[Changing Food Scenes Amid High Inflation] 'The World of Jjantech'... Solving Two Meals with Just Takeout and One Meal Kit

Packing Instead of Delivery 'Jjantech'
Affordable Meal Kits Also Popular
Market Size Reached 250 Billion Won Last Year
Competition Intensifies as More Companies Enter

[Asia Economy Reporter Jang Sehee] Chae Suhan (34), a single-person household, recently stopped ordering delivery food. With food prices and delivery fees rising by about 2,000 won, she found it better to go and pick up her orders herself. Chae said, "Even if it's a 20-minute distance, I reduce expenses by picking up the food myself," adding, "I was able to save about 36,000 won per month."

The food delivery culture established during COVID-19 is changing due to high inflation. It has shifted to so-called "Jjantech" (frugal + financial technology), such as purchasing takeout or home meal kits (meal kits) without service fees.

Household Food Expenses Soar... Chicken, Sashimi, and Jajangmyeon All Increased

According to an analysis of microdata from Statistics Korea, the average monthly food expenses (groceries + dining out) for a four-person household in the first quarter of this year reached 1,066,902 won. This is a 9.7% increase from 972,286 won a year earlier. By item, chicken (10.9%), sashimi (10.7%), and jajangmyeon (10.4%) saw significant price increases.

Shim Yeonhee (43) is an example of someone who switched from ordering delivery to picking up food herself. Shim said, "Local shabu-shabu restaurants sometimes offer a 10% discount for takeout," adding, "I usually choose takeout to save on delivery fees and eat more cheaply." Jung Naera (35) said, "Eating a bowl of jajangmyeon or jjamppong at a restaurant costs about 10,000 won, but hotel meal kits can be enjoyed for 9,800 won for two servings," adding, "Recently, when hosting a housewarming party, we ordered only meal kit food and cooked it, which saved about half the cost compared to shopping for groceries."

Intensifying Meal Kit Competition... Experts Advise "Survival Strategies Based on Individual Household Situations"

The domestic meal kit market size reached 258.7 billion won last year, a 37.5% increase from 188.2 billion won in 2020. Convenience store chains are also launching "meal kit series." As competition intensifies, side effects are emerging. A meal kit company in Seongbuk-gu, ‘○○○ Gireum Branch,’ recently gave a 5,000 won Starbucks gift card to customers who purchased over 15,000 won. A company representative said, "Many meal kit companies have appeared nearby, making competition fierce," adding, "We also provide the same gift card for leaving reviews with Naver receipt verification." Meal kit user Lee Bora (28) said, "Most meal kit stores require ordering through kiosks," adding, "Since there are no staff in the stores, it is difficult to check whether certain menu items are sold out."

Professor Lee Eunhee of Inha University’s Department of Consumer Studies said, "Not only lettuce and pork belly but also dining-out prices have generally increased, so individuals are devising survival strategies based on their household situations," adding, "Due to the rainy season and heat waves, further price increases are expected, and this trend will likely continue through July and August. Dining-out prices will rise even more due to increases in electricity and gas prices."