South Korea Dairy Market Report and Forecast 2024-2032

South Korea Dairy Market Outlook

The South Korea dairy market reached a value of about USD 4.05 billion in 2023. The industry is further expected to grow at a CAGR of about 4.0% in the forecast period of 2024-2032 to reach a value of around USD 5.53 billion by 2032. 

Potential Health Benefits  and Elevating Trend of Following a Healthy Lifestyle is Fuelling the Demand of Dairy Products

Consumer preferences are slowly shifting away from fast food toward healthy diets. This trend toward a more nutritious diet is being seen as a result of the ageing population's growth, changing lifestyles, increased health concerns, and rising health awareness. This is likely to drive demand for dairy products, boosting the dairy products market's growth.    

Consumption of milk, cheese, and yoghurt is associated with a lower risk of heart disease, stroke, hypertension, diabetes, metabolic syndrome, and colorectal cancer. Some fermented foods have active bacterial cultures and probiotics that can flourish in the digestive system and keep the gut microbiota in its average balance. Several dairy products aid in maintaining healthy teeth as well. Calcium, phosphorus, and protein casein are just a few of the particular anti-decay nutrients found in dairy products. Compared to other dairy products, yoghurt can help people lose weight and fat. High-quality proteins in milk contain all the critical amino acids required for muscle growth and maintenance. All these factors promote the consumption of milk and milk products among all age groups thus, aiding market growth.

Market Segmentation

The products that are formed from milk are called dairy products . Generally, all dairy products are made from cows, goats, camels, mares, and ewes’ milk. Butter, cheese, ice cream, yoghurt, creams, and custard among others are examples of dairy products.

Based on product type, the South Korea dairy market can be segmented into:

• Milk

• Dry Milk

• Yoghurt

• Cheese

• Butter

• Baby Formula

• Condensed Milk

Based on distribution channel, the South Korea dairy market can be divided into:

• Hyperstore/supermarkets

• Convenience Stores and Discount Stores

• Grocery Stores

• Online

• Department Stores

Increased Awareness Regarding Clean Label Products and the Growing Trend of Consuming Immunity-Boosting Products Augment Market Sales

Consumers read product labels in the packaging because of the demand for clean label products and transparency in the dairy products market. Another key component boosting demand is innovation in probiotic beverages by adding different flavours in convenient pack sizes.  In South Korea, flavoured milk is immensely popular among South Korea population. In addition, flavoured milk is gaining much traction, especially Binggrae's banana milk is one of the most preferred flavoured milks in South Korea. Sales of both flavoured and fresh milk are being driven by rising consumer knowledge of additives and environmentally friendly packaging. Due to the extensive selection and convenience, speciality stores also hold a sizable portion of the market and show a healthy growth rate. 

During the COVID-19 outbreak, consumers focused on their nutritional intake to boost their immunity, and the majority of customers moved to better beverage options like regular unflavoured milk, flavoured milk, drinkable yoghurt, and ice cream among others. The demand for premium products is soaring as a result of rising disposable income and consumers' better lifestyles, which is also boosting the market for dairy items.

The Increasing Inclination of Generation Z and Millennials Toward Western Culture and Food, along with the Growing Product Innovation in Yoghurt and its Packaging, Supports the Market Growth

Yoghurt innovation, such as fat-free, flavoured, and drinkable yoghurt, is predicted to generate significant development prospects for the dairy market. As diets have grown richer and more varied, packaging innovations such as single-serve, on-the-go packs, and small portion sizes also boost product demand and create enormous opportunities for companies. Moreover, the demand for clean label dairy products due to consumers' awareness will further augment the South Korea dairy market’s growth. In addition to high-quality protein, milk and milk derivatives provide a significant source of several vital micronutrients. Due to South Korea's growing ageing population, more milk and milk products may be consumed, causing the market for dairy products to expand more quickly.

With the South Korean consumers' growing interest in Western meals such as hamburgers, pizzas, and sandwiches, cheese consumption has grown exponentially, which has played a significant part in accustoming Korean consumers to cheese  and so improving the dairy market's growth.

The price of raw milk is high compared to milk powder.  Therefore, on a commercial scale, milk powder is used to produce confectionery and bakery products. This decreases the cost of food production and propels the market for milk powder, thereby propelling the development of the dairy market in South Korea.

Key Players in the South Korea Dairy Market

The report provides in-depth research of the following prominent players in the South Korea dairy market, giving a detailed understanding about the competitive landscape, capacity, and recent developments including mergers, acquisitions, and investments, capacity expansion, and plant turnarounds:

• Maeil Co.Ltd

• Namyang Dairy Products Co., Ltd.

• Seoul Milk Cooperative

• Dairyzen Co., Ltd

• Nestlé SA

• Others

The EMR report provides a detailed assessment of the market on the basis of the Porter's five forces model, combined with a SWOT analysis.

Key Highlights of the Report

South Korea Dairy Market Report Snapshots

South Korea Dairy Market Size

South Korea Dairy Market Demand

South Korea Dairy Market Growth

South Korea Dairy Companies