Lactose-free milk gains popularity as demand grows for easier digestion

Dongwon F&B’s Denmark Easily Digestible Milk. (Dongwon F&B)

Lactose-free milk, which eliminates the digestive discomfort associated with regular milk, is rapidly expanding its footprint in the South Korean dairy market.

According to Nielsen data on Sunday, Korea’s offline lactose-free milk market has tripled in size over the past five years, rising from 30.6 billion won ($22.2 million) in 2019 to 90 billion won in 2024.

The overall white milk market, on the other hand, has been shrinking—from 1.44 trillion won in 2021 to 1.28 trillion won last year—largely due to declining birth rates.

As protein consumption continues to rise despite falling milk demand, lactose-free milk is emerging as a key growth driver.

Lactose-free refers to milk that has had its lactose content removed, making it easier to digest for individuals with lactose intolerance.

While milk is often considered a complete food due to its rich protein and nutrient profile, many people lack sufficient lactase—the enzyme needed to break down lactose—and experience bloating, cramps, or diarrhea after consumption.

The sector has become increasingly competitive, with major dairy producers like Maeil Dairies, Dongwon F&B, Seoul Milk, and Namyang Dairy vying for market share.

Maeil Dairies was the first to enter the lactose-free market, launching its Easily Digestible Milk in 2005 using filtration technology that removes only lactose while preserving the rest of the milk’s nutritional value.

More recently, Dongwon F&B has been gaining attention with its aggressive expansion.

The company entered the market in 2021 with its Denmark Easily Digestible Milk line, which has since grown to eight product variants. Dongwon F&B’s lactose-free milk sales have more than doubled annually, driving overall growth in its dairy division. In 2024 alone, the segment generated about 50 billion won in revenue.

With demand rising, food manufacturers are now incorporating lactose-free milk into a broader range of products, including ready-to-drink coffee, protein supplements, and even pet foods.

A standout example is Dongwon F&B’s Latte Made with Denmark Easily Digestible Milk, which surpassed 5 million units in cumulative sales just four months after its February launch. Another example is hy’s Petcurt Healthy Project Wal, a lactose-free milk product formulated specifically for dogs.