Saudi Arabia Dairy - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2017 - 2029

Saudi Arabia Dairy - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2017 - 2029

The Saudi Arabia Dairy Market size is estimated at USD 5.84 billion in 2024, and is expected to reach USD 7.06 billion by 2029, growing at a CAGR of 3.87% during the forecast period (2024-2029).

Popular supermarket and hypermarket chains coming up in the country, proving the rise in consumption through the channel

• Among all distribution channels, the off-trade segment dominates the Saudi Arabian dairy market. Supermarkets and hypermarkets accounted for most of the share in the off-trade segment. In 2022, supermarkets and hypermarkets accounted for 61.92% of the value share. This was due to the strong penetration of popular chains such as Carrefour, Spinney's, Lulu, and Hyper Panda, providing a range of imported and locally made dairy products.
• There is an increasing demand for dairy-based recipes from foodservice channels, which is boosting the market’s growth. Dairy sales in the on-trade channel are anticipated to grow by USD 6,042.2 million in 2025, up from USD 5,332.1 million in 2021. The growth in the segment is attributed to consuming food prepared away from home while eating out at a restaurant or ordering takeout. In 2023, 41% of Saudi Arabian consumers are expected to spend on eating out. In 2021, over 90% of Riyadh's 7.8 million population ate out at least once every week. The average monthly spending on eating out in a restaurant or ordering for delivery is SAR 1,330 (USD 355).
• The rising number of internet users in the region is one of the major factors driving online sales of dairy products during the forecast period. In January 2023, there were 36.31 million internet users in Saudi Arabia. Saudi Arabia’s internet penetration rate stood at 99% of the total population at the beginning of 2023. Between 2022 and 2023, there was a growth of 539 thousand (+1.5%) internet users in Saudi Arabia.
• Among all the dairy products, milk accounted for the majority of share in overall retail channels. In 2022, milk accounted for 30.6% of the total category. Cheese stood in second place with 24.3% of the value share.

Saudi Arabia Dairy Market Trends

Increasing government support, rising health consciousness, and rise of local production are driving the consumption of dairy products in Saudi Arabia

• Saudi Arabia dominates the dairy market consumption in the Middle East due to factors such as the increasing government-run health and wellness campaigns designed to combat obesity and related problems (diabetes, high blood pressure, heart disease, and high cholesterol), which have been encouraging consumers to purchase healthier products and directly fueling the consumption of dairy products in the country. The government has also been ramping up efforts to increase local production by encouraging manufacturers and producers with incentives and subsidies.
• An increasing number of health-conscious consumers are moving toward milk and related products to supplement food with the nutrition required for the body. The majority of the population consumed milk with their tea, coffee, shakes, or drinks. Thus, the per capita consumption of milk in the country experienced an increase of 1.69% in 2022 compared to 2021.
• With the adoption of Western culture and changing food habits, the demand for cheese has been increasing across the country. Cheese is also generating strong demand from the fast food industry, where foreign foodservice operators are strategically expanding their presence. In 2021, the number of Pizza Hut outlets in Saudi Arabia reached 222.
• Laban is majorly consumed by Middle Eastern countries, including Saudi Arabia, as they consider it an essential part of the Arab diet. It is majorly produced in Lebanon and some other Arab countries. With the growing consumption of laban, companies are differentiating their offerings in terms of flavor, ingredient, health benefit claims, and packaging format and size.

Saudi Arabia Dairy Industry Overview

The Saudi Arabia Dairy Market is moderately consolidated, with the top five companies occupying 51.94%. The major players in this market are Almarai Company, Arla Foods AmbA, Danone SA, Saudia Dairy and Foodstuff Company (SADAFCO) and The National Agricultural Development Company (NADEC) (sorted alphabetically).

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