From record-breaking yields on shrinking herds to a nation sipping more lattes and lactose-free milk than ever, South Korea's dairy industry is a fascinating paradox of productivity, shifting tastes, and economic pressures.
Key Takeaways
- South Korea's raw milk production reached 2,492,000 metric tons in 2022, marking a 1.2% increase from 2021
- In 2023, domestic milk cow population stood at 1,567,000 heads, down 2.5% year-over-year due to aging farmers
- Average milk yield per cow in Korea was 9,128 kg in 2022, higher than the previous year's 8,950 kg thanks to improved feed
- South Korea per capita fluid milk consumption was 39.2 liters in 2022, slightly down from 40.1 in 2021 due to plant-based alternatives
- Yogurt consumption per capita reached 10.5 kg in 2022, up 4% on probiotic trends
- Cheese consumption grew to 6.8 kg per capita in 2022 from 6.4 kg, driven by Western diets
- Total dairy market revenue was 12.5 trillion KRW in 2022, CAGR 3.2% 2018-2022
- Fluid milk segment valued at 4.2 trillion KRW in 2022, 34% of total dairy market
- Yogurt market size reached 1.8 trillion KRW in 2022, growing 5% YoY
- Dairy imports from New Zealand valued 2.1 trillion KRW in 2022, top supplier
- Milk powder imports totaled 450,000 tons worth 1.8 trillion KRW in 2022
- Cheese imports reached 52,000 tons in 2022, 88% of consumption, from EU mainly
- Seoul Dairy Cooperative market share 28% in fluid milk 2022
- Maeil Dairies held 22% of total dairy market revenue in 2022
- Namyang Dairy Products 15% share in yogurt segment 2022
Despite fewer farms and cows, Korea's dairy industry grew through higher yields, efficiency, and diverse products.
Consumption Statistics
- South Korea per capita fluid milk consumption was 39.2 liters in 2022, slightly down from 40.1 in 2021 due to plant-based alternatives
- Yogurt consumption per capita reached 10.5 kg in 2022, up 4% on probiotic trends
- Cheese consumption grew to 6.8 kg per capita in 2022 from 6.4 kg, driven by Western diets
- Butter consumption per capita was 1.2 kg in 2022, 90% imported products
- Total dairy consumption volume was 3.2 million tons in 2022, with 65% imported
- Urban households consumed 45% more dairy than rural in 2022 survey
- Children under 12 consumed 55 liters milk equivalent per capita annually in 2022
- Elderly over 65 dairy intake averaged 25 kg per capita in 2022, below recommendations
- Plant-based milk consumption rose 25% to 120,000 tons in 2022, eroding dairy share
- Low-fat dairy products accounted for 42% of consumption in 2022
- Drinking yogurt popularity led to 35% market share in yogurt segment 2022
- Home consumption of fluid milk was 1.8 million tons in 2022, out-of-home 0.5 million
- Convenience store dairy sales grew 15% YoY to 450 billion KRW in 2022
- Online dairy sales reached 12% of total consumption value in 2022 at 1.2 trillion KRW
- Seasonal peak consumption in summer for ice cream at 60,000 tons Q3 2022
- School milk program served 1.1 million tons to students in 2022
- Lactose-free dairy consumption surged 30% to 80,000 tons in 2022
- Fermented milk drinks like Yakult consumed 150 million units monthly average 2022
- Household expenditure on dairy averaged 120,000 KRW annually per capita 2022
- Male consumption of dairy 10% higher than females in 2022 nutrition survey
- Processed cheese slices consumption up 8% to 25,000 tons in 2022 fast food tie-ins
- Cream consumption for coffee culture hit 18,000 tons in 2022
- Powdered milk for infants consumed 45,000 tons in 2022
- Sports nutrition dairy shakes sales doubled to 20,000 tons 2022 gym boom
- Vegan dairy alternatives captured 5% market share in 2022 consumption
Consumption Statistics Interpretation
Korea's dairy industry tells a tale of two cultures: traditional staples like fluid milk are gently declining as the young and urban increasingly swap their morning milk for probiotic yogurts, protein shakes, and plant-based lattes, yet cheese and butter imports soar to satisfy a nation's growing appetite for Western diets and cafe culture, all while a significant generational gap persists in nutritional intake.
Industry Players and Structure
- Seoul Dairy Cooperative market share 28% in fluid milk 2022
- Maeil Dairies held 22% of total dairy market revenue in 2022
- Namyang Dairy Products 15% share in yogurt segment 2022
- Binggrae Inc. dominated ice cream with 35% market share in 2022
- Lotte Foods cheese processing capacity 20,000 tons annually in 2022
- Number of dairy processors 180 in 2022, down 5% consolidation
- Employee count in dairy industry 25,000 in 2022, average wage 45 million KRW
- R&D investment by top 5 firms 300 billion KRW in 2022, 2.5% of revenue
- Foreign ownership in Korean dairy firms averaged 12% in 2022
- Dairy cooperatives numbered 12 major ones supplying 85% raw milk 2022
- President Dairy top in fermented milk with 18% share 2022
- Taepyungyang Milk imported brands share 10% premium segment 2022
- Industry association KDIA membership 95 firms in 2022
- Mergers: Binggrae acquired minority stake in Namyang 2022 stabilizing
- Capacity utilization rate 88% for fluid milk plants in 2022
- Sustainability reporting by top firms 80% in 2022 ESG focus
- Patent filings in dairy tech 450 in 2022 by Korean firms
- Distribution network: CJ Dairy 5,000 outlets exclusive in 2022
- Venture startups in dairy alternatives 25 funded in 2022
- Labor union coverage 40% of dairy workers in 2022 major firms
- Top 10 firms controlled 75% of cheese production capacity 2022
- Investment in new plants: Maeil 200 billion KRW in 2022 expansion
- Regulatory compliance fines total 5 billion KRW across industry 2022
- Digital transformation adoption 60% in supply chain 2022 top firms
Industry Players and Structure Interpretation
While the Korean dairy landscape is a competitive chessboard of established giants and nimble startups, the game is ultimately governed by a clear and consolidating logic: scale up through R&D and strategic mergers, automate and comply, or get milked out of the market.
Market Value and Size
- Total dairy market revenue was 12.5 trillion KRW in 2022, CAGR 3.2% 2018-2022
- Fluid milk segment valued at 4.2 trillion KRW in 2022, 34% of total dairy market
- Yogurt market size reached 1.8 trillion KRW in 2022, growing 5% YoY
- Cheese market expanded to 1.1 trillion KRW in 2022 on premium imports
- Ice cream market revenue hit 1.5 trillion KRW in 2022, family packs dominant
- Retail dairy sales volume indexed at 105 in 2022 vs 2021 base 100
- Dairy industry contributed 0.8% to South Korea's total agri-food GDP in 2022
- Wholesale price index for milk rose 7.2% to 115.4 in 2022
- Consumer price index for dairy averaged 108.5 in 2022, up from 104.2
- E-commerce dairy market share 15% of total value at 1.9 trillion KRW 2022
- Private label dairy products market 8% share worth 1 trillion KRW in 2022
- Premium dairy segment grew 12% to 2.5 trillion KRW in 2022
- Functional dairy like probiotic yogurt valued 900 billion KRW in 2022
- Organic dairy market size 450 billion KRW in 2022, CAGR 10%
- Dairy export value from Korea was 250 billion KRW in 2022, niche markets
- Import value of dairy products totaled 8.7 trillion KRW in 2022, 70% of consumption
- Market concentration ratio top 4 firms 65% in 2022 dairy processing
- Projected dairy market growth 3.5% CAGR to 2027 reaching 15 trillion KRW
- Inflation-adjusted dairy expenditure per household 2.1% up in 2022
- Brand value leader Maeil Dairy at 1.2 trillion KRW in 2022 rankings
Market Value and Size Interpretation
Despite the comforting stability of a 12.5 trillion won market fueled by steady milk sales, Korea’s dairy scene reveals a national craving for both economical family ice cream and premium imported cheese, all while wrestling with price hikes and a yawning 70% import dependency that even a thriving probiotic yogurt trend can’t quite digest.
Production Statistics
- South Korea's raw milk production reached 2,492,000 metric tons in 2022, marking a 1.2% increase from 2021
- In 2023, domestic milk cow population stood at 1,567,000 heads, down 2.5% year-over-year due to aging farmers
- Average milk yield per cow in Korea was 9,128 kg in 2022, higher than the previous year's 8,950 kg thanks to improved feed
- Fluid milk processing volume hit 2,310,000 tons in 2022, with 92% utilization rate of raw milk supply
- Yogurt production volume was 248,000 tons in 2022, up 3.8% driven by health trends
- Cheese production reached 45,600 tons in 2022, a 5.2% rise attributed to local manufacturing investments
- Butter production volume was only 12,300 tons in 2022 due to high import reliance
- Milk powder production domestically was 28,700 tons in 2022, mainly whole milk powder for reconstitution
- In 2023 Q1, raw milk production was 612,000 tons, flat from prior year amid stable cow numbers
- Regional production leader Jeonbuk province produced 28% of national raw milk in 2022 at 698,760 tons
- Feed cost accounted for 65% of total milk production costs in 2022, averaging 450 KRW per liter
- Farmgate raw milk price averaged 1,120 KRW per liter in 2022, up 8% from 2021 inflation
- Number of dairy farms decreased to 5,820 in 2022 from 6,100 in 2021 due to consolidation
- Average farm size grew to 269 cows per farm in 2022, reflecting economies of scale
- Imported feed for dairy cows was 1.2 million tons in 2022, 70% alfalfa from US
- Milk quality somatic cell count averaged 250,000/ml in 2022, meeting premium standards
- Organic milk production was 15,200 tons in 2022, up 12% on demand for natural products
- Low-fat milk production share was 35% of fluid milk in 2022
- UHT milk production dominated at 1,560,000 tons in 2022, 67% of fluid milk
- Pasteurized milk volume was 420,000 tons in 2022, mainly for urban fresh markets
- Ice cream production reached 112,000 tons in 2022, boosted by summer demand
- Condensed milk production was 8,500 tons in 2022 for confectionery use
- Dairy farm automation rate reached 45% in 2022 with robotic milking systems
- Greenhouse gas emissions from dairy farms totaled 1.2 million tons CO2 eq in 2022
- Water usage per liter of milk produced was 950 liters in 2022 on modern farms
- Raw milk collection centers numbered 120 in 2022, handling 95% of supply
- Milk fat content averaged 3.8% in 2022 raw milk supply
- Protein content in raw milk was 3.4% average in 2022
- Lactose intolerance affects 75% of Koreans, influencing low-lactose production rise to 50,000 tons in 2022
- A2 milk production initiated in 2022 at 2,000 tons by select farms
Production Statistics Interpretation
South Korea’s dairy industry is a masterclass in doing more with less, where a shrinking, aging army of farmers and cows is being squeezed like a teat for every last drop of efficiency, all while trying to keep a lactose-intolerant nation stocked with cheese, yogurt, and premium butter that’s still mostly someone else’s problem.
Trade Statistics
- Dairy imports from New Zealand valued 2.1 trillion KRW in 2022, top supplier
- Milk powder imports totaled 450,000 tons worth 1.8 trillion KRW in 2022
- Cheese imports reached 52,000 tons in 2022, 88% of consumption, from EU mainly
- Butter imports 28,000 tons in 2022, 95% dependency, Australia key source
- Total dairy imports volume 2.1 million tons in 2022, up 4% YoY
- US dairy exports to Korea $850 million in 2022 under KORUS FTA
- EU cheese exports to Korea 25,000 tons in 2022, tariff quota utilization 90%
- Dairy export volume from Korea 15,000 tons in 2022, mainly powder to Asia
- Import tariff on liquid milk 36% average in 2022, protecting domestic
- Quota for whey protein imports 20,000 tons filled 100% in 2022
- China supplied 30% of Korea's milk powder imports at 135,000 tons 2022
- Re-export of dairy products through Korea 5,000 tons in 2022 to Japan
- Veterinary checks rejected 0.5% of dairy imports in 2022 for contaminants
- Growth in cheese imports 6% YoY to $650 million value 2022
- Australia butter exports to Korea 12,000 tons under FTA 2022
- Netherlands cheese market share 15% in Korea imports 2022 at 7,800 tons
- Import growth for UHT milk 10% to 200,000 tons in 2022 convenience demand
- Dairy trade balance deficit 8.5 trillion KRW in 2022
- FTA utilization rate for dairy imports 85% in 2022 KORUS/EU/Aus
- Organic dairy imports 12,000 tons in 2022, Germany top at 40%
Trade Statistics Interpretation
Korea's dairy shelves tell a global story, where a 36% tariff wall around liquid milk stands as a lonely domestic fortress in a sea of foreign butter, cheese, and powder, creating an 8.5 trillion won trade deficit that proves the nation's love for dairy is firmly imported.
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