"Cheese and Yogurt Have Become Part of Daily Life" Dairy Consumption Up 10% in 3 Years

Domestic Dairy Product Consumption Reaches 789,489 Tons Last Year... 9.8% Increase Over 3 Years
While Raw Milk Consumption Declines, Dairy Products See Growing Demand Due to Increased Utility and Functionality

[Asia Economy Reporter Koo Eun-mo] As Western-style eating habits spread, more people are seeking cheese, butter, and functional fermented dairy products, enjoying yogurt as a breakfast substitute, pasta topped with cheese for lunch, and steak grilled with butter for dinner. With various dairy products becoming integrated into our meals, domestic dairy consumption has increased by 10% over the past three years.

According to the Dairy Promotion Board on the 8th, domestic consumption of dairy products such as cheese, butter, and fermented milk reached 789,489 tons last year. Domestic dairy consumption, which was around 719,031 tons in 2018, steadily increased to 761,506 tons in 2019 and 770,782 tons in 2020, growing by 9.8% over the past three years. Among dairy product consumption, fermented milk accounted for the largest share at 72.4% last year, followed by cheese (24.2%) and butter (3.3%).

Although raw milk consumption is generally declining recently, consumption of dairy products made from raw milk continues to increase. Fermented milk is recognized as a light beverage, while cheese and butter are seen as versatile ingredients, prompting the industry to launch various products aligned with consumer perceptions and trends.

Fermented milk, which holds the largest share of domestic dairy consumption, increased from 555,081 tons in 2017 to 571,679 tons last year. The growth of the fermented milk market is attributed to health trends and the implementation of the general food functional labeling system, which has positively impacted the fermented milk market, represented by probiotics.

Notably, the growth of the spoonable (ho-sang) fermented milk market stands out, with Greek yogurt becoming mainstream as it is known to contain less sugar than regular yogurt. Spoonable and drinkable forms of fermented milk account for more than 85% of the total market. Among manufacturers, five companies?Seoul Milk, Maeil Dairies, Namyang Dairy Products, Binggrae, and Dongwon F&B?each hold more than 10% market share, indicating no absolute dominant player.

Cheese consumption increased by 20.7%, from 158,612 tons in 2017 to 191,429 tons last year. Since the Free Trade Agreement (FTA) in 2011, fermented milk consumption has fluctuated, but cheese and butter have shown continuous growth. Cheese is increasingly used as an additional ingredient in almost all foods, including pizza, hamburgers, chicken, and tteokbokki, driving growth in the business-to-business (B2B) market.

By type, processed cheese holds the highest share, recording over 30% market share annually, but interest in natural cheese is rising, causing its share to gradually decline. Among manufacturers, Seoul Milk, Dongwon F&B, and Maeil Dairies are competing in a three-way battle.

Although the absolute volume is small, butter shows the most remarkable growth rate. It grew by more than 130% over four years, from 11,469 tons in 2017 to 26,381 tons last year. The spread of Western-style eating habits has brought attention to butter-based menus, and the COVID-19 pandemic has increased home baking as outdoor activities decreased, contributing to the expansion of butter demand.

This content was produced with the assistance of AI translation services.