Market Size of saudi arabia dairy Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2029 |
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Market Size (2024) | USD 5.84 Billion |
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Market Size (2029) | USD 7.06 Billion |
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Largest Share by Distribution Channel | Off-Trade |
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CAGR (2024 - 2029) | 3.87 % |
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Fastest Growing by Distribution Channel | Off-Trade |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Dairy Market Analysis
The Saudi Arabia Dairy Market size is estimated at 5.84 billion USD in 2024, and is expected to reach 7.06 billion USD by 2029, growing at a CAGR of 3.87% during the forecast period (2024-2029).
5.84 Billion
Market Size in 2024 (USD)
7.06 Billion
Market Size in 2029 (USD)
2.54 %
CAGR (2017-2023)
3.87 %
CAGR (2024-2029)
Largest Market by Category
30.85 %
value share, Milk, 2023
The Saudi government has introduced a range of initiatives and incentives, such as subsidies for dairy farmers, investment in research and development and others supporting the growth of segment.
Largest Market by Distribution Channel
89.52 %
value share, Off-Trade, 2023
The growth of segment in the country is largely driven with the existence of an inviting place for customers to shop, as they are constantly drawn to make large purchases.
Fastest-growing Market by Category
5.41 %
Projected CAGR, Butter, 2024-2029
The rising interest of consumers towards baking in Saudi Arabia is emerged to be one of the drivers for butter in the country, as a quick and practical source of nutrition.
Fastest-growing Market by Distribution Channel
3.92 %
Projected CAGR, Off-Trade, 2024-2029
The technological advancements making freedom to browse digital catalogs without any hurry in a priceless way is driving off-trade retail channels through Online stores.
Leading Market Player
26.74 %
market share, Almarai Company, 2022
The increased manufacturing capacities with efforts towards safety and quality of the products is making the Almarai Co., Ltd. to be the market leader in the year studied.
Popular supermarket and hypermarket chains coming up in the country, proving the rise in consumption through the channel
- Among all distribution channels, the off-trade segment dominates the Saudi Arabian dairy market. Supermarkets and hypermarkets accounted for most of the share in the off-trade segment. In 2022, supermarkets and hypermarkets accounted for 61.92% of the value share. This was due to the strong penetration of popular chains such as Carrefour, Spinney's, Lulu, and Hyper Panda, providing a range of imported and locally made dairy products.
- There is an increasing demand for dairy-based recipes from foodservice channels, which is boosting the market’s growth. Dairy sales in the on-trade channel are anticipated to grow by USD 6,042.2 million in 2025, up from USD 5,332.1 million in 2021. The growth in the segment is attributed to consuming food prepared away from home while eating out at a restaurant or ordering takeout. In 2023, 41% of Saudi Arabian consumers are expected to spend on eating out. In 2021, over 90% of Riyadh's 7.8 million population ate out at least once every week. The average monthly spending on eating out in a restaurant or ordering for delivery is SAR 1,330 (USD 355).
- The rising number of internet users in the region is one of the major factors driving online sales of dairy products during the forecast period. In January 2023, there were 36.31 million internet users in Saudi Arabia. Saudi Arabia’s internet penetration rate stood at 99% of the total population at the beginning of 2023. Between 2022 and 2023, there was a growth of 539 thousand (+1.5%) internet users in Saudi Arabia.
- Among all the dairy products, milk accounted for the majority of share in overall retail channels. In 2022, milk accounted for 30.6% of the total category. Cheese stood in second place with 24.3% of the value share.
Understand The Key Trends Shaping This Market
