Korean powdered milk products have surged in popularity across Southeast Asia, with exports nearly tripling over the past decade as demand for Korean formula remains on the rise, data showed Tuesday.
According to data from the Korea Agro-Fisheries & Food Trade Corp., or aT, powdered milk exports to the 10 member nations of the Association of Southeast Asian Nations hit a record high of $30.7 million last year, up from $10.5 million in 2014.
The export volume also saw a sharp rise, reaching 2,465 metric tons last year — 2.6 times higher than the 932 tons recorded a decade ago.
Among ASEAN countries, Cambodia stands out as the largest export destination, with Korean formula milk powder shipments soaring to $15.6 million last year, showing a 14-fold increase over the past decade.
Korean powdered formula milk held a 3.3 percent market share in Cambodia in 2019, but by 2023, it had jumped to 14.8 percent. Over 80 percent of the powdered milk products in Cambodia come from Namyang Dairy Products, one of South Korea's largest dairy companies, which not only sells its flagship powdered milk but has also launched a product tailored to the local market.
Vietnam is another key market, with its infant formula market projected to grow from 1.57 trillion won in 2023 to 2.43 trillion won by 2027, according to global market research firm Euromonitor. Korean powdered milk exports to Vietnam have risen 1.6-fold over the past decade, reaching $15 million last year.
Lotte Wellfood, the confectionery arm of Lotte Group, has seen strong export growth, having introduced a Vietnam-specific formula product in 2019. The product recorded an 82 percent on-year growth in the first 10 months of 2023.
An industry insider noted that, amid Korea’s declining birthrate and the resulting drop in domestic infant-related sales, Korean dairy manufacturers are increasingly turning to Southeast Asia, which could serve as "a future growth engine for the powdered milk industry."
minmin@heraldcorp.com
