Report Overview

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

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Dairy Products Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing population and increasing urbanization
         2. Rising disposable incomes
         3. Increasing health awareness to promote the consumption of nutrient-rich dairy products
      2. Restraints
         1. High dependency on imported raw materials
         2. Rising competition from plant-based dairy alternatives
      3. Opportunities
         1. Increasing preference for flavored and fortified dairy products among younger consumers
         2. Expansion of e-commerce platforms for dairy product distribution
         3. Potential for technological advancements in dairy processing and packaging
      4. Challenges
         1. High production costs associated with water scarcity
         2. Strict regulatory standards and compliance requirements
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Dairy Products Market: Marketing Strategies
5. Saudi Arabia Dairy Products Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
         1. Butter
         2. Cheese
         3. Cream
         4. Dairy Desserts
         5. Milk
         6. Sour Milk Drinks
         7. Yogurt
      2.  By Distribution Channel
         1. Convenience Stores
         2. Online Retail
         3.  Specialist Retailers
         4. Supermarkets and Hypermarkets
         5. Others
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Saudi Arabia Dairy Products Company Market Share Analysis, 2024
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
7. Impact of Escalating Geopolitical Tensions on Saudi Arabia Dairy Products Market
8. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. Al-Othman Holding Company
   2. Almarai Company
   3. Arla Foods AmbA
   4. BEL SA
   5. Danone SA
   6. Fonterra Co-operative Group Limited
   7. Groupe Lactalis
   8. Nestlé SA
   9. Saudia Dairy and Foodstuff Company (SADAFCO)
   10. The National Agricultural Development Company (NADEC)
   11. Other Prominent Players
9. Key Strategic Recommendations
10. Research Methodology
    1.       Qualitative Research
       1.   Primary & Secondary Research
    2.       Quantitative Research
    3.       Market Breakdown & Data Triangulation
       1.   Secondary Research
       2.   Primary Research
    4.       Breakdown of Primary Research Respondents
    5.       Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Saudi Arabia Dairy Products Segmentation

Figure 2       Saudi Arabia Dairy Products Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2024

Figure 4       Saudi Arabia Dairy Products Market Size, By Value (USD Billion), 2019–2031

Figure 5       Saudi Arabia Dairy Products Market Share, By Type, By Value (USD Billion), 2019–2031

Figure 6       Saudi Arabia Dairy Products Market Share, By Distribution Channel, By Value (USD Billion), 2019–2031

List of Tables

Table 1        Saudi Arabia Dairy Products Market Size, By Value (USD Billion), 2019–2031

Table 2        Saudi Arabia Dairy Products Market Size, By Type, By Value (USD Billion), 2019–2031 

Table 3        Saudi Arabia Dairy Products Market Size, By Distribution Channel, By Value (USD Billion), 2019–2031        

Table 4        Al-Othman Holding Company: Company Overview

Table 5        Al-Othman Holding Company Financial Overview

Table 6        Almarai Company: Company Overview

Table 7        Almarai Company Financial Overview

Table 8        Arla Foods AmbA Company Overview

Table 9        Arla Foods AmbA Financial Overview

Table 10      BEL SA Company Overview

Table 11      BEL SA Financial Overview

Table 12      Danone SA Company Overview

Table 13      Danone SA Financial Overview

Table 14      Fonterra Co-operative Group Limited Company Overview

Table 15      Fonterra Co-operative Group Limited Financial Overview

Table 16      Groupe Lactalis Company Overview

Table 17      Groupe Lactalis Financial Overview

Table 18      Nestlé SA Company Overview

Table 19      Nestlé SA Financial Overview

Table 20      Saudia Dairy and Foodstuff Company (SADAFCO) Company Overview

Table 21      Saudia Dairy and Foodstuff Company (SADAFCO) Financial Overview

Table 22      The National Agricultural Development Company (NADEC) Company Overview

Table 23      The National Agricultural Development Company (NADEC) Financial Overview