SOUTH KOREA – Local data analytics firm Finda has released a market analysis report revealing South Korea’s fast food deliveries increased by 23% in the first half of 2024.
The value of fast food deliveries in the country increased to KRW 1.72 trillion (US$1.3 billion) from KRW 1.4 trillion (US$1.05 billion), which was recorded in the same period last year.
The Finda report also revealed fast food deliveries accounted for 36% of all food deliveries in the country in terms of sales.
Fast food deliveries were only second to 45.32% of chicken dish deliveries (mostly dakgangjeong, a deep-fried, braised chicken dish).
The sales value of baked goods increased by 15.51%, while the value of hansik (a local Korean dish) dropped by 2.17%.
According to the report, there is a growing interest among South Koreans for American fast food, enhanced by the convenience offered by online delivery platforms.
This growing market interest is also fueled by the significant increase in the prices of popular Korean dishes.
The report cites an August report by the Korean Consumer Agency that revealed the average price of local Korean dishes increased by 12.7% in the first half of 2024.
The increase in local dishes reflects the increasing cost of eating out as more consumers, which has made more price-sensitive customers prefer cheaper food items on food delivery platforms which offer in-app discounts.
However, the overall food delivery market grew significantly in the reported period. The report revealed the sales value of food delivery services was KRW 7.87 trillion (US$5.9 billion) in H1 2024, a 6.55% increase compared to the same period in 2023.
The analytics firm reiterated the data shows the potential of the food delivery market in South Korea, which has remained resilient despite inflation-caused challenges.
High inflation has increased the cost of ingredients and other raw materials, causing a corresponding increase in prices.
Finda said in an official statement, “Even as the food service industry staggered due to inflation, food delivery stayed strong. Those about to start a business in food service may want to consider the data related to the proportion of delivery service for each sector.”
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE
