gccdairy

[gccdairy]

GCC Dairy Market Size, Trends & Growth 2025–2034

The Gulf Cooperation Council (GCC) dairy market is witnessing significant expansion, driven by rising health awareness, population growth, and increasing demand for high-quality, nutritious food products. Dairy products such as milk, cheese, yogurt, butter, and milk powders are staples across households and the foodservice industry in the GCC region. The growing influence of western dietary patterns, a surge in tourism, and evolving consumer preferences have further contributed to the popularity of both traditional and value-added dairy products. With strong government support and increasing private investments, the GCC dairy market is well-positioned for sustainable long-term growth.

Expert Market Research on the GCC Dairy Market (2025–2034)

According to Expert Market Research (EMR), the GCC dairy market attained a value of approximately USD 11.05 billion in 2024. Driven by increasing health consciousness, urbanization, rising disposable incomes, and strong government support for local food production, the market is expected to grow at a CAGR of 5.30% during the forecast period of 2025–2034.

By 2034, the GCC dairy market is projected to reach an estimated USD 18.52 billion. EMR highlights that the demand for fresh, organic, and functional dairy products is accelerating across the region, particularly in Saudi Arabia and the United Arab Emirates. Investments in advanced dairy farming, improved cold chain infrastructure, and innovation in product offerings continue to boost market dynamics. EMR's analysis emphasizes the role of the dairy sector in food security and economic diversification across GCC nations.

GCC Dairy Market Size

According to the latest industry insights, the GCC dairy market reached a value of approximately USD 11.05 billion in 2024. The market is projected to experience a healthy Compound Annual Growth Rate (CAGR) of 5.30% from 2025 to 2034. By the end of the forecast period, the market is estimated to reach USD 18.52 billion. This growth is underpinned by increasing disposable incomes, urbanization, and the continuous expansion of retail and cold chain infrastructure across the GCC countries, including Saudi Arabia, the UAE, Kuwait, Oman, Qatar, and Bahrain.

GCC Dairy Market Trends

Several key trends are shaping the future of the GCC dairy industry:

Health-Conscious Consumption: Consumers are increasingly opting for low-fat, fortified, and organic dairy products. Functional dairy, enriched with probiotics and vitamins, is gaining traction.

Premiumization of Dairy Products: The growing middle-class population is willing to pay more for premium dairy items such as Greek yogurt, artisanal cheese, and lactose-free milk.

Sustainability and Local Sourcing: GCC governments are encouraging local dairy production to reduce dependency on imports. Initiatives promoting food security and sustainable farming practices are gaining momentum.

Innovations in Packaging and Flavors: Convenient, eco-friendly packaging and unique product flavors tailored to regional tastes are helping brands differentiate themselves in a competitive market.

Expansion of Retail and E-commerce: Modern retail formats like hypermarkets and the rise of online grocery shopping are making dairy products more accessible to consumers across urban and remote areas.

GCC Dairy Industry Segmentation

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

By Region:

Saudi Arabia

United Arab Emirates

Kuwait

Oman

Qatar

Bahrain

GCC Dairy Market Growth Drivers

The GCC dairy market is being driven by a combination of demographic, economic, and policy factors:

Population Growth and Urbanization: The rising population in cities has led to greater demand for ready-to-consume dairy items, especially among working professionals and younger demographics.

Government Support for Agriculture: National programs across the GCC aim to achieve food self-sufficiency. Subsidies and investment in local dairy farms have played a key role in boosting domestic production.

Rising Expatriate Community: The multicultural population in the GCC demands a wide range of dairy products, including international flavors and formats, encouraging innovation and product diversification.

Improved Cold Chain Infrastructure: Investments in storage and transportation technologies have enhanced the shelf life and distribution capabilities for dairy producers, leading to wider market penetration.

Role of the Dairy Sector in the GCC Economy

Dairy products are an essential part of the daily diet in the GCC and play a pivotal role in nutritional security and economic diversification. With regional governments striving to enhance local food production, the dairy industry has emerged as a cornerstone of the agriculture and food sector. It supports employment across supply chains—from farm management and processing to packaging and retail. Moreover, the growing demand for dairy in the hospitality and healthcare industries adds further importance to the sector’s role in the region’s economic framework.

GCC Dairy Market Forecast (2025–2034)

Looking ahead, the GCC dairy market is projected to expand steadily from USD 11.05 billion in 2024 to nearly USD 18.52 billion by 2034, registering a CAGR of 5.30% over the forecast period. Saudi Arabia and the UAE are expected to remain the dominant markets, thanks to their larger populations, developed infrastructure, and high dairy consumption levels.

Kuwait, Oman, and Qatar are also showing promising growth due to rising consumer demand and strategic efforts to boost local production. Increasing investments in technology, sustainability, and research & development will continue to fuel product innovation and market competitiveness in the coming years.

Competitive Analysis

The GCC dairy market is highly competitive and features a mix of local giants and global players, all striving to capture greater market share through product innovation, brand development, and regional expansion.

Key Players in the Market:

Almarai Company: Based in Saudi Arabia, Almarai is one of the largest dairy producers in the Middle East, known for its extensive product range including fresh milk, cheese, yogurt, and juices.

National Agricultural Development Company (NADEC): A major player in the Kingdom of Saudi Arabia, NADEC offers a wide range of dairy products and has made significant strides in agricultural sustainability.

Al Rawabi Dairy Company: Headquartered in the UAE, Al Rawabi is a leading name in dairy and functional beverages, known for its innovation in health-based products.

Al Ain Dairy: One of the oldest dairy companies in the UAE, Al Ain Dairy offers a diverse portfolio including milk, flavored milk, and dairy desserts.

Saudia Dairy & Foodstuff Company (SADAFCO): Operating out of Saudi Arabia, SADAFCO produces milk powder, UHT milk, and ice cream, catering to both retail and institutional segments.

Nestlé S.A.: The global food and beverage leader has a strong presence in the GCC through its dairy brands, offering powdered milk, creamers, and baby food products.

Fonterra Co-operative Group Limited: Based in New Zealand, Fonterra supplies dairy ingredients and finished products across the GCC, serving both consumers and the foodservice sector.

Arla Foods amba: A Danish multinational cooperative, Arla is known for its high-quality dairy offerings including cheese, butter, and milk products in the GCC.

Lactalis Group: As one of the world’s largest dairy companies, Lactalis offers a wide variety of products under international brands, expanding its footprint in the GCC market.

Others: Several regional players and private labels are emerging, targeting niche segments such as organic dairy, plant-based alternatives, and ethnic specialties.