Market Trends of saudi arabia dairy Industry
Increasing government support, rising health consciousness, and rise of local production are driving the consumption of dairy products in Saudi Arabia
- Saudi Arabia dominates the dairy market consumption in the Middle East due to factors such as the increasing government-run health and wellness campaigns designed to combat obesity and related problems (diabetes, high blood pressure, heart disease, and high cholesterol), which have been encouraging consumers to purchase healthier products and directly fueling the consumption of dairy products in the country. The government has also been ramping up efforts to increase local production by encouraging manufacturers and producers with incentives and subsidies.
- An increasing number of health-conscious consumers are moving toward milk and related products to supplement food with the nutrition required for the body. The majority of the population consumed milk with their tea, coffee, shakes, or drinks. Thus, the per capita consumption of milk in the country experienced an increase of 1.69% in 2022 compared to 2021.
- With the adoption of Western culture and changing food habits, the demand for cheese has been increasing across the country. Cheese is also generating strong demand from the fast food industry, where foreign foodservice operators are strategically expanding their presence. In 2021, the number of Pizza Hut outlets in Saudi Arabia reached 222. Laban is majorly consumed by Middle Eastern countries, including Saudi Arabia, as they consider it an essential part of the Arab diet. It is majorly produced in Lebanon and some other Arab countries. With the growing consumption of laban, companies are differentiating their offerings in terms of flavor, ingredient, health benefit claims, and packaging format and size.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increased production is attributed to the efforts to improve animal husbandry practices to increase dairy production
- Macroeconomic conditions, government reforms, and increased availability and demand for dairy products, in Saudi Arabia support milk production in the country
- Inclination of consumers toward cheese-based snacks is enhancing cheese production in the Saudi Arabian dairy market
