Report Overview

Rising disposable incomes and shifting dietary preferences among the growing population across the Kingdom’s expanding urban areas are expected to drive Saudi Arabia Dairy Products Market during the forecast period between 2025 and 2031.

Saudi Arabia Dairy Products Market – Industry Trends & Forecast Report, 2031

Saudi Arabia Dairy Products Market size was estimated at USD 8.00 billion in 2024. During the forecast period between 2025 and 2031, Saudi Arabia Dairy Products Market size is projected to grow at a CAGR of 4.20% reaching a value of USD 10.80 billion by 2031. Saudi Arabia Dairy Products Market is driven by rising disposable incomes, shifting dietary preferences, urbanization, health consciousness, government initiatives, and population growth. Consumers are increasingly opting for healthier, organic, and low-fat dairy options. Additionally, the government's support for food security and dairy farming is propelling market growth. The market is also influenced by the demand for convenience foods and the influence of Western lifestyles.

Dairy Products – Overview

Dairy products are foods derived from the milk of mammals, primarily cows, but also goats, sheep, and buffalo. These products include milk, cheese, butter, yogurt, cream, and ice cream. Dairy is a rich source of essential nutrients such as calcium, protein, and vitamins D and B12. The variety of dairy products caters to diverse dietary preferences and culinary needs. They play a crucial role in balanced diets, providing nourishment and promoting bone health. Additionally, dairy products are integral to numerous global cuisines, contributing to their popularity and wide consumption.

Saudi Arabia Dairy Products Market

Growth Drivers

Growing Population and Increasing Urbanization Boost Market

Saudi Arabia Dairy Products Market is experiencing growth driven by the growing population and increasing urbanization. As more people move to urban areas, the demand for convenient and nutritious dairy products rises. Urban lifestyles often lead to higher consumption of ready-to-eat and on-the-go dairy options, supporting market expansion.

Challenges

High Dependency on Imported Raw Materials

High dependency on imported raw materials may pose a significant restraint on the growth of Saudi Arabia Dairy Products Market. The dairy industry relies heavily on imported feed and other raw materials, making it vulnerable to global supply chain disruptions and price fluctuations. The overreliance could lead to increased production costs and reduced profitability, hindering the expansion of Saudi Arabia Dairy Products Market.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Dairy Products Market

Intensifying geopolitical tensions among countries across the regions, particularly in the Middle East, could significantly affect the growth of Saudi Arabia Dairy Products Market. Heightened military tensions disrupt supply chains, leading to shortages of essential materials and increased costs for manufacturers. Political instability can deter investment and hinder market growth. Additionally, tariffs and trade restrictions resulting from geopolitical conflicts can affect the cost and availability of resources, impacting production and retail prices. Consumer confidence may decline, affecting demand for dairy products. Overall, geopolitical volatility poses substantial challenges for the market, making it difficult for companies to operate smoothly and sustain growth.

Saudi Arabia Dairy Products Market

Segmental Coverage

Saudi Arabia Dairy Products Market – By Type

Based on type, Saudi Arabia Dairy Products Market is bifurcated into Butter, Cheese, Cream, Dairy Desserts, Milk, Sour Milk Drinks, and Yogurt segments. The drinking milk segment holds the largest share of Saudi Arabia Dairy Products Market. The dominance is driven by health-conscious consumers recognizing milk's nutritional benefits. This segment includes fresh, UHT, flavoured, and powdered milk, catering to diverse consumer preferences. The prominence of drinking milk is supported by its widespread use in daily diets, traditional dishes, and beverages. Additionally, government initiatives to boost dairy productivity and the availability of milk products in supermarkets and hypermarkets contribute to this segment's dominance. The growing demand for healthy and nutritious dairy options further propels the expansion of the drinking milk market in the kingdom.

Saudi Arabia Dairy Products Market – By Distribution Channel

By distribution channel, Saudi Arabia Dairy Products Market is divided into Convenience Stores, Online Retail, Specialist Retailers, Supermarkets & Hypermarkets, and other distribution channels segments. The supermarkets & hypermarkets segment is the largest distribution channel in Saudi Arabia Dairy Products Market, due to the convenience they offer as one-stop destinations for diverse dairy products, ranging from fresh milk and yogurt to cheese and butter. Supermarkets and hypermarkets provide an extensive selection of brands and product categories, catering to varying consumer preferences. Additionally, their frequent promotions, discounts, and loyalty programs enhance consumer appeal. Strategically located in urban and suburban areas, these outlets attract a large footfall, supported by their spacious layouts and modern shopping experiences. The rising trend of organized retail and consumer preference for quality-assured dairy products further solidifies their leading position in the market.

Competitive Landscape

Major companies operating in Saudi Arabia Dairy Products Market include Al-Othman Holding Company, Almarai Company, Arla Foods AmbA, BEL SA, Danone SA, Fonterra Co-operative Group Limited, Groupe Lactalis, Nestlé SA, Saudia Dairy and Foodstuff Company (SADAFCO), and The National Agricultural Development Company (NADEC). To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Type

• Butter

• Cheese

• Cream

• Dairy Desserts

• Milk

• Sour Milk Drinks

• Yogurt

 By Distribution Channel

• Convenience Stores

• Online Retail

• Specialist Retailers

• Supermarkets & Hypermarkets

• Others