South Korea Dairy Market Size, Share, Trends and Forecast | 2034

South Korea Dairy Market Outlook

According to the report by Expert Market Research (EMR), the South Korea dairy market size reached a value of USD 4.05 billion in 2024. Driven by the rising demand for high-quality dairy products, health-conscious consumer trends, and technological innovations in dairy production, the market is expected to grow at a compound annual growth rate (CAGR) of 4.0% from 2025 to 2034, reaching a value of USD 5.53 billion by 2034.

Dairy products play a significant role in the South Korean diet, with products such as milk, cheese, yoghurt, and butter being common staples in households. With the growing emphasis on healthy and balanced diets, as well as a heightened awareness of the nutritional benefits of dairy, the market for dairy products in South Korea is on an upward trajectory. The increased focus on dairy alternatives, driven by shifts in consumer preferences and health considerations, has also paved the way for innovations and diversification within the market, creating opportunities for growth in both traditional and plant-based dairy sectors.

This report examines the key factors driving the growth of the South Korea dairy market, including changing consumer preferences, the influence of health trends, the expanding dairy-based product portfolio, and the rise of plant-based dairy alternatives.

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Key Market Drivers

Several factors are contributing to the growth of the South Korea dairy market, with health trends and the evolving consumer demographic being at the forefront. South Korea’s urbanized and tech-savvy population has embraced dairy products as a convenient, nutritious, and versatile food option. With a shift towards more health-conscious choices, consumers are increasingly looking for dairy products that offer functional benefits such as enhanced immunity, gut health, and weight management.

The rising awareness of the health benefits of dairy is playing a crucial role in driving market demand. Dairy is known for its rich source of essential nutrients, including calcium, protein, and vitamins such as A and D. As South Koreans increasingly focus on nutrition, the demand for high-protein, low-fat, and fortified dairy products has surged. Additionally, dairy consumption is linked to various health benefits such as improved bone density and muscle mass, further fueling the demand for dairy products.

The growing popularity of functional foods—foods that provide additional health benefits beyond basic nutrition—has also influenced the dairy sector. Functional dairy products, including probiotic-rich yoghurts, fortified milk, and low-lactose dairy items, are gaining traction in South Korea. Consumers are now more likely to choose dairy products that offer added benefits such as digestive health support, enhanced immunity, and reduced risk of chronic diseases.

Technological Innovations and Modern Dairy Processing

Technological advancements in dairy processing are also playing a significant role in shaping the South Korea dairy market. The rise of innovative processing methods, such as ultrafiltration and microfiltration, has contributed to the production of high-quality dairy products with enhanced nutritional profiles and longer shelf lives. These innovations allow dairy processors to offer products with improved taste, texture, and nutritional content, catering to the changing demands of consumers.

Moreover, advancements in packaging technologies have also contributed to the growth of the market. Innovations such as smart packaging and sustainable, eco-friendly packaging solutions are gaining popularity among environmentally conscious consumers. Packaging that preserves the freshness of dairy products and provides easy-to-use features are attracting a growing number of consumers in South Korea.

The rise of plant-based alternatives to traditional dairy products is another key trend driving South Korea dairy market growth. With the increasing interest in plant-based diets, especially among younger generations and health-conscious consumers, the dairy sector has responded by offering non-dairy alternatives. These products, such as plant-based milk (soy, almond, and oat), vegan cheese, and dairy-free yoghurts, are gaining acceptance in the South Korean market, particularly in urban areas where vegan and vegetarian lifestyles are becoming more common.

Consumer Preferences and Market Trends

The South Korea dairy market has experienced a shift in consumer preferences, with demand for premium and specialized products on the rise. Consumers are increasingly opting for high-quality, natural, and organic dairy products that offer better taste and nutritional value. The desire for transparency in food sourcing and production processes has led to a growing demand for organic dairy products, which are perceived as healthier and more environmentally sustainable compared to conventional dairy products.

Another notable trend is the growing interest in low-fat and reduced-sugar dairy products. With increasing concerns over obesity and lifestyle diseases such as diabetes, South Korean consumers are becoming more cautious about their sugar and fat intake. As a result, dairy manufacturers are introducing products that cater to this health-conscious shift, such as low-fat milk, sugar-free yoghurt, and fat-reduced cheese.

The demand for dairy snacks is also on the rise, with consumers seeking convenient and portable dairy products for on-the-go consumption. Packaged dairy snacks, such as yoghurt drinks, cheese sticks, and ready-to-eat milk puddings, are gaining popularity as convenient, healthy snacks that can be enjoyed during busy workdays or as part of a balanced diet.

In addition, South Korea has witnessed a growing interest in dairy-based beverages. Flavored milk, kefir, and milk-based smoothies are becoming increasingly popular as part of a broader trend toward functional and on-the-go beverages. These beverages are valued for their refreshing taste, health benefits, and convenience.

South Korea Dairy Market Segmentation

The market can be divided based on product, and distribution channel.

Market Breakup by Product

• Milk
• Dry Milk
  • Non Fat
  • Full Fat
• Cheese
  • Natural
  • Processed
• Yogurt
• Butter
• Baby Formula
• Condensed Milk

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores and Discount Stores
• Speciality Stores
• Online
• Department Stores

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the South Korea dairy market. Some of the major players explored in the report by Expert Market Research are as follows:

• Maeil Co.Ltd
• Namyang Dairy Products Co., Ltd.
• Seoul Milk Cooperative
• Dairyzen Co., Ltd
• Nestlé SA
• Others

Challenges and Opportunities

While the South Korea dairy market continues to show promising growth, it is not without challenges. One of the main concerns facing the market is the aging population. As the elderly population increases, their demand for dairy products may decline due to health concerns such as lactose intolerance or difficulty in digesting dairy. Additionally, the increasing preference for plant-based products may further reduce the demand for traditional dairy items.

However, these challenges present opportunities for innovation. Dairy producers can explore new formulations to cater to the elderly population, such as lactose-free milk, fortified dairy products, and products enriched with probiotics for gut health. Additionally, the rising popularity of plant-based alternatives offers opportunities for dairy companies to diversify their product offerings and capture a share of the growing market for non-dairy products.

Sustainability remains a key concern for both consumers and producers. With increasing pressure to reduce environmental impact, dairy manufacturers are exploring eco-friendly practices such as sustainable sourcing, reducing water usage, and minimizing packaging waste. By adopting these practices, dairy companies can align with the growing consumer preference for sustainable products and enhance their brand appeal.

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