Middle East And Africa Dairy Market Size and Share

Middle East And Africa Dairy Market (2025 - 2030)
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Middle East And Africa Dairy Market Analysis by Mordor Intelligence

The Middle East and Africa dairy market is expected to reach USD 42.83 billion in 2025 and grow to USD 53.92 billion by 2030, reflecting a compound annual growth rate (CAGR) of 4.71%. This growth is supported by government-funded school milk programs, product innovations catering to on-the-go consumption, and increasing demand for premium products with functional benefits. However, challenges such as gaps in cold-chain infrastructure and competition from plant-based alternatives are limiting further expansion. Saudi Arabia is projected to contribute 31.31% of the 2024 output, driven by Almarai’s USD 4.8 billion investment in farm-to-logistics operations. The United Arab Emirates is expected to achieve the highest growth rate at a CAGR of 5.89%, supported by the growth of organic cow- and camel-milk brands. Yogurt is the fastest-growing category, with a CAGR of 5.93%, driven by the popularity of probiotic spoonable and drinkable products, while milk remains a key category due to shelf-stable ultra-high-temperature (UHT) products that address refrigeration challenges. Modern retail channels are anticipated to account for 65.43% of 2024 off-trade distribution, while on-trade channels, including hotels, restaurants, and cafés, are recovering alongside the resurgence of Gulf hospitality. Competitive intensity remains moderate, with leading national players benefiting from strong domestic market positions, while multinational companies are increasingly entering the market through joint ventures and premium product segments.

Key Report Takeaways

  • By product type, milk held 33.43% of the Middle East and Africa dairy market share in 2024, whereas yogurt is forecast to expand at a 5.93% CAGR through 2030.
  • By distribution channel, off-trade captured 65.43% of 2024 sales, while on-trade is poised for the quickest advance with a 6.01% CAGR to 2030.
  • By geography, Saudi Arabia commanded 31.31% of 2024 value, yet the United Arab Emirates records the fastest trajectory at a 5.89% CAGR over the outlook period.

Segment Analysis

By Product Type: Yogurt Leads Growth as Milk Defends Volume Share

Milk accounted for 33.43% of the product-type share in 2024, primarily driven by Ultra-High Temperature (UHT) milk variants, which hold a significant position in the Gulf Cooperation Council (GCC) region. The consistently high ambient temperatures in the region, typically ranging between 35 degrees Celsius and 45 degrees Celsius during the summer months, create logistical difficulties for distributing refrigerated fresh milk, particularly in areas outside major urban centers. This has led to a preference for UHT milk, which does not require refrigeration and is better suited to the region's climatic and logistical conditions.

Yogurt is projected to grow at a Compound Annual Growth Rate (CAGR) of 5.93% from 2025 to 2030, supported by the increasing popularity of probiotic-enriched and drinkable formats that cater to on-the-go lifestyles. Notably, Danone's Activia and local brands such as SADAFCO's Saudia Yoghurt reported a combined volume growth of 21% in Saudi Arabia in 2024. Cheese imports are expected to increase by 26% in value by 2030, driven by expatriate demand for European-style natural cheeses and the reliance of quick-service restaurant chains on processed cheese for menu standardization. In South Africa, Clover Industries reported a 14% growth in its cheddar line in 2024, surpassing overall dairy market growth, as pizza and burger chains expanded their store networks.

Middle East And Africa Dairy Market: Market Share by Product Type
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By Distribution Channel: Off-Trade Dominates, Yet On-Trade Accelerates

Off-trade channels, including supermarkets, hypermarkets, convenience stores, online retail, and specialist retailers, accounted for 65.43% of the distribution share in 2024. This reflects the rapid expansion of modern retail in the Middle East and Africa and consumers' preference for one-stop shopping. On the other hand, on-trade outlets such as hotels, restaurants, and cafes are projected to grow at a faster rate, with a CAGR of 6.01% for 2025-2030. This growth is attributed to a rebound in tourism and hospitality spending across the Gulf Cooperation Council. For instance, Dubai welcomed 17.15 million overnight visitors in 2024, marking a 12% year-on-year increase, which has driven demand for portion-controlled dairy formats in hotel buffets and café menus.

Supermarkets and hypermarkets alone contributed 42% of off-trade volume, with chains like Carrefour, Lulu, and Tamimi Markets expanding their cold-chain-enabled store networks. Notably, Lulu Group opened 18 new hypermarkets across the Gulf in 2024, each featuring dedicated dairy sections with 150 to 200 SKUs. Convenience stores, while smaller in absolute volume, recorded an 11% growth in dairy sales during 2024. This growth was driven by the popularity of single-serve formats and extended operating hours, catering to shift workers and late-night shoppers.

Middle East And Africa Dairy Market: Market Share by Distribution Channels
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Geography Analysis

Saudi Arabia emerged as the leading segment in the regional dairy market, holding a significant 31.31% of the country-level market share in 2024. This dominance is underpinned by Almarai's robust vertically integrated model, which encompasses 58,000 dairy cows, 14 processing plants, and a distribution network that serves 55,000 retail outlets. The Kingdom's Vision 2030 economic diversification plan places a strong emphasis on food security, prompting the government to actively support domestic dairy production. Measures such as feed-cost subsidies and low-interest loans have been implemented, with the Saudi Ministry of Environment, Water, and Agriculture allocating SAR 1.2 billion (USD 320 million) in 2024 to dairy farmers. These initiatives have effectively reduced input costs by an estimated 18%, further strengthening the sector's competitiveness.

The United Arab Emirates is positioned as the fastest-growing segment in the regional dairy market, with a projected compound annual growth rate (CAGR) of 5.89% for the period 2025-2030. This growth is driven by the rising demand for organic and premium dairy products, led by innovators such as Mleiha Dairy and camel-milk brands like Camelicious, which cater to the preferences of health-conscious expatriates and local consumers. Dubai's 2024 Food Security Strategy has set an ambitious target, mandating that 30% of dairy consumed in government institutions must be locally sourced by 2027. This directive has encouraged key players like Al Ain Farms and Emirates Industry for Camel Milk & Products (Camelicious) to expand their herd sizes and enhance processing capacities to meet the growing demand.

Other markets in the region, such as Egypt and Iran, face unique challenges that impact their growth trajectories. Egypt's dairy sector, while substantial in volume, is expected to grow at a modest 3.8% CAGR for 2025-2030. The sector is constrained by factors such as currency devaluation, which increased imported-input costs by 40% in 2024, and the prevalence of informal milk markets, which account for an estimated 60% of total consumption. Juhayna, Egypt's largest dairy processor, reported a 9% revenue increase in 2024, driven by its Laban Ray'e' and flavored-milk product lines. However, rising packaging and energy costs compressed net margins to 4.2% from 6.1% in 2023. In Iran, despite its large population, the dairy market remains hindered by sanctions that limit access to imported genetics and processing technology, resulting in stagnant productivity. Local brands such as Pegah and Kaleh dominate the market, but their product innovation continues to lag behind Gulf standards.

Competitive Landscape

The Middle East and Africa dairy market exhibits moderate consolidation. A limited number of vertically integrated companies, including Almarai, Saudi Dairy and Foodstuff Company (SADAFCO), and National Agricultural Development Company (NADEC) in Saudi Arabia; Baladna in Qatar; and Juhayna and Domty in Egypt, dominate 40% to 50% of their respective national markets. Simultaneously, multinational corporations such as Danone, Nestlé, and Lactalis actively compete through acquisitions, joint ventures, and the promotion of premium brands.

Market strategies show a clear divide. Gulf-based companies are focusing on vertical integration and securing government contracts. For instance, Almarai has announced a USD 4.8 billion investment plan for 2024 to 2028, which includes farm expansion, automation of processing facilities, and electrification of its distribution fleet. On the other hand, multinational companies are adopting asset-light models, such as licensing local brands or acquiring minority stakes, to address regulatory challenges and manage currency risks effectively.

Opportunities for growth in the market are concentrated in three main areas. These include lactose-free and A2 milk, which cater to the estimated 20% of Middle Eastern adults with lactose intolerance; functional dairy products aimed at improving immunity and gut health; and premium organic dairy products, where consumers in markets like the United Arab Emirates (UAE) and Qatar are willing to pay over 30% more than for conventional products. Halal certification continues to be a significant regulatory factor. The Gulf Cooperation Council Standardization Organization's 2024 update to microbiological standards for dairy will require pathogen testing at the batch level, increasing compliance costs by an estimated 5%. This change creates a quality barrier that benefits established brands over informal producers. Smaller players, such as AlRawabi and National Food Products in the UAE, are leveraging local sourcing and sustainability initiatives to gain a competitive edge. For example, AlRawabi's solar-powered farm in Ras Al Khaimah generates 40% of its energy needs, helping the company secure premium shelf space in hypermarkets and organic stores.

Middle East And Africa Dairy Industry Leaders

  1. Almarai Company

  2. Arla Foods Amba

  3. Danone SA

  4. Saudia Dairy and Foodstuff Company (SADAFCO)

  5. The National Agricultural Development Company (NADEC)

  6. *Disclaimer: Major Players sorted in no particular order
Middle East And Africa Dairy Market
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Recent Industry Developments

  • August 2025: Sawani, supported by the Public Investment Fund and owner of the NOUG brand, partnered with GEA, a German company specializing in modern milking systems, to develop its model farm. This facility, equipped with advanced technology and designed to optimize efficiency, produces 500,000 liters of camel milk each month, catering to the growing demand for camel milk products.
  • January 2025: Almarai, the largest dairy producer in Saudi Arabia, has announced a USD 4.8 billion investment as part of its new five-year strategic plan. This initiative highlights Almarai's commitment to supporting Saudi Arabia's Vision 2030 goals, which focus on achieving food self-sufficiency and reducing reliance on imports. The investment will be directed towards expanding production capacity, enhancing supply chain efficiency, and adopting advanced technologies to meet growing domestic demand while ensuring sustainable practices.
  • January 2024: SADAFCO has opened a new distribution depot in Makkah with an annual capacity of 50,000 tonnes. This initiative addresses the growing demand driven by religious tourism while improving supply efficiency for retailers in the western region. The facility is equipped with advanced cold-chain technology and automated inventory management systems.

Table of Contents for Middle East And Africa Dairy Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Rising health consciousness boosting interest in probiotic, fortified, and lactose-free dairy
    • 4.2.2 Government-backed school milk and nutrition programs creating stable institutional demand
    • 4.2.3 Public health campaigns that promote balanced diets and adequate calcium, vitamin D, and protein intake
    • 4.2.4 Growing consumer preference for convenient, ready-to-drink and single-serve dairy formats
    • 4.2.5 Rising interest in organic and “clean-label” dairy products
    • 4.2.6 Cultural attachment to traditional products such as laban, labneh, and sour milk drinks
  • 4.3 Market Restraints
    • 4.3.1 Rising consumer interest in plant-based alternatives, especially in urban centers
    • 4.3.2 Stricter environmental and animal-welfare expectations increasing compliance costs
    • 4.3.3 Halal-certification delays and costs for imported ingredients limiting the speed of innovation and new product launches
    • 4.3.4 Inadequate cold-chain coverage and power reliability
  • 4.4 Consumer Behaviour Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Forces
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Bargaining Power of Suppliers
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Competitive Rivalry

5. MARKET SIZE AND GROWTH FORECASTS (VALUE AND VOLUME)

  • 5.1 By Product Type
    • 5.1.1 Butter
    • 5.1.2 Cheese
    • 5.1.2.1 Natural Cheese
    • 5.1.2.1.1 Cheddar
    • 5.1.2.1.2 Cottage
    • 5.1.2.1.3 Ricotta
    • 5.1.2.1.4 Parmesan
    • 5.1.2.1.5 Others
    • 5.1.2.2 Processed Cheese
    • 5.1.3 Cream
    • 5.1.3.1 Fresh Cream
    • 5.1.3.2 Cooking Cream
    • 5.1.3.3 Whippng Cream
    • 5.1.3.4 Others
    • 5.1.4 Dairy Desserts
    • 5.1.4.1 Ice Cream
    • 5.1.4.2 Cheesecakes
    • 5.1.4.3 Frozen Desserts
    • 5.1.4.4 Others
    • 5.1.5 Milk
    • 5.1.5.1 Condensed milk
    • 5.1.5.2 Flavored Milk
    • 5.1.5.3 Fresh Milk
    • 5.1.5.4 UHT Milk (Ultra-high temperature milk)
    • 5.1.5.5 Powdered Milk
    • 5.1.6 Yogurt
    • 5.1.6.1 Drinkable
    • 5.1.6.2 Spoonable
    • 5.1.7 Sour Milk Drinks
  • 5.2 By Distribution Channel
    • 5.2.1 On-trade
    • 5.2.2 Off-trade
    • 5.2.2.1 Convenience Stores
    • 5.2.2.2 Specialist Retailers
    • 5.2.2.3 Supermarkets and Hypermarkets
    • 5.2.2.4 On-line Retail
    • 5.2.2.5 Others
  • 5.3 By Country
    • 5.3.1 United Arab Emirates
    • 5.3.2 Qatar
    • 5.3.3 Saudi Arabia
    • 5.3.4 Bahrain
    • 5.3.5 Oman
    • 5.3.6 Kuwait
    • 5.3.7 Nigeria
    • 5.3.8 Egypt
    • 5.3.9 South Africa
    • 5.3.10 Iran
    • 5.3.11 Rest of the Middle East

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Almarai Company
    • 6.4.2 Saudia Dairy and Foodstuff Company (SADAFCO)
    • 6.4.3 National Agricultural Development Company (NADEC)
    • 6.4.4 Arla Foods AmbA
    • 6.4.5 Groupe Lactalis
    • 6.4.6 Nestlé S.A.
    • 6.4.7 Al Rashed Food Company
    • 6.4.8 AlRawabi Dairy Company
    • 6.4.9 Danone SA
    • 6.4.10 Bel SA
    • 6.4.11 Fonterra Co-operative Group
    • 6.4.12 National Food Products Company (NFC)
    • 6.4.13 Almunajem Foods
    • 6.4.14 Saad Group
    • 6.4.15 Al-Jouf Agriculture Development Company
    • 6.4.16 Al Marai Home
    • 6.4.17 Saudi Modern Factory for Food Industries
    • 6.4.18 Tamimi Markets
    • 6.4.19 Nesma Holding
    • 6.4.20 Gulf Dairy Products Company
    • 6.4.21 Bateel Dairy

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

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Middle East And Africa Dairy Market Report Scope

Butter, Cheese, Cream, Dairy Desserts, Milk, Sour Milk Drinks, Yogurt are covered as segments by Category. Off-Trade, On-Trade are covered as segments by Distribution Channel. Bahrain, Iran, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates are covered as segments by Country.
By Product Type
Butter
Cheese Natural Cheese Cheddar
Cottage
Ricotta
Parmesan
Others
Processed Cheese
Cream Fresh Cream
Cooking Cream
Whippng Cream
Others
Dairy Desserts Ice Cream
Cheesecakes
Frozen Desserts
Others
Milk Condensed milk
Flavored Milk
Fresh Milk
UHT Milk (Ultra-high temperature milk)
Powdered Milk
Yogurt Drinkable
Spoonable
Sour Milk Drinks
By Distribution Channel
On-trade
Off-trade Convenience Stores
Specialist Retailers
Supermarkets and Hypermarkets
On-line Retail
Others
By Country
United Arab Emirates
Qatar
Saudi Arabia
Bahrain
Oman
Kuwait
Nigeria
Egypt
South Africa
Iran
Rest of the Middle East
By Product Type Butter
Cheese Natural Cheese Cheddar
Cottage
Ricotta
Parmesan
Others
Processed Cheese
Cream Fresh Cream
Cooking Cream
Whippng Cream
Others
Dairy Desserts Ice Cream
Cheesecakes
Frozen Desserts
Others
Milk Condensed milk
Flavored Milk
Fresh Milk
UHT Milk (Ultra-high temperature milk)
Powdered Milk
Yogurt Drinkable
Spoonable
Sour Milk Drinks
By Distribution Channel On-trade
Off-trade Convenience Stores
Specialist Retailers
Supermarkets and Hypermarkets
On-line Retail
Others
By Country United Arab Emirates
Qatar
Saudi Arabia
Bahrain
Oman
Kuwait
Nigeria
Egypt
South Africa
Iran
Rest of the Middle East
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Market Definition

  • Butter - Butter is a yellow-to-white solid emulsion of fat globules, water, and inorganic salts produced by churning the cream from cows’ milk
  • Dairy - Dairy product include milk and any of the foods made from milk, including butter, cheese, ice cream, yogurt, and condensed and dried milk.
  • Frozen Desserts - Frozen dairy dessert means and includes products containing milk or cream and other ingredients which are frozen or semi-frozen prior to consumption, such as ice milk or sherbet, including frozen dairy desserts for special dietary purposes, and sorbet
  • Sour Milk Drinks - Sour milk is thick, curdled milk, with a sour taste, obtained from the fermentation of milk. Sour milk drinks such as kefir, laban, buttermilk have been considered in the study
Keyword Definition
Cultured Butter Cultured butter is prepared by having the raw butter go through chemical processing and has been added with certain emulsifiers and foreign ingredients.
Uncultured Butter This type of butter is one which has not been processed in any way
Natural Cheese The type of cheese in its most natural form. It is made from natural and simple products and ingredients, including fresh and natural salts, natural colors, enzymes, and high-quality milk.
Processed Cheese Processed cheese undergoes the same processes as natural cheese; however, it requires more steps and many different forms of ingredients. Making processed cheese involves melting natural cheese, emulsifying it, and adding preservatives and other artificial ingredients or colorings.
Single Cream Single cream contains around 18% fat. It’s a single layer of cream that appears over boiled milk.
Double Cream Double cream contains 48% fat, more than double the amount of fat of single cream. It’s heavier and thicker than single cream
Whipping Cream This has a much higher fat percentage than single cream (36%). Used to top cakes, pies, and puddings and as a thickener for sauces, soups, and fillings.
Frozen Desserts Desserts that are meant to be eaten in frozen condition. E.g., sherbets, sorbets, frozen yogurts
UHT Milk (Ultra-high temperature milk) Milk heated at a very high temperature. Ultra-high-temperature processing (UHT) of milk involves heating for 1–8 sec at 135–154°C. which kills the spore-forming pathogenic microorganism, resulting in a product with a shelf-life of several months.
Non-dairy butter/Plant-based butter Butter made from plant-derived oil such as coconut, palm, etc.
Non-dairy Yogurt Yogurt made from typically made from nuts, like almonds, cashews, coconuts, and even other foods like soybeans, plantains, oats, and peas
On-trade It refers to restaurants, QSRs, and bars.
Off-trade It refers to supermarkets, hypermarkets, on-line channels, etc.
Neufchatel cheese One of the oldest kinds of cheese in France. It is a soft, slightly crumbly, mold-ripened, bloomy-rind cheese made in the Neufchâtel-en-Bray region of Normandy.
Flexitarian It refers to a consumer preferring a semi-vegetarian diet, that is centered on plant foods with limited or occasional inclusion of meat.
Lactose Intolerance Lactose intolerance is a reaction in digestive system to lactose, the sugar in milk. It causes uncomfortable symptoms in response to the consumption of dairy products.
Cream Cheese Cream cheese is a soft and creamy fresh cheese with a tangy taste made from milk and cream.
Sorbets Sorbet is a frozen dessert made using ice combined with fruit juice, fruit purée, or other ingredients, such as wine, liqueur, or honey.
Sherbet Sherbet is a sweetened frozen dessert made with fruit and some sort of dairy product such as milk or cream.
Shelf stable Foods that can be safely stored at room temperature, or "on the shelf," for at least one year and do not have to be cooked or refrigerated to eat safely.
DSD Direct Store Delivery is the process in supply chain management wherein the product is delivered from manufacturing plant directly to the retailer.
OU Kosher Orthodox Union Kosher is a kosher certification agency based in New York City.
Gelato Gelato is a frozen creamy dessert made with milk, heavy cream and sugar.
Grass-fed Cows Grass-fed cows are allowed to graze in pastures, where they eat a variety of grasses and clover.
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Research Methodology

Mordor Intelligence follows a four-step methodology in all our reports.

  • Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step 1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set, and the model is built on the basis of these variables.​
  • Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.​
  • Step-3: Validate and Finalize: In this important step, all market numbers, variables, and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.​
  • Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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