Middle East & Africa Dairy Products Market Outlook, 2029

Middle East & Africa Dairy Products Market Outlook, 2029

The market for dairy flavors is changing across the Middle East and Africa. Because of the region's fast population growth particularly among middle-class consumers who seek for premium, healthful dairy flavors there is a comparatively strong demand for the products. Furthermore, one of the factors driving the consumption of dairy flavors in the Middle East is the increased demand for natural food flavors. Dairy flavors have always been in high demand in the Middle East and Africa markets. The market is anticipated to increase as a result of the expansion of the food and beverage, bakery, confectionery, and dairy sectors. Additionally, it is anticipated that the market would develop as a result of the diversification and extension of the dairy flavour distribution channels. Due to increased investment and improved marketing tactics that have allowed companies to gain market share in the Middle East and Africa, the food and beverage sector has had some of the fastest growth in recent years. Customers are searching for pleasant alternatives to their current food habits and modifying their eating patterns. The expansion of dairy-flavoured food makers and merchants is anticipated to benefit greatly from this. The trend of consuming fermented milk, especially for its probiotic benefits, is driving market growth throughout the Middle East and Africa, including Dubai, Abu Dhabi, and Iran. This has resulted in the growth of the ""ethnic fermented milk"" market. Dairy flavors are becoming more and more popular due to these characteristics. Due to rising consumer acceptance and desire for innovative and creative dairy goods including sauces, cheese spreads, and flavour infused milk and milk products, the dairy market in the Middle East and Africa is expanding. The market is gaining from the expanding presence of the food and beverage industries, which is the main application area for dairy products, in addition to the easier access to dairy products. The region's dairy business is expanding as a result of the rising use of products like fondue cheese in the fine dining sector. Yogurt's growth is being driven by consumer demand for probiotic-containing beverages and a shift away from handcrafted dairy products and toward more convenient commercial options. Saudi Arabia leads the Middle East and Africa in production because of its high dairy consumption.

According to the research report ""Middle East and Africa Dairy Products Market Outlook, 2029,"" published by Bonafide Research, the Middle East and Africa Dairy Products market is expected to reach market size of more than USD 26 billion by 2029. Significant urbanization and population increase have occurred in the MEA region. Convenient and ready-to-eat dairy products are in higher demand as more people relocate to cities. Customers may be more inclined to spend money on premium or value-added dairy products, such as organic or fortified dairy goods, as disposable income levels rise in some areas of the MEA region. Probiotics, low-fat, and high-protein dairy products are among the functional dairy products that are in greater demand as people's awareness of health and wellbeing grows. Dairy product manufacturers are expanding their product lines to accommodate a wide range of consumer demands. This includes cheese types, yogurt flavors, and creative dairy-based treats. Many of the MEA region's nations place a high cultural value on dairy goods. Various dairy products are frequently used in traditional recipes and culinary techniques. Initiatives to help the dairy industry may be implemented by certain governments in the MEA region. These may include infrastructural investments, farmer subsidies, and laws that encourage the production of dairy products. Improvements to distribution, shipping, and cold storage along the dairy supply chain guarantee the availability and freshness of dairy products. Due to the exposure of consumers in the MEA region to global food trends, there is a greater need for a wider variety of dairy products as a result of these trends impacting customer preferences.

Major Drivers

Growing Number of Middle-Class People With more people in the middle class and more disposable income, customers now have more purchasing power and can afford a greater variety of dairy products. Rising income levels typically lead to people looking for more upscale and varied dining options. This includes having a taste for a broader variety of dairy products, like premium yogurts, organic milk, and specialty cheeses. The middle class has a tendency to adopt dietary patterns that feature a wider variety of foods due to their increased standard of living. This involves including various dairy products in their meals according to their taste preferences and nutritional value. The middle class is frequently more health-conscious, and as more people become aware of the advantages dairy products have for their health, there is a rising demand for functional dairy products like fortified milk and probiotic-rich yogurts.

Dietary Influences from the West: Consumer preferences have been impacted by exposure to Western lifestyles and eating habits, which has increased demand for a range of dairy products, including cheese, yogurt, and specialized items. The MEA region's food tastes have diversified as a result of exposure to Western eating trends. Customers are becoming more receptive to sampling a range of dairy products that they may not have included in their diets in the past. A large variety of cheeses and processed dairy products are common in Western diets. Demand for imported and regionally made cheeses is rising as consumers in the MEA region become more familiar with these goods as a result of travel and globalization. Owing to its purported health benefits, yogurt a mainstay of many Western diets has grown in popularity in the MEA region. Furthermore, Western traditions have spurred the emergence of specialist dairy products such flavoured and Greek yogurt.

Major Challenges

Climate and Environmental Difficulties: Dairy farming may face difficulties due to harsh weather in some parts of the MEA region. The productivity and sustainability of dairy operations can be impacted by harsh weather, a lack of water, and a paucity of high-quality fodder. High temperatures can have a detrimental effect on dairy cattle, particularly in the MEA's arid and semi-arid regions. Heat stress can lower an animal's ability to reproduce, produce milk, and generally improve its health. Lack of water is a major barrier to dairy farming. Sufficient water is necessary for growing fodder crops and for keeping animals hydrated. The agricultural sectors may compete more fiercely for limited water resources. Intensive dairy production has the potential to cause soil degradation and overgrazing, especially in places with scarce natural resources. Using sustainable land management techniques is essential to reducing these negative effects on the ecosystem.

Feed Quality and Availability: Dairy productivity may be limited by the quantity and quality of animal feed available. Maintaining the health and production of dairy cattle depends on providing them with adequate and nutritious feed. The MEA region contains regions with dry and semi-arid temperatures, which reduces the amount of land that is appropriate for producing feed crops and fodder. The development of nutrient-rich feed can be impacted by extreme temperatures and water constraint. The scarcity of arable land is made worse by competing uses including infrastructural expansion, urbanization, and other agricultural pursuits. The area of land used for forage crops may decrease as a result of this competition. Rainfall is a major factor in agriculture in several parts of the MEA region. The amount and quality of feed for dairy cattle can be impacted by uneven forage supply caused by unreliable irrigation systems.

Based on the product type, the market is divided into Milk, Cheese, Yogurt, Desserts, Butter, cream, others.

Indeed, the market for dairy products in the Middle East and Africa is seeing a notable uptick in the cheese category. The region's consumers are becoming more adventurous when it comes to food and taste, which is driving up demand for cheese variations that go beyond the usual regional offerings. Cheese is seen as an excellent source of calcium, protein, and other important elements, which is in line with the region's increased emphasis on wellness and health. Convenience is another factor; cheese provides these nutrients in an easily accessible and adaptable way. The demand for cheese is further fuelled by the expansion of Western fast food franchises and eateries, as cheese is a staple in many well-known dishes including pizzas, burgers, and sandwiches.

Based on the Distribution channel, the market is divided into Supermarket/Hypermarket, Specialty Stores, Convenience Stores, online retail, Others.

A greater demand for a range of dairy products, including as cheeses, yogurts, and specialized items, has resulted from increased exposure to Western lifestyles and nutritional practices. With their wide range of products, supermarkets and hypermarkets are able to satisfy this need. Growing consumer consciousness about health and well-being has caused them to look for particular dairy products, including organic, low-fat, or functional varieties. It is generally easier for customers to locate health-conscious products in supermarkets and hypermarkets because they have a special section for them. Supermarkets and hypermarkets often host sales, loyalty programs, and promotions to draw in customers searching for low-cost solutions. These marketing campaigns have the power to strongly sway consumers' decisions to buy dairy products.

Based on country report is majorly divided into three major countries, Saudi Arabia, UAE, South Africa.

A wide range of products, including cheese, yogurt, milk, and other dairy derivatives, are produced in Saudi Arabia by the dairy industry. Along with other well-known domestic and international brands, Almarai, the largest integrated dairy companies in the region, is a significant player in the market. Government funding and support have been extremely beneficial to the local dairy industry. Initiatives like the King Salman Program for Agricultural Development and the privatization of dairy farms have made technological improvement and sector expansion possible. Modern dairy farms and processing facilities with cutting-edge machinery have also contributed to increased output and better end product quality. The goal of the Saudi government to achieve self-sufficiency in dairy production is consistent with its ambitions for economic diversification and sustainability. As the business grows, there are many alternatives available to both domestic and foreign investors who want to support the country's dairy supply chain and production. With an emphasis on the nutritional benefits that dairy products provide, the market in the United Arab Emirates has experienced substantial change. According to the report, the introduction of value-added dairy products, changing consumer preferences, and the growing influence of foreign companies are just a few of the reasons driving the growth of the dairy products market in the United Arab Emirates. Dairy product manufacturers are concentrating on optimizing the investment made by dairy farmers by creating programs and instruments that raise the demand for dairy products and build consumer confidence in order to ensure a prosperous future for the dairy industry in the United Arab Emirates. The production of milk is the fourth-largest agricultural sector in South Africa. The milk and dairy industries play a major role in the economy of South Africa through the provision of food security and the earnings from the export of dairy products. In South Africa, the dairy sector primarily uses four breeds: Holstein, Jersey, Ayrshire, and Guernsey. This business is made up of many different economic activities, and there are significant differences in the agricultural and processing methods used to produce dairy products.

The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing. Major companies focus more on product and package innovation and business expansion to strengthen their market position. For instance, in June 2020, Arla Foods amba introduced its popular yogurt product skyr bucket in a sustainable packaging format that would contribute to a 30% reduction in CO2 emission. A lot of small-scale companies are focusing on product quality and clean label to attract more consumers. The market comprises local players, and the number of these players exceeds that of international players. Local companies are continuously trying to expand their inter-country food business footprint in new countries. Considering the increasing demand for various products, key players are making their products available in international markets by entering partnerships with other local players to launch new products in the respective markets. For example, in March 2022, Fonterra launched its New Zealand high-end cheese brand “Kapiti” in China’s retail market, which is expected to meet the rising demand for high-end cheese products in China.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Dairy Products market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• Milk
• Cheese
• Yogurt
• Desserts
• Butter
• cream
• Others

By Distribution Channel
• Supermarket/Hypermarket
• Specialty Stores
• Convenience Stores
• online retail
• Others

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Dairy Products industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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