Increase in Single-Person Households Buying Only Essential Ingredients Amid High Inflation
Ottogi Mulnaeng Bibim, CU Single-Serving Rice Introduced
As single- and two-person households increase and the burden of food ingredient costs rises amid high inflation, small-quantity and small-package foods are gaining popularity. Although 8-serving cup noodles and 6-times-sized cream bread have briefly gained popularity on SNS, the underlying consumer culture reflects the spread of 'Sosoikseon' (the smaller, the better). The distribution industry is considering launching various products ranging from single-serving rice to two-person cold noodles to attract those who frequently buy small amounts.
Increase in Single- and Two-Person Households Buying Only What They Need Amid High Inflation... Small-Quantity and Small-Packaging Are the Trend
According to the 2023 Basic Analysis Report on Food Consumption Behavior recently released by the Korea Rural Economic Institute, the proportion of vegetable purchases made in 'small-package form' was 57.0%, an increase of 7.2 percentage points from the previous year. This figure surpasses the proportion of bulk purchases (42.7%). Bulk purchasing refers to the method where agricultural products are piled up and consumers select them directly. The preference for small-package purchases is even more evident compared to before COVID-19. Compared to 2019, bulk purchases decreased by 10.6 percentage points, while small-package purchases increased by 10.4 percentage points. The same applies to fruits. Last year, the proportion of fruit purchases in small packages was 53.4%, widening the gap with bulk purchases (44.6%) from 8.8 percentage points the previous year to 17.6 percentage points.
The background for the popularity of small packaging is attributed to demographic and household structure changes with the increase of single- and two-person households, along with the growing food ingredient expenses amid high inflation.
According to the '2023 Korea Social Indicators' released by Statistics Korea, the proportion of single-person households among all households in 2022 was 34.5%, and two-person households accounted for 28.8%, both showing an increasing trend. In contrast, three- and four-person households are decreasing. As the average household size shrinks, the amount of food ingredients needed decreases, leading to a preference for small packaging. Additionally, small-package products are more affordable, which has increased consumer interest in purchasing only essential items amid high inflation.
Single-Serving Rice, Two-Person Half-and-Half Cold Noodles... Distribution Industry Ponders Unique Products
The distribution industry has launched products catering to consumers who pursue Sosoikseon. Ottogi recently released a new product called 'Mulnaengbinnaeng,' a two-serving set that allows consumers to enjoy the summer representative dishes 'mul naengmyeon' (cold broth noodles) and 'bibim naengmyeon' (spicy mixed cold noodles) at once. Previously, the market only offered four-serving sets containing two servings each of mul naengmyeon and bibim naengmyeon, which could be overwhelming in quantity or difficult for single-person households to enjoy. Ottogi’s new product reflects market trends by offering a two-serving set with one serving of each type.
An Ottogi representative explained, "With the recent increase in single-person households and high inflation, the consumer trend of buying only what is needed continues, leading to higher demand for small-quantity products. The same trend is seen in the cold noodle market, which is why we launched a new product in a two-serving configuration."
CU also sold 150g small-package rice for single- and two-person households in collaboration with the Nonghyup Cooperative in Yeoju, Gyeonggi Province. The price was in the 1,000 won range. Compared to large-volume rice sold from 500g to 4kg, 10kg, and 20kg, 150g is a very small amount. Cooking 150g of rice yields 300g of cooked rice, which is slightly more than the 210g serving size of instant rice for one person.
A CU representative said, "Recently, demand for small-package products such as meat, fruit, and vegetables has surged among single- and two-person local shoppers, so we planned a product that allows rice to be purchased individually."
Additionally, CJ CheilJedang launched ‘Donggeuran Spam.’ It features the taste of canned Spam ham but is made in a round and elongated shape. It can be easily sliced and used without the hassle of removing it from the can, targeting consumers who want to easily prepare home-cooked meals. Compared to typical round hams on the market, it weighs about 40% less at 160g, so leftover ham after opening does not need to be separately stored or discarded.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
