Butter, dairy spreads and milk fats market in South Korea

Earlier Report Observations

The South Korean butter and dairy fats market contracted sharply in 2019, with production falling by over 50 thousand tons and market volume dropping to 132 thousand tons. This decline was driven by steep increases in raw material and labor costs, which made domestic production less competitive. Imports began to rise, partially offsetting the drop, while the completion of Seoul Milk's large-scale processing plant in 2020 added new production capacity just as the market started to recover.

The market rebounded in 2020–2021, reaching 157 thousand tons, aided by the COVID‑19 pandemic’s shift toward online grocery shopping and sustained demand from the expanding fast‑food and fusion‑cuisine segments, which boosted butter and anhydrous milk fat consumption. However, growing import volumes—especially of sterilized milk—and the anticipated duty‑free inflow of U.S. and EU dairy products under future free‑trade agreements pressured local producers, prompting industry restructuring.

By 2023, further raw‑milk price hikes and government measures to cap retail dairy prices squeezed processors’ margins, leading to renewed restructuring efforts. Market volume stabilized around 157–158 thousand tons, but butter consumption showed early signs of softening, reflected in 2024 data where butter use fell 12% while imported sterilized milk jumped 30%, highlighting the ongoing competitive challenge for domestic players.

Production butter, dairy spreads and milk fats in South Korea

In kind, 2017-2020, t

On a global scale, South Korea ranked as the 23rd largest producer of butter, dairy spreads, and milk fats between 2017 and 2020.

Top producers of butter, dairy spreads and milk fats, 2017-2020

World map of production of butter, dairy spreads and milk fats, 2017-2020

In 2020, South Korea produced 135 947 tonnes of butter, dairy spreads, and milk fats, marking a 15.6% increase from 2019. Production reached its lowest point in 2019 at 117 588 tonnes, while the peak was recorded in 2018 with 170 053 tonnes. The most significant decline occurred in 2019, dropping by 30.9%, whereas the largest increase was in 2018, rising by 27.2%.

Annual dynamics of production in South Korea in kind, 2017-2020, t

Exports butter, dairy spreads and milk fats from South Korea

Exports in kind, t

South Korea's exports of butter, dairy spreads, and milk fats have grown for the third year in a row. In 2020, exports totaled 100 tonnes, showing a sharp increase of 41.4% compared to the previous year. From 2017 to 2020, exports surged by 567.9%, with a compound annual growth rate of 88.3%.

Annual dynamics of product's exports from South Korea in kind, 2017-2020, t

Between 2017 and 2020, Russia, Hong Kong, and China were the top destinations for South Korea's exports in kind. Russia accounted for 59.1% of exports, Hong Kong for 15.8%, and China for 14.0%, together making up 88.9% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from South Korea in kind, 2017-2020

Exports in value, K $ US

South Korea's export value for butter, dairy spreads, and milk fats has risen for the third consecutive year. In 2020, exports reached 527 thousand US dollars, reflecting a substantial 97.0% increase from the previous year. Over the 2017-2020 period, export value grew by 582.1%, with a compound annual growth rate of 89.6%.

Annual dynamics of product's exports from South Korea in value, 2017-2020, K $ US

From 2017 to 2020, Russia, Hong Kong, and China were the leading markets for South Korea's exports in value terms. Russia contributed 32.9% of export value, Hong Kong 28.9%, and China 19.0%, collectively accounting for 80.8% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from South Korea in value, 2017-2020

Imports butter, dairy spreads and milk fats to South Korea

Imports in kind, t

South Korea's imports of butter, dairy spreads, and milk fats have increased for the third year in a row. In 2020, imports amounted to 15 291 tonnes, up by 7.0% year-on-year. Between 2017 and 2020, imports rose by 62.1%, with a compound annual growth rate of 17.5%.

Annual dynamics of product's imports to South Korea in kind, 2017-2020, t

During 2017-2020, New Zealand, France, and the United States were the primary sources for South Korea's imports in kind. New Zealand supplied 42.3% of imports, France 21.6%, and the United States 9.1%, together representing 73.0% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to South Korea in kind, 2017-2020

Imports in value, K $ US

South Korea's import value for butter, dairy spreads, and milk fats has grown for the third consecutive year. In 2020, imports reached 88 924 thousand US dollars, showing a modest 3.3% increase from 2019. Over the 2017-2020 period, import value increased by 73.6%, with a compound annual growth rate of 20.2%.

Annual dynamics of product's imports to South Korea in value, 2017-2020, K $ US

From 2017 to 2020, three key markets—New Zealand, France, and the United States—collectively accounted for 75.9% of South Korea's total import value for butter, dairy spreads, and milk fats.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to South Korea in value, 2017-2020