Grocery Delivery - South Korea | Statista Market Forecast

In 2024, the projected revenue in the Grocery Delivery market in South Korea is estimated to be US$14.60bn.
It is expected that the revenue will experience an annual growth rate of 9.84% from 2024 to 2029, resulting in a projected market volume of US$23.34bn by 2029.
Additionally, the Retail Delivery market in South Korea is projected to have a market volume of US$11.36bn in 2024.
In comparison to other countries, China is expected to generate the most revenue in the Grocery Delivery market, with US$266.00bn in 2024.
The average revenue per user (ARPU) in the South Korean Grocery Delivery market is projected to be US$727.80 in 2024.
By 2029, the number of users in the Grocery Delivery market is expected to reach 26.0m users.
The user penetration in the Grocery Delivery market is estimated to be 38.8% in 2024.
South Korea's grocery delivery market is booming, with a wide range of options and fast delivery times.

Definition:

The Grocery Delivery market consists of food and non-food products that people regularly buy from a grocery store, including food and beverages, pet food, household cleaning products, personal care products, and other household consumables. Grocery delivery can be purchased through several different sales channels such as Omnichannel, Quick Commerce, or directly from the store.

Structure:

Grocery Delivery contains three markets: Retail Delivery, Quick Commerce, and Meal Kit Delivery. Retail Delivery includes delivery of these products directly by supermarkets, brick-and-mortar shops, or grocery stores. The order is placed through an online shop run by the retailer (e.g. Walmart+, Amazon Fresh). Quick Commerce focuses on online delivery services that provide customers with last-mile delivery (Instacart), or operate ghost stores where product selection is limited but delivery time is faster (e.g. Gorillas, Getir, and Glovo). In this case, the platform (e.g. Gorillas) handles the delivery process. This also includes grocery delivery platforms where delivery is advertised under 3 hours, although, most players aim to deliver in minutes. Finally, Meal Kit Delivery encompasses the delivery of a recipe box where fresh ingredients are delivered to be prepared. This service is usually offered as a subscription plan (e.g. HelloFresh).

Additional Information:

Revenue figures refer to Gross Merchandise Value (GMV). User and revenue figures represent B2C services.

Fresh food & Beverages, personal care, or household items ordered online are directly delivered to the consumer, no matter if ordered via a platform (e.g., Instacart) or a retailer website (e.g., Walmart)
Online Grocery orders and delivery are both carried out by a retailer (e.g., Walmart)
Online orders that are picked up in the supermarket (e.g., Instacart) or operating ghost warehouses and delivery logistics (e.g., Flink)
Online orders of recipe boxes where the ingredients are already preportioned (e.g., HelloFresh)

Phone orders
Deliveries of prepared meals for direct consumption (e.g. Meal Delivery)

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.

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