Nina Jobst
Research expert covering South Korea
Food retail in South Korea - statistics & facts
The food industry in South Korea takes up more than one-third of the country’s retail market, totaling more than 180 trillion South Korean won. Despite the ongoing economic downturn, food retailing has shown steady growth rates together with luxury goods and electronic equipment markets. Online food retail, which was already gaining a large consumer case, experienced a further push since 2020.
The South Korean online food market grew notably in 2020 and 2021, as more and more people switched to online shopping amid the COVID-19 pandemic. Over the past years, consumer confidence in online services has increased as large retail brands and food specialists entered the online grocery market. Food companies have developed logistics and delivery systems as competition in the online market has intensified. For example, the heightened usage of open market service Coupang and its Rocket delivery which enables consumers to receive their products within 24 hours, illustrates this increase in the number of consumers who want to buy fresh food online.
Food retail and different channels
Grocery supermarkets led the food retail industry in South Korea, with food sales amounting to almost 55 trillion South Korean won. Grocery supermarkets have gained popularity by selling locally grown agricultural and livestock products at discounted prices while maintaining quality. Based on the number of units nationally, Hanaro Mart by Nonghyup (National Agricultural Cooperative Federation), was the leading grocery supermarket chain in 2023 with over 2,100 stores. While other offline retailers such as hypermarkets or super supermarkets (SSMs) experienced a slump in food retail or only recovered slightly, convenience stores and department stores saw a sales growth of food retail.The South Korean online food market grew notably in 2020 and 2021, as more and more people switched to online shopping amid the COVID-19 pandemic. Over the past years, consumer confidence in online services has increased as large retail brands and food specialists entered the online grocery market. Food companies have developed logistics and delivery systems as competition in the online market has intensified. For example, the heightened usage of open market service Coupang and its Rocket delivery which enables consumers to receive their products within 24 hours, illustrates this increase in the number of consumers who want to buy fresh food online.
Shopping behavior and preferences
Korean consumers are spending more on food and beverages each year, with almost no difference in spending on groceries in households over three people. The favorite grocery shopping channels were still offline channels, such as discounters and neighborhood supermarkets where they could easily visit at any time. Most respondents in a survey on grocery shopping did so once a week. Despite the preference for brick-and-mortar stores for their shopping, the frequency for those who shopped for food online stayed the same. Given the high usage of general online shopping and the country’s well-established delivery system, the South Korean online grocery market is likely to grow further.
