April 8, 2026

 

South Korea's Seoul Milk Cooperative develops premium strategy in response to country's falling milk consumption

 

 

Amid declining milk consumption in South Korea due to low birth rates and an aging population, and the expansion of tariff-free imports, domestic dairy companies are restructuring their businesses.

 

While some diversify product portfolios or expand new ventures, Seoul Milk Cooperative is responding with a premium strategy centered on 'A2+ Milk.'

 

Seoul Milk has strengthened its management system across production and distribution by focusing on freshness and raw milk quality, the core elements of milk. In 1984, it introduced South Korea's first 'cold chain system,' establishing a distribution structure that maintains refrigeration from raw milk production to consumption. In 2005, it launched 1A-grade bacterial count milk, and in 2009, introduced a 'manufacturing date parallel labeling system' to allow consumers to directly check product freshness.

 

Recently, the company has been enhancing product competitiveness through 'A2+ Milk.' Launched in April 2024 after a five-year investment of approximately ₩800 million (US$600,000), 'A2+ Milk' uses only raw milk from cows with the A2 protein genotype. A2 protein, a type of milk protein, is known to produce fewer substances during digestion compared to A1 protein found in regular milk, resulting in less bloating after consumption.

 

The product uses raw milk meeting 1st-grade somatic cell count and 1st-grade bacterial count standards, undergoing four stages of inspection across the farm, milking, production, and product stages. Additionally, an extra process to remove bacteria and microorganisms ensures quality maintenance during distribution.

 

Seoul Milk Cooperative plans to expand its A2-based production system in the mid- to long-term. By 2030, it aims to gradually increase the proportion of A2 raw milk and expand production accordingly. To this end, the company is expanding dedicated A2 farms, establishing production infrastructure, and improving quality management systems.

 

According to the company, 'A2+ Milk' is gaining popularity not only among consumers who experience digestive discomfort after drinking milk but also among general consumers. Within five months of its launch, it recorded cumulative sales of 22 million units, surpassing 100 million units by December last year.

 

The product lineup has also expanded. 'A2+ Milk' is currently available in 180mL, 710mL, 900mL, 1.7L, and 2.3L sizes. In July last year, a sterilised product (170mL) was added to enhance storage and portability convenience.

 

A source from the Seoul Milk Cooperative said: "Sales of 'A2+ Milk' continue based on our strategy focused on freshness and raw milk quality. We plan to expand products utilising A2 raw milk to target the premium milk market."

 

- The Chosun Daily