Plant-based dairy alternatives are making a sustainable mark on the South Korea market, riding a wave of consumer interest in environmentally friendly products. Despite economic uncertainties and geopolitical tensions, the dairy industry is experiencing a change in consumer preferences. Premium consumers are turning to oat, soy, and almond milk as sustainable alternatives to traditional cow's milk. Plant-based milk prices have seen substantial growth, although at a slightly slower rate compared to traditional cow's milk.
Plant-based yoghurt and cheese in South Korea are flourishing, registering impressive retail volume growth rates. In contrast, soy drinks are facing dwindling demand as consumers explore diverse plant-based options. Although the price gap between traditional and plant-based dairy is shrinking, plant-based options still carry a slightly higher price tag. This, coupled with reduced disposable incomes among consumers, has tempered the resurgence of plant-based choices. However, the sustainability trend continues to drive interest and growth, despite the economic challenges facing the South Korea.
Segmentation by Retail Channel
The retail landscape in the South Korea's dairy and plant-based alternatives market is experiencing a surge in competitive marketing campaigns. Price sensitivity and innovative product formulations are pushing major brands to venture into the plant-based dairy market, expanding the range of options available to consumers. The convenience of e-commerce is driving sales of plant-based dairy, with online availability improving, and convenience stores are also benefiting from the demand for convenient plant-based products. Single-serve yoghurt products are emerging as meal substitutes, aligning with changing consumer patterns. In this ever-evolving landscape, the plant-based dairy market in the South Korea offers growth potential, as consumers increasingly seek sustainable and environmentally conscious alternatives to traditional dairy products.
The plant-based dairy market in South Korea is becoming increasingly competitive as more companies enter the market. With a growing demand for plant-based alternatives to traditional dairy products, companies such as Pulmuone, Maeil Dairies, and Ottogi are all vying for a share of the market. Pulmuone, a leading plant-based food company, has recently launched a new line of vegan cheese products, while Maeil Dairies has introduced a range of plant-based milk products. As the competition heats up, consumers can expect to see more innovative and diverse plant-based dairy products on the shelves.