Online Food Delivery Jumped 1.8 Times Last Year Due to COVID-19

Online Shopping Trends for December 2020 and the Entire Year

[Image source=Yonhap News]

[Asia Economy Reporter Son Sun-hee] Last year, online shopping transaction amounts significantly increased due to the impact of COVID-19. In particular, as the proportion of dining out decreased due to business suspension and restriction measures, online food service transaction amounts jumped by 1.8 times compared to the previous year. On the other hand, sectors such as culture and leisure, travel, and transportation saw sharp declines, showing a stark contrast in online transaction amounts by industry due to the COVID-19 impact.

According to the 'December 2020 and Annual Online Shopping Trends' released by Statistics Korea on the 3rd, last year's online shopping transaction amount recorded 161.1234 trillion KRW, an increase of 19.1% compared to the previous year's transaction amount (135.264 trillion KRW). Among these, mobile transaction amounts were 108.6883 trillion KRW, increasing by 24.5%, showing particularly large growth.

Looking at detailed product categories, online food service transaction amounts reached 17.3828 trillion KRW, a 78.6% increase from the previous year's 9.7328 trillion KRW. This was the largest increase among all sectors. Additionally, food and beverages (48.3%) and daily necessities (44.1%) also saw significant increases in transaction amounts. This is analyzed as an effect of refraining from going out due to COVID-19. Online transaction amounts increased across all sectors including electronics, books, fashion, food, and daily necessities compared to the previous year.

On the other hand, culture and leisure services (-69.3%) and travel and transportation services (-53.3%) were hit hard, resulting in online transaction amounts in the service sector totaling 27.3993 trillion KRW, a 5.4% decrease compared to the previous year. Although it was the only sector to see a decrease in transaction amounts, e-coupon services, including food services, increased by 30.4%.

In overseas transactions, sales slightly contracted, but so-called 'direct purchase' maintained an increasing trend. Last year's online overseas direct sales amounted to 5.9613 trillion KRW, a 0.6% decrease compared to the previous year. Sales increased in countries such as China (0.9%) and the United States (20.5%), but decreased in the Association of Southeast Asian Nations (ASEAN) (-31.4%) and Japan (-13.6%).

Conversely, online overseas direct purchase amounts reached 4.1094 trillion KRW, a 13.0% increase compared to the previous year. However, the growth rate somewhat softened compared to the previous year's 22.4%. Overseas direct purchases increased in all countries including the European Union (21.7%), China (24.4%), and the United States (3.5%).

This content was produced with the assistance of AI translation services.