Rising inflation spurs surge in online fresh produce purchases

A promotional image of an online mall operated by the local government of Bonghwa County in North Gyeongsang Province / Korea Times file

More and more shoppers in Korea are turning to online platforms to purchase fruits, vegetables, and other fresh foods, as produce prices continue to soar, resulting in the rapid growth of the e-commerce industry, according to data released on Monday.

Such a trend, according to industry analysts, is noteworthy because consumers tend to check the quality and condition of fresh food products, and therefore, supposedly prefer online markets to offline vendors.

Data released by Statistics Korea showed online sales of farm produce in February surged 48.9 percent year-on-year to 1.088 trillion won ($806 million).

The year-on-year increase rate for farm produce surpassed that of all other items, including processed foods, electronic devices, auto parts, cosmetics, books, sports gear, clothing, and accessories.

The statistics agency attributed the increase to high demand for traditional foods made for Seollal, or the Lunar New Year holiday, which took place from Feb. 9 to 12.

It also noted that the government-backed discount campaign on agricultural and livestock products for Seollal likely contributed to the increase in sales of the corresponding items.

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On the other hand, some consumer advocacy groups perceive the increase in sales as indicative of a growing preference among shoppers for online vendors over offline sellers due to soaring inflation.

“The online market typically features a simpler chain of retail pricing compared to offline markets. This means there are fewer wholesalers and retail sellers involved, increasing the possibility of offering goods at lower prices,” Consumers Korea, a Seoul-based non-governmental organization, said.

The organization added that the inability to physically check the quality and condition of fresh foods "does not concern consumers" as e-commerce companies utilize technology and processes that ensure the safe transport of temperature-sensitive goods and products.

“It appears that fresh foods are contributing to the rapid growth of online shopping,” the organization said.

It referred to the entire online sales transaction in February, which rose 11 percent year-on-year to 18.97 trillion won. This also marked the highest figure for that month.