Press release
South Korea Dairy Market Size, Share, Growth and Report | 2025-2034
South Korea Dairy Market
The South Korea dairy market has been experiencing steady growth, driven by rising consumer demand for dairy products and the increasing awareness of nutritional benefits associated with dairy consumption. According to Expert Market Research, the South Korea dairy market size attained a value of USD 4.05 Billion in 2024. Aided by the growing preference for premium dairy products and innovations in dairy processing technologies, the market is projected to grow at a CAGR of 4.00% between 2025 and 2034, reaching a value of USD 5.99 Billion by 2034.
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Dairy products, including milk, cheese, butter, yogurt, and infant formula, are widely consumed in South Korea, contributing to the overall health and wellness of consumers. The increasing incorporation of dairy-based proteins in functional foods, coupled with evolving dietary habits, has significantly fueled the market expansion. Additionally, the government's initiatives to support the local dairy industry, including subsidies and quality regulations, are fostering a favorable market environment.
South Korea Dairy Market Size and Share
The South Korea dairy market has demonstrated consistent growth in recent years, supported by the expanding consumer base and technological advancements in dairy processing. The market size reached a valuation of approximately USD 4.05 Billion in 2024, and it is projected to grow at a CAGR of 4.00% during the forecast period of 2025-2034.
Milk remains the dominant segment in the South Korea dairy market, accounting for a significant portion of the market share. However, categories such as cheese and yoghurt are witnessing rapid growth due to increasing consumer preferences for nutritious and convenient food products. The growing influence of global food trends has led to increased demand for specialty dairy products, including organic and plant-based alternatives, impacting the overall market dynamics.
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South Korea Dairy Market Trends
Several key trends are shaping the South Korea dairy market, including:
Rising Demand for Functional Dairy Products: Consumers are increasingly looking for dairy products with added health benefits, such as probiotics, vitamins, and minerals. Functional yoghurt and fortified milk are gaining traction due to their perceived positive effects on gut health and immunity.
Growth of Organic and Clean-Label Dairy Products: The demand for organic dairy products is rising as consumers seek natural and preservative-free options. Clean-label dairy products with minimal processing and no artificial additives are becoming a preferred choice among health-conscious consumers.
Expansion of Plant-Based and Lactose-Free Alternatives: The growing number of lactose-intolerant individuals and the increasing adoption of plant-based diets have fueled the demand for non-dairy alternatives such as almond milk, soy milk, and oat milk. Dairy companies are expanding their product lines to include plant-based options to cater to evolving consumer preferences.
Premiumization and Innovative Dairy Offerings: South Korean consumers are willing to pay a premium for high-quality, imported, and artisanal dairy products. Brands are focusing on innovation, such as high-protein milk, flavored yoghurts, and gourmet cheeses, to attract consumers looking for unique and premium dairy experiences.
E-commerce and Convenience-Driven Purchases: The rise of online grocery shopping and direct-to-consumer (DTC) models has facilitated the easy availability of dairy products. Consumers are increasingly purchasing dairy products online due to the convenience of home delivery and subscription-based dairy services.
Drivers of Growth
The South Korea dairy market is being propelled by several key growth drivers:
Increasing Consumer Health Awareness: Rising awareness about the health benefits of dairy products, such as their role in bone health and digestion, is driving demand for milk, cheese, and yoghurt. Functional dairy products, including probiotic yoghurts and calcium-fortified milk, are becoming particularly popular.
Government Support and Dairy Industry Development: The South Korean government has implemented policies to support dairy farmers and promote domestic dairy production. Incentives for sustainable dairy farming and investments in modern dairy processing facilities contribute to market expansion.
Changing Dietary Patterns and Western Influence: The influence of Western food culture has led to increased consumption of cheese and butter, which were traditionally not a staple in South Korean diets. Fast-food chains, restaurants, and home cooking trends have further accelerated the adoption of these dairy products.
Urbanization and Rising Disposable Income: With rapid urbanization and an increase in disposable income, consumers are willing to spend more on premium dairy products. The demand for imported and artisanal dairy products has increased significantly, contributing to market growth.
Technological Advancements in Dairy Processing: Innovations in dairy processing technology have improved product shelf life, taste, and texture. Ultra-high temperature (UHT) processing and advanced packaging solutions have enhanced the availability and convenience of dairy products, boosting their demand.
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
South Korea Dairy Market Forecast (2025-2034)
The South Korea dairy market is expected to continue its upward trajectory, with a projected market value of USD 5.99 Billion by 2034, growing at a CAGR of 4.00% over the forecast period. The growth will be driven by rising consumer preference for health-oriented dairy products, advancements in dairy farming and production, and an expanding portfolio of premium and innovative dairy offerings.
Milk and yoghurt will maintain strong demand, with increasing preference for functional and fortified variants.
Cheese consumption is expected to rise due to growing demand in foodservice applications and home cooking.
Lactose-free and plant-based dairy alternatives will witness substantial growth, driven by health-conscious consumers and dietary preferences.
E-commerce sales of dairy products will surge, with companies investing in digital platforms and direct-to-consumer distribution models.
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