South Korea, a country known for its technological advancements, has seen a significant shift in consumer behavior towards online grocery shopping.
Customer preferences: South Korean consumers are increasingly opting for online grocery shopping due to the convenience it offers. With busy lifestyles and long working hours, consumers prefer to have their groceries delivered to their doorstep rather than visiting physical stores. Additionally, the COVID-19 pandemic has accelerated this trend as consumers are avoiding crowded places and opting for contactless delivery.
Trends in the market: The online grocery market in South Korea is expected to continue its growth trajectory in the coming years. The market is becoming increasingly competitive with major players such as Coupang, Market Kurly, and Emart24 expanding their services to cater to the growing demand. These companies are offering a wide range of products, same-day delivery, and subscription-based services to attract and retain customers. Additionally, the market is witnessing the emergence of niche players who are catering to specific customer needs such as organic produce or halal-certified products.
Local special circumstances: One of the unique aspects of the South Korean online grocery market is the dominance of mobile commerce. South Korea has one of the highest smartphone penetration rates in the world, and consumers are using mobile apps to order groceries. This has led to the emergence of mobile-first grocery delivery companies such as Coupang and Market Kurly, who have optimized their platforms for mobile users. Additionally, South Korean consumers have a strong preference for fresh produce, and online grocery companies are investing in cold chain logistics to ensure the quality of their products.
Underlying macroeconomic factors: South Korea has a well-developed logistics infrastructure, which has enabled online grocery companies to offer fast and reliable delivery services. Additionally, the government has been supportive of the online grocery market, providing incentives to companies that invest in cold chain logistics and offering tax benefits to consumers who use online grocery services. Furthermore, the COVID-19 pandemic has accelerated the shift towards online grocery shopping, and this trend is expected to continue in the post-pandemic era. In conclusion, the online grocery market in South Korea is expected to continue its growth trajectory in the coming years, driven by the convenience it offers, the dominance of mobile commerce, and the government's supportive policies. Companies that invest in cold chain logistics, offer a wide range of products, and optimize their platforms for mobile users are likely to succeed in this competitive market.
Data coverage:
The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.Modeling approach / Market size:
Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.Additional notes:
The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.
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