This year, the keywords that offer a glimpse into consumer market trends are Survival, Next, Artificial Intelligence (AI), K Culture, and Economical consumption.
The Korea Chamber of Commerce and Industry published the '2025 Distribution Industry White Paper' on the 7th, highlighting these five key consumer market trends for this year, known as the Year of the Blue Snake. The initials of the keywords were presented as S, N, A, K, and E.
The Korea Chamber of Commerce and Industry noted the reason for selecting these keywords: "As competition for survival intensifies due to economic downturn and rising uncertainty, distribution companies need to find Next business and revenue models." It also stated, "There is a need to actively respond to price-sensitive Economical consumption and to seek growth opportunities in AI and K Culture."
According to the white paper, competition for survival in the limited consumer market is expected to become even more intense. The recent growth rate of the retail market peaked at 7.5% in 2021, but fell to 3.1% in 2023. In particular, the Korea Chamber of Commerce and Industry predicted that with the second term of Trump’s presidency beginning this year, U.S. trade policy will change, and domestic political uncertainty will rise, resulting in a growth rate of only 0.4%.
As a result, it is expected that the market will accelerate the development of new business models and additional revenue models. It is anticipated that there will be a focus on operational efficiencies, including reducing labor costs and optimizing expense structures through AI. According to the market research firm Presidency Research, the size of the global AI market within the distribution industry is expected to grow approximately 5.5 times from $9.97 billion (approximately 14.4754 trillion won) in 2023 to $54.92 billion (approximately 79.7383 trillion won) by 2033.
To create new markets, commerce combined with K Culture is expected to gain attention. Olive Young, a health and beauty (H&B) specialty store, is a notable example. Recently, Olive Young has emerged as a shopping hub for foreign tourists visiting Korea, offering a space to experience K-content, and its overseas sales have increased.
As economic slowdown and rising uncertainty are expected this year, Economical consumption is likely to spread across the board. In particular, the so-called YONO (You Only Need One) consumption, which involves refraining from purchasing unnecessary items and buying only what is essential, is expected to increase.