GCC Dairy Market Report and Forecast 2024-2032

GCC Dairy Market Size

The GCC dairy market reached a value of nearly USD 10.49 billion in 2023. The market is further expected to grow at a CAGR of 5.3% in the forecast period of 2024-2032. By 2032, the market is projected to reach an estimated value of USD 16.70 billion.

GCC Dairy Market Outlook

• Greek and probiotic yogurt consumption is growing rapidly in the GCC countries, driven by its perceived health benefits and the availability of a wide range of flavours.

• As per industry reports, Qatar witnessed the highest milk and dairy production growth rate in the GCC at 25.7% CAGR, while Saudi Arabia was the region's leading producer, accounting for 71.4% of total output in 2021.

• The GCC region's overall self-sufficiency ratio for milk and dairy products stood at 62.6% in 2021, the highest among all food categories. Saudi Arabia had the highest self-sufficiency ratio at 81.0%, followed by Qatar (77.9%), Oman (46.6%), and the UAE (35.5%).

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GCC Dairy Market Growth

Dairy products are an important component of the daily balanced diet, including milk and products derived from milk. They contain essential nutrients like calcium, protein, magnesium, iodine, phosphorus, and various vitamins, among others. These products have numerous health benefits due to these nutrients and help in preventing diseases like type-2 diabetes, hypertension, musculoskeletal diseases, and heart diseases, among others.

The GCC dairy market expansion is being driven by rising health consciousness, especially among the women, leading to increased consumption of fermented dairy products like yoghurt and probiotic products. The influence of western culture on account of increasing expatriate population has also resulted in a change in food consumption habits, contributing to the growth of processed dairy products in the region.

Key Trends and Developments

Rising levels of domestic dairy productions, rise of e-commerce, and growing demand for speciality dairy products are influencing the GCC dairy market development

February 2023

Almarai completed the acquisition of International Dairy and Juice Limited (IDJ), a former joint venture with PepsiCo in Egypt and Jordan. This acquisition enabled the company to strategically expand in the wider region.

February 2023

Baladna, a leading dairy and food manufacturer in Qatar, signed a significant manufacturing agreement with the France-based Bel Group. This partnership involved the production of The Laughing Cow cheese in jars, marking a strategic move to expand dairy offerings in Qatar.

October 2022

Al Ain Farms launched a new range of lactose-free dairy products in the UAE, which includes Full Fat Fresh Milk 1L, Full Fat Long Life Milk 1L, Full Fat Fresh Yoghurt 400gr, and Full-Fat Laban 400gr, providing consumers with the nutritional benefits of dairy without lactose-related discomfort.

May 2022

SADAFCO launched Saudia Oat Milk, the first locally produced oat milk in Saudi Arabia. The product caters to the growing demand for plant-based drinks among health-conscious consumers. It also offers a delicious, creamy, and affordable alternative to imported plant-based milks in the market.

Expansion of domestic production

GCC countries are investing heavily in expanding their domestic dairy production capabilities to reduce dependence on imports. This has led to increased investments in dairy farms, processing facilities, and distribution networks by major players. This will result in robust growth of raw milk production in the coming years and will increase the GCC dairy market value.

Growing demand for speciality dairy products

There is a growing demand for speciality dairy products, such as organic, lactose-free, and probiotic options, driven by health-conscious consumers in the GCC. Almarai, a market player, offers a range of speciality cheeses and yogurts.

Increasing mergers and acquisitions

To strengthen their market position and meet the growing demand, major players are actively involved in mergers and acquisitions, which is shaping the dairy market in GCC. In 2022, Almarai Company acquired a majority stake in Bakemart, a UAE-based dairy products manufacturer, to enhance its product portfolio.

Rise of e-commerce and online sales

The rise of e-commerce platforms and increasing smartphone penetration have facilitated the online sale of dairy products in the GCC. This provides convenience to consumers and enables market players to reach a wider customer base. Major retailers like Carrefour and Lulu Hypermarket have expanded their online grocery offerings, including dairy products.

GCC Dairy Market Trends

Rising population and the growing disposable incomes of the region's consumers is driving the market. Consumers are increasingly demanding innovative and premium products like vitamin-enriched, low fat or sugar-free products. The citizens of the countries constituting GCC are also becoming aware of the health benefits of consuming milk and dairy products.

The GCC dairy market growth is also being aided by the various government investments into technologies for more efficient handling of fresh milk, from the production to the cooling and storage stage. The changing consumption patterns in the GCC has led to increased imports of butter and cheese. The market is also being aided by the new investments by firms in packaged yoghurt products.

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GCC Dairy Industry Segmentation

The EMR’s report titled “GCC Dairy Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product

• Fluid Milk

• UHT Milk

• Flavoured Milk

• Cream

• Butter

• Anhydrous Milk Fat (AMF)

• Skimmed Milk Powder (SMP)

• Whole Milk Powder (WMP)

• Whey Protein (Powder and Concentrate)

• Lactose

• Cheese

• Yoghurt

• Ice-cream

• Others

Market Breakup by Region

• Saudi Arabia

• United Arab Emirates

• Kuwait

• Oman

• Qatar

• Bahrain

GCC Dairy Market Share

UHT and flavoured milk have seen increase in demand as they have longer shelf life and are available in wide range of flavours

Fluid milk remains a significant segment, as it is the most basic and commonly consumed dairy product in its natural form. UHT milk, on the other hand, has gained popularity due to its extended shelf life. The high-temperature processing kills bacteria, allowing consumers to store UHT milk for longer periods without refrigeration.

As per GCC dairy market analysis, flavoured milk is another category that has seen increasing demand, particularly among younger consumers. By adding flavours like chocolate, strawberry, or vanilla, manufacturers have been able to provide a more enjoyable and diverse dairy experience.

Anhydrous milk fat (AMF) is a specialised dairy product used extensively in the food industry. By removing water and non-fat solids from milk fat, AMF becomes a stable and flavourful ingredient that enhances the taste and texture of various food products. Its versatility and functionality make it an important component.

Skimmed milk powder, with its low-fat content, is commonly used in food processing and as a nutritional supplement. Whole milk powder, on the other hand, retains all the components of milk, including fat, protein, and lactose. It offers a convenient and shelf-stable alternative to fresh milk, making it a valuable ingredient in the dairy market in GCC.

Whey protein has also gained significant traction in recent years, particularly among health-conscious consumers and fitness enthusiasts. As a byproduct of cheese production, whey protein is known for its high protein content and is widely used in sports nutrition products, protein bars, and various food and beverage items.

Leading Manufacturers in the GCC Dairy Market

Market players are expanding their domestic dairy production by investing in dairy farms, processing facilities

Almarai Company, founded in 1977 and headquartered in Riyadh, Saudi Arabia, is a prominent player in the dairy market. They offer a wide range of dairy products such as milk, cheese, yogurt, along with juices and bakery items.

National Agricultural Development Company (NADEC), established in the early 1980s and based in Riyadh, Saudi Arabia, is a key player in the dairy industry. Their product range includes dairy products, red meat, vegetables, and fruits.

Al Rawabi Dairy Company, founded in 1989 and headquartered in Dubai, United Arab Emirates, is a significant dairy producer in the region. Company offers a variety of dairy items to consumers, contributing to the availability of fresh and quality dairy products in the UAE.

Nestlé S.A, established in 1866, is a global food and beverage conglomerate headquartered in Switzerland, Europe. Its portfolio includes dairy products, coffee, water, baby food, breakfast cereals, confectionery, and pet foods.

Other key players in the GCC dairy market report include Al Ain Dairy, Saudia Dairy & Foodstuff Company (SADAFCO), Fonterra Co-operative Group Limited, Arla Foods amba, and Lactalis Group, among others.

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GCC Dairy Market Analysis by Region

Saudi Arabia leads the market due to its large population and hence, high consumption of dairy items

Saudi Arabia, with its large population and high per capita consumption of dairy products, holds a prominent GCC dairy market share due to its government's focus on promoting domestic dairy production to enhance self-sufficiency and ensure food security through initiatives. Conversely, the United Arab Emirates (UAE) prefers imported dairy products. This emphasis on imported dairy aligns with the country's positioning as a hub for international trade and a destination for premium food products.

In addition, Saudi Arabia accounts for over 75% of the dairy production and consumption in the GCC region and UAE is a significant importer of dairy products from the US due to domestic firms mainly focusing on producing fresh dairy products like yoghurt and milk.

Key Highlights of the Report

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GCC Dairy Market Report Snapshots

GCC Dairy Market Size

GCC Dairy Market Growth

GCC Dairy Market Trends

GCC Dairy Market Share

GCC Dairy Manufacturers

GCC Dairy Market Regional Analysis