In UAE, the consumption of dairy products has always been regarded as healthy by its population. With a rapidly expanding economy and booming population & tourist inflow, the dairy sector in UAE is set to experience swift growth. According to sources, the consumption of milk in 2012 was an estimated 230 million liters. By 2021, this number is forecasted to reach XXX million liters. UAE is the second largest producer of milk and dairy products in the GCC region after Saudi Arabia.
Foodservice Industry- A major contributor to the increased sales of dairy products
The consumer foodservice industry in the UAE is unique and profitable and is expected to continue experiencing strong growth in the future. With the largest proportion of expatriates and standards of living in the world, the demand for a variety of foodservice options is on the rise. With consumers frequently eating out, visiting cafes to meet with family and friends and holding business meetings with colleagues, foodservice has become an integral part of the people’s lifestyle in the region. The strong GDP growth in the country has aided the further development of the tourism segment, adding to the expansion of the foodservice sector. Foodservice sales account for nearly 33% of the total milk products sale in UAE. The bulk of this is UHT milk delivered to chains such as Costa, Starbucks, institutional contracts, airlines, etc.
Harsh desert environment hinders the expansive growth of the dairy industry in UAE
The demand for local milk is growing and as a result, dairy farm companies in the UAE plan to double in size. However, keeping cows in such a harsh and hot environment poses many challenges. UAE is not a natural habitat for cattle breeding and there is an absence of natural grazing pastures. The desert environment is not a suitable place for rearing cattle as they are not adaptable to such environments. In order to overcome this challenge, one needs to have a thorough understanding of the animal and of the conditions that would be suitable for it. With advanced technology being incorporated into the dairy sector, by employing a proper dairy business model, dairy farm owners are able to overcome this hurdle. Automation of milk production is one such solution.
Wide array of milk and milk products consumed in the United Arab Emirates
In our report, the dairy products sector in UAE has been segmented into white milk, UHT milk, dry milk, cheese, laban, yogurt & curd, and butter & clarified butter based on the type of dairy product. For each category, statistics of market size, imports, and exports are provided along with government policies and retail layout.
The chart above depicts the percentage share of total imports and domestic production of dairy products in UAE for the year 2015.
Major local producers of fresh milk in UAE
About the Market
PESTLE Analysis (Overview): Macro market factors pertinent to this region
Market Definition: Main as well as associated/ancillary components constituting the market
Key Findings of the Study: Top headlines about market trends & numbers