Lactose-free dairy products from Korean companies; From left: Dongwon F&B's Denmark Easy-to-Digest Milk (translated) and Denmark Latte Made with Easy-to-Digest Milk (translated), Seoul Milk Cooperative's Thicker Plain Yogurt and Paul Bassett's "Sojal Latte," made with Maeil Dairies' lactose-free milk.EACH COMPANY
As demand for regular milk continues to decline in Korea, dairy companies are turning to lactose-free products to attract consumers seeking easier-to-digest alternatives, fueling rapid growth in a once-niche market.
Dairy companies are expanding their lactose-free product lines to meet growing demand, according to industry sources on Oct. 15.
Seoul Milk Cooperative recently launched Thicker Plain Yogurt Lactose Free, a yogurt containing zero grams of lactose. The launch marks the company's expansion into lactose-free yogurt, following the introduction of its lactose-free milk product, Comforting Milk.
The popularity of lactose-free products is also reflected in rising sales.
Dongwon F&B's lactose-free milk brand, Denmark Easy-to-Digest Milk (translated), is projected to surpass 100 billion won ($75 million) in sales this year.
Its ready-to-drink coffee product, Denmark Latte made with Easy-to-Digest Milk (translated), has sold more than 20 million units since its launch last year.
"Sojal Latte," a latte made with Maeil Dairies' lactose-free milk and sold at the coffee chain Paul Bassett, has become a steady seller since its introduction in 2020. "Sojal" combines the Korean words sohwa, meaning digestion, and jaldoeda, meaning to go well, referring to milk that is easy to digest.
The growing lactose-free market is also offering a potential lifeline to dairy companies struggling with declining demand for regular milk.
Per capita consumption of regular white milk in Korea fell 9.5 percent from the previous year to 22.9 kilograms (50.5 pounds) last year, according to the Korea Dairy Committee. That was the lowest level since the late 1980s.
Milk is displayed at a supermarket in Seoul on March 23.YONHAP
The decline has been attributed to Korea's falling birthrate, which has reduced the number of children — a key consumer group for milk — as well as changing dietary habits, with more consumers choosing coffee or protein drinks over milk.
In contrast, the lactose-free milk market has continued to expand.
The market nearly tripled over five years, growing from 30.6 billion won in 2019 to 90 billion won in 2024, according to Nielsen Korea.
"Some studies have found that 75 percent of the world's population and 80 percent of Koreans have lactose intolerance, so we believe the potential market is enormous," a retail industry source said.
Beyond lactose-free products, dairy companies are diversifying their beverage offerings to attract consumers.
Dongwon F&B's dairy brand Denmark now offers around 40 different dairy products.
Seoul Milk has also expanded its portfolio with products such as Seoulmilk A2 Plus, Low-Carbon Certified Milk, Oat Milk and Protein Energy Chocolate.
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.
