GCC Dairy Market Trends, Size, Share, Growth and Report | 2033

GCC Dairy Market Outlook

According to the report by Expert Market Research (EMR), the GCC dairy market size attained a value of USD 10.49 Billion in 2024. With the increasing demand for dairy products driven by population growth, rising incomes, and evolving consumer preferences, 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.

The GCC dairy market encompasses a wide range of dairy products, including milk, yogurt, cheese, butter, and powdered dairy products, which play an essential role in the nutrition and dietary habits of the region's population. As the demand for nutritious, convenient, and diverse dairy products continues to rise, both local producers and international brands are expanding their footprints in the market, capitalizing on favorable market dynamics. The increasing awareness about the health benefits of dairy consumption, along with innovations in dairy processing and product development, is further fueling the market's growth.

Key Market Drivers

The GCC dairy market is significantly driven by the changing demographic trends and the rising purchasing power of consumers. The region has experienced rapid population growth, particularly in countries such as Saudi Arabia, the UAE, and Qatar. A larger, younger population with increasing disposable income is increasingly turning to dairy products as an essential part of their diet, which is positively influencing market growth.

The growing urbanization and modernization of lifestyles in the GCC countries have also contributed to the rising demand for dairy products. Urban residents, with busy schedules and a preference for convenience, are opting for ready-to-consume dairy products like milk, yogurt, and cheese, which fit into their fast-paced lifestyles. The expanding retail network, coupled with the ease of access to dairy products in supermarkets and hypermarkets, further boosts the market’s expansion.

Furthermore, the increasing awareness regarding the nutritional benefits of dairy, including its role in providing essential nutrients such as calcium, protein, and vitamins, has led to a growing preference for dairy-based products among health-conscious consumers. As consumers in the GCC countries become more attuned to the benefits of a balanced diet, the demand for dairy products, including low-fat and fortified options, is expected to rise.

The demand for dairy alternatives is another significant driver of the GCC dairy market. While traditional dairy products continue to be popular, there is a growing shift towards plant-based dairy alternatives due to increasing health and environmental concerns. This trend is particularly evident among millennials and the younger population, who are more inclined to explore alternative dietary options. Consequently, dairy manufacturers are expanding their product portfolios to include plant-based milk, cheese, and yogurt, catering to both vegan consumers and those with lactose intolerance.

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Emerging Trends in the GCC Dairy Market

The GCC dairy market is witnessing several notable trends, primarily influenced by changing consumer preferences and market demands. One of the most significant trends is the increasing focus on health and wellness. As consumers become more conscious about the impact of their food choices on their overall well-being, there has been a marked shift towards dairy products that offer additional health benefits, such as probiotics, reduced-fat, and fortified options.

Probiotic dairy products, including yogurt and fermented dairy beverages, have seen a surge in popularity due to their digestive health benefits. The growing awareness of gut health and the link between the digestive system and overall immunity has led to a higher demand for probiotic-rich dairy products. Manufacturers are capitalizing on this trend by introducing new probiotic dairy lines with innovative flavors, packaging, and nutritional benefits.

Similarly, fortified dairy products have gained traction among consumers in the GCC, as they provide additional nutrients such as vitamin D, calcium, and omega-3 fatty acids. With the rising incidence of conditions such as osteoporosis and vitamin D deficiency, especially in countries with limited sunlight, fortified dairy products have become an attractive option for health-conscious consumers looking to improve their nutrient intake.

Another key trend in the GCC dairy market is the increasing demand for organic dairy products. Organic food consumption has seen a notable rise in the region, with consumers becoming more discerning about food quality, sourcing, and environmental sustainability. Organic dairy products, free from artificial hormones, antibiotics, and pesticides, are gaining popularity among affluent consumers, particularly in the UAE and Saudi Arabia. This shift is expected to continue as more manufacturers tap into the organic segment by offering certified organic milk, cheese, and yogurt.

In addition to health-focused trends, the GCC dairy market is also witnessing a rise in the demand for premium and value-added dairy products. As the purchasing power of consumers increases, there is a growing preference for premium products that offer unique flavors, higher quality, and added value. Artisanal cheeses, organic milk, and specialized yogurt varieties are becoming more sought after, as consumers are willing to pay a premium for products that align with their evolving preferences for authenticity and quality.

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 and Opportunities

While the GCC dairy market shows strong growth potential, it is not without its challenges. One of the primary concerns facing the sector is the region's limited natural resources, particularly in terms of water and arable land, which makes dairy production resource-intensive. To mitigate these challenges, GCC countries are increasingly focusing on the development of sustainable farming practices and investing in dairy farms that incorporate advanced technologies such as vertical farming and hydroponics to improve efficiency.

Additionally, competition from international brands and dairy alternatives presents a challenge to local dairy producers. With the growing demand for plant-based milk and dairy alternatives, traditional dairy manufacturers are under pressure to innovate and diversify their product offerings to cater to the evolving preferences of consumers.

Despite these challenges, the GCC dairy market presents numerous opportunities for growth. As consumers continue to demand healthier, premium, and innovative dairy products, manufacturers have the opportunity to develop new products that align with these preferences. Expanding into organic, fortified, and probiotic dairy products, as well as exploring the growing demand for dairy alternatives, presents significant avenues for growth and profitability in the coming years.