Milk on shelves at a hypermarket in Seoul. [Yonhap]
Milk on shelves at a hypermarket in Seoul. [Yonhap]

South Korean dairy companies are moving away from a white-milk-centered business model, diversifying their portfolios into protein products, fermented dairy and plant-based beverages. The shift comes as falling birth rates weigh on milk consumption and tariffs on imported milk are set to be scrapped.

Maeil Dairies posted sales of 745.6 billion won in its non-dairy processing segment last year, up about 8.7 percent from 686 billion won ($447 million) in 2023, according to Yonhap News Agency. That segment's share of total sales also rose consistently, climbing from 38.5 percent in 2023 to 40.4 percent last year.

Plant-based drinks — including Amazing Oat, Maeil Soy Milk and Almond Breeze — along with the adult nutrition brand Cellex drove the gains. The company has also been expanding exports by opening a dedicated brand store on JD Health, a Chinese online healthcare platform.

Seoul Milk recorded fermented dairy sales of 187.4 billion won last year, up 6.2 percent from the previous year, boosted by strong sales of its The Rich brand and others. Namyang Dairy Products saw first-quarter sales of its protein brand TakeFit surge 72 percent year on year. The company has been expanding its product lineup — including lactose-free, high-protein and low-fat options — and diversifying its domestic and overseas sales channels.

Ildong Foodis also reported a 25 percent year-on-year increase in protein beverage sales in the first half of this year. Its Hymune brand has surpassed cumulative sales of 600 billion won since its 2020 launch. Yonsei Dairy is strengthening its functional food business to target demand from older consumers and those managing chronic conditions. The company launched Severance Care, a care-food brand co-developed with Yonsei Severance Hospital, in January, and plans to add products for diabetic patients and expand its retail distribution channels in the second half of this year.


siuu@heraldcorp.com