Shelf-stable milk imports continue to rise even as domestic milk consumption declines

Domestic milk consumption continues to decline, but imports of shelf-stable milk from overseas are on the rise.

Milk products are on display at a retail store in Seoul on Jan. 1. [NEWS1]

Domestic milk consumption continues to decline, but imports of shelf-stable milk from overseas are on the rise.

Imports of sterilized milk jumped from 4,000 tons in 2018 to over 10,000 tons for the first time in 2019, and reached 48,000 tons in 2024 — more than 10 times the volume in 2018, according to the Korea Customs Service. In the third quarter of 2025 alone, 17,424 tons of sterilized milk were imported, marking the highest quarterly volume ever — a 41 percent increase from the same period the year before.

This trend is especially striking given the ongoing decline in domestic milk consumption, largely attributed to Korea’s falling birthrate. Domestic milk consumption dropped from 4.4 million kilograms (4,850 tons) in 2021 to 3.9 million kilograms in 2024. Per capita consumption also declined from 86.1 kilograms to 76 kilograms during the same period.

Industry observers say that rising food prices — including for milk — have led consumers to turn to cheaper alternatives such as imported shelf-stable milk, referring to milk that has undergone Ultra-High Temperature pasteurization and can be stored in a pantry for months.

Korea’s dairy industry is being hit with a double blow: falling consumption and weakening price competitiveness against imports. Milk consumption in Korea is heavily dependent on school meal programs and young children, both of which have been affected by the shrinking school-age population. At the same time, more consumers are replacing milk at breakfast with alternatives such as coffee, soy milk and almond drinks.

Adding to the challenge is Korea’s high raw milk price, which is among the highest in the world, making exports difficult. The price per liter of raw milk in 2024 in won terms was 1,246 won (86 cents) in Korea, 1,130 won in Japan, 744 won in Poland, 670 won in Australia and 629 won in the United States, based on 2024 data compiled by the Korea Dairy Committee and the U.S. Department of Agriculture.

The high price of Korean raw milk is mainly due to structural inefficiencies in the domestic dairy industry: While the number of farms is relatively high, the number of cows per farm is low, limiting economies of scale. Additionally, Korea’s heavy reliance on imported cattle feed means that fluctuations in exchange rates and global grain prices directly affect production costs.

Milk products are on display at a retail store in Seoul on Feb. 28, 2025. [YONHAP]

The situation is expected to worsen in 2026, as milk tariffs are set to drop to zero under existing free trade agreements. As of this year, U.S. milk will become duty-free, down from 2.4 percent in 2025. European milk tariffs, which ranged from 2.5 to 4.8 percent last year, have now been reduced to between zero and 2.5 percent.

To stay competitive, Korean dairy companies are emphasizing the freshness of domestic milk. In a recent survey conducted by the Korea Dairy Committee involving 3,000 consumers nationwide, 57.7 percent selected “freshness” as the top factor when buying milk — far higher than the 13.8 percent who cited “price.” In fact, fresh milk accounts for 91 percent of Korea’s offline retail market.

“Fresh milk and sterilized milk are fundamentally separate markets,” said a Seoul Milk representative. “There is a clear difference in taste, and consumer preferences vary accordingly.”

Korean dairy companies are adapting to survive. Seoul Milk plans to expand its line of premium products, highlighting freshness and functionality that imports cannot replicate. Maeil Dairies is focusing on adult nutrition products, and Namyang Dairy Products is expanding its protein brand and investing in functional health foods.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. BY KIM KYUNG-HEE [yoon.soyeon@joongang.co.kr]