South Korea Online Grocery Market

South Korea Online Grocery Market:

South Korea online grocery market size is projected to exhibit a growth rate (CAGR) of 26.60% during ​2024-2032​​. The changing consumer preferences, the inflating disposable incomes of the consumers, considerable growth in smartphone production, the advent of various user-friendly mobile apps with same-day delivery and subscription models, and the changing consumer attitude towards e-commerce are some of the factors propelling the market.

South Korea Online Grocery Market Analysis:

• Major Market Drivers: The increasing demand for convenience in shopping experiences is one of the key factors driving the market's growth. Moreover, the widespread adoption of smartphones and user-friendly mobile applications plays a pivotal role, providing an accessible and intuitive interface that enhances the overall shopping experience, thereby propelling the market's demand.
• Key Market Trends: Rapid technological advancements, including personalized recommendations and seamless payment options, contribute to the demand for these platforms. With the rising consumer confidence in e-commerce, more individuals are choosing the convenience and flexibility offered by virtual grocery shopping, thereby fueling the South Korea online grocery market growth.
• Competitive Landscape: The South Korea online grocery market analysis report has also provided a comprehensive analysis of the competitive landscape in the market. Also, detailed profiles of all major companies have been provided.
• Geographical Trends: The Seoul Capital Area has high rates of internet connectivity and smartphone use, facilitating easy access to online grocery platforms. Moreover, major cities in the Yeongnam region are seeing increasing urbanization and economic development, which is driving growth in online grocery shopping. 
• Challenges and Opportunities: High competition among key players and the rising demand for efficient logistics due to increasing expectations for fast delivery are hampering the market's growth. However, there’s a growing demand for fresh, organic, and healthy food products. Online platforms can cater to these preferences by offering curated selections and detailed product information.

South Korea Online Grocery Market Trends:

Growing Health Consciousness

The growing focus on health is significantly influencing the online grocery market in South Korea. As more consumers become aware of the impact of diet on health, they are increasingly seeking out healthier food options including fresh fruits and vegetables. For instance, according to Statista, in 2022, an average person in South Korea consumed approximately 254 grams of veggies per day. These factors are further positively influencing the South Korea online grocery market forecast.

Adoption of Smartphones

The rising adoption of smartphones in South Korea is one of the significant drivers of the online grocery market. According to a survey performed in South Korea in 2023, around 94% of respondents claimed to own a smartphone, up from around 22% in 2011. Also, according to Statista, smartphone penetration in South Korea is expected to increase by 8.8 percentage points between 2024 and 2029. The penetration is expected to reach nearly 95%, marking a new peak in 2029. Smartphones provide easy access to online grocery platforms. With a smartphone, consumers can browse, order, and manage their grocery shopping from anywhere, whether they’re at home, at work, or on the go. These factors are further contributing to the South Korea online grocery market share.

Expansion of E-Commerce Sector

The growing e-commerce sector in South Korea is a major driver of the online grocery market. For instance, according to IMARC, the South Korea e-commerce market size is projected to exhibit a growth rate (CAGR) of 19.40% during 2024-2032. E-commerce platforms offer convenience and efficiency, which extend to grocery shopping. Consumers appreciate the ability to shop for groceries online, avoiding the need to visit physical stores and dealing with factors like store hours or crowded aisles. These factors are augmenting the South Korea online grocery market demand.

South Korea Online Grocery Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for ​2024-2032​​. Our report has categorized the market based on product type, business model, platform, and purchase type.

Breakup by Product Type:

• Vegetables and Fruits
• Dairy Products
• Staples and Cooking Essentials
• Snacks
• Meat and Seafood
• Others
   

The report has provided a detailed breakup and analysis of the market based on the product type. This includes vegetables and fruits, dairy products, staples and cooking essentials, snacks, meat and seafood, and others.

According to the South Korea online grocery market outlook report, the increasing awareness of healthy eating and the benefits of a diet rich in fruits and vegetables drives demand. Online grocery stores often emphasize on the quality and freshness of produce, which attracts health-conscious consumers. Moreover, the growing interest in dairy alternatives (e.g., almond milk, oat milk) alongside traditional dairy products is driving the market's growth. Apart from this, staples like rice, pasta, and flour are essential for cooking and are frequently purchased in bulk, making online shopping a convenient option.

Breakup by Business Model:

• Pure Marketplace
• Hybrid Marketplace
• Others
   

A detailed breakup and analysis of the market based on the business model have also been provided in the report. This includes pure marketplace, hybrid marketplace, and others.

According to the South Korea online grocery market overview, a pure marketplace is an online platform that acts solely as an intermediary between buyers and sellers. It does not own or manage inventory but facilitates transactions between third-party sellers and consumers. While a hybrid marketplace combines elements of both a traditional marketplace and a direct retail model. In this setup, the platform manages its own inventory while also allowing third-party sellers to list and sell their products.

Breakup by Platform:

• Web-Based
• App-Based
   

The report has provided a detailed breakup and analysis of the market based on the platform. This includes web-based and app-based.

According to the South Korea online grocery market outlook, web-based platforms are accessed through a web browser on any device with internet access. Users navigate the platform through a website. These platforms can be accessed from any device with a web browser, making them convenient for users who switch between devices. While app-based platforms are accessed through a dedicated application installed on a mobile device (smartphone or tablet). Apps are typically downloaded from app stores like Google Play or the Apple App Store. They are generally faster and more responsive because they are optimized for the specific hardware and software of the device.

Breakup by Purchase Type:

• One-Time
• Subscription
   

A detailed breakup and analysis of the market based on the purchase type have also been provided in the report. This includes one-time and subscription.

In a one-time purchase model, customers pay for goods or services on a per-transaction basis. Each transaction is separate, and there are no ongoing commitments or recurring payments. Consumers who prefer not to be tied to ongoing payments find one-time purchases appealing. They have control over their spending and can choose to buy only when needed. While in a subscription model, customers pay a recurring fee at regular intervals (e.g., weekly, monthly, or annually) for continued access to goods or services. Subscriptions can be auto-renewed until canceled. Subscriptions offer the convenience of automatic, regular deliveries of products or services, reducing the need for customers to remember to reorder.

Breakup by Region:

• Seoul Capital Area
• Yeongnam (Southeastern Region)
• Honam (Southwestern Region)
• Hoseo (Central Region)
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Seoul Capital Area, Yeongnam (Southeastern Region), Honam (Southwestern Region), Hoseo (Central Region), and others.

According to the South Korea online grocery market statistics, with a large population concentrated in Seoul and its surrounding areas, there's a higher demand for convenient shopping options, including online groceries. Honam region is known for its agricultural produce, which might increase the demand for online grocery services that offer fresh, local products. The rising rural-urban migration can drive online grocery demand as people moving to cities seek convenience. Besides this, cities like Busan and Daegu in Yeongnam region are growing, leading to increased online grocery demand as more urbanites seek convenience.

Competitive Landscape:

The South Korea online grocery market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis, such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant, has been covered in the report. Also, detailed profiles of all major companies have been provided.

South Korea Online Grocery Market News:

• June 2024: Kurly, the operator of Market Kurly, one of South Korea's online grocery platforms, introduced a rapid commerce service in Western Seoul that offers delivery within one hour.
• April 2024: Emart, a hypermarket chain in South Korea, merged with its subsidiary Emart Everyday, to streamline the purchase of commodities, logistics, and operations.
• March 2024: Online Shopping Group Coupang announced to invest 3 trillion won ($2.22 billion) through 2027 to expand its speedy Rocket Delivery service to more parts of the country. The service includes Rocket Fresh, which delivers groceries the following morning.

South Korea Online Grocery Market Report Scope:

Key Questions Answered in This Report:

• How has the South Korea online grocery market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the South Korea online grocery market?
• What is the breakup of the South Korea online grocery market on the basis of product type?
• What is the breakup of the South Korea online grocery market on the basis of business model?
• What is the breakup of the South Korea online grocery market on the basis of platform?
• What is the breakup of the South Korea online grocery market on the basis of purchase type?
• What are the various stages in the value chain of the South Korea online grocery market? 
• What are the key driving factors and challenges in the South Korea online grocery?
• What is the structure of the South Korea online grocery market and who are the key players?
• What is the degree of competition in the South Korea online grocery market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the South Korea online grocery market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the South Korea online grocery market.
• The study maps the leading, as well as the fastest-growing, markets. It further enables stakeholders to identify the key country-level markets within the region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the South Korea online grocery industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.