Over the next year, five trends will have a significant influence on the South Korean grocery industry.
1) Because it is more convenient, South Korean customers are increasingly eating out. The home meal replacement (HMR) industry is predicted to reach 5 trillion won ($4.3 billion) in 2022, more than doubling from the previous five years. Meal kits have become a premium option among higher-income groups. The meal delivery sector has also grown significantly, with mobile food-delivery platforms offering a wide range of culinary selections, a simple ordering experience, and the ability to filter high-quality eateries.
2) Traditional South Korean leaders are losing market share to upstarts responding to shifting customer tastes. Convenience shops, warehouse clubs, and discounters are witnessing persistent expansion, reflecting customers’ growing desire to buy at a conveniently situated store that offers everything they need under one roof.
3) Because of the older population and the availability of fresh items, online shopping in South Korea has the potential to develop dramatically. According to a Korea Consumer Agency poll, older persons (aged 60 and more) increased their internet consumption tenfold in the preceding two years, considerably exceeding the overall twofold increase. Because of convenience shops and well-developed next-day “dawn delivery” offers, South Korean consumers favour next-day delivery over quick delivery.
4) South Korean customers are more prepared to spend extra for ecologically friendly supermarket items with less packaging, and manufacturers have responded by developing new products with less sugar, fewer artificial additives, and more nutrients. Packaged-food companies have also attempted to improve sustainability, and e-commerce retailers have implemented reusable packaging initiatives.
5) Premium grocery is gaining popularity, with Lotte Department Store’s premium grocery segment expanding by 35% each year over the last two years. With a value offer that emphasises value for money and fewer units, penny retailers such as Daiso and No Brand have gained market share in groceries. Affluent customers attend penny stores as well, drawn by “category killer” grocery goods like snacks and HMRs.
