Milk and cream market in South Korea

Earlier Report Observations

Between 2018 and 2020, the South Korean milk and cream market showed pronounced swings. The market volume had already begun to feel pressure from low birth rates and growing imports of sterilized milk in 2018, leading to a contraction from 4 089 thousand tons in 2018 to 3 483 thousand tons in 2019. The COVID‑19 pandemic in 2020 altered consumption habits, boosting at‑home demand and online purchases, which helped the market rebound to 3 744 thousand tons that year.

From 2021 onward, the market stabilized around 3.6‑3.5 million tons. In 2021, the implementation of a raw‑milk price‑linkage system changed how production costs and final prices were adjusted. Concurrently, rising raw‑milk production costs and a persistent decline in consumption—particularly of plain white milk—weighed on the market. Imports of sterilized milk accelerated dramatically, reaching a volume ten times higher in 2023 than in 2018, intensifying competition and reshaping the supply structure.

Major domestic dairy companies reacted by restructuring their operations and shifting toward A2‑milk production to enhance their competitive edge. Despite these strategic moves, overall market volume continued a gradual decline, finishing at 3 520 thousand tons in 2023. The market value, however, rose to 6 608 million US dollars, reflecting changes in price levels and product mix.

Production milk and cream in South Korea

In kind, 2017-2020, K t

Top producers of milk and cream, 2017-2020

World map of production of milk and cream, 2017-2020

South Korea's milk and cream production reached 3 712 thousand tonnes in 2020, representing a moderate 7.5% increase from the previous year. Production had previously peaked in 2018 at 4 069 thousand tonnes, which marked an 11.3% increase from 2017. However, output declined significantly in 2019 to 3 455 thousand tonnes, a 15.1% drop from the 2018 peak.

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

In value, 2017-2020, M $ US

The value of milk and cream production in South Korea stood at 6 429 million US dollars in 2020, up 6.3% from the previous year. The highest value was recorded in 2018 at 7 131 million US dollars, reflecting an 11.5% increase from 2017. This was followed by a decline to 6 049 million US dollars in 2019, representing a 15.2% decrease from the 2018 peak.

Annual dynamics of production in South Korea in value, 2017-2020, M $ US

Exports milk and cream from South Korea

Exports in kind, t

South Korea's milk and cream exports declined in 2020 after two consecutive years of growth. The export volume reached 10 324 tonnes in 2020, showing a limited 4.7% decrease from the previous year. Exports had peaked in 2019 at 10 830 tonnes, following a substantial 15.6% increase in 2018. Overall, between 2017 and 2020, exports grew by 26.1%, equivalent to an annualized rate of 8.0%.

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

Between 2017 and 2020, China was overwhelmingly dominant as the destination for South Korea's milk and cream exports, accounting for 95.4% of total export volume.

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 milk and cream exports in value terms declined in 2020 following two years of growth. Export value reached 17 880 thousand US dollars in 2020, reflecting a moderate 5.7% decrease from the previous year. The peak was recorded in 2019 at 18 963 thousand US dollars, after a 15.7% increase in 2018. Over the 2017-2020 period, export value increased by 24.8%, equivalent to an annualized growth rate of 7.7%.

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

From 2017 to 2020, China was almost exclusively the destination for South Korea's milk and cream exports in value terms, absorbing 95.8% of total export value.

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 milk and cream to South Korea

Imports in kind, t

South Korea's milk and cream imports increased for the third consecutive year in 2020. Import volume reached 42 636 tonnes in 2020, marking a controlled 9.8% improvement from 2019. Between 2017 and 2020, imports grew by 59.5%, equivalent to an annualized rate of 16.8%.

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

From 2017 to 2020, Italy, France, and Germany were the key sources for South Korea's milk and cream imports by volume. Italy accounted for 25.2% of imports, France for 22.5%, and Germany for 15.7%, with these three countries together representing 63.4% of total import volume.

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 milk and cream imports in value terms increased for the third consecutive year in 2020. Import value reached 98 515 thousand US dollars in 2020, up 3.4% from the previous year. Between 2017 and 2020, import value grew by 45.7%, equivalent to an annualized rate of 13.4%.

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

From 2017 to 2020, France, Italy, and Germany were the main sources for South Korea's milk and cream imports by value. France accounted for 27.1% of import value, Italy for 25.6%, and Germany for 13.2%, with these three countries jointly representing 65.9% of total import value.

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

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