Dairy products and alternatives in 2025: The big picture
In 2025, South Korea’s dairy products and alternatives market is set to show modest growth in retail value in current terms, though retail volume sales are expected to fall. This slight increase will largely be supported by the expansion of premium product lines and growing consumer interest in functional and health-focused offerings. However, the market continues to face structural constraints on the supply side. The price of raw milk in South Korea is not determined by market demand or supply but is instead based on changes in production costs. Since the cost of production rose by only 1.5% in 2024, falling short of the 4% threshold required to initiate negotiations, the raw milk price remained unchanged for the second consecutive year in 2025.
Key trends in 2025
Domestic brands are capturing demand in the premium segment, which was previously dominated by imports, by introducing high-value products made with novel ingredients and advanced formulations. This trend has been accelerated by anticipation of tariff elimination in 2026, which is expected to intensify price competition from imports. Consequently, South Korean dairies are deliberately positioning themselves in the premium space to protect market share and margins.
Competitive Landscape
In 2025, the competitive landscape of South Korea’s dairy products and alternatives market remains largely stable, with the top three players - Seoul Dairy Cooperative, Maeil Dairies, and Hy - retaining their respective positions from previous years.
Channel developments
From a channel perspective, offline retail continues to dominate sales of dairy products in South Korea, accounting for more than three-quarters of the overall market. However, its share is gradually declining as e-commerce continues to expand. This shift is being driven largely by efforts from FMCG and dairy companies to build and strengthen their own direct-to-consumer online platforms.
What next for dairy products and alternatives?
Looking ahead, the retail value of South Korea’s dairy products and alternatives market is expected to contract in volume terms and decline slightly in constant terms over the forecast period. A trend of population decline is leading to a contraction of the potential consumer base for such products. Moreover, a key driver of constant value decline will be the upcoming elimination of tariffs on imported dairy in 2026, which is likely to increase the influx of lower-priced foreign products into the domestic market. As a result, the average unit price of dairy is projected to fall, putting downward pressure on overall market value.
Delivery:
Files are delivered directly into your account soon after payment is received and any tax certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in South Korea with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
If you're in the Dairy Products and Alternatives industry in South Korea, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Dairy Products and Alternatives in South Korea report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Dairy Products and Alternatives in South Korea?
- Which are the leading brands in Dairy Products and Alternatives in South Korea?
- How are products distributed in Dairy Products and Alternatives in South Korea?
- How is the rise of e-commerce and/or the expansion of modern grocery retail impacting traditional retail?
- What are the key health and wellness concerns driving, or challenging, sales in Dairy Products and Alternatives?
- How significant are vegan and vegetarian dietary requirements in determining sales growth in South Korea?
- How has COVID-19 impacted consumer demand? To what extent have lockdown, home seclusion and stockpiling boosted sales? Will the longer term economic repercussions of the pandemic stimulate or suppress future growth?
- Where is future growth expected to be most dynamic?
- How significant will values-based claims, such as sustainability and ethical labelling, be in supporting future growth and brand equity?
Dairy Products and Alternatives in South Korea
Dairy products and alternatives in 2025: The big picture
Key trends in 2025
Competitive Landscape
Channel developments
What next for dairy products and alternatives?
DISCLAIMER
Baby Food in South Korea
KEY DATA FINDINGS
Baby food retail volume and value rise following rebound in birth rate
South Korea’s baby food landscape
Online sales dominate milk formula, while brands embrace lifestyle-oriented D2C strategies
Amid demographic constraints, South Korean baby food players shift focus abroad
Implementation of supply-side policies to increase birth rates
Building baby food brand identity through lifestyle partnerships
Butter and Spreads in South Korea
KEY DATA FINDINGS
Healthy butter is on the rise
Imported butter gains ground in South Korea’s premium and online segments, challenging domestic leaders
Domestic brands dominate offline, while imports lead online in South Korea’s butter market
Imported butter to spark price war in South Korea’s retail and foodservice channels
B2B channels take centre stage in South Korea’s evolving butter market
Focusing on healthy touchpoints is necessary
Cheese in South Korea
KEY DATA FINDINGS
Cheese continues to grow in retail value and volume
Polarised consumption in South Korean cheese market
Strong presence of offline retail
Cheese shifts towards adult-centric formats amid low birth rate
Changing eating occasions weaken demand for traditional cheeses
Cheese faces pricing pressure as imports expand post-tariff elimination
Drinking Milk Products in South Korea
KEY DATA FINDINGS
Substitute products drive decline of flavoured milk drinks
Polarised consumption of milk products
Offline retail channels dominate
Tariff elimination to trigger intensified competition in South Korea’s shelf-stable milk market
Functional repositioning key to revitalising flavoured milk drinks in a competitive beverage landscape
Shelf-stable milk drives e-commerce growth in South Korea’s drinking milk products market
Yoghurt and Sour Milk Products in South Korea
KEY DATA FINDINGS
Greek yoghurt continues to gain momentum
Hy maintains leadership while Maeil targets growth through Greek yoghurt innovation
Offline retail remains dominant in yoghurt and sour milk products
Yoghurt remains insulated from tariff shocks due to cold chain limitations
Competition to intensify as dairy brands seek to defend portfolio value
Conventional drinking yoghurt faces structural headwinds from evolving drinking habits
Other Dairy in South Korea
KEY DATA FINDINGS
Chilled dairy desserts gain popularity through trend-driven convenience store
Coffee whiteners declines amid rise of capsules, cafés, and ready-to-drink coffee
Demand for cream supported by menu diversification
Convenience store fresh zones open new opportunities for chilled dairy desserts
Domestic dairy brands pursue premium segments to offset import pressures and optimise milk quotas
Health-positioned cream to meet evolving consumer demand
Plant-Based Dairy in South Korea
KEY DATA FINDINGS
Plant-based milk cements its role as a mainstream dairy alternative in South Korea
Plant-based milk faces intensifying competition across both retail and foodservice channels
Retail e-commerce plays a significant role
Tariff elimination will accelerate portfolio diversification and intensify competition
Brand identity outweighs functional claims
Soy drinks faces structural decline, requiring ingredient-led repositioning to regain relevance
The following categories and subcategories are included:
Dairy Products and Alternatives
-
- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
-
-
- Liquid Standard Milk Formula
- Powder Standard Milk Formula
-
- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
-
- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
-
- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
-
-
-
- Butter
- Cooking Fats
- Margarine and Spreads
-
- Spreadable Cheese
- Processed Cheese excl Spreadable
-
- Packaged Hard Cheese
- Unpackaged Hard Cheese
- Soft Cheese
-
-
- Dairy Only Flavoured Milk Drinks
- Flavoured Milk Drinks with Fruit Juice
-
-
-
- Fat-free Fresh Milk
- Semi Skimmed Fresh Milk
- Full Fat Fresh Milk
-
- Fat-free Shelf Stable Milk
- Semi Skimmed Shelf Stable Milk
- Full Fat Shelf Stable Milk
-
- Goat Milk
-
- Powder Milk
-
-
- Sour Milk Products
-
- Drinking Yoghurt
- Flavoured Yoghurt
- Plain Yoghurt
-
-
- Chilled Dairy Desserts
- Shelf Stable Dairy Desserts
- Chilled Snacks
- Coffee Whiteners
-
-
- Flavoured Condensed Milk
- Plain Condensed Milk
- Evaporated Milk
-
- Cream
-
- Flavoured Fromage Frais and Quark
- Plain Fromage Frais and Quark
- Savoury Fromage Frais and Quark
-
-
-
-
- Soy Drinks
- Other Plant-based Milk
- Plant-based Yoghurt
- Plant-based Cheese
-
Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
NEW REPORT GUARANTEE
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!