The South Korea coconut milk products industry share is expected to grow at a CAGR of 11.80% between 2025 and 2034. The growing preference for nutrient-rich and low in calorie plant-based food products and beverages, and lactose intolerance among the general public are majorly driving the South Korea coconut market. As consumer preferences evolve, the coconut milk sector has emerged as a powerful player in the broader dairy alternatives category, reshaping not only the food and beverage landscape but also dietary patterns and lifestyle choices.

In this blog post, we’ll explore the various factors fueling the growth of the coconut milk market in South Korea, analyze consumer trends, and assess the future potential of this plant-based segment.

Understanding the Coconut Milk Revolution

Coconut milk, a creamy white liquid extracted from grated mature coconut meat, has long been a staple in Southeast Asian cuisines. In recent years, however, it has gained recognition beyond culinary traditions—positioning itself as a health-focused, dairy-free alternative to milk and cream.

In South Korea, where traditional dairy consumption has faced scrutiny due to rising awareness about lactose intolerance and ethical food sourcing, coconut milk is finding increased favor among consumers, restaurateurs, and health-conscious individuals. The surge in demand for functional foods and clean-label products is also playing a significant role in driving this trend.

Market Drivers Behind the Growth

1. Rise in Lactose Intolerance Awareness

According to global health data, a large portion of the East Asian population, including South Korea, experiences lactose intolerance. The inability to digest lactose, the sugar found in dairy milk, has pushed many consumers toward plant-based milk alternatives like almond milk, soy milk, oat milk, and increasingly, coconut milk. Unlike some alternatives, coconut milk offers a unique flavor profile and culinary versatility, making it suitable for both sweet and savory dishes.

2. Shift Toward Vegan and Flexitarian Diets

The rise of veganism, vegetarianism, and flexitarian lifestyles has been particularly noticeable in urban centers of South Korea. With younger generations and millennials driving the trend toward ethical consumption and sustainable living, plant-based diets have become more mainstream. Coconut milk, being plant-derived and free from animal-based ingredients, aligns perfectly with these lifestyle choices.

3. Nutritional and Functional Benefits

Coconut milk is rich in vitamins C, E, B1, B3, B5, and B6, and offers a good source of iron, selenium, sodium, calcium, magnesium, and phosphorus. It is also low in calories compared to cream and full-fat dairy products. These nutritional attributes make coconut milk a popular choice for those focusing on weight management, heart health, and clean eating habits.

Furthermore, coconut milk contains medium-chain triglycerides (MCTs) which are easily absorbed by the body and may support metabolism and energy production. Functional beverages and wellness drinks infused with coconut milk are becoming increasingly common on supermarket shelves and in cafés.

Innovation and Product Diversification

The South Korean coconut milk market is no longer limited to the beverage aisle. It has expanded across a range of product categories:

• Coconut-based yogurts: These non-dairy yogurts are made using fermented coconut milk and often infused with probiotics.

• Coconut milk ice creams: A favorite among consumers seeking lactose-free dessert options.

• Cooking creams and sauces: Coconut milk is used as a creamy base for sauces in fusion cuisine and even in traditional Korean recipes, where chefs are experimenting with global flavors.

• Ready-to-drink (RTD) coconut beverages: These include flavored coconut milk drinks and smoothies, often combined with superfoods or natural sweeteners.

Retail Expansion and Brand Competition

As demand grows, both domestic and international brands are competing for market share. Supermarkets, health food stores, and online platforms are increasingly stocking diverse coconut milk products. Korean brands are also innovating by incorporating local flavors, such as black sesame or yuzu, to appeal to native tastes.

Meanwhile, the e-commerce boom has made plant-based alternatives more accessible to consumers across South Korea, including smaller cities and rural areas. The convenience of online delivery is helping consumers experiment with coconut milk products from global brands as well.

Consumer Education and Marketing Strategies

Educating consumers about the benefits of coconut milk has been key to market growth. Social media influencers, wellness bloggers, and health professionals in South Korea have played an instrumental role in spreading awareness. Brands are also investing in attractive packaging, sampling campaigns, and collaborations with fitness centers or vegan eateries to reach their target audience.

Additionally, the increased availability of cooking tutorials and recipe videos showcasing coconut milk in traditional Korean dishes like tteokguk, kimchi jjigae, and even desserts, has helped demystify its use and encourage broader adoption.

Regulatory Support and Sustainability Efforts

South Korean authorities have also begun to show greater support for plant-based alternatives through updated food labeling standards and sustainability initiatives. Coconut farming is relatively more sustainable compared to dairy farming, and brands that emphasize their eco-friendly practices—such as using recyclable packaging or sourcing from organic farms—are gaining consumer trust.

This trend ties into the broader climate-conscious movement among South Korean consumers, particularly those under 40, who are increasingly choosing products that minimize environmental impact.

Challenges and Considerations

Despite the growth, the coconut milk products industry in South Korea does face certain challenges:

• Price Sensitivity: Imported coconut milk products can be more expensive than local dairy products, making price a potential barrier for some consumers.

• Taste Preferences: While coconut milk is gaining acceptance, not all consumers favor its distinct taste, especially when used in traditional Korean dishes.

• Supply Chain Reliability: Since coconut is not a native crop in South Korea, the industry depends heavily on imports from countries like the Philippines, Indonesia, and Thailand. Geopolitical issues or natural disasters in these regions could affect supply and pricing.

Outlook: A Promising Future for Coconut Milk Products

The coconut milk industry in South Korea is at a pivotal point. With strong market fundamentals, innovative product launches, and a health- and sustainability-conscious consumer base, the category is well-positioned for long-term growth.

As culinary boundaries continue to blur and plant-based diets become more mainstream, coconut milk will likely evolve from a niche alternative to a household staple. Continued investment in R&D, consumer education, and localized flavors will be essential to unlocking the full potential of this thriving market.