Dairy Wastewater Treatment, Dairy Processing Industries Inform Changing Dietary Patterns

Hi, I'm Sohee Jeon from ARLK. What do you think about food consumption patterns in Korea?

If you remember the Korean family meals of white rice, soup, and side dishes, they've changed a lot since then, with coffee, dairy + bakery, high-quality fruits and vegetables, and fast food taking their place. Consumption of rice and kimchi has decreased, as evidenced by the proliferation of coffee franchises and the growth of dairy processing.

With the growth of the dairy processing industry and changing consumption patterns, companies should also consider investing in wastewater treatment to improve efficiency and reduce energy consumption in wastewater treatment facilities.

Briefing on South Korea's dairy processing industry, ranked 3rd among food industries

1. Industry Rankings: The South Korean dairy processing industry occupies an important position within the food and beverage industry, ranking around third within the food processing industry.
2. Number of companies: Since 2020, the number of companies involved in dairy processing is estimated to be around 500, with companies ranging in size from small to large.
3. Growth: Since 2020, the COVID-19 pandemic and changes in the food service industry have temporarily increased the demand for dairy products, but it has now stabilized, with a compound annual growth rate (CAGR) of around 2.51 TP3T.
4. Increase or decrease the number of brandsThe number of dairy brands has been on a slight upward trend in recent years. Brands continue to emerge with new health trends and customized products.
5. Exports and companies with international presence: Overseas exports of dairy products are expected to reach about $100 million in 2023, with exports increasingly centered in Asia and the Middle East. Major players include Seoul Milk and Namyang Dairy.

Item	Contents
Industry Rankings	Approximately #3 in the food processing industry
Number of companies	About 500
Growth	CAGR of 2.51 TP3T
Increase or decrease the number of brands	Slight increase
International exports	Approximately $100 million (as of 2023)
Enterprises	Seoul Milk, Namyang Dairy, etc.

Specific dairy types and their ups and downs

Types of dairy products, less white milk, more fermented milk and ice cream

• Fermented milk: The fermented milk market has seen significant growth in recent years. Drinking yogurt, liquid yogurt, and scoopable yogurt have become the mainstream, with benefits ranging from gut health to beauty and mental care, and health-oriented fermented dairy products like Greek yogurt are particularly popular.
• White milk: Traditionally a large consumer, the market has shrunk somewhat in recent years as a result of declining birthrates and a declining infant population.
• Ice creamIt is highly consumed, especially during the summer months, and is sold in a variety of forms. They are categorized according to their milk fat percentage and milk solids content, and are known for being high in calories and low in nutrition.
• YogurtYogurt is a product typically made by fermenting milk with lactic acid bacteria.

In addition to these, a variety of other dairy products are being sold in the domestic market, and products that take into account the health and functionality of consumers are gaining particular attention.

Changes in the dairy market Post-2020, a declining birthrate and an aging population demand high-functioning, high-nutrient, healthy foods.

• In 2020: 4,448,459 tons
• In 2021: 4,448,459 tons (peak)
• 2022: 4.41 million 490 tons (down slightly)
• 2023: 4.385 million tons (approximately 21 TP3T less)

This graph shows the impact of high prices, low birth rates, and the popularity of foreign pasteurized milk on the decline in domestic milk consumption. Additionally, imports of foreign pasteurized milk have been steadily increasing since 2020.

Looking at the change in consumption of milk-based dairy products in South Korea from 2020 to 2024, the traditional white milk market is declining, while the fermented milk market is growing.

Since 2020, the white milk market has been shrinking due to declining birthrates and a declining infant and child population. In 2023, the white milk market was valued at KRW 1.659 trillion, a decrease of 0.51 TP3T year-on-year. In contrast, the fermented milk market is growing rapidly. In 2023, the fermented milk market was valued at KRW 2.625 trillion, up 2.71 TP3T year-on-year, and is expected to grow to KRW 2.2498 trillion by 2026.

The growth of the fermented milk market is driven by the launch of various functional products and health trends. In particular, the popularity of fermented milk products with various functions ranging from gut health, beauty, and mental care has expanded the market.

As such, the domestic dairy industry is focusing on differentiated dairy products such as fermented milk to overcome the decline in traditional white milk consumption.

Dairy Wastewater Major Constituents

Raw materials	Crude Oil
Additives	-.EmulsifiersA substance that helps the fat and water in milk to mix stably, usually lecithin or various food additives. This improves the texture of the milk. -.Acidic additivesAdding an acid, such as milk acetic acid or citric acid, to adjust the pH and promote fermentation. This plays an important role in the manufacturing process of things like yogurt and cheese. -.Enzymes: Enzymes are used to break down casein and lactose. For example, lactase breaks down lactose so that it can be consumed by people who are lactose intolerant. -.PreservativesPreservatives used in small amounts to increase the preservation of milk include sorbic acid or benzoic acid. -.Flavor additives: In products like chocolate milk or strawberry milk, artificial or naturally occurring flavoring ingredients are added.
Contaminants	BOD,COD,N-Nucleic Acids, Fats-Proteins-Nutrients