Milk powder with fat content of ≤1.5% market in South Korea

Earlier Report Observations

The South Korean market for milk powder with fat content ≤1.5% contracted significantly from over 72 000 t in 2018 to under 44 000 t in 2023. This decline was primarily driven by falling domestic consumption of milk and dairy products, linked to long-term demographic shifts such as low birth rates and changing consumer habits that reduced milk drinking frequency.

Supply-side constraints amplified the market contraction. A persistent decrease in the dairy cow herd and the number of dairy farms limited domestic raw milk production, while imports of milk powder also fell over the period. The combined reduction in local output and inbound shipments tightened overall market availability.

The COVID-19 pandemic in 2020 shifted consumer focus toward health and wellness, boosting demand for powdered functional foods and protein supplements, which provided some support to the segment. Concurrently, major dairy companies intensified efforts to launch new products, including A2 milk powder variants, and regulatory updates on health functional food labeling influenced production standards. However, these developments were insufficient to reverse the overarching downtrend in total market volume.

Production milk powder with fat content of ≤1.5% in South Korea

In kind, 2017-2020, t

From 2017 to 2020, South Korea ranked as the 20th largest global producer of milk powder with a fat content of ≤1.5%.

Top producers of milk powder with fat content of ≤1.5%, 2017-2020

World map of production of milk powder with fat content of ≤1.5%, 2017-2020

In 2020, South Korea produced 37 857 tonnes of milk powder with a fat content of ≤1.5%, marking a significant 15.6% increase from 2019. Over the 2017-2020 period, production grew by 2.1%, with a compound annual growth rate of 0.7%. The lowest production level was in 2019 at 32 750 tonnes, while the highest was in 2018 at 47 584 tonnes. The most substantial decline occurred in 2019, dropping by 31.2%, whereas the largest increase was in 2018, rising by 28.4%.

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

Exports milk powder with fat content of ≤1.5% from South Korea

Exports in kind, t

Market performance showed notable fluctuations during this period. Exports of milk powder with a fat content of ≤1.5% from South Korea reached 62 tonnes in 2020, down 76.6% from 2019. The peak was in 2019 at 266 tonnes, with the largest increase that year at 167.5%. From the low in 2020 to the high in 2019, export volumes varied by 4.3 times.

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

From 2017 to 2020, Japan, Vietnam, and China were the primary buyers of South Korean milk powder with a fat content of ≤1.5%, accounting for 81.5% of total exports in volume. Japan led with 56.1%, followed by Vietnam and China, each at 12.7%.

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

Market performance exhibited significant fluctuations during this period. In 2020, exports of milk powder with a fat content of ≤1.5% from South Korea totaled 317 thousand US dollars, a 76.0% decrease from 2019. The highest value was recorded in 2019 at 1 318 thousand US dollars, with the largest increase that year at 132.3%. From the trough in 2020 to the peak in 2019, exports changed by 4.2-fold.

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

Throughout 2017-2020, Vietnam, Japan, and China were the key partners in value terms for South Korean exports of milk powder with a fat content of ≤1.5%, collectively representing 92.6% of total flows. Vietnam accounted for 43.8%, Japan for 29.0%, and China for 19.9%.

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 powder with fat content of ≤1.5% to South Korea

Imports in kind, t

Imports of foreign milk powder with a fat content of ≤1.5% into South Korea declined for the second consecutive year. In 2020, imports totaled 17 469 tonnes, down 26.5% year-on-year. Over the 2017-2020 period, imports decreased by 24.7%, equating to an annualized rate of 9.0%. The highest import level was in 2018 at 24 775 tonnes, with the largest increase that year at 6.9%.

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

From 2017 to 2020, the United States, Australia, and France were the top suppliers of milk powder with a fat content of ≤1.5% to South Korea, together making up 71.0% of total imports in volume. The United States led with 30.7%, followed by Australia at 21.3% and France at 19.0%.

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

In 2020, imports of milk powder with a fat content of ≤1.5% into South Korea amounted to 49 118 thousand US dollars, a 12.2% decrease from the previous year. Between 2017 and 2020, imports fell by 7.6%, with an annualized rate of 2.6%. The peak value was in 2019 at 55 960 thousand US dollars, and the largest increase occurred that year at 13.4%.

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

From 2017 to 2020, the United States, Australia, and France continued to be the leading suppliers of milk powder with a fat content of ≤1.5% to South Korea in value terms, jointly accounting for 70.4% of total imports. The United States held 29.6%, Australia 21.7%, and France 19.0%.

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

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