Fear of infection keeps people from going out... Delivery food orders increase by 10%
Convenience foods and meal kits sales surge on online malls
Immune-boosting health supplements also gain popularity ↑
[Asia Economy Reporter Choi Saeng-hye] Since the first confirmed case of the novel coronavirus infection (COVID-19) in South Korea on the 20th of last month, the consumption paradigm in the food and dining industry has undergone significant changes within a month. Instead of visiting crowded places like supermarkets and restaurants, more consumers have started purchasing food through delivery and online malls. In particular, it appears that some people are enjoying beverages and desserts at home instead of frequenting coffee shops, which are often venues for social gatherings.
According to the industry on the 20th, the fear of virus infection has led to avoidance of going out, changing the dining landscape. The Korea Foodservice Industry Research Institute under the Korea Foodservice Industry Association compared the average daily number of customers for two weeks before and after the first confirmed case on the 20th of last month. Among 600 dining establishments, 85.7% saw a decrease in customers, and among them, 87.3% experienced a decline in dine-in customers.
Instead, orders through delivery apps increased. From the 31st of last month to the 17th of this month, Baedal Minjok recorded a total of 26.41 million orders, a 9% growth compared to the same period in the previous month (January 3rd to 20th). Notably, orders for cafes and desserts increased by 19%, ranking first, confirming the rise of the home cafe trend. Chicken (13%), fast food (12%), jokbal and bossam (12%), and bunsik (10%) followed. On Yogiyo, excluding the surge during the Lunar New Year holidays, orders increased by 11% over the three weeks from the 28th of last month to the 18th of this month.
Sales of convenient meals and meal kits, which eliminate the need for offline grocery shopping, also surged. At the fresh food delivery company Market Kurly, sales from the 20th of last month to the 17th of this month doubled compared to the same period last year. In particular, sales of side dishes and convenient meals increased by 125%. From the 20th of last month to the 19th of this month, total sales in the food category on SSG.com rose by 96% compared to last year (January 31st to March 2nd, one month before the Lunar New Year holiday starting on the 5th), with meal kit sales soaring by 692%.
Consumers also seem to be strengthening their immunity with health functional foods to prevent COVID-19 infection. At Market Kurly, sales of supplements and health foods increased by 91% compared to the same period last year from the 20th of last month to the 17th of this month. A Market Kurly representative explained, "Red ginseng pills, krill oil, immune management juices, lutein, and probiotics were sold in that order."
On Gmarket, sales of omega-3 and propolis increased by 162% and 94%, respectively, compared to last year from the 20th of last month to the 18th of this month. Consumers seeking health foods such as cinnamon and garlic juice also increased by 74% and 22%, respectively. From the 20th of last month to the 19th of this month, sales of health foods such as red ginseng and vitamins on SSG.com rose by 70% compared to last year (January 31st to March 2nd, one month before the Lunar New Year holiday starting on the 5th).
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