Surge in Powdered Milk Inventory Highlights Dairy Industry Challenges

In a striking development, domestic milk manufacturers in South Korea have reported an over 80% increase in powdered milk inventory compared to the previous year. This surge is attributed to a combination of factors including declining milk consumption, influenced by lower birth rates and a growing preference for milk alternatives.

Changing Consumption Patterns and Future Concerns

The shift in consumer behavior is evident with the re-evaluation of milk's nutritional value and the rise of protein drinks and plant-based beverages. Statistics from the Korea Dairy Committee show a decrease in per capita white milk consumption from 27.7 kg in 2013 to 25.3 kg in 2023.

Imported UHT Milk: A Looming Challenge

Starting next year, the duty-free status of imported UHT milk under free trade agreements is expected to exacerbate the situation. With imports of UHT milk already on the rise—reaching 48,671 tons last year, a 30.3% increase from the previous year—the domestic dairy industry braces for intensified price competition.