- Online food and beverage shopping transaction volume reaches KRW 2.8961 trillion, up 17.5% year-on-year
- Adoption of AI, IoT, and other technologies driving growth in distribution automation and optimization; startups with relevant solutions seeing increased collaboration
As the importance of distribution grows in tandem with rising online food purchases, companies are increasingly turning to startups for solutions.
According to the Statistics Korea online shopping trend report released on the 5th, the total online shopping transaction volume for food and beverages in October of this year reached KRW 2.8961 trillion, an increase of KRW 430.7 billion (17.5%) compared to the same month of the previous year. Food and beverages accounted for the highest share of total online transactions at 14.3%. Mobile shopping transactions for food and beverages also increased by 20.8%, recording the highest share of the transaction composition at 16.2%. According to the "October 2024 Major Retailer Sales" report published by the Ministry of Trade, Industry and Energy, online food purchases grew by 24.8%, demonstrating steady growth.
As online food purchases increase, the importance of the distribution process has grown as well. The automation and optimization of distribution processes leveraging advanced technologies such as artificial intelligence (AI), the Internet of Things (IoT), blockchain, and big data are rapidly expanding. In particular, technology adoption has been most active in areas related to maintaining the freshness and quality of food products.
With the rapid pace of technology adoption in food distribution, there has also been a corresponding rise in companies seeking out startups that possess relevant solutions.
Spatial computing platform company "Deepfine" has recently expanded its collaboration with large corporations through the development of a vision AI-powered food ingredient inspection and quality verification system. Deepfine built a customized inspection and verification system for client companies based on its existing DAO (DEEP.FINE AR.ON) platform. When wearing smart glasses to view food items, data from attached barcodes, QR codes, and other identifiers appears directly in the wearer's field of vision. Furthermore, using template matching technology, the system automates food status information that previously had to be entered manually, enabling inspectors to quickly check freshness and other attributes. Ourhome and Pulmuone have already adopted this solution to enhance accuracy in their food distribution processes.
Willog, a logistics solution provider startup, has developed a food monitoring service that enables transparent management of the entire food distribution process and strengthens data reliability, and is providing this service to numerous companies. The solution involves attaching Willog's proprietary data-collection hardware to the boxes or containers holding food items, thereby enabling the capture of real-time information on the food during transit. In addition to location tracking, the system continuously digitizes and delivers data on temperature, humidity, and other conditions during transport. This allows companies to build an environment that ensures the freshness of food products throughout the distribution process.
An industry source commented: "Large corporations are eager to rapidly adopt technology in their food distribution processes, but developing such technology in-house requires significant time and investment. As a result, more companies are increasingly leveraging startups that already have the relevant technology, rather than developing it themselves. Through such partnerships, startups gain a stable revenue stream while large corporations secure reliable food quality, and I understand that many companies are still in discussions about adopting startup technologies."