Industry Trend Analysis - Opportunities For EU Exporters Amid Booming Cheese Demand - OCT 2017
BMI View: Free trade agreements with major dairy exporting region s and a growing consumer preference for premium dairy products domestically means South Korea offers an attractive dairy market for foreign producers over our forecast period to 2021. Furthermore, the outlook for domestic dairy production in Korea is subdued , as raw milk prices remain high, and we expect overseas brands to increasingly take advantage, especially in the cheese segment where consumer demand is booming.
South Korea is becoming increasingly reliant on dairy imports, as domestic consumption growth continues to outpace production. Imports of dairy products (inc. milk, cheese, butter and yoghurt) into South Korea surpassed USD695.5mn in 2016, up 142% in a decade, from USD286.8mn in 2006.
Three key factors are behind this trend, each of which is explained in greater detail below:
Demand For Cheese South Korea - Cheese consumption, '000 tonnes e/f = BMI estimate/forecast. Source: National Sources/BMI
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