South Korea Dairy Market Demand, Size, Share, Growth & Forecast | 2025-2034

South Korea Dairy Market Outlook

According to the report by Expert Market Research (EMR), the South Korea dairy market size attained a value of USD 4.05 billion in 2024. Aided by the growing demand for dairy products, driven by shifting consumer preferences, increasing health consciousness, and technological innovations, the market is projected to further grow at a compound annual growth rate (CAGR) of 4.0% between 2025 and 2034, reaching a value of USD 5.53 billion by 2034.

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Dairy products, such as milk, yogurt, cheese, and butter, have been staples in the South Korean diet for decades. As a traditional part of the Korean culinary landscape, dairy consumption has evolved over time, especially with the introduction of more innovative products catering to modern dietary preferences. With an increasing focus on health and wellness, the dairy market in South Korea is experiencing a significant shift in terms of product offerings and consumer consumption patterns. The market is also influenced by growing demand for convenient, nutritious, and functional dairy options.

The surge in demand for South Korea dairy market is also being driven by the growing popularity of plant-based alternatives, the emergence of probiotic-rich products, and the rise of premium dairy offerings. Furthermore, dairy consumption is being closely linked with various health benefits, ranging from improved bone health to better digestive function, which is boosting the market expansion.

Health and Wellness Trends Driving Market Growth

One of the primary factors contributing to the growth of the South Korea dairy market is the increasing awareness of the health benefits associated with dairy consumption. Dairy products are rich in essential nutrients, such as calcium, protein, and vitamins D and B12, making them a key part of a balanced diet. As South Korean consumers become more health-conscious, they are seeking out dairy products that offer additional benefits such as probiotics, gut health support, and weight management.

Probiotic-rich dairy products, particularly yogurt, have gained immense popularity in South Korea in recent years. With the rise in awareness regarding gut health, consumers are increasingly opting for yogurt varieties that contain live and active cultures, which are believed to support digestive health. The increasing demand for functional foods that provide added health benefits is driving the expansion of the dairy market in the country. Yogurt manufacturers are responding to this trend by introducing more innovative variants, including low-sugar, organic, and dairy-free options.

In addition, the aging population in South Korea is also playing a significant role in shaping dairy consumption patterns. Older adults are more likely to experience a decrease in bone density, making dairy products, which are rich in calcium, an essential part of their diets. With osteoporosis being a prevalent concern among the elderly in South Korea, there is an increasing demand for dairy products that help in maintaining bone health. This demographic shift has led to the introduction of dairy products fortified with additional nutrients such as calcium, vitamin D, and magnesium.

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Consumer Preferences and Product Innovations

In response to the changing dietary preferences of South Korea dairy market, dairy manufacturers have been focusing on product diversification and innovation. The demand for premium, specialized dairy products is growing as consumers increasingly seek high-quality and functional options that cater to specific health concerns. This has led to the emergence of premium yogurt, high-protein milk, and lactose-free dairy options in the market.

The increasing interest in plant-based diets has also influenced the South Korea dairy market. South Korean consumers are becoming more open to plant-based and non-dairy alternatives, such as almond, soy, and oat milk. As a result, dairy companies are expanding their product portfolios to include plant-based dairy substitutes, catering to the growing demand for vegan-friendly and lactose-free options. These dairy-free alternatives are being positioned as healthier and more sustainable choices for consumers who are reducing their consumption of animal-based products.

While plant-based alternatives are gaining popularity, traditional dairy products, such as fresh milk, cheese, and butter, continue to enjoy significant demand in the South Korean market. However, there is an increasing trend toward healthier versions of these products, with manufacturers focusing on producing low-fat, low-calorie, and fortified dairy items to meet consumer preferences for both taste and nutritional value. The introduction of functional dairy products with added health benefits, such as omega-3s or antioxidants, is becoming a key strategy to attract health-conscious consumers.

Technological Advancements in Dairy Production

Technological advancements in dairy production are also shaping the South Korea dairy market. Innovations in dairy processing, packaging, and delivery are making dairy products more convenient and accessible to consumers. For example, the development of advanced refrigeration technologies and long-shelf-life milk products has allowed dairy manufacturers to cater to consumers' busy lifestyles and demand for convenient, ready-to-consume options.

The rise of e-commerce and online grocery shopping is another factor influencing the South Korea dairy market. With the growing trend of online shopping, dairy companies are increasingly investing in digital platforms to reach a wider audience. E-commerce platforms allow consumers to purchase dairy products with ease and have them delivered to their doorsteps, which is particularly appealing to urban populations with hectic schedules. Additionally, many consumers are now turning to digital platforms for the convenience of purchasing specialty dairy products that may not be readily available in brick-and-mortar stores.

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

Sustainability and Environmental Considerations

Sustainability is becoming an important consideration for South Korea dairy market. Consumers are becoming more conscious of the environmental impact of their purchasing decisions, which has led to a demand for eco-friendly packaging and sustainable dairy farming practices. In response to this trend, dairy companies are adopting more sustainable practices, such as using recyclable packaging, reducing carbon emissions, and implementing waste reduction strategies in their production processes.

Sustainability is also influencing consumer preferences, with more individuals seeking out organic and ethically produced dairy products. Organic dairy products, which are produced without the use of synthetic hormones or pesticides, are gaining popularity among South Korean consumers who are increasingly focused on health, sustainability, and animal welfare.

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