In 2024, South Korea maintained its position as the fourth highest in average gross income among Asia Pacific countries, despite a marginal slowing in per capita disposable income growth. Government efforts to stimulate consumption and narrow the income gap between urban and rural regions are anticipated to foster a favourable economic forecast and the expansion of the middle class. Nonetheless, substantial income discrepancies and a notable fiscal load on citizens persist as obstacles.

Retail value sales of other dairy are expected to rise in current terms in South Korea in 2025. During the year, chilled dairy desserts has emerged as a key contributor to the modest growth seen in South Korea’s other dairy category. The turning point came in 2024, when GS25 convenience stores introduced eye-catching products such as milk-based puddings and CookatMade’s "milk carton pudding." These products quickly gained traction by offering both novelty and nostalgic appeal, inspired by simila

Retail value sales of baby food are set to rise in current terms in South Korea in 2025. Following a modest rebound in South Korea’s fertility rate to 0.75 in 2024, the long-depressed baby food market is showing early signs of recovery, which is resulting in the overall value growth of the baby food. The increase in births is set to lead to year-on-year growth in both retail volume and value in the milk formula segment, with premium products experiencing particularly strong momentum. While prolo

Retail value sales of cheese are set to increase in current terms in South Korea in 2025, largely driven by rising demand for cheese as a snack. Previously niche categories such as string cheese, packaged hard cheese, and spreadable cheese are gaining momentum as consumers seek convenient, nutritious, and premium snacking options. These formats often carry higher price points due to their added value in portability, packaging, and perceived quality, resulting in strong retail selling price (RSP)

Sales of drinking milk products are set to fall in both value and volume terms in South Korea in 2025. Flavoured milk drinks is expected to see a relatively strong decline in sales during the year, largely driven by the rapid growth of substitutes. Ready-to-drink beverages and café-style drinks offered through consumer foodservice continue to improve in flavour, quality, and pricing, making them more appealing to younger consumers. At the same time, plant-based alternatives with similar textures

Retail value sales of yoghurt and sour milk products are set to stagnate in South Korea in current terms in 2025. The South Korean yoghurt market is undergoing a structural shift, marked by diverging trends within the drinking yoghurt segment. While the overall retail volume of drinking yoghurt is declining, this contraction is primarily being driven by a drop in demand for traditional liquid yoghurt formats that are often perceived as overly sweet and unsatisfying. In contrast, Greek yoghurt -

Retail value sales of butter and spreads are set to rise in current terms in South Korea in 2025. The growing demand for health-conscious food choices has significantly influenced butter consumption trends in the country. As consumers increasingly prioritise clean-label products and natural ingredients, butter is being re-evaluated not as an unhealthy fat but as a “natural fat” aligned with holistic wellness values. This shift is particularly evident amongst followers of low-carb, high-fat diets

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

Retail value sales of plant-based dairy are set to increase in current terms in South Korea in 2025. In a market where a majority of the population is lactose intolerant, consumer choices for alternatives to traditional dairy products were once largely limited to sterilised milk and lactose-free options. However, plant-based milk has rapidly emerged as a compelling alternative and continues to grow steadily in 2025. What began as a niche trend amongst younger consumers - driven by health conscio

In-car entertainment in South Korea is experiencing a pronounced structural decline driven by the widespread integration of navigation, speakers, and media players within new vehicles. Most new cars now come with large touchscreens, built-in navigation, premium speakers, and advanced infotainment systems as standard, often featuring seamless smartphone connectivity through Apple CarPlay and Android Auto. As a result, the need for consumers to purchase standalone in-car navigation devices, speake

In 2025, mobile phones in South Korea experienced a slight decline in volume sales, reflecting the continued pressure on consumer demand across both feature phones and smartphones. The smartphone is the dominant choice of mobile phone, but the category is facing a contraction in volume sales driven by macroeconomic challenges and the evolving perceptions of value in smartphone ownership. Amid ongoing economic uncertainty, rising living costs, and stagnant wage growth, consumers have grown increa

Home audio and cinema in South Korea is experiencing persistent decline in retail volume and value terms, however, there is a clear divergence between outdated and growing product categories. Legacy segments such as digital media player docks and hi-fi systems are experiencing steady and significant declines, while home cinema and speaker systems are showing resilience and expanding. Retail volume sales of home cinema and speaker systems increased modestly in 2025, driven by the widespread adopt

In 2025, computers and peripherals in South Korea witnessed further volume sales decline as consumers made the transition away from desktops. This contraction highlights a decisive shift in both consumer and enterprise usage habits. Desktops are rapidly losing relevance as users transition to laptops, which offer greater mobility and flexibility for hybrid work, digital learning, and home use. The normalisation of post-pandemic routines has led most households and businesses to extend device rep

Consumer electronics in South Korea continued its downward trajectory in 2025, with retail volume sales decreasing, although to a slower extent. This was the fourth consecutive year of decline in volume terms, reflecting the challenging landscape in which players are operating. Persistent economic uncertainty, subdued consumer sentiment, and a growing reluctance to replace high-cost electronics, translated into weaker sales. While innovation was visible across most categories, consumers in South

In 2025, imaging devices in South Korea witnessed further decline in volume and value sales. This contraction is most pronounced in the compact digital camera segment, which continues to lose ground to ever-advancing smartphone cameras. Entry-level point-and-shoots are now virtually absent from major retailers, with their market share eroded by the computational photography and sensor improvements in flagship smartphones. As a result, manufacturers are doubling down on mirrorless interchangeable

Portable players in South Korea is expected to grow modestly in 2025, following several years of stagnation. This uptick is largely attributed to the steady performance of wireless speakers, which account for the majority of this product category. In 2025, wireless speakers is anticipated to witnessed slight growth, closely mirroring the broader category trends. The return to positive growth reflects a recovery in consumer demand for secondary, flexible audio devices that complement smartphones

In 2025, wearable electronics in South Korea is expected to decline modestly in volume terms, reflecting a mixed performance across the subcategories. The activity wearable segment, which includes activity bands and activity watches focused primarily on fitness tracking, faces a sharp decline in volumes. This contraction is largely due to market saturation, with many consumers already owning entry-level fitness devices and a diminishing pool of new users. Additionally, the incremental innovation

In 2025, home video in South Korea is expected to decline in volume and value terms. Despite this overall contraction, the category is undergoing a fundamental shift as OLED, Mini LED, and QD-OLED TVs gain traction. OLED TVs are differentiated by their self-light-emitting panels, offering superior contrast and colour compared to traditional LCD TVs. In late 2024, LG launched the OLED evo M4 series, featuring the a11 AI processor and wireless video transmission, while Samsung expanded its QD-OLED

In 2025, wireless headphones in South Korea contracted in volume terms, reflecting the broader slowdown in demand for consumer electronics. Despite the overall downturn, wireless headbands stands out, with over-ear headphones such as Apple’s AirPods Max and Bose’s QuietComfort series, recording volume growth. This divergence highlights a shift in consumer preference towards premium audio experiences, particularly among users seeking immersive sound quality for home entertainment, work-from-home

In 2024, total hot drinks packaging retail volumes in South Korea experienced a strong contraction, falling by 6% to 1.1 billion units. The growth of at-home coffee-pod systems was a significant factor, as it cannibalised stick-pack volumes, while the shift towards health-conscious options led to a decline in traditional instant tea sachet volumes, partially offset by growth in packaging for fruit/herbal tea. The overall decline in coffee packaging volumes was exacerbated by some consumers pivot

In 2024, total soft drinks packaging retail volumes in South Korea rose, increasing by 8% to reach 16 billion units. Growth was largely driven by consumer demand for convenience, premiumisation, and functional beverages, such as carbonates, juice, and energy drinks. Younger consumers, in particular, favoured energy drinks in cans, probiotic carbonates in PET bottles, and premium juices in brick liquid cartons, prompting brands to pursue sustainable, on-the-go packaging solutions. The tightening

In 2024, video games in South Korea recorded solid value growth, propelled by AI and digital content. Notable trends included AI-driven personalisation and strategic partnerships, which boosted gameplay and user acquisition. Companies focused on the global market with PC and console games, adhering to regulations mandating probability-based item disclosure. The competitive landscape is showing signs of consolidation, with major companies claiming considerable share.

Traditional toys and games in South Korea experienced a modest dip in 2024, influenced by digital entertainment and evolving consumer habits. Notably, dolls and accessories recorded an upturn, attributed to the popularity of certain characters and the emergence of the kidult trend. The industry is anticipated to witness an increase in strategic partnerships and leveraging intellectual property, along with the integration of artificial intelligence.

Toys and games in South Korea grew in 2024, driven by the increasing popularity of collectibles, the purchasing power of kidults, the gachapon craze, and a further shift towards digital content. Key trends included AI personalisation, shaping engaging play experiences, and partnerships blurring lines between industries. The landscape became increasingly consolidated over the review period. E-commerce dominates distribution, with gacha marketing boosting consumer sentiment.