Middle East & Africa UHT Milk Market - Segmented by Product Type, Distribution Channel, and Geography – Growth, Trends, and Forecast (2018 - 2023)

Market Insights

The Middle East & Africa UHT Milk Market is expected to reach USD 1.9 billion by 2023, witnessing a CAGR of 4.3% during the forecast period. The Middle East & Africa UHT Milk sale has surpassed 1614 million Kg in 2017, with milk accounting for the largest category. Egypt and Saudi Arab is the largest market which accounts for about half of the value consumption in the region.

Rising demand for western packaged milk product with longer shelf life and lack of proper supply chain structure that demands cold storage for fresh milk triggered the demand for UHT milk. Changing lifestyle as consumer’s exposure to western style food products mainly among the sizeable young population are further driving the UHT Milk market growth. Stringent government regulation such as implemented hefty fees on expatriates by Saudi Government is affecting overall drinking milk market.  

Convenience the Key Driver

Daily consumption of drinking milk and gap in a demand-supply structure in the region fueled the UHT milk sale. Convenient packaging coupled with longer shelf life has strongly supported the demand for UHT milk. Lack of infrastructure and cold chain facility to store fresh milk in countries, like Egypt, Nigeria further accelerated the UHT milk market.

Fresh milk owing to shorter shelf life cannot store for a more extended period. Increased import dependency and insufficient domestic production to meet the essential drinking milk requirement fueled the UHT milk demand. Besides, UHT milk can sustain a high temperature of the environment and offer ease of transport, thus fueled the demand. Innovation in packaging such as PET bottle provides a potential UHT milk market opportunity in the region owing to convenience. The recent imposition of tax on expatriates by Saudi Government, which increases every year, along with the foreign employee tax on the company has negatively affected the processed food market.

International Flux Demanding UHT Milk

 UAE UHT milk market is witnessing an impressive CAGR of 8.7% during the forecasted period driven by increasing population demanding drinking milk. More than 40% of the population in UAE are under 30 yr which influenced by western culture demands processed milk with longer shelf life. Increased working population and economy further supported the market. Hypermarket and supermarket continue to dominate the UHT milk sale which is followed by convenience stores. Bulk purchase of grocery and big left offered by supermarkets driving sales. Growing middle-class population in the region such as South Africa, Egypt that migrating to urban areas, consumes mostly UHT milk. Inconsistent supply of electricity in Africa affecting cold chain supply for fresh milk fueled UHT milk supply.

Key Developments

• August 2017- Koita’s launched Organic UHT milk in convenient tetra pack with a twist cap and offering door-to-door service. The product is made from grass-fed cow milk with unique pasteurization process, which makes it taste, like fresh milk with halal-certified vitamin A and D3

The Middle East & Africa UHT Milk Market is fragmented with large number of domestic and multinational player competing for market share. Almarai Co. occupies dominant share in Middle East market. Companies focusing on new product launch and partnership with distribution channels as their key marketing strategy.

Major players include- Almarai Co., The Lactalis Group, Nestle S.A., Clover SA, Royal Friesland Campina N.V., among others.

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• Analyzing outlook of the market with the recent trends and Porter’s five forces analysis
• Market dynamics scenario, along with growth opportunities of the market in the years to come
• Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
• Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market
• Market value (USD Million) and volume (Kg Million) data for each segment and sub segment
• Distribution Channel sales Analysis by Value
• Competitive landscape involving the market share of major players, along with the new product launch and strategies adopted by players in the past five years
• Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
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