GCC Dairy Market Outlook

According to the report by Expert Market Research (EMR), the GCC dairy market size reached a value of USD 10.49 Billion in 2024. Aided by the increasing consumer preference for dairy-based products and the growing applications of dairy in diverse industries, the market is projected to grow at a CAGR of 5.30% between 2025 and 2033, reaching a value of USD 16.70 Billion by 2033.

Dairy products are essential components of diets worldwide, providing vital nutrients such as calcium, protein, and vitamins. In the GCC region, the dairy market includes milk, cheese, yoghurt, butter, and other dairy derivatives. The region's growing population, coupled with increasing urbanisation and disposable incomes, is driving the demand for dairy products. Moreover, innovations in product formulations, including lactose-free and fortified options, are expanding the consumer base and fostering market growth.

The market benefits significantly from the GCC's strong infrastructure for food processing and distribution, alongside rising consumer awareness of health and wellness. The increasing adoption of modern retail formats, such as hypermarkets and online grocery platforms, has also enhanced the accessibility and availability of dairy products across the region.

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Key Drivers of the GCC Dairy Market

The GCC dairy market is experiencing robust growth, driven by several factors that reflect both evolving consumer preferences and industrial advancements:

  • Rising Health Awareness: Increasing health consciousness among consumers is significantly influencing the GCC dairy market. With a growing awareness of the nutritional benefits of dairy, products such as low-fat milk, Greek yoghurt, and fortified options are gaining popularity. Consumers are increasingly seeking dairy products rich in calcium and protein to support bone health, immunity, and overall well-being.

  • Population Growth and Urbanisation: The rapidly expanding population in the GCC countries, along with urbanisation, is a key driver of the dairy market. Urban lifestyles are characterised by higher consumption of packaged and processed dairy products, including ready-to-drink milk and flavoured yoghurts.

  • Government Initiatives: Governments across the GCC are actively promoting self-sufficiency in food production, including the dairy sector. Investments in local dairy farming and processing facilities, coupled with subsidies and supportive policies, are bolstering the region's dairy industry.

  • Cultural and Dietary Significance: Dairy products hold cultural importance in the GCC region, featuring prominently in traditional cuisines and daily diets. This cultural affinity, combined with a growing inclination towards modern dairy varieties, is fostering demand.

  • Innovations in Product Development: Innovations in dairy products, such as lactose-free milk, plant-based dairy alternatives, and fortified yoghurts, are catering to diverse consumer preferences. The introduction of premium and value-added products is further expanding the 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

Market Challenges

Despite the optimistic growth trajectory, the GCC dairy market faces certain challenges. The region's heavy reliance on imports for raw milk and other dairy inputs makes it susceptible to fluctuations in global supply chains and pricing. Geopolitical tensions and trade restrictions can further disrupt the supply chain, impacting production and distribution.

Additionally, the dairy industry is under scrutiny for its environmental impact, particularly concerning water usage and greenhouse gas emissions. As sustainability becomes a critical concern, producers are compelled to adopt eco-friendly practices and technologies, which may increase operational costs.

The rising prevalence of lactose intolerance and dietary restrictions, coupled with the growing trend of plant-based diets, poses another challenge. While these trends present opportunities for innovation, they also compel traditional dairy producers to adapt to changing consumer preferences.

Future Prospects

The GCC dairy market is poised for robust growth, driven by rising consumer demand, expanding applications, and continuous innovation. The increasing focus on sustainability and health-conscious product development presents significant opportunities for market players. The growing adoption of advanced dairy farming practices and investments in local production facilities are expected to enhance self-sufficiency in the region, reducing dependency on imports.

The diversification of product offerings, particularly in the realm of organic, functional, and plant-based dairy products, will play a pivotal role in shaping the market's future. As consumers increasingly prioritise health, wellness, and sustainability, the GCC dairy market is set to witness transformative growth.

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