GCC Dairy Market

GCC Dairy Market Overview

Dairy is an essential part of food. It is important in, both, food service and packaged good categories, whether as a product (such as yogurt or milk). With its intrinsic presence, dairy is the backbone of the food industry, the preferences of dairy users largely influenced the food sector. Changing consumer behaviour, competition, and trade action are impacting the growth of GCC dairy market.

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Major GCC Dairy Market Drivers

According to “Food and Agriculture Organization United States”, Saudi Arabia cheese imports has increased from 172 097 in 2018 to 175 194 in 2019 with over 1.8% change rise in the import has pushed the GCC dairy market. Considering about WMP (whole milk powder) imports, an increase of 17.9% has been witnessed from 2018 to 2019, hence these numbers show the potential of the country as well as the region. According to “Ministry of Foreign Affairs of Denmark”, among the GCC countries, KSA exports more than 30% of the of their products to their neighbouring countries for US$ 533 million. In addition, with the liberalization in the dairy industry, private firms along with governmental bodies are investing in the industry which has boosted the demand of the dairy products. For instance, in 2019 Almarai one of the leading dairy company in the region has planned to invest US$ 1.9billion in expanding the dairy industry, which is projected to surge the pace of the GCC dairy market.

Furthermore, according to “Agriculture and Horticulture Development Board”, GCC is the second largest exporter of dairy products outside Europe, and within GCC, UAE makes up 40% of the trade.  The players are enhancing their selling and packaging of new tetra packs to fulfil consumer demand for hygienic and safe dairy products. These developments are expected to further aid the growth of the dairy market in GCC.

Saudi Arabia’s sovereign wealth fund has launched Sawani Co. to unlock the untapped potential of the country’s camel dairy industry. Sawani Co. is focused on propelling the growth of Saudi Arabia’s camel farming sector, contributing to its sustainability. The new firm aspires to emerge as a primary producer of camel dairy products, aligning with Vision 2030’s objectives to diversify the Kingdom’s economy and support the broader food and agriculture sector. With extensive expertise in the camel dairy industry, Saudi Arabia is well-positioned to expand operational capabilities and the overall ecosystem, providing a competitive advantage throughout the supply chain. Through strategic investments, Sawani Co. focuses on propelling significant industry growth, leading to the export of camel dairy products known for their nutritional benefits-to in regional and global markets.

Restraint in the GCC Dairy Market

However, increasing concerns related to the levels of toxicity in pesticides and other health issues may hamper the global GCC Dairy market.

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Country – Segment Analysis

On the basis of country, Saudi Arabia is expected to grow at a higher CAGR during the forecast period. This is due to the strong presence of the key players in the market, like Mondelez International, Nestle, Sadafco, Almarai Company including others. The growing emphasis of the companies towards advertising and marketing of dairy foods in Saudi Arabia will further attract new customer, which is anticipated to surge the demand of the products in the country.

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Key Developments:

• • In 2019, SADAFCO officially announced the launch of calcium enriched milk for stronger bones, which has helped the company in expanding the product portfolio.

Segments covered in the Report:

The GCC dairy market has been segmented based on product type, distribution channel, and countries. Based on product type, the market is segmented into milk, cheese, butter, dairy desserts, yogurt, and others. Based on distribution channel, the market is segmented into supermarkets/hypermarkets, convenience stores, specialist retailers, and others.

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Market Segmentation

GCC Dairy Market by Product Type

• • Milk
  • Cheese
  • Butter
  • Dairy Desserts
  • Yogurt
  • Others

GCC Dairy Market by Distribution Channel

• • Supermarkets/Hypermarkets
  • Convenience Stores
  • Specialist Retailers
  • Others

GCC Dairy Market by Countries

• • UAE Dairy Market All-Up (Option 1: Free 25% Customization)
  • Saudi Arabia Dairy Market All-Up (Option 2: Free 25% Customization)
  • Oman Dairy Market All-Up (Option 3: Free 25% Customization)
  • Kuwait Dairy Market All-Up (Option 4: Free 25% Customization)
  • Rest of GCC Dairy Market All-Up (Option 5: Free 25% Customization)