Middle East Dairy

Middle East Dairy

The Middle East dairy market is experiencing robust growth driven by several key factors. Such as the growing population, coupled with rising disposable incomes and changing dietary preferences. As consumers become increasingly health-conscious, there is a growing demand for nutritious and high-quality dairy products. Additionally, urbanization and lifestyle changes have led to an increase in convenience-oriented food consumption, further fueling the demand for dairy products such as yogurt, cheese, and flavored milk. Moreover, the Middle East's hospitality and tourism sectors play a significant role in driving dairy consumption, with hotels, restaurants, and cafes offering a wide range of dairy-based dishes and beverages to cater to domestic and international visitors.

The Middle East dairy market is expected to grow at a steady rate of around 9.7% owing to the government initiatives aimed at promoting food security and self-sufficiency are driving investments in the dairy sector, including dairy farming, processing facilities, and distribution networks. Also, increasing advancements by major players will boost the growth of the dairy market in the region. For instance, in May 2022, Saudia Dairy and Foodstuff Company (SADAFCO) announced the construction of a new sales depot in the holy city of Makkah, Saudi Arabia.

• Based on the product, the market is segmented into milk, butter & cheese, yogurt, and others. Among them, the milk category is expected to grow at the fastest CAGR during the forecast period. This is mainly due to the growing population and rising disposable incomes, there is a steady increase in the consumption of fresh milk, flavored milk, and dairy alternatives. Moreover, the popularity of traditional Middle Eastern dishes and desserts, which often incorporate milk-based ingredients, further contributes to the sustained demand for milk in the region. For instance, in August 2021, as a part of the expansion, Saudia Dairy and Foodstuff Company opened an ice cream factory in Jeddah.
• Based on the distribution channel, the market is segmented into online and offline. Among them, the online category is expected to grow at the fastest CAGR during the forecast period. Due to the increasing popularity of e-commerce platforms and online grocery stores, consumers in the Middle East region have greater access to dairy options from the comfort of their homes. Online platforms offer a diverse selection of dairy products, including meat alternatives, dairy alternatives, and other dairy items, allowing consumers to explore and purchase products that suit their dietary preferences and needs.
• For a better understanding of the market adoption of the Middle East dairy industry, the market is analyzed based on its worldwide presence in countries such as UAE, Saudi Arabia, Oman, Kuwait, and the Rest of the Middle East Countries. UAE is expected to grow at a considerable CAGR during the forecast period. This is mainly due to the growing population, fueled by immigration and urbanization, which is driving demand for dairy products. As more people settle in urban centers like Dubai and Abu Dhabi, there is a greater need for convenient and nutritious food options, including dairy-based products such as milk, yogurt, and cheese. Additionally, the UAE's thriving tourism industry, attracting millions of visitors annually, further boosts demand for dairy products in hotels, restaurants, and cafes. Furthermore, the UAE government's focus on food security and self-sufficiency has led to investments in domestic dairy production and infrastructure. Initiatives such as vertical farming, aquaculture, and modern dairy farming practices aim to enhance domestic food production and reduce reliance on imports. Moreover, the government's support for innovation and technology adoption in the agricultural sector has spurred advancements in dairy farming practices, leading to higher productivity and product quality.
• Some of the major players operating in the market include Danone S.A.; SADAFCO; Al Ain Farms; Almarai; Al RAWABI; Arla Foods amba; LACTALIS; National Food Products Company; Nestlé; Nadec.