Key Takeaways
- In 2023, South Korea's overall delivery service market reached a value of 33.5 trillion KRW, marking a 12.4% year-on-year growth driven by e-commerce expansion
- The food delivery segment alone generated 15.2 trillion KRW in revenue in 2022, with a projected CAGR of 8.7% through 2027
- Parcel delivery volume hit 4.85 billion units in 2023, up 15.2% from 2022 due to increased online shopping
- Baemin held 54% market share in food delivery apps in 2023 with 8.5 million monthly active users
- Coupang Eats captured 28% of food delivery market in H1 2023, growing 45% YoY in orders
- Yogiyo commanded 15% market share with focus on regional cuisines, processing 1.2 million daily orders
- Average daily food delivery orders nationwide exceeded 12 million in 2023
- Parcel delivery success rate stood at 99.2% in 2023, with average delivery time of 24 hours
- Peak hour delivery density in Seoul reached 150,000 orders per hour during lunch in 2023
- 72% of millennials aged 25-34 ordered food delivery weekly in 2023 survey of 5,000 respondents
- 65% of consumers prefer apps with under 30-minute delivery promise, per 2023 poll
- Female users comprised 58% of food delivery app users in 2023 data
- New delivery regulations capped rider commissions at 12% starting 2023
- Minimum wage for delivery riders set at 9,860 KRW/hour in 2024, up 5% from 2023
- Accident rate among riders dropped 18% after 2023 safety helmet mandates
South Korea's delivery industry is booming and rapidly evolving due to massive e-commerce growth.
Company Profiles and Market Share
- Baemin held 54% market share in food delivery apps in 2023 with 8.5 million monthly active users
- Coupang Eats captured 28% of food delivery market in H1 2023, growing 45% YoY in orders
- Yogiyo commanded 15% market share with focus on regional cuisines, processing 1.2 million daily orders
- CJ Logistics delivered 1.8 billion parcels in 2023, holding 22% of non-food delivery market
- Hanjin Express (ePost) managed 900 million parcels annually, with 18% market share in express delivery
- DoorDash Korea (entered 2023) achieved 5% market penetration in premium segments within 6 months
- Woowa Brothers (Baemin parent) reported 4.2 trillion KRW revenue in 2023, up 22% YoY
- Lotte ON integrated delivery services reached 1.5 million daily orders in 2023
- Gmarket's delivery arm handled 500 million items, securing 12% e-commerce logistics share
- Hyundai Glovis logistics for delivery grew to 2.1 trillion KRW revenue, 10% market share
- Paik's Noodle chain exclusive delivery orders reached 2 million monthly via Baemin
- Market Kurly premium grocery delivery had 3.5 million members, 8% share
- Kolon Express specialized in cold-chain, 9% share with 450 million temp-controlled parcels
- Shinsegae L&S logistics arm revenue 1.9 trillion KRW, 11% delivery share
- Kakao T delivery service integrated 1 million rideshare-deliveries monthly
- Naver Map's delivery feature boosted orders 40% to 500,000 daily in 2023
- GS25 convenience store delivery via apps hit 15 million orders annually
- Musinsa fashion delivery processed 120 million items, 14% fashion logistics share
- Hellodd's B2C focus yielded 600 million parcels, 7% market share
- Cumulative Baemin orders surpassed 5 billion by end-2023 since 2010 launch
Company Profiles and Market Share Interpretation
Consumer Behavior and Preferences
- 72% of millennials aged 25-34 ordered food delivery weekly in 2023 survey of 5,000 respondents
- 65% of consumers prefer apps with under 30-minute delivery promise, per 2023 poll
- Female users comprised 58% of food delivery app users in 2023 data
- Average annual spend per user on delivery services was 450,000 KRW in 2023
- 41% of users aged 18-24 prioritize eco-friendly packaging in deliveries, 2023 survey
- Subscription models like Coupang Rocket grew to 12 million subscribers by 2023
- 55% of rural consumers now use delivery services daily, up 30% since 2020
- Contactless delivery preference remained at 92% post-COVID in 2023
- Top cuisine ordered was Korean fried chicken at 28% of food deliveries in 2023
- 67% of seniors over 60 tried delivery for first time in 2023
- 78% of one-person households use delivery more than 5 times weekly, 2023 Nielsen survey
- Preference for bundled grocery+meal kits rose to 35% in 2023 orders
- 49% of users switch apps for better promotions, per 2023 loyalty study
- Average order value for food delivery increased 12% to 18,500 KRW in 2023
- 62% prioritize rider rating above 4.8 stars when ordering, 2023 poll
- Vegetarian/vegan delivery options ordered 18% more in 2023 urban areas
- Corporate lunch delivery accounts for 22% of midday orders B2B
- 81% of Gen Z use voice ordering features in delivery apps 2023
- Seasonal demand peak: 45% increase during Chuseok holidays 2023
- Satisfaction score for delivery services averaged 4.3/5 in 2023 ACSI Korea
Consumer Behavior and Preferences Interpretation
Delivery Metrics and Operations
- Average daily food delivery orders nationwide exceeded 12 million in 2023
- Parcel delivery success rate stood at 99.2% in 2023, with average delivery time of 24 hours
- Peak hour delivery density in Seoul reached 150,000 orders per hour during lunch in 2023
- Electric vehicle usage in delivery fleets hit 15% nationwide by Q4 2023
- Average cost per food delivery order was 4,200 KRW in 2023, including commissions
- Rider average daily deliveries averaged 45 packages in urban areas in 2023 survey
- Same-day delivery rate for e-commerce reached 68% in 2023, up from 52% in 2021
- Nighttime delivery (10pm-6am) accounted for 22% of total volume in 2023
- Drone delivery trials covered 500 km in rural areas, delivering 10,000 test packages
- Return parcel rate was 8.5% for fashion items in delivery services 2023
- Average delivery distance for food orders was 3.2 km in Seoul 2023
- Fleet utilization rate averaged 85% during peak seasons in 2023
- On-time delivery rate for same-day services was 94.5% in metro areas
- Cost per parcel delivered dropped 7% to 1,200 KRW due to scale in 2023
- Weekend delivery volume spiked 35% over weekdays in 2023 data
- Overseas parcel exports via delivery services: 50 million units in 2023
- Rider turnover rate was 42% annually in competitive urban markets 2023
- Mobile app order completion time averaged 2.5 minutes in 2023 UX study
- Cold-chain delivery growth 28% to 800 million units for perishables 2023
Delivery Metrics and Operations Interpretation
Market Size and Revenue
- In 2023, South Korea's overall delivery service market reached a value of 33.5 trillion KRW, marking a 12.4% year-on-year growth driven by e-commerce expansion
- The food delivery segment alone generated 15.2 trillion KRW in revenue in 2022, with a projected CAGR of 8.7% through 2027
- Parcel delivery volume hit 4.85 billion units in 2023, up 15.2% from 2022 due to increased online shopping
- E-commerce delivery market share accounted for 62% of total logistics in 2023, valued at 20.8 trillion KRW
- Grocery delivery sales surged to 3.1 trillion KRW in 2023, representing 20% of total food delivery
- Total delivery riders numbered 450,000 in Seoul metropolitan area by end of 2023
- Logistics delivery market grew 10.5% YoY to 12.7 trillion KRW in Q3 2023
- Online food delivery penetration rate reached 45% among urban households in 2023
- Coupang's delivery revenue hit 18.4 trillion KRW in 2023, comprising 75% of its total sales
- Market value of quick commerce delivery expected to reach 5 trillion KRW by 2025
- In 2023, South Korea's delivery market saw 14.2% growth to 34.1 trillion KRW including all segments
- Non-food parcel delivery revenue was 18.3 trillion KRW in 2023
- Quick service restaurant tie-ups boosted delivery sales by 25% in 2023
- Overseas remittance delivery market for Korea grew 30% to 1.2 trillion KRW
- B2B delivery segment valued at 7.5 trillion KRW with 11% YoY increase
- 11street platform delivery volume up 18% to 300 million parcels in 2023
- Total industry employment reached 650,000 including part-timers in 2023
- SSG.com grocery delivery hit 1.8 trillion KRW sales in 2023
- Delivery market digital transformation investment totaled 2.5 trillion KRW in 2023
Market Size and Revenue Interpretation
Regulatory, Challenges, and Future Outlook
- New delivery regulations capped rider commissions at 12% starting 2023
- Minimum wage for delivery riders set at 9,860 KRW/hour in 2024, up 5% from 2023
- Accident rate among riders dropped 18% after 2023 safety helmet mandates
- Projected market growth to 50 trillion KRW by 2028 with 9% CAGR
- 25% increase in labor disputes in delivery sector in 2023, totaling 150 cases
- AI route optimization mandated for fleets over 1,000 riders by 2025 regulations
- Carbon emission targets for delivery firms: 20% reduction by 2030
- Platform liability law passed in 2023 holding apps accountable for rider safety
- Future autonomous delivery vehicles projected to handle 15% of urban routes by 2030
- 2024 insurance mandate covers all riders up to 100 million KRW accidents
- Antitrust probe into Baemin pricing practices launched Q1 2024
- Urban drone delivery zones approved in 5 cities by 2025 plan
- Expected 15% market consolidation with 3 major players dominating by 2027
- Rider union membership grew 50% to 80,000 in 2023 amid wage pushes
- Data privacy fines totaled 500 million KRW for delivery apps in 2023 breaches
- Green logistics policy requires 30% EV fleet by 2027 for large firms
- Hyperlocal 10-min delivery projected to 10% market share by 2026
- Cross-border delivery tariffs reduced 10% boosting exports 2024 onward
- AI ethics guidelines for delivery routing implemented 2024
Regulatory, Challenges, and Future Outlook Interpretation
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