12%), the nation's appetite for a wide variety of food options is apparent. This diverse culinary scene is a testament to Singapore's multicultural society and its unique blend of traditional and modern influences.
Vietnam's culinary landscape is characterized by its deep-rooted love for its local cuisine, with Vietnamese dishes accounting for 60% of the total storefronts. The popularity of dishes like pho (a noodle soup), banh mi (a type of sandwich), and cha gio (fried spring rolls) demonstrate the Vietnamese people's appreciation for comforting and delicious food that can be prepared quickly and easily. Our data also shows that Vietnam's food scene features a fondness for comfort food and beverages, such as tea (20%), and coffee (19%). These popular beverages add an interesting dimension to Vietnam's culinary identity, showcasing the country's love for rich and flavorful flavors that can be enjoyed at any time of the day.
In the Philippines, fast food and casual dining are popular choices among the population, with fast food and sugary drinks being common types of food marketing seen by children and adolescents on social media apps, according to a BBC2 study. This insight suggests that F&B companies looking to expand in the Philippines could benefit from increasing the offer of fast food and sweetened beverages in their product line. However, it's also important to remember that the country embraces its Asian (34%) and Filipino (30%) roots, so incorporating local flavors and ingredients into products may further appeal to consumers.
On the other hand, Cambodia's strong café culture, exemplified by coffee's popularity (24%), showcases the country's diverse culinary preferences, including Asian, noodle, and seafood dishes. F&B companies looking to tap into the Cambodian market may want to consider incorporating coffee into their product line if it's not already included, as it appears to be a popular beverage in the country. Additionally, offering Asian, noodle, and seafood dishes in your product line could also be appealing to Cambodian consumers, catering to their evolving food landscape and openness to different flavors and ingredients.
Finally, in our analysis of food delivery preferences, Indonesia's love for its traditional cuisine shines through. Rice, the staple food of Indonesia, leads the way, accounting for 25% of digital storefronts. Chicken dishes (20%) and noodles (10%) further demonstrate the nation's appreciation for their local culinary heritage and the variety of flavors and textures present in Indonesian cuisine. The prominence of rice, chicken, and noodles in their culinary landscape reflects their love for familiar, comforting flavors that showcase the best of Indonesian cuisine.
By analyzing the popularity of different cuisines in various countries, we can gain a deeper understanding of regional food preferences and consumer behavior. Our study reveals that Malaysia and Singapore take the lead as the most adventurous eaters in Southeast Asia, showcasing a willingness to explore the vast array of global cuisine.
The insights gained from this analysis offer businesses an opportunity to pursue ambitious goals and grow in a rapidly evolving industry. By embracing the diversity and richness of Southeast Asia's culinary heritage, F&B companies can unlock hidden potential and create innovative, successful ventures. We hope this article offers valuable insights and inspiration for businesses aiming to make a splash in the Southeast Asian Food Delivery Industry.
Dashmote is the leading big data and AI analytics company in the food & beverage industry. We help F&B enterprises by empowering leaders and analysts to track and analyze publicly available data to contribute to making strategic decisions for your brand. Do you feel interested in the snack market on food delivery? Check out our data insights on chocolate. Want to know more about retrieving market insights across food delivery and F&B?
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