Consumption Indicators

In 2024, the household disposable income per capita in South Korea is forecast to amount to US$19.36k.
The total consumer spending in South Korea is forecast to amount to US$841.40bn in 2024.
The consumer spending per capita on food and non-alcoholic beverages in South Korea is forecast to amount to US$2.01k in 2024.
The consumer spending per capita on housing in South Korea is forecast to amount US$3.50k in 2024.
The consumer spending per capita on healthcare in South Korea is forecast to amount US$1.23k in 2024.
The clothing and footwear consumer spending per capita in South Korea are forecast to amount to US$705.90 in 2024.
The consumer spending per capita on the household in South Korea is forecast to amount US$593.40 in 2024.
The consumer spending per capita in hospitality and restaurants sector in South Korea is forecast to amount US$2.27k in 2024.
The consumer spending per capita in communication in South Korea is forecast to amount US$641.20 in 2024.
The consumer spending per capita on transport in South Korea is forecast to amount US$1.77k in 2024.

The Consumption Indicators provide a comprehensive look at past, current, and anticipated consumer spending in a global comparison. The combination of household disposable income and consumer spending by category can give a full picture of current and expected consumption trends. Consumer spendings are organized into the twelve second-level COICOP categories. COICOP (Classification of Individual Consumption by Purpose) is a system used to categorize and classify consumer spending into different groups based on the purpose of the expenditure. The twelve second-level COICOP categories are Food, Alcoholic beverages and tobacco, Clothing, Housing, Furnishings, Health, Transport, Communication, Recreation and culture, Education, Restaurants and hotels, and Miscellaneous goods and services. These categories reflect the diverse spending patterns and consumption habits of individuals, contributing to economic activity and the overall growth of an economy. These indicators help understand household and personal spending changes as well as make both short- and long-term business and policy decisions.

Structure:

The Consumption Indicators covers two focus areas.

The Household Income focus area includes two different measures of household income: total household disposable income and per capita household disposable income in a selected region.
The Household Expenditure focus area includes total consumer spending and consumer spending per capita on the twelve second-level COICOP categories.

These Indicators report the consumer spending per capita at the current value of the US$.

Individual consumption expenditure of households by consumption category
Disposable income

Education spending
Consumer sentiments
Consumer behaviors

Importance of Consumption Indicators: Consumption indicators reveal crucial insights into economic health and purchasing behavior. Consumer spending, driven by disposable income, is a key measure of economic activity and growth. These indicators span sectors like food, housing, healthcare, and education, reflecting how individuals allocate their spending. Understanding these patterns helps assess economic vitality and guides public and private sector decisions.

Sectoral Contributions to Economic Activity: Each sector contributes uniquely to consumption indicators, offering a broad view of economic activity. Spending on essentials like food and housing, along with discretionary items such as healthcare and education, is influenced by disposable income. Analyzing these sectors helps stakeholders understand the interaction between different parts of the economy and the impact of income changes on overall performance.

Monitoring Trends and Market Conditions: Tracking consumption indicators is essential for monitoring trends and assessing market conditions. These indicators guide decisions on resource allocation, market strategies, and economic policies. Trends in disposable income, in particular, provide insights into consumer purchasing power, allowing stakeholders to adapt their strategies to current and future market dynamics.

Challenges in the Consumption Indicators Domain: The consumption indicators domain faces challenges from regulatory factors and evolving trends. The rise of e-commerce, sustainable consumption, demand for personalized experiences, and technological advancements are reshaping consumer behavior. Addressing these challenges is key for stakeholders to stay competitive and meet the changing needs of consumers, especially as disposable income varies in a dynamic market.

Data coverage:

The dataset encompasses data from 152 countries. The charts depict the situation of each country in six different domains. These domains are socioeconomic indicators, macroeconomic indicators, health indicators, digital and connectivity indicators, consumption indicators, as well as logistics and transport indicators. Within these domains, various segments are covered, including demography, economic measures, economic inequality, employment, consumption, health determinants, and much more.

Modeling approach:

The composition of each domain follows a comprehensive approach that combines both top-down and bottom-up methodologies, with each domain and segment being guided by a specific rationale. To evaluate the situation of these six domains within each country, we rely on pertinent indicators and data from reputable international institutions, local national statistical offices, industry associations, and leading private institutions. Additionally, we undertake data processing procedures to address issues such as missing timelines, outliers, and data inconsistency. Our data processing incorporates advanced statistical techniques, including interpolation, exponential moving weighted average, and the Savitzky-Golay filter. These methods contribute to the refinement and enhancement of data quality.

Forecasts:

In our forecasting process, a wide range of statistical techniques is utilized based on the characteristics of the markets. For example, the S-curve function is employed to forecast the adoption of new technology, products, and services, aligning the forecast model with the theory of innovation adoption. Additionally, the data is forecasted using ARIMA with and without seasonality considerations, exponential trend smoothing, and the Compound Annual Growth Rate (CAGR), with the option to incorporate adjustment factors when necessary. These techniques enable accurate and reliable forecast methods tailored to the unique characteristics of the data in each market and country.

Additional notes:

The data is updated twice per year or every time there is a significant change in their dynamics. The impacts of the COVID-19 pandemic and of the Russia/Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Global Indicators market, in a PDF format.

Over the past few decades, South Korea, officially known as the Republic of Korea, has transformed from one of the poorest aid-recipient countries to one of the largest economies in the world. The country has established itself as a leading exporter of semiconductors, consumer electronics, and automobiles. Additionally, its strong IT infrastructure, skilled workforce, and a consumer base known for its discerning tastes have made South Korea an attractive business destination for companies seeking international expansion. With the phenomenal success of K-pop and K-drama exports, the country has also emerged as a global cultural powerhouse. However, alongside these achievements, South Korea, much like other advanced economies, is grappling with the fundamental challenges of slowing growth and an aging population.