Value context and insight. lkm@koreatimes.co.kr
Koreans spend more time alone at home
By Lee Kyung-min
At-home service industries booming
By Lee Kyung-min
A woman in her mid-30s surnamed Lee loves to look at the new series of coffee capsules produced by Nespresso, a Switzerland-based operating unit of the Nestle Group.
The self-proclaimed early adopter of the capsule coffee machine said having the espresso machine at home makes her happy because it turns her room into a coffee house of her own.
“The rich, deep espresso scent from the small machine instantly gives me comfort. I feel I am in a place so cozy, uninterrupted by anyone. Nothing helps me forget the stress from work better than music in the background and a capsule coffee that I pick that day,” she said.
She is among many that appreciate the taste only espresso machines can offer.
According to a report published in July 2019 by Hyundai Research Institute (HRI), Korea's import of coffee-related equipment increased about five-fold over the past eight years.
In 2011, according to Korea Customs Service data cited by the institute, Korea imported $62.8 million (73 billion won) in the equipment, but the figure soared to $309 million in 2018.
Of the total, over two-thirds were roasters worth about $206 million, followed by espresso machines, $86 million.
In the same period, import of roasted coffee including coffee capsules also spiked to $200 million from $60 million.
The HRI report author said the demand of small, home coffee machines will continue to rise, on the back of new spending patterns defined by people seeking individual, special experiences that no coffee giants can provide.
“Many people share their stories on their social media, and the sharing of experiences is fast becoming a marketing tool for the new generation that values rare therefore special experiences,” the report said.
“I think many people understand how good it is,” Lee said.
“A pack of instant coffee has its own flavor and sometimes I miss it when I want that high-sugar taste only instant ones can give, but I always go back to espresso machine coffees.”
At-home skincare
The trend sees an increasing number of people enjoying little luxuries in the comfort of their own homes and one of the most common luxuries is skincare.
A woman in her early 30s surnamed Kim decided to give a Light Emitting Diode (LED) mask a try, saying the rather expensive mask will be worth it since it saves her time and money in comparison to making long, regular journeys to her dermatology clinic.
“I heard the lights used in this mask treatment are not as strong as those used at dermatology clinics, but I say it's a long shot and I'm willing to take it,” said an office worker who much prefers the idea of at-home care to making appointments and having to pay visits to clinics once or twice a month.
The LED mask well over 2 million won but is increasingly becoming a beauty choice among many women.
According to ETLAND Priceking, a wholesaler of electronics devices, the sales of Pra.L Derma LED Mask produced by LG Electronics, in the first three months of 2019 jumped 138 percent from the year before, extending continued growth of the key home-beauty product since its launch in December 2017.
Its major competitive model, Cellreturn, has seen its sales grow 19-fold in 2018 from the year before.
An LG Economic Research Institute report said that the at-home beauty device industry is expected to reach 500 billion won, a rapid growth from the 80 billion won recorded in 2013.
Industry officials estimate that the market will reach 1.6 trillion won in 2022.
Food delivery apps
Also booming on the back of the soaring number of single-person households and the at-home trend is app-based food delivery services, with a growing number of providers no longer reluctant to make their services available to customers who only order food for one person.
Simply driven by convenience, a man in his mid-30s said his dinner is whatever looks good on the food delivery app.
“I like food delivery apps, because the options there are not that different from those sold in restaurants. Enjoying them in a pair of pajamas in my bed is an added benefit,” he said.
According to a report published in November 2019 by KB Card, a subsidiary of KB Financial Group, of 44.92 million card spending patterns from January 2018 and June 2019, the number of transaction approvals sought by food delivery apps more than doubled in the April-June period of 2019 from the January-March period in 2018.
Over half, or 56.3 percent of users were aged between 25 and 34.
Statistics Korea 2018 data showed 2.22 million people were classified as living in a single-person household in 2000, accounting for only 15 percent of the total. In 2018, however, 5.84 million people were, accounting for 29.2 percent of the total.
The current single-person, at-home-oriented consumption will continue, according to Kim Gwang-suk, head of macroeconomics at the Institute for Korea Economy & Industry.
“It is far from a fad,” Kim said.
“The shorter workweek allows salaried workers to have more time alone, without gruesome after-work gatherings. More young people ― especially millennials ― are not afraid of saying no to what they view as meaningless hours with someone from work. New consumption patterns reflective of this social culture will change the market,” he added.