Korean powdered milk products have gained significant traction across Southeast Asia, with exports to the region nearly tripling over the past decade. The demand for Korean formula milk continues to rise, with exports to the 10 ASEAN nations hitting a record high in 2024.

 

According to data from the Korea Agro-Fisheries & Food Trade Corp. (aT), powdered milk exports to Southeast Asia reached an impressive $30.7 million last year, a substantial increase from $10.5 million in 2014. The volume of exports also saw a sharp rise, with 2,465 metric tons shipped in 2024, marking a 2.6-fold growth from the 932 tons recorded a decade ago.

 

Among the ASEAN countries, Cambodia stands out as the leading destination for Korean powdered milk, with shipments soaring to $15.6 million last year—an astounding 14-fold increase over the past 10 years. In Cambodia, Korean powdered milk market share jumped from 3.3 percent in 2019 to 14.8 percent in 2023. Namyang Dairy Products, one of South Korea’s largest dairy companies, is a major player in this market, contributing over 80 percent of the powdered milk supply in Cambodia. Namyang has not only introduced its flagship milk products but also tailored formulas specifically for the local market.

 

Vietnam is another significant market for Korean powdered milk, with its infant formula market projected to grow from 1.57 trillion won in 2023 to 2.43 trillion won by 2027, according to Euromonitor. Exports of Korean powdered milk to Vietnam have risen by 1.6 times over the past decade, reaching $15 million in 2024. Lotte Wellfood, a subsidiary of Lotte Group, has seen strong growth in the Vietnamese market, driven by the introduction of a Vietnam-specific formula product in 2019. This product saw an 82 percent increase in sales in the first 10 months of 2023.

 

With Korea’s declining birthrate and reduced domestic demand for infant-related products, Korean dairy manufacturers are increasingly focusing on Southeast Asia as a future growth engine for the powdered milk industry. This shift in focus highlights the growing importance of the ASEAN market as a key driver for the continued success of Korean dairy exports.

 

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