Saudi Arabia is the largest dairy market in the GCC region with a market size of USD XX billion in 2016. Saudi Arabia is home to one of the largest dairy producers in the Persian Gulf. The market for dairy products in Saudi Arabia is growing at a rapid pace and is projected to reach USD XX billion by 2021 at a CAGR of X%. Packaging improvements, social media presence, and aggressive advertising through various channels are a few factors that are driving the growth of this market.
The dairy industry in Saudi Arabia started with small scattered farms and over time transitioned into large commercial dairy farms. Consumption of milk and related products is the second highest after cereals, reinforced by consistent growth over the years. Milk products are an important part of the people’s diet in Saudi Arabia and find a place in the daily consumption of food.
Push for achieving food security through self-sufficiency
As a response to the oil shocks of the 1970s, the government of Saudi Arabia pushed for self-sufficiency, which laid the foundation for the modern dairy sector in the region. Health awareness is one factor that is increasingly playing a bigger role in driving the market for dairy products. People are concerned about cutting down their consumption of fatty and high-calorie foods, thereby shifting to healthy dairy products. New product development in the dairy products category has slowed down and instead, companies are focusing on packaging improvements and extensive campaigning.
The high potential of the dairy industry in Saudi Arabia is being tapped by using advanced technologies
Although Saudi Arabia is one of the world's most arid environments, the success of the dairy industry in the region can be attributed to the application of technology. At typical desert temperatures (as high as 50 degrees Celsius), milk production would usually plunge, the yield would spoil quickly, and dangerous bacteria would form. However, by using technology that can help sustain ambient temperatures and computers to monitor the humidity and temperatures in the setup, this obstacle is overcome. Saudi is one of the regions where the milk production has been automated.
Study of highly consumed dairy products in Saudi Arabia
In our report, the dairy products sector in Saudi Arabia has been segmented into white 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.
Key players in the market
Almarai is a major dairy company in the region and was set up in 1977 as a partnership between two Irish brothers and Prince Sultan bin Mohammed bin Saud Al-Kabeer. Almarai is the largest vertically integrated dairy company worldwide.
Latest happenings in the dairy industry in Saudi Arabia
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