South Korea’s dairy & soy food market set to reach US$8.1bn by 2024, says GlobalData

The South Korean dairy & soy food sector is projected to grow from ₩8.5 trillion (US$7.3bn) in 2019 to ₩9.5 trillion (US$8.1bn) in 2024 at a compound annual growth rate (CAGR) of 2.2%, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘South Korea Dairy & Soy Food – Market Assessment and Forecasts to 2024’ reveals that the sector is majorly driven by growth in the butter & spreadable fats category, which is forecast to register the fastest value CAGR of 5.3% during 2019–2024. The category is followed by cheese and cream, which is expected to record CAGRs of 4.1% and 4% respectively during the next five years.

Sanchi Agarwal, Consumer Analyst at GlobalData, says: “The growth in the South Korean dairy & soy food sector is being driven by the increasing disposable incomes and globalization. Additionally, launch of new product offerings in unusual flavors, targeted at experimental consumers, is also driving sales in the sector.”

‘Hypermarkets & supermarkets’ was the leading distribution channel in the South Korean dairy & soy food sector 2019. It was followed by convenience stores and food & drinks specialists.

The value share of South Korea in the global dairy & soy food sector is expected to decrease from 1.4% in 2019 to 1.3% by 2024. Similarly, the country’s share at regional level is expected to decrease from 4.1% in 2019 to 3.3% by 2024.

Seoul Dairy, Maeil Dairy Industry Co. and Namyang Dairy Products Co. are the top three companies in the South Korean dairy & soy food sector. Seoul Milk and Maeil are the leading brands in the South Korean dairy & soy food sector in value terms in 2019.

Ms Agarwal concludes: “Owing to low fertility rate, the number of children (aged 0-14 years) has been falling continuously in South Korea. This is leading to a decline in the consumption of fresh milk in the country that is impacting the overall growth of the sector.Moreover, the waning popularity of school milk program in South Korea is also contributing to the falling consumption of white milk in the country. Consequently, manufacturers are launching novel product offerings and trying to create new consumption occasions to increase sector sales.”

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