South Korea Butter Market Overview, 2030

The South Korean butter market represents a dynamic and rapidly evolving segment within the country’s dairy industry, shaped by shifting consumer preferences, Western culinary influences, and a growing emphasis on premium and health-conscious products. Historically, butter consumption in South Korea was limited due to traditional dietary habits favoring plant-based fats, but increasing exposure to global cuisine, baking trends, and café culture has spurred demand. The market is characterized by a strong reliance on imports, particularly from New Zealand, Europe, and the U.S., though domestic production is gradually expanding to meet niche demands. Consumers in South Korea exhibit a preference for high-quality, branded butter, often associating imported products with superior taste and texture. The rise of home baking, accelerated by pandemic-induced lifestyle changes, has further entrenched butter as a kitchen staple. Additionally, the market is witnessing a surge in plant-based and lactose-free alternatives, catering to health-conscious and vegan demographics. Regulatory oversight by the Ministry of Food and Drug Safety (MFDS) ensures strict quality and labeling standards, while trade policies under the Korea-Australia Free Trade Agreement (KAFTA) and other bilateral agreements facilitate imports. The South Korean butter market is thus a blend of global influences and local adaptations, driven by urbanization, rising disposable incomes, and a growing foodservice sector. The history of butter in South Korea reflects the country’s broader dietary transition from traditional fermented and plant-based foods to incorporating Western dairy products. Butter was initially a niche import consumed primarily by expatriates and elite households, but economic growth and globalization in the late 20th century expanded its accessibility. The 2000s saw a turning point with the rise of café chains, bakeries, and Western-style dining, embedding butter into mainstream consumption. Regulatory policies, governed by the MFDS, enforce stringent standards on dairy imports, requiring compliance with hygiene, labeling, and preservative regulations. Import tariffs and quotas under trade agreements, such as KAFTA, have gradually reduced barriers, allowing competitive pricing for foreign butter.

According to the research report South Korea Butter Market Overview, 2030, published by Bonafide Research, the South Korea Butter market is expected to reach a market size of more than USD 810 Million by 2030. The South Korean butter market is currently experiencing significant expansion, propelled by a confluence of evolving consumption patterns and dynamic market forces. A notable shift in dietary preferences, particularly among younger demographics, has led to a substantial increase in butter consumption within the nation, rising from previously negligible levels to a more prominent position in the Korean diet. The foodservice sector plays a pivotal role in driving this demand, with a diverse range of establishments, including popular café chains, artisan bakeries, and Western-style restaurants, serving as key consumption channels for butter products. Furthermore, the increasing prevalence of home baking among Korean consumers has emerged as a major growth driver, a trend that has been further accelerated by lifestyle changes associated with recent global events and the widespread popularity of baking-related content disseminated through various Korean social media platforms. A strong trend towards premiumization is evident across all segments of the butter market, with consumers demonstrating a willingness to invest in higher-priced, high-quality butter products, such as those carrying European Protected Designation of Origin (AOP) certifications, and other specialty butter offerings. Simultaneously, growing consumer awareness of health and wellness considerations is fueling demand for both premium dairy butter varieties, including grass-fed and organic options, as well as plant-based butter alternatives, creating distinct market segmentation opportunities within the South Korean butter industry. Trade dynamics play a crucial role in shaping the market, with a significant portion of domestic demand being met through imports, primarily sourced from key dairy-producing nations. The Korea-Australia Free Trade Agreement has had a notable impact on the market, gradually eliminating tariffs on butter imports and providing Australian producers with a competitive advantage.

Salted butter holds a dominant position in retail sales, valued for its versatility in both general cooking applications and baking. Korean consumers generally prefer moderately salted butter varieties that strike a balance between enhancing the flavor of dishes and maintaining flexibility in recipe preparation. Unsalted butter accounts for a significant portion of the market, primarily serving the needs of professional bakers and pastry chefs who require precise control over the final flavor profile of their creations. The premium segment of the market has shown a particular interest in European-style cultured unsalted butter, which is appreciated for its complex and nuanced flavor profile. Plant-based butter alternatives, while currently representing a smaller segment of the market, are experiencing rapid growth, driven by the increasing adoption of vegan dietary trends and concerns related to lactose intolerance among a segment of the population. Local manufacturers are actively innovating with formulations based on ingredients such as soy, coconut, and rice oil, tailoring these products to align with Korean taste preferences. Clarified butter, while maintaining a relatively small presence in the overall market, is gaining traction among health-conscious consumers and in commercial cooking applications where its high smoke point is considered a valuable attribute. Other types such as Flavoured butter, Butter Blends and Low Fat butter. Flavoured Butter include blends with herbs, garlic, honey, cinnamon, or fruits, often used in baked goods and breakfast items. Butter blends mix real butter with vegetable oils to improve spreadability and texture. Low fat butter contains reduced milk fat, offering a lighter option for health-focused consumers.

Traditional block butter remains a dominant format, preferred for its versatility in both general cooking and specialized baking applications. These blocks are typically available in a range of sizes to accommodate different needs, with a particular size being favored by retail consumers. Spreadable butter products have gained significant traction in recent years, particularly among urban households seeking enhanced convenience in their daily routines. These products often incorporate a blend of butter with vegetable oils to achieve a spreadable consistency at refrigerated temperatures, with ongoing innovation focused on developing formulations with cleaner and more transparent ingredient labels. Liquid and oil-based butter products, while currently representing a smaller segment, are experiencing growth in foodservice applications where precise portion control and the ability to withstand high-heat cooking are essential considerations. Single-serve portions have also emerged as an important sub-segment, particularly within the foodservice sector and for on-the-go consumption, demonstrating robust annual growth rates. Whipped butter products, while positioned at a premium price point, are gaining popularity in dessert and bakery applications due to their improved spreadability and enhanced mouthfeel. The market also features specialized forms designed to meet specific needs, reflecting the diverse culinary landscape in South Korea. Packaging innovation is a key area of focus, with major brands introducing features such as resealable wrappers, portion-controlled packaging, and the utilization of sustainable materials to appeal to environmentally conscious consumers. Premium butter products often employ sophisticated packaging, while private label offerings prioritize functional and cost-effective designs.

The food processing industry represents a significant portion of total butter demand, utilizing butter primarily in the production of baked goods, confectionery items, and prepared foods. Industrial users in this sector prioritize consistent product quality, reliable supply chains, and competitive pricing structures, often opting for bulk imports or domestically produced blended butter products. The foodservice sector accounts for the largest share of total butter consumption, with establishments such as cafés and bakeries being the primary consumers, followed by Western-style restaurants and hotels. Foodservice operators are increasingly showing a preference for high-quality European butter varieties in applications where the flavor and presentation are paramount, while also utilizing more cost-effective options for general cooking purposes. Household consumption represents a substantial portion of the market and is experiencing rapid growth, driven by the increasing popularity of home baking among Korean consumers and the adoption of Western-style cooking techniques in domestic kitchens. Retail purchases of butter tend to skew towards smaller package sizes and premium imported brands for special occasions, while consumers often opt for private label or domestic butter products for everyday cooking needs. Emerging applications for butter in South Korea include its use in coffee enrichment, inspired by global trends, and its incorporation into premium convenience food products. The industrial sector also utilizes butter fractions in certain non-food applications, such as in the cosmetics industry, although this remains a relatively minor segment of the overall market.

Supermarkets and hypermarkets are the dominant players in physical retail distribution, accounting for a substantial portion of total sales through major retail chains. These channels offer a wide assortment of butter products, ranging from economy-priced private label offerings to premium imported brands, and employ various promotional activities, particularly during seasonal periods. Convenience stores also play a significant role in the distribution of butter, focusing on smaller-format, ready-to-use products with higher profit margins. Online channels have experienced substantial growth and continue to expand, particularly for premium and imported butter varieties, facilitated by the widespread adoption of e-commerce platforms and specialized online food retailers. Specialty food stores cater to affluent consumers and expatriates by offering curated selections of imported European butters and artisanal butter products. The business-to-business channel operates through specialized dairy distributors that serve the needs of foodservice operators and industrial users, often providing value-added services such as technical support and customized logistics solutions. Traditional markets maintain a presence in the distribution landscape, primarily for domestic butter products and bulk purchases. Distribution strategies vary depending on the product tier, with premium imported butters emphasizing brand storytelling and product provenance through specialty channels, while mass-market products compete primarily on price and accessibility in conventional retail settings. Efficient cold chain management is a critical factor throughout the distribution network, with particular emphasis on ensuring product integrity during last-mile delivery for online orders.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Butter Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Salted Butter
• Unsalted Butter
• Plant-based Butter
• Clarified Butter (Ghee)
• others

By Form
• Blocks
• Spread
• Liquid/Oil
• Others

By Application
• Food Processing Industry
• Food Service Industry
• Household/Retail Consumption
• Others

By Distribution Channel
• Supermarkets/Hypermarkets
• Convenience Stores
• Online Retail
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.