Milk market in South Korea

Earlier Report Observations

From 2018, the South Korean milk market faced structural headwinds as per-capita consumption of white milk began to decline due to low birth rates and demographic aging. Market volume in kind still edged up to 2.15 million tonnes by 2020, supported by dairy companies' investments in new product varieties and diversification. However, the COVID-19 pandemic in 2020 reduced school meal demand and slowed overall consumption, leading to the first notable drop in sales volumes.

After 2020, physical market volume continued to contract, falling to 2.01 million tonnes in 2023. This trend was accelerated by a surge in imports of cheaper sterilized milk, which more than tripled over three years and intensified price competition. In response, major domestic players like Seoul Milk, Namyang and Maeil shifted focus to premium segments, launching A2 milk and high-protein functional beverages. This premiumization drove market value growth, with the market reaching $4.0 billion in 2023 despite lower volume.

The government and the Korean Dairy Committee introduced a differentiated raw milk pricing system in 2022, setting separate prices for drinking and processing milk to improve competitiveness. By 2024, industry discussions centered on strengthening domestic milk ahead of the scheduled elimination of import tariffs under free trade agreements by 2026. Consumer preferences increasingly emphasized brand, price and convenience, sustaining demand for imported sterilized milk while local manufacturers expanded their ranges of specialized and premium products.

Production milk in South Korea

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

South Korea's milk production has increased for the second consecutive year. In 2020, the country produced 2 098 K t of milk, marking a 1.9% rise compared to the previous year. The lowest production level was recorded in 2018 at 2 049 K t, which also saw the largest decline of 0.9%.

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

In value, 2017-2020, M $ US

In 2020, South Korea's milk output was valued at 3 766 M $ US, remaining nearly unchanged from 2019. The minimum value occurred in 2018 at 3 708 M $ US, while the peak was in 2019 at 3 770 M $ US. The largest decline of 0.8% was in 2018, followed by the biggest increase of 1.7% in 2019.

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

Exports milk from South Korea

Exports in kind, t

South Korea's milk exports have grown for the third year in a row. In 2020, exports reached 17 781 t, showing a 7.7% increase over the previous year. From 2017 to 2020, exports surged by 48.7%, translating to an annualized growth rate of 14.1%.

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

Between 2017 and 2020, China, the United States, and Asia (not elsewhere specified) were the top buyers of South Korean milk by volume. China accounted for 64.7% of exports, the United States for 12.0%, and Asia for 6.8%, together making up 83.5% of total exports.

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, M $ US

South Korea's milk export value has risen for the third consecutive year. In 2020, exports totaled 31.9 M $ US, reflecting a modest 5.6% increase from the year before. Over the 2017-2020 period, export value grew by 47.6%, with a compound annual growth rate of 13.9%.

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

From 2017 to 2020, China, the United States, and Asia (not elsewhere specified) were the primary buyers of South Korean milk by value. China represented 63.2% of exports, the United States 10.8%, and Asia 8.0%, collectively comprising 82.1% 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 to South Korea

Imports in kind, t

After two years of growth, South Korea's milk import volume declined. In 2020, imports stood at 65 673 t, down 3.2% from 2019. The peak was in 2019 at 67 851 t, which also saw the largest increase of 13.1%. Overall, from 2017 to 2020, imports rose by 20.3%, with a compound annual growth rate of 6.4%.

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

During 2017-2020, South Korea's milk imports by volume were sourced from a diverse range of countries. France led with 21.0% of imports, followed by Italy at 14.0% and Germany at 12.6%, together accounting for 47.5% 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, M $ US

Following two years of increases, South Korea's milk import value decreased. In 2020, imports amounted to 168.8 M $ US, a slight drop of 1.2% compared to 2019. The highest value was recorded in 2019 at 170.8 M $ US, while the largest increase of 16.8% occurred in 2018. From 2017 to 2020, import value grew by 23.5%, equivalent to an annualized rate of 7.3%.

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

Throughout 2017-2020, France, Italy, and New Zealand were the key suppliers of milk to South Korea by value. France contributed 23.8% of imports, Italy 14.2%, and New Zealand 13.3%, jointly representing 51.2% 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