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South Korea Dairy Alternatives Market Size

The South Korea Dairy Alternatives Market is experiencing significant growth, with the off-trade segment leading in distribution channels. Supermarkets and hypermarkets play a crucial role due to their strategic locations and omnichannel approaches, which enhance consumer purchasing decisions. The on-trade segment is also expanding, driven by the incorporation of vegan options in fast-food chains. Specialist retailers are expected to be the fastest-growing channel, offering a diverse range of products within specific categories. Plant-based milk dominates the market share, particularly in off-trade channels, reflecting the increasing consumer preference for dairy alternatives.

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Market Size of south korea dairy alternatives Industry

South Korea Dairy Alternatives Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 0.74 Billion
svg icon Market Size (2029) USD 1.04 Billion
svg icon Largest Share by Distribution Channel Off-Trade
svg icon CAGR (2024 - 2029) 7.06 %
svg icon Fastest Growing by Distribution Channel Off-Trade
svg icon Market Concentration Medium

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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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).

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

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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

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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

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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

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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

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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

  • 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.
South Korea Dairy Alternatives Market

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.
Category
Non-Dairy Butter
Non-Dairy Milk
By Product Type
Almond Milk
Cashew Milk
Coconut Milk
Oat Milk
Soy Milk
Distribution Channel
Off-Trade
Convenience Stores
Online Retail
Specialist Retailers
Supermarkets and Hypermarkets
Others (Warehouse clubs, gas stations, etc.)
On-Trade
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South Korea Dairy Alternatives Market Size Summary

The South Korea Dairy Alternatives Market is experiencing significant growth, driven by a shift in consumer preferences towards plant-based diets. This trend is largely influenced by health concerns, sustainability, and the increasing popularity of veganism and vegetarianism in the country. The market is characterized by a strong presence of off-trade distribution channels, with supermarkets and hypermarkets leading in value share due to their strategic locations and extensive product offerings. The omnichannel strategies adopted by these retailers further bolster the market's expansion. On-trade channels, including fast-food chains like Starbucks and Burger King, are also contributing to market growth by incorporating vegan options into their menus. The specialist retailers segment within the off-trade channel is anticipated to grow rapidly, offering consumers a curated selection of dairy alternative products.

Plant-based milk dominates the dairy alternatives sector in South Korea, with soy, almond, and oat milk being the most popular choices. The rising prevalence of milk allergies and the nutritional benefits of plant-based milk are key factors driving its consumption. The market is moderately consolidated, with major players like Dr.Chung’s Food Co. Ltd and Maeil Co. Ltd holding significant shares. Innovations and product launches, such as Califia Farms' new Oat Barista Blend, reflect the industry's commitment to quality and consumer engagement. The market's growth trajectory is supported by increasing per capita consumption of nut-based foods and a growing number of vegan restaurants, indicating a robust shift towards plant-based lifestyles among the South Korean population.

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South Korea Dairy Alternatives Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Category

      1. 1.1.1 Non-Dairy Butter

      2. 1.1.2 Non-Dairy Milk

        1. 1.1.2.1 By Product Type

          1. 1.1.2.1.1 Almond Milk

          2. 1.1.2.1.2 Cashew Milk

          3. 1.1.2.1.3 Coconut Milk

          4. 1.1.2.1.4 Oat Milk

          5. 1.1.2.1.5 Soy Milk

    2. 1.2 Distribution Channel

      1. 1.2.1 Off-Trade

        1. 1.2.1.1 Convenience Stores

        2. 1.2.1.2 Online Retail

        3. 1.2.1.3 Specialist Retailers

        4. 1.2.1.4 Supermarkets and Hypermarkets

        5. 1.2.1.5 Others (Warehouse clubs, gas stations, etc.)

      2. 1.2.2 On-Trade

South Korea Dairy Alternatives Market Size FAQs

The South Korea Dairy Alternatives Market size is expected to reach USD 742.76 million in 2024 and grow at a CAGR of 7.06% to reach USD 1.04 billion by 2029.

In 2024, the South Korea Dairy Alternatives Market size is expected to reach USD 742.76 million.

South Korea Dairy Alternatives Market Report Snapshots

South Korea Dairy Alternatives Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029