Pearson Korea Blog

Korea Business Formation: Opportunities in the Growing Plant-Based Yogurt Market

Written by Zion Shim | Feb 14, 2025 1:36:30 AM

As consumers become increasingly health-conscious and environmentally aware, plant-based alternatives are gaining traction in South Korea. Among these, plant-based yogurt is emerging as a key trend in 2025, appealing not only to vegans but also to individuals with lactose intolerance or dairy allergies. This article explores the global market dynamics and Korea’s evolving plant-based yogurt landscape.

Global Expansion of Plant-Based Yogurt

The plant-based yogurt industry has been experiencing rapid growth worldwide. In 2022, the market was valued at approximately $5.04 billion, with projections estimating a compound annual growth rate (CAGR) of 9.2% through 2032. This expansion is driven by the increasing demand for healthier and more sustainable food options. Factors such as innovative flavors, visually appealing packaging, and the rise of brands specializing in plant-based products have contributed to this surge.

This global movement is influencing consumer behavior in Korea, where alternative food options are steadily gaining popularity. As health-conscious dietary habits become the norm, plant-based products are securing their place in the mainstream market.

Korea’s Yogurt Market and the Rise of Dairy-Free Alternatives

The Korean yogurt market has been on an upward trajectory since 2020. According to Euromonitor, the market size, valued at KRW 1.8 trillion in 2018, is forecasted to reach KRW 2.1 trillion by 2025. With this growth, the demand for non-dairy yogurt alternatives is also increasing, as consumers seek healthier and more sustainable food choices.

Key Industry Players Leading the Shift

Starbucks Korea & Pulmuone Danone

  • In 2022, Starbucks Korea launched the world’s first plant-based yogurt beverage, the Pine Coco Green Yogurt Blended, which received positive reviews for its refreshing taste and health benefits.
  • Pulmuone Danone introduced its plant-based yogurt line, Activia Plant-Based, in early 2023. Selling over one million cups within just three months, this product gained popularity, particularly among women in their 30s, solidifying the company’s presence in this growing segment.

Factors Driving the Popularity of Plant-Based Yogurt

  1. Health and Wellness Priorities

    Consumers are increasingly focused on nutrition and well-being. Plant-based yogurt, often lower in calories and easier to digest than traditional dairy yogurt, is an attractive option for those mindful of their gut health and weight management.

  2. Sustainability Considerations

    With growing awareness of the environmental impact of animal-based food production, many consumers are turning to plant-based alternatives. Producing plant-based yogurt results in lower carbon emissions and requires significantly less water compared to dairy-based products.

  3. Growth of Vegan and Specialty Diet Markets

    The number of vegans and individuals with dietary restrictions due to lactose intolerance or allergies is on the rise in Korea. This trend has fueled demand for dairy-free yogurt options, making plant-based alternatives more widely available.

  4. Diverse Product Offerings

    Initially, plant-based yogurt options were limited in variety. However, today’s market offers a wide selection, including yogurts made from coconut, almond, oat, cashew, and more. This diversity increases consumer interest and accessibility.

Market Outlook: Growth Prospects for 2025

By 2025, plant-based yogurt is expected to establish itself as a key category in Korea’s food industry. As consumers continue to seek out healthier and more sustainable products, the market is anticipated to expand significantly.

Business Opportunities in the Plant-Based Yogurt Sector

The rise of plant-based yogurt presents a lucrative opportunity for food manufacturers and retailers. Companies that align their product development and marketing strategies with consumer preferences for health and sustainability will have a competitive edge. Factors such as localized flavors, strategic online promotions, and effective consumer education will be essential in capturing market share.

Entering the Korean Market: Steps for Foreign Brands

For international brands looking to expand into Korea, establishing a local presence is a critical step. Key considerations include:

  • Capital Investment: Structuring financial resources based on industry requirements.
  • Business Plan Development: Conducting market research and setting clear financial goals.
  • Regulatory Compliance: Ensuring adherence to local laws and obtaining necessary permits.
  • Office Registration: Establishing a registered office or virtual office for operations.

Conclusion

With the right strategies, foreign brands can successfully enter Korea’s non-dairy yogurt market and capitalize on its growing demand. Understanding consumer preferences, adopting premium positioning, and ensuring regulatory compliance are essential for long-term success.

At Pearson & Partners Korea, we specialize in helping foreign businesses navigate market entry, regulatory requirements, and business incorporation in Korea. Contact us for expert guidance on launching your brand in Korea.