Report Overview

Growing awareness about health and wellness, the government’s increasing support, cold chain expansion, e-commerce growth, and a surging demand for value-added dairy products are expected to boost the growth of UAE Dairy Products Market during the forecast period between 2025 and 2031.

UAE Dairy Products Market – Industry Trends & Forecast Report, 2031

UAE Dairy Products Market size was estimated at USD 3.88 billion in 2024. During the forecast period from 2025 to 2031, UAE Dairy Products Market size is projected to grow at a CAGR of 4.66%, reaching a value of USD 5.34 billion by 2031. The growth of UAE Dairy Products Market is driven by rising health consciousness, growing disposable income, and strong cultural reliance on milk. The UAE government’s supportive initiatives through UAE Vision 2031 aim to enhance local production, modernization, and organic farming. Urbanization and changing dietary habits are boosting the demand for value-added dairy products, such as yogurt, cheese, and probiotic drinks. Expansion of cold chain logistics and e-commerce platforms improves accessibility and freshness. The growing adoption of technological advancements, such as artificial intelligence (AI) in dairy farming and processing, to increasing productivity and quality.

Source: BlueWeave Consulting

Dairy Products – Overview

Dairy products are foods derived from the milk of mammals, primarily cows, goats, and buffalo. They include milk, cheese, yogurt, butter, cream, and ice cream, offering essential nutrients like calcium, protein, and vitamins. Widely consumed across cultures, dairy supports bone health, growth, and energy needs. Products range from fresh to fermented and frozen varieties. Technological advancements and dietary trends have expanded options, including lactose-free and probiotic-rich items, making dairy a versatile and vital component of global nutrition.

UAE Dairy Products Market 

Growth Drivers

Growing Awareness about Health & Wellness and Nutritional Needs

Growing health and wellness awareness among UAE consumers is fueling the demand for dairy products rich in protein, calcium, and essential nutrients. Milk, yogurt, paneer, and probiotic drinks are increasingly favored for their wellness benefits. Urbanization, lifestyle changes, and rising disposable incomes support this shift toward nutritious food choices. Government campaigns and fitness trends further promote dairy consumption. The surge in organic, low-fat, and fortified dairy offerings reflects evolving dietary preferences and strengthens the growth of UAE Dairy Products Market across the country.

Challenges

Increasing Product and Feed Costs

Companies in UAE Dairy Products Market face significant cost pressures due to rising feed prices, labor expenses, and energy costs. Feed alone accounts for the majority of total production costs, impacting farmer profitability and product pricing. Fluctuations in raw material availability and inflation further strain operations. Small-scale producers struggle to maintain margins, limiting investment in quality and innovation. These high input costs hinder scalability, reduce competitiveness, and pose a major restraint to sustainable growth in UAE Dairy Products Market.

Impact of Escalating Geopolitical Tensions on UAE Dairy Products Market 

Intensifying geopolitical tensions among countries, especially in the Middle East, pose significant challenges to the growth of UAE Dairy Products Market. Rising freight costs, disrupted export routes, and tariff uncertainties threaten market access and profitability. However, UAE’s focus on strengthening domestic production and modernization, and strategic partnerships with stable regions, helps mitigate long-term risks, fostering resilience amid global uncertainties.

UAE Dairy Products Market 

Segmental Coverage

UAE Dairy Products Market – By Milk & Milk-based Products

UAE Dairy Products Market by milk & milk-based products is segmented into Liquid Milk, Flavored Milk, and UHT Milk. The liquid milk segment is the largest segment of UAE Dairy Products Market by milk & milk-based products. Liquid milk’s nutritional value, cultural significance, and integration into traditional diets drive consistent demand. Liquid milk maintains widespread accessibility, and its dominance is further reinforced by minimal processing needs and strong rural production capacity.

Source: BlueWeave Consulting

UAE Dairy Products Market – By Fermented & Cultured Dairy Products

On the basis of fermented & cultured dairy products, UAE Dairy Products Market is divided into Yogurt, Curd, and Lassi segments. The curd segment stands as the largest segment in UAE Dairy Products Market by fermented & cultured dairy products. Its widespread consumption across households, integration into daily meals, and cultural significance drive consistent demand. Curd is preferred for its digestive benefits and versatility in both traditional and modern cuisines. Curd’s market dominance is supported by rising health awareness and affordability. Its leadership position is further reinforced by strong rural production and minimal processing requirements, making it a staple across the UAE.

UAE Dairy Products Market – By Value-Added Dairy Products

Based on value-added dairy products, UAE Dairy Products Market is divided into Cheese, Butter, and Ice Cream segments. The ice cream segment emerges as the largest value-added dairy product in UAE Dairy Products Market. Its popularity spans all age groups, driven by rising disposable incomes, urbanization, and expanding retail presence. The Ice cream segment’s growth is fueled by early summers, diverse flavor innovations, and growing demand for premium and artisanal varieties. The proliferation of ice cream parlors and strong seasonal consumption patterns reinforce its dominant market position.

Source: BlueWeave Consulting

Competitive Landscape

Major companies operating in UAE Dairy Products Market include Agthia Group, Almarai, Al Ain Farms, Arla Foods, Danone, Emirates Rawabi, FrieslandCampina, Marmum Dairy Farm, and Nestle. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In May 2025 - Al Ain Farms, Marmum Dairy, Al Ajban Chicken, Golden Eggs, and Saha Arabian Farms, five major food product companies in UAE, merged to establish Al Ain Farms Group (AAFG). AAFG aims to enhance domestic dairy and food production.

Scope of the Report

By Milk & Milk-based Products

• Liquid Milk

• Flavored Milk

• UHT Milk  

By Fermented & Cultured Dairy Products

• Yogurt

• Curd

• Lassi 

By Value Added Dairy Products

• Cheese

• Butter

• Ice Cream