The dairy industry is accelerating efforts to secure new growth drivers as pressure mounts for production cuts due to declining white milk consumption. Companies are moving away from reliance on white milk sales and expanding their product lines to include bakery and dessert items made from cream and butter, as well as protein products. This shift is seen as a way to leverage existing processing capabilities and strong brand recognition.
According to industry sources, Yonsei University’s Yonsei Dairy is continuously expanding its dessert product line in collaboration with convenience store CU. The 'Yonsei Milk Cream Bread,' which debuted in January 2022, surpassed cumulative sales of 100 million units in April. Following the initial success with cream, the company has diversified flavors to include chocolate and melon, and recently introduced matcha cream sandwiches, matcha pavé chocolates, and fresh chocolate pies.
This initiative is regarded as a significant achievement in creating new demand by integrating the milk brand into desserts. Amid declining white milk consumption, the company is processing raw milk into higher-value finished products and expanding its reach to younger consumers through convenience store distribution.
Seoul Milk Cooperative has also recently launched 'Seoul Milk Bread' and 'Seoul Milk Morning Rolls,' intensifying its focus on the B2C (business-to-consumer) bakery market. Both products contain about 10% domestic milk, emphasizing the unique flavor and soft texture of milk. Additionally, the company is expanding its dessert lineup using premium raw milk, including low-fat and A2 milk.
Maeil Dairy is focusing on its bakery and dessert business through its affiliate, M's Bakers. The bakery brand 'Meal°,' operated by M's Bakers, recently opened a store at Lotte Department Store in Pyeongchon and is preparing to enter Lotte Mall at Gimpo Airport. The company is also expanding its B2B (business-to-business) operations by supplying milk and cream-based desserts to convenience stores and restaurants.
Namyang Dairy is concentrating on restructuring its business around its premium dessert brand 'Baekmidang' and protein brand 'TakeFit.' Baekmidang, which specializes in ice cream and desserts made from organic raw milk, currently operates over 60 stores and reported first-quarter sales of 7.6 billion won, a 44% increase from the previous year.
TakeFit has also established itself as a key growth pillar for Namyang Dairy. Launched in 2022 with protein powder, TakeFit has significantly expanded its product range to include ready-to-drink beverages, shakes, energy gels, and more, totaling 18 products across seven lines. As a result, sales in the first half of this year surged 76.1% compared to the same period last year.
The dairy industry's shift towards bakery, dessert, and protein products is closely linked to the structural decline of the white milk market. According to the Korea Agro-Fisheries & Food Trade Corporation (aT), the domestic online bakery market size doubled from 320 billion won in 2021 to 625 billion won last year. The protein food sector, driven by health trends, is also expected to reach 800 billion won this year, representing a new opportunity for the dairy industry to leverage its raw materials and manufacturing technologies.
Industry insiders predict that the prolonged decline in white milk consumption will accelerate the diversification efforts of dairy companies. A representative from the dairy industry stated, "With low birth rates and changing consumption patterns, it has become difficult to expect growth in the white milk market as in the past. The movement to expand into high-growth areas such as desserts and protein foods, based on existing raw milk processing technology and brand competitiveness, will continue in the future."
* This article has been translated by AI.
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