South Korea Online grocery Market Overview, 2028

South Korea Online grocery Market Overview, 2028

South Koreans are the most enthusiastic buyers of online groceries in the world. Disruptive factors have altered South Korean online grocery shopping throughout the years. Demographic trends, such as the rise of single-person homes and the embrace of mobile media by older buyers, have ramifications for both physical establishments and digital commerce. Rising competition from e-commerce businesses has prompted traditional grocery merchants to improve their online offerings, and the epidemic has changed consumer preferences, not only promoting e-commerce on online channels but also increasing the attractiveness of convenience stores. Furthermore, many shops have expanded their online shopping platforms to cover a wide range of products, such as fresh fruit, packaged groceries, household goods, and personal care items. As a result, online grocery shopping has become a one-stop shop for consumers, allowing them to get everything they need in one location. Furthermore, due to the increased availability of payment options that appeal to the local market, online grocery shopping has become more accessible to a broader spectrum of consumers. In addition to credit and debit cards, many stores also accept mobile money payments, which are commonly used in South Korea.

According to the research report ""South Korea Online Grocery Market Overview, 2028,"" published by Bonafide Research, the South Korea online grocery market is expected to add more than USD 34.80 from 2023 to 2028. The advent of e-commerce and the increasing penetration of smartphones and other mobile devices in South Korea are driving the online grocery business. However, the food and beverage business, which includes grocery stores, supermarkets, and convenience stores, is driving the expansion of online grocery shopping in South Korea. Furthermore, South Korea is known for its high-tech infrastructure, which has facilitated the development and deployment of e-commerce platforms. Furthermore, the country has a sizable and growing middle class, which is increasingly turning to online shopping for the convenience and time savings it offers. Furthermore, the food and beverage industry has jumped on this trend by developing online grocery platforms that offer a diverse choice of products and delivery alternatives. Coupang, Gmarket, and Homeplus have emerged as important participants in the online grocery market, offering everything from fresh vegetables to packaged groceries and household essentials.

The South Korean government has made significant investments in the development of the country's e-commerce infrastructure, which includes high-speed internet connectivity, logistical networks, and payment systems. This has contributed to the creation of a favourable climate for online grocery enterprises. In addition, the South Korean government has provided financial incentives to online grocery businesses in order to encourage them to engage in the field. It has, for example, provided tax benefits and subsidies to companies that establish logistics centres and warehouses to assist their online grocery operations. Furthermore, the South Korean government has developed alliances with private sector firms to encourage the expansion of the online grocery business. It has collaborated with large merchants like Lotte Mart and Homeplus, for example, to enhance their online grocery offers.

Based on Product type the market is segmented into staples and cooking, snacks and beverages, breakfast and dairy, fresh produce, meat and seafood, and others. Among them staples and cooking holds the maximum market share of the market. These commodities are non-perishable and have a longer shelf life, making them easier to store and transport. This is especially important for online grocery shopping since buyers cannot visually inspect the products before purchasing. Staples and cooking basics are commodities that are routinely acquired by households and used in a variety of meals, resulting in high demand. Customers frequently buy these things in bulk to save money and cut down on the number of trips to the store, which is an advantage of online grocery shopping. Furthermore, in order to attract and retain clients, online grocery shops frequently provide specials and discounts on fundamental food goods. This includes providing free delivery, discounts for first-time customers, and loyalty benefits. These campaigns can boost sales and build consumer loyalty. However, meat and seafood segment is expected to grow with maximum CAGR during the forecast period. Meat and seafood are important food items for South Koreans and are a significant part of the South Korean diet. As a result, there is a high demand for high-quality, fresh meat, especially during holidays and weekends. In addition, South Korea is a popular tourist destination, and visitors often seek out local cuisine, including meat and seafood dishes. This has led to growth in the hospitality industry, with many hotels, restaurants, and food markets offering a wide range of meat and seafood products.

The market is divided into staples and cooking, snacks and beverages, breakfast and dairy, fresh produce meat and seafood. Among these, staples and cooking have the largest market share. Because these goods are non-perishable and have a longer shelf life, they are easier to store and transport. This is especially critical when shopping for groceries online because shoppers cannot physically inspect the products before purchase. Staples and cooking fundamentals are commodities that are purchased on a regular basis by households and used in a range of meals, resulting in strong demand. Customers usually buy these items in bulk in order to save money and reduce the number of trips to the store, which is a benefit of online grocery shopping. Furthermore in order to attract and retain customers, online grocery stores usually provide discounts on basic food items. This includes offering free delivery, first-time customer discounts, and loyalty perks. These programmes have the potential to increase sales and generate consumer loyalty. The meat and seafood segment, on the other hand, is predicted to increase at the fastest CAGR during the forecast period. Meat and sea food are key dietary items for South Koreans and form an important part of their diet. As a result, high-quality, fresh meat is in high demand, particularly during holidays and weekends.

The grocery delivery market in South Korea is separated into two major categories: home delivery and click and collect. Home delivery refers to groceries delivered straight to the customer's door, whereas click and collect allows customers to place an order online and then pick up their groceries at a predetermined location. In the South Korean grocery delivery market, home delivery has the largest market share. This is also attributable to the ease, time savings, and expansion of internet shopping. Customers may buy groceries from the convenience of their own homes and have them delivered right to their door, saving them time and effort. Customers who want to save money on delivery fees or who like to inspect their items before taking them home prefer to use click and collect.

Recent Developments:
• Online supermarket and technology group Ocado has announced a partnership with South Korean retailer Lotte Shopping, which will see the Ocado Smart Platform, rolled out in the country. “This partnership brings the Ocado Smart Platform, the most advanced technology for serving online grocery, to one of the most mature e-commerce markets in the world,"" commented Ocado chief executive Tim Steiner.
• Coupang: Coupang is one of the largest online retailers in South Korea, and it has been expanding its online grocery offerings in recent years. In 2021, the company opened its first automated fulfilment center for groceries in Seoul, which uses robots to process orders and pack groceries for delivery.
• Lotte Mart: Lotte Mart is a major supermarket chain in South Korea, and it has been ramping up its online grocery offerings to compete with companies like Coupang and Homeplus. In 2021, Lotte Mart launched a new mobile app that allows customers to order groceries online and pick them up in-store.
• Homeplus: Homeplus is another major supermarket chain in South Korea, and it has been investing heavily in its online grocery operations. In 2020, the company launched a new platform called ""Hansalim,"" which offers organic and locally sourced groceries for delivery.
• Market Kurly: Market Kurly is a popular online grocery platform in South Korea that specializes in delivering fresh, high-quality groceries to customers. In 2021, the company raised $200 million in funding to expand its operations and improve its logistics capabilities.
• WeMakePrice: WeMakePrice is an e-commerce platform in South Korea that offers a range of products, including groceries. In 2021, the company launched a new ""Farmers' Market"" feature that allows customers to order fresh produce directly from local farmers.

Considered in this report
• Geography: South Korea
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• South Korea Online Grocery market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• Staples & Cooking Essentials
• Snacks & Beverages
• Breakfast & Dairy
• Fresh Produce
• Meat & Seafood
• Others

By Delivery Type
• Home Delivery
• Click and Collect

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Online Grocery industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.