Gmarket 5-Year Sales Data Analysis
Gap Widens Since 2021 Reversal
Due to low birth rates and an increase in the pet population, sales of dog food have surpassed those of baby formula and baby food. Alongside this, the trend toward premiumization of children's food has also become more pronounced.
According to Gmarket, an e-commerce platform affiliated with Shinsegae Group, as of January to May this year, the sales proportion of dog food was 69%, more than double the 31% sales proportion of baby formula and baby food.
Until 2020, the first year of the COVID-19 pandemic, the sales proportion of formula and baby food was higher, but the figures reversed starting in 2021.
Looking at the sales proportion of dog food compared to formula and baby food by year, it was 41% in 2019 and 48% in 2020, both below 50%, but it rose sharply to 61% in 2021, then remained above 50% with 54% in 2022 and 55% last year, consistently showing a gap of more than 10 percentage points.
In the snack category as well, dog snack sales have maintained a leading share over the past five years. The sales proportion of dog snacks compared to baby snacks was 53% in 2019, 54% in 2020, 53% in 2021, 57% in 2022, and 61% last year, steadily increasing.
Among these, the sales proportion of dog snacks from January to May this year reached 63%, the highest figure recorded.
Pet strollers are now commonly seen on the streets. Last year, sales of so-called "gae-mocha" (dog strollers) surpassed those of baby strollers for the first time.
The industry interprets this as a consumer trend change reflecting the rapidly declining birth rate. According to Statistics Korea, the total fertility rate, which is the expected number of children a woman will have in her lifetime, has been steadily decreasing from 0.92 in 2019 to 0.72 (provisional) last year.
The first quarter of this year recorded a historic low of 0.76. Statistics Korea’s future population projections estimate this year’s total fertility rate at 0.68 (based on the medium scenario), marking the first time it is expected to fall into the 0.6 range.
On the other hand, the population raising dogs continues to increase steadily. The number of registered dogs nationwide, as compiled by the Ministry of Agriculture, Food and Rural Affairs, surged 44.6% from 2.092 million in 2019 to 3.026 million in 2022.
As of March, the number of dogs living in Seoul was counted at 612,000. According to Seoul city statistics, more than one in ten households owns a dog.
As low birth rates continue, the premiumization of formula and baby food has also become more noticeable. This appears to reflect a trend of spending generously on fewer children.
From January to May this year, the average purchase price per person for formula and baby food increased by 54% compared to 2019, surpassing the 42% increase in dog food unit prices.
Gmarket stated that the amount spent per customer purchasing formula and baby food is about three times higher than that for dog food, and the amount is increasing every year.
Gmarket added, "In the case of baby products including formula and baby food, the 'Gold Kids' trend (preciously raised only children) is driving stronger premium demand over time."
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