Korean powdered milk exports to Southeast Asia have surged over the past decade, driven by rising demand for Korean infant formula, according to data from the Korea Agro-Fisheries & Food Trade Corporation (aT).
In 2023, exports to the 10-member Association of Southeast Asian Nations (ASEAN) reached a record $30.7 million, nearly triple the $10.5 million recorded in 2014. Export volume also soared, hitting 2,465 metric tons, 2.6 times higher than the 932 tons shipped a decade ago.
Cambodia emerged as the largest market for Korean powdered milk. Shipments to the country skyrocketed to $15.6 million last year, marking a 14-fold increase from 2014. Korean formula milk’s market share in Cambodia grew from 3.3% in 2019 to 14.8% in 2023, with over 80% of the Korean powdered milk products supplied by Namyang Dairy Products, one of South Korea’s largest dairy companies. Namyang has expanded its offerings with a locally tailored product to meet Cambodian consumer preferences.
Vietnam is another key market, with its infant formula industry projected to grow from 1.57 trillion won (2023) to 2.43 trillion won (2027), according to Euromonitor. Korean powdered milk exports to Vietnam rose 1.6-fold over the decade, reaching $15 million in 2023.
Lotte Wellfood, the confectionery division of Lotte Group, has contributed to this growth by launching a Vietnam-specific infant formula in 2019. The product recorded an 82% year-on-year growth in the first 10 months of 2023, highlighting its strong market performance.
Industry experts attribute this export boom to Southeast Asia’s expanding infant formula market, contrasting with Korea’s declining birthrate and shrinking domestic sales. An industry insider emphasized that Southeast Asia offers significant potential, calling it ‘a future growth engine for the powdered milk industry.’
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