China's overproduction of raw milk and decreasing consumption of dairy products, along with competition from local companies, are posing challenges for South Korea's dairy exports. In order to succeed in the Chinese market, Korean dairy companies need to focus on high functionality and differentiation strategies, particularly targeting the growing health awareness trend. Developing products that reflect Chinese consumers' increasing demand for yogurt and adult powdered milk, along with a localization and product differentiation approach, can potentially create new growth opportunities for Korean dairy exports.