South Korea Retail Sector Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 553.92 Billion |
| Market Size (2029) | USD 730.49 Billion |
| CAGR (2024 - 2029) | 5.68 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Korea Retail Sector Market Analysis
The South Korea Retail Market size is estimated at USD 553.92 billion in 2024, and is expected to reach USD 730.49 billion by 2029, growing at a CAGR of 5.68% during the forecast period (2024-2029).
The retail sector in South Korea is growing significantly due to its consistent economic growth and growing middle-class population, which has been essential in driving consumer expenditure. The growth in the middle-income population improves the spending power of consumers for a wide range of products and services. Healthy eating habits have gained popularity among educated consumers and are regularly featured in print and broadcast media. Fresh foods, fruit juices, fruit concentrated-based beverages, organic foods, sugar-free confectionery, packaged food with higher fiber content, dairy products, and vitamin and calcium-fortified packaged food and beverages are also preferred by middle to upper-income consumers.
Further, the increasing urban population has also concentrated potential customers in large cities, resulting in the development and expansion of retail stores. In contrast, the retail landscape has been revolutionized by the rapid adoption of digital advancements and the cumulative popularity of e-commerce platforms in the country, making it easier for businesses to influence consumers to gain access to a wide range of products and services. Revenue for offline and online retailers has increased. The popularity of online shopping has increased across the globe. Food and groceries were the most frequently purchased online. The aging population and rising number of single-person households in South Korea drive convenience and small-portion F&B product innovation.
South Korea Retail Sector Market Trends
Growing E-Commerce is Driving the Retail Market in South Korea
South Korea is a big e-commerce market worldwide. South Korea has an internet usage rate of 93% among the population, and e-commerce holds a strong position in the country. Retail e-commerce volume continued to increase, mainly due to the impact of pandemic. Online shopping was especially popular among people under the age of 40 years. In recent years, the leading online shopping categories based on sales were food and beverages and home appliances. Due to more time spent at home and the implementation of travel restrictions, online travel arrangements and reservation services expenses have decreased significantly compared to the previous years. Among the online items, clothing, footwear, sporting goods, and accessories had a significant market share.
Food Industry Dominates the Retail Sector in South Korea
The food and beverage industry in South Korea takes up more than one-third of the country’s retail market. Despite the ongoing economic downturn, food retailing, luxury goods, and electronic equipment markets showed steady growth rates. Grocery retail stores led the food retail industry in South Korea. Grocery stores became more popular by selling locally grown crops and livestock at lower prices while keeping the same quality. Over the past years, consumer confidence also increased as large retail brands and food specialists entered the online grocery market. Food companies developed logistics and delivery systems as competition in the online market intensified.
South Korea Retail Sector Industry Overview
Major international and local players operating in the South Korean retail sector are covered in the report. A few of the major players currently dominate the market in terms of market share. South Korea’s retail industry is saturated with domestic players. These firms are known for their substantial financial capabilities and huge organizational capacities. However, with technological advancements and service innovations, mid-size to smaller companies increase their market presence through new contracts. The major players in the market include Hyundai Home Shopping Network Corp., Shinsegae Department Co. Ltd, Lotte Mart, E-Mart Inc., and Homeplus Co. Ltd.
South Korea Retail Sector Market Leaders
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Hyundai Home Shopping Network Corp.
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Shinsegae Department Co. Ltd
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Lotte Mart
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E-Mart Inc.
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Homeplus Co. Ltd
*Disclaimer: Major Players sorted in no particular order
South Korea Retail Sector Market News
- September 2023: Lotte Mart, a South Korean supermarket retail store chain, announced that it will create a unique shopping zone for non-Korean tourists at its stores that travelers and tourists frequently visit.
- June 2023: US Burger Chain Five Guys opened its first store in Seoul's Seocho District. Located on Gangnam-aero Road between Gangnam and Sinnonhyeon subway stations, the branch includes two floors and an area of 588 sq m. Five Guys will also offer the same food quality in South Korea as in America, with no localized items for the domestic market.
South Korea Retail Sector Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growing Tourism in South Korea
4.2.2 Growing Awareness About Healthy Lifestyle Products
4.3 Market Restraints
4.3.1 Regulatory Compliance Impedes Market Growth
4.3.2 Infrastructure Challenges Acts as Restraint to Market Growth
4.4 Market Opportunities
4.4.1 Online Sales and Introduction of Retail Mobile Applications
4.4.2 Technological Advancments such as Adpotion of AI and Virtual Reality
4.5 Industry Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products and Services
4.6.5 Intensity of Competitive Rivalry
4.7 Insights on Technology Innovation in the Market
4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Food, Beverage, and Tobacco Products
5.1.2 Personal Care and Household
5.1.3 Apparel, Footwear, and Accessories
5.1.4 Furniture, Toys, and Hobby
5.1.5 Industrial and Automotive
5.1.6 Electronic and Household Appliances
5.1.7 Pharmaceuticals and Luxury Goods
5.2 Distribution Channel
5.2.1 Online
5.2.2 Offline
6. COMPETITIVE LANDSCAPE
6.1 Market Concetration Overview
6.2 Company Profiles
6.2.1 Lotte Mart
6.2.2 Everyday Retail Company Limited
6.2.3 Hyundai Home Shopping Network Corp.
6.2.4 Mega Mart Co. Ltd
6.2.5 Shinsegae Department Co. Ltd
6.2.6 7-Eleven
6.2.7 E-Mart Inc.
6.2.8 Costco Wholesale Korea Ltd
6.2.9 Homeplus Co. Ltd
6.2.10 Grand Department Store Co. Ltd*
6.2.11 Five Guys*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
South Korea Retail Sector Industry Segmentation
Retail is offering goods or services through various distribution channels to earn a profit. A complete background analysis of the South Korean retail industry, which includes an assessment of the parental market, emerging trends by segments, significant market dynamic changes, and a market overview, has been covered in the report.
The South Korean Retail Sector Market is segmented by product category and distribution channel. By product, the market is sub-segmented into food, beverage, and tobacco products; personal care and household, apparel, footwear, and accessories, furniture, toys, and hobby, industrial and automotive, electronics and household appliances, and pharmaceuticals and luxury goods. Under distribution channel, the market is sub-segmented into online and offline channels. The report offers market size and forecasts in value (USD) for all the above segments.
| Product Type | |
| Food, Beverage, and Tobacco Products | |
| Personal Care and Household | |
| Apparel, Footwear, and Accessories | |
| Furniture, Toys, and Hobby | |
| Industrial and Automotive | |
| Electronic and Household Appliances | |
| Pharmaceuticals and Luxury Goods |
| Distribution Channel | |
| Online | |
| Offline |
South Korea Retail Sector Market Research FAQs
How big is the South Korea Retail Market?
The South Korea Retail Market size is expected to reach USD 553.92 billion in 2024 and grow at a CAGR of 5.68% to reach USD 730.49 billion by 2029.
What is the current South Korea Retail Market size?
In 2024, the South Korea Retail Market size is expected to reach USD 553.92 billion.
Who are the key players in South Korea Retail Market?
Hyundai Home Shopping Network Corp., Shinsegae Department Co. Ltd, Lotte Mart, E-Mart Inc. and Homeplus Co. Ltd are the major companies operating in the South Korea Retail Market.
What years does this South Korea Retail Market cover, and what was the market size in 2023?
In 2023, the South Korea Retail Market size was estimated at USD 522.46 billion. The report covers the South Korea Retail Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the South Korea Retail Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South Korea Retail Sector Industry Report
Statistics for the 2024 South Korea Retail Sector market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Korea Retail Sector analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
