Dairy products in Korea are classified into three main categories: cheese, butter, and fermented milk. While domestic raw milk consumption has declined, overall demand for dairy products continues to grow. As of 2021, Korea’s dairy market revenue reached approximately 3.6 trillion won, with fermented milk leading in consumption, followed by cheese and butter. The prolonged impact of the global pandemic has heightened the focus on immunity and wellness, fueling a “healthy pleasure” trend that emphasizes enjoyable, health-oriented products—a shift evident in the rising popularity of innovative dairy items.

Fermented milk is processed milk made by fermenting milk with lactic acid bacteria and other ingredients. The fermented milk market has experienced considerable growth driven by increased consumer interest in health, coupled with various product launches targeting this demand. Probiotic-rich products that support digestive health are particularly popular, with new offerings reducing sugar content while enhancing nutritional value. Notable products include hy’s PRONIQ, Korea’s first spoonable probiotic yogurt; Seoul Dairy Coop’s Duoan, which combines red ginseng and probiotics; and Namyang Dairy’s Bulgaris Fit, formulated with patented probiotics that support fat reduction.

Cheese is produced by adding lactic acid bacteria, rennet, and organic acids to milk or dairy products. The cheese market in Korea has shown an average annual growth rate of 5.4% since 2018. This growth has been fueled by health-conscious trends, evolving tastes towards Western flavors, and expanded cheese distribution. There has been a notable rise in demand for cheese as both a cooking ingredient and a snack, leading to the development of a diverse range of new cheese products. Key offerings include Sangha Cheese’s “Ricotta Cheese,” Imsil Cheese Cooperative’s “Grilling Cheese,” Seoul Dairy Coop’s “Farm Outing String Cheese,” and Binggrae’s “High-Protein Slice Cheese.”

Butter, which is made by separating and fermenting milk fat, has also gained traction as more consumers embrace home baking and cooking, driving demand for premium butter products. In 2021, Korea’s butter market was valued at 42.2 billion won, with forecasts predicting growth to 35.9 billion won by 2026. Leading products include Seoul Dairy Coop’s Morning Butter and Pasteur’s Healthy Fermented Butter. Imported butter is also becoming more popular, expanding the premium market. Notable imports include “Isigny AOP Butter” from France’s Isigny region and “La Conviette Butter,” which has become a French luxury butter.
In light of these trends, the Korean dairy market is poised for continued expansion, with a broader selection of products that focus on both taste and health.