[Asia Economy Reporter Ji-hwan Park] The dawn delivery market, which was valued at 2.5 trillion KRW last year, is projected to grow to 11.9 trillion KRW by 2023.
On the 19th, Soyeon Jeong, a researcher at Kyobo Securities, stated, "We foresee sustainable growth in dawn delivery," adding, "The dawn delivery market is estimated to be 2.5 trillion KRW in 2020 and is expected to grow to 11.9 trillion KRW by 2023, leading the growth of the online food market." This represents an 8.7% share of the total food market and a 29.3% share of the online food market. It is anticipated that dawn delivery will establish itself as the main last mile method for food delivery.
Researcher Jeong explained, "Dawn delivery is the most suitable alternative to grocery shopping," and added, "For busy modern people, ordering online late at night and receiving delivery the next morning has become a natural grocery shopping activity." She also emphasized, "Accurate and fast delivery enables the delivery of fresh food, and since the entire process from shipment to delivery to the consumer takes place during the early morning hours past midnight, attention should be paid to food and dawn delivery e-commerce companies such as SSG.com, Market Kurly, and Oasis, which are preparing for initial public offerings (IPOs)."
The penetration rate of online grocery shopping is estimated to expand from 21.3% in 2020 to 30% in 2023 and 40% in 2025. In fact, the cumulative online food transaction amount in October this year recorded 27 trillion KRW, a 29.5% increase compared to the previous year. Researcher Jeong stated, "The penetration rate has risen to 25.1%, indicating that the growth of online food is not a temporary benefit due to COVID-19 but a directional trend," and explained, "This is an opportunity for e-commerce companies to expand their market share."
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