GCC Dairy Market Outlook
According to the report by Expert Market Research (EMR), the dairy market in the Gulf Cooperation Council (GCC) region attained a value of USD 10.49 billion in 2023. Aided by the rising demand for dairy products, growing health consciousness, and the increasing population, the GCC dairy market size is projected to further grow at a compound annual growth rate (CAGR) of 5.3% between 2024 and 2032, reaching a value of USD 16.70 billion by 2032.
The dairy market in the GCC region encompasses a wide range of products, including milk, cheese, yoghurt, butter, and other dairy-based beverages and foods. Dairy is a staple in the diet of many in the region, driven by its essential nutrients such as calcium, protein, and vitamins, which are crucial for bone health, growth, and overall wellness. Additionally, the rapid urbanization, coupled with the increasing influence of Western food habits, has further bolstered the consumption of dairy products in the region.
Overview of the GCC Dairy Market
The GCC dairy market encompasses a wide range of products, including milk, cheese, yoghurt, butter, and other value-added dairy items. The demand for dairy products in the GCC region has been rising due to the increasing urbanization, expanding middle-class population, and shifts in dietary habits that emphasize a higher intake of protein and calcium. Dairy is considered a key component of daily nutrition, particularly among families and children, contributing to its sustained demand across the region.
Moreover, the hot climate of the GCC countries, including Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Oman, and Bahrain, necessitates the consumption of nutrient-dense and hydrating foods such as dairy. Products like yoghurt and laban (a traditional fermented milk drink) are especially popular due to their cooling and refreshing properties, further boosting the market growth.
Get a Free Sample Report with Table of Contents@ https://www.expertmarketresearch.com/reports/gcc-dairy-market/requestsample
Key Market Drivers
The growth of the GCC dairy market is driven by several factors, including changing consumer preferences, increased local production, and growing demand for value-added dairy products.
- Rising Demand for Health and Wellness Products: One of the primary drivers of the GCC dairy market is the increasing consumer focus on health and wellness. As awareness of the benefits of a balanced diet grows, so does the demand for nutrient-rich dairy products such as fortified milk, probiotic yoghurts, and low-fat alternatives. This trend is particularly strong among younger consumers and families seeking healthier food options. Moreover, with rising cases of lifestyle-related health conditions such as obesity and diabetes in the GCC, the demand for dairy products that cater to specific dietary needs, such as lactose-free and reduced-sugar options, has surged.
- Expanding Local Production: Local dairy production in the GCC has been steadily increasing due to the region’s investments in advanced farming techniques, sustainable agriculture, and cutting-edge technology. This trend is most prominent in Saudi Arabia and the UAE, where large dairy companies have adopted modernized supply chains, improved herd management, and enhanced product development capabilities. The focus on self-sufficiency in food production, particularly in dairy, has become a strategic priority for many GCC countries, aiming to reduce reliance on imports and boost domestic output. The availability of locally sourced dairy products also helps in meeting the rising consumer demand for fresh, high-quality items.
- Rising Population and Urbanization: The growing population in the GCC region, combined with increasing urbanization, has significantly influenced the consumption patterns of dairy products. As urban centers expand, consumers have greater access to modern retail outlets, supermarkets, and hypermarkets, which stock a wide variety of dairy products. Urban consumers, especially in countries like the UAE and Saudi Arabia, tend to prefer conveniently packaged dairy products such as flavored milk, cheese slices, and yoghurt drinks, which complement their fast-paced lifestyles.
- Demand for Value-Added Products: Another significant factor driving the market is the growing preference for value-added dairy products. Consumers are increasingly seeking premium offerings such as gourmet cheeses, organic milk, and functional dairy products enriched with vitamins and minerals. The rising disposable income in the region has allowed for the increased consumption of high-end dairy products, further propelling the market. Additionally, the expansion of the foodservice industry, including hotels, restaurants, and cafes, has contributed to the demand for specialty dairy items used in culinary applications.
Read Full Report with Table of Contents@ https://www.expertmarketresearch.com/reports/gcc-dairy-market
GCC Dairy Market Segmentation
The GCC dairy market can be divided based on by flavour, by category, by product type, end-use, sales channel and region.
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
Competitive Landscape
Some of the major key players explored in the report by Expert Market Research are as follows:
- Almarai Company
- National Agricultural Development Company (NADEC)
- Al Rawabi Dairy Company
- Al Ain Dairy
- Saudia Dairy & Foodstuff Company(SADAFCO)
- Nestlé S.A.
- Fonterra Co-operative Group Limited
- Arla Foods amba
- Lactalis Group
- Others
Challenges in the GCC Dairy Market
While the GCC dairy market presents substantial growth opportunities, it also faces several challenges that could impact its development.
- Climate and Environmental Concerns: The harsh climatic conditions in the GCC countries present a significant challenge to dairy farming. High temperatures and limited water resources make it difficult to sustain large dairy herds, leading to increased reliance on imported animal feed and water-intensive cooling systems. As a result, the cost of dairy production in the region is higher compared to other parts of the world. Efforts to improve sustainability and minimize the environmental impact of dairy farming will be critical to ensuring the long-term viability of the sector.
- Price Sensitivity and Competition: The price sensitivity of consumers in the region, particularly in the lower-income segments, poses a challenge for premium dairy products. While there is growing demand for high-quality, value-added items, a substantial portion of the population remains focused on affordability, leading to intense competition among domestic and international brands. Furthermore, the influx of imported dairy products, particularly from Europe and North America, adds to the competitive pressure on local producers.
- Supply Chain and Logistics Issues: Ensuring the freshness and quality of dairy products is a critical concern, given the perishable nature of these items. The logistics involved in maintaining the cold chain, especially during transportation and storage in hot climates, can be complex and costly. Any disruptions in the supply chain, whether due to logistical inefficiencies or external factors such as trade restrictions or pandemics, can affect the availability of dairy products and lead to price fluctuations.
Future Outlook
The outlook for the GCC dairy market is positive, with continued growth expected over the next decade. The market will benefit from ongoing investments in local dairy production, innovations in product development, and the rising focus on health and wellness among consumers. The increasing availability of value-added and specialty dairy products will further drive market expansion, as consumers seek premium options that align with their dietary preferences and lifestyle choices.
Technological advancements in dairy farming and processing, including the adoption of sustainable practices, will also play a crucial role in shaping the future of the GCC dairy industry. As countries in the region prioritize food security and self-sufficiency, the dairy sector is expected to see further growth, supported by government initiatives and partnerships with international players.
Media Contact:
Company Name: Claight Corporation
Contact Person: George buttler, Corporate Sales Specialist – U.S.A.
Email: sales@expertmarketresearch.com
Toll Free Number: +1-415-325-5166 | +44-702-402-5790
Address: 30 North Gould Street, Sheridan, WY 82801, USA
Website: http://www.expertmarketresearch.com
Aus Site: https://www.expertmarketresearch.com.au
