'유업체 주력' White Milk Consumption Declines but Processed Milk Shows Upward Trend

Banana, Choco, Strawberry, and Coffee Milk Annual Sales Increase
Varied Flavors and Aromas Reduce Aversion
Sales Seem to Rise Mainly Among Primary Consumers Like Elementary Students

Sales of plain milk, which are the main focus of major dairy companies such as Seoul Milk Cooperative, Maeil Dairies, and Namyang Dairy Products, continue to decline, while the processed milk market, which adds flavors and scents such as banana, chocolate, strawberry, and coffee, is showing growth. Despite the challenges faced by plain milk due to declining birth rates and the emergence of alternative products, diversified products in taste and composition are gaining consumer preference.

Consumers are selecting milk at Seoul Hanaro Mart. Photo by Younghan Heo younghan@

According to market research firm Market Link on the 14th, in the domestic milk market, sales of plain milk and processed milk have shown contrasting results since 2021, after a slump in sales following the outbreak of COVID-19 in 2020. Plain milk sales decreased every year from 1.8001 trillion KRW in 2020 to 1.4834 trillion KRW last year, and recorded 1.1001 trillion KRW up to the third quarter this year, down about 12% compared to the same period last year.

The trend for processed milk is different. Sales up to the third quarter of this year have slightly increased or remained similar compared to the same period last year. For example, banana milk recorded sales of 212.2 billion KRW during this period, an increase of about 5% compared to the same period last year. Strawberry milk also achieved cumulative sales of 90.6 billion KRW up to the third quarter, growing more than 7% year-on-year. Sales of chocolate milk and coffee milk up to the third quarter were 143.1 billion KRW and 47.1 billion KRW respectively, close to last year's 145.9 billion KRW and 48.2 billion KRW for the same period. Processed milk showed particularly notable performance in last year's annual sales trend, with banana, chocolate, strawberry, and coffee milk all recording double-digit growth rates despite a 4.47% decrease in plain milk sales compared to the previous year.

The growth trend of processed milk is closely linked to the survival strategies of dairy companies. Consumption of plain milk, which accounts for about 65% of total manufacturer sales, is declining every year, while imported products boasting cost-effectiveness (performance relative to price) such as sterilized milk and private brand (PB) products from distribution channels are expanding their market presence.

An industry insider explained, "In the past, plain milk was perceived as an essential food for growing children or middle-aged and older adults' health, encouraging consumption, but now there are many health drinks that can replace milk, and even within plain milk, the number of competing products has increased. Processed milk with diversified tastes and flavors is effective in expanding the consumer base of the overall milk market."

In fact, milk sales at convenience stores, which are preferred by elementary school students?the main age group consuming milk among major sales channels?have increased significantly. As of last year, total milk sales at all retail stores combined, including department stores, discount stores, chain supermarkets, and general grocery stores, amounted to 2.1766 trillion KRW, a 0.35% decrease compared to the previous year, but convenience store milk sales rose 7.57% to 626.1 billion KRW, showing the largest increase. An industry official said, "It appears that processed milk sales increased in some channels last year as the main consumer group, teenagers, returned to normal school attendance after COVID-19."

On the other hand, there are criticisms that dairy companies are trying to offset losses by setting higher price increases for processed milk than for plain milk. This year, the basic price of raw milk rose by 88 KRW per liter based on drinking milk, and major dairy companies reflected this in product prices. However, while the price increase for plain milk was limited to 3-4%, processed milk saw a differential increase of around 10%, leading to criticism of this as a 'trick.'

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