South Korea Dairy Alternatives Market Size

South Korea Dairy Alternatives Market Analysis

The South Korea Dairy Alternatives Market size is estimated at 0.74 billion USD in 2024, and is expected to reach 1.04 billion USD by 2029, growing at a CAGR of 7.06% during the forecast period (2024-2029).

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0.74 Billion

Market Size in 2024 (USD)

1.04 Billion

Market Size in 2029 (USD)

8.49 %

CAGR (2017-2023)

7.06 %

CAGR (2024-2029)

Largest Market by Category

98.93 %

value share, Non-Dairy Milk, 2023

Growing investments in plant-based milk marketspace, an increasing vegan and vegetarian population, and nutritional benefits of plant-based milk, is drivng segmental growth.

Largest Market by Distribution Channel

97.49 %

value share, Off-Trade, 2023

The product assortment and shelf space in off-trade retail channels is allowing consumers to compare the products, which has emerged to be one of the major factor driving segmental growth.

Fastest-growing Market by Category

7.11 %

Projected CAGR, Non-Dairy Milk, 2024-2029

Emerging economies provide significant growth opportunities for plant-based milk manufacturers in the country anticipating the segment to be fastest growing duting the forecasted period.

Fastest-growing Market by Distribution Channel

7.11 %

Projected CAGR, Off-Trade, 2024-2029

The presence of market specified products with improved customised product offerings in off-trade retail channels like Specialist retailers is driving the market.

Leading Market Player

30.66 %

market share, Dr.Chung’s Food Co. Ltd, 2022

The availability of products in different packaging and sizes along with extensive distribution throughout the region is making Dr.Chung’s Food Co. Ltd, one of the leading players in the market.

Strong penetration of organized retail channels fueling the market growth

South Korea Dairy Alternatives Industry Segmentation

Non-Dairy Butter, Non-Dairy Milk are covered as segments by Category. Off-Trade, On-Trade are covered as segments by Distribution Channel.

• The off-trade segment dominates the distribution channels of the South Korean dairy alternatives market. Among off-trade channels, supermarkets and hypermarkets occupied a significant value share of 41.69% in 2022. The proximity factor of these channels, especially in large and developed cities, provides them with the added advantage of influencing the consumer's decision to purchase from among the large variety of products available in the store. The omnichannel approach adopted by major supermarket and hypermarket retailers globally also drives the market for dairy alternatives.
• The sales value of dairy alternatives through on-trade channels across the country witnessed a growth rate of 6.05% in 2022 compared to 2021. Several fast-food restaurant chains, such as Starbucks, Papa John's, Subway, and Burger King, have started incorporating vegan food and beverage options in their menus. These QSRs utilized a large amount of vegan cheese, non-dairy butter, and plant-based milk, among others. The per capita consumption of dairy alternatives via on-trade grew by 11.83% during 2017-2022.
• In the off-trade segment, the specialist retailers sub-segment is expected to be the fastest-growing, projected to record a CAGR of 9.59% during the forecast period. Specialist stores allow consumers to choose various products within a specific category, such as vegan food or dairy products, across the same retail channel. This channel allows owners and employees to develop expertise and a reputation for knowledge and selection within the store's defined specialty. By type, plant-based milk holds the majority of share within the off-trade channel. In 2022, plant-based milk accounted for more than 98% of the value share.