South Korea Dairy Market Outlook

According to the latest report by Expert Market Research (EMR), the South Korea dairy market size was valued at USD 4.05 Billion in 2024. Supported by a steady demand for dairy products, growing health consciousness among consumers, and advancements in product innovation, the market is projected to grow at a compound annual growth rate (CAGR) of 4.00% from 2025 to 2034, reaching a value of USD 5.99 Billion by 2034.

Dairy products, including milk, cheese, butter, and yogurt, are integral components of South Korean households' daily diets, influenced by both traditional consumption patterns and evolving trends in health and wellness. Over recent years, the dairy market has undergone significant transformation, driven by changes in consumer preferences, increased awareness of the nutritional benefits of dairy products, and the growing popularity of dairy-based alternatives.

The South Korea dairy market is also experiencing shifts due to the ongoing demand for premium dairy products, which include functional items such as probiotic yogurt and fortified milk products. The rising number of health-conscious individuals, coupled with a demand for sustainable and ethically produced dairy goods, is influencing the production and consumption of dairy products across the region.

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Market Drivers Of Growth

Increasing Health Consciousness and Demand for Nutritional Products: A key factor driving the growth of the South Korea dairy market is the increasing awareness of health and nutrition. Dairy products are recognized for their health benefits, including being rich in essential nutrients such as calcium, protein, and vitamins A and D. As the South Korean population grows more health-conscious, dairy consumption continues to rise, particularly in the form of low-fat and fortified products. Yogurt, in particular, has witnessed an increase in popularity due to its probiotic content, which supports digestive health and overall well-being.

Moreover, the aging population in South Korea is another driver of demand, as older consumers are more likely to include dairy in their diets to support bone health and reduce the risk of osteoporosis. This demographic shift is driving the demand for fortified dairy products that cater to specific health needs, such as calcium-enriched milk or probiotic-rich yogurt.

Growing Popularity of Dairy-Based Alternatives: As the demand for plant-based products rises, driven by the increasing popularity of veganism and lactose intolerance concerns, the South Korea dairy market is also witnessing a surge in dairy-based alternatives. These alternatives, including plant-based milks like almond, soy, and oat milk, are now widely available in supermarkets and online platforms. Although they represent a smaller share of the market compared to traditional dairy, the adoption of these alternatives is growing, particularly among younger consumers and those with dietary restrictions.

Dairy manufacturers are responding to this trend by innovating new products that cater to both plant-based and dairy-loving consumers. For instance, dairy-free cheeses, yogurt, and ice cream are becoming increasingly available in the South Korean market, bridging the gap between traditional dairy and the growing plant-based segment. Additionally, brands are introducing hybrid products that combine dairy and plant-based ingredients, such as oat milk mixed with dairy milk, to capture a broader consumer base.

Innovations in Product Development: Product innovation continues to be a key driver in the growth of the South Korea dairy market. Manufacturers are increasingly focused on creating new dairy offerings that cater to evolving consumer preferences, including organic, premium, and functional products. Innovations in dairy-based snacks, ready-to-drink beverages, and yogurt with added nutritional benefits such as fiber, antioxidants, and protein are gaining popularity among health-conscious consumers. Furthermore, lactose-free and reduced-sugar dairy products are being developed to appeal to those with dietary restrictions or preferences for lower-sugar diets.

Additionally, the convenience factor has led to an increased demand for ready-to-drink dairy products and single-serve packs, particularly for busy urban consumers. These innovations in product packaging and formats are helping dairy companies tap into the fast-paced lifestyle of South Korea’s urban population, further propelling the market forward.

Expansion of Distribution Channels: The distribution landscape for dairy products in South Korea has expanded significantly in recent years, aided by the growth of e-commerce platforms and modern retail formats. Traditional retail outlets, including supermarkets and convenience stores, continue to be important channels for dairy product sales, but online grocery shopping and delivery services are seeing rapid growth, particularly among younger, tech-savvy consumers. These distribution channels make it easier for consumers to access a wide variety of dairy products, including premium and niche offerings, which contributes to the overall South Korea dairy market growth.

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