The South Korean dairy industry is finding growth opportunities by exporting baby formula amid the country’s declining birth rates.

According to the Korea Agro-Fisheries & Food Trade Corp. on Tuesday, baby formula exports to the Association of Southeast Asian Nations (ASEAN) hit a record high of $30.7 million in 2024, or a nearly threefold increase from the 2014 $10.5 million figure. Export volume also surged, with 2,465 tons shipped in 2024 - around 2.6 times the 932 tons exported in 2014.

While domestic sales of infant products, including formula, have declined due to the lingering low birthrate, Southeast Asia’s growing market is emerging as a key driver of future growth for Korea‘s baby formula industry.

Among ASEAN countries, Cambodia is the largest importer of Korean formula. Exports to the country totaled $15.6 million in 2024, a remarkable 14-fold increase over the past decade. Approximately 80 to 90 percent of the formula products sent to Cambodia come from Namyang Dairy Products Co., which exports its flagship product, Imperial XO. The company expanded its market by launching a Cambodia-exclusive product, Star Grow, for local consumers.

Exports to Vietnam have also seen notable growth, increasing by 1.6 times over the past decade to a total of $15 million. Lotte Wellfood Co. has experienced significant export growth in the country, strengthening partnerships with local distributors by promoting its Vietnam-specific powdered milk product, Nubone. Lotte Wellfood plans to expand Nubone’s distribution network to Malaysia.

Meanwhile, Il Dong Food’s Co. is focusing on exporting products to balance children’s nutrition to Vietnam while developing new products for export.

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