Key Insights
The Middle East dairy market, valued at approximately $XX million in 2025, is projected to experience steady growth, with a Compound Annual Growth Rate (CAGR) of 3.44% from 2025 to 2033. This growth is fueled by several key factors. Rising disposable incomes across the region, particularly in the UAE and Saudi Arabia, are driving increased demand for dairy products. The growing urban population and changing consumer lifestyles, favoring convenience and premium products, are also contributing to market expansion. Furthermore, increasing health awareness is leading to higher consumption of dairy products perceived as nutritious and beneficial for well-being. However, challenges remain, including fluctuating milk prices, reliance on imports, and competition from plant-based alternatives. The market is segmented by distribution channel (off-trade and on-trade), country (Bahrain, Iran, Kuwait, Oman, Qatar, Saudi Arabia, UAE, and Rest of Middle East), and product category (butter, among others). Key players such as Nestlé, Almarai, AlRawabi, Danone, and Arla Foods are actively competing to capture market share through product innovation, brand building, and strategic partnerships.
The segmentation reveals significant variations in market dynamics across the region. Saudi Arabia and the UAE are the largest markets, driving a significant portion of the overall growth. The off-trade channel (supermarkets, hypermarkets) dominates distribution, while the on-trade (restaurants, cafes) segment is also experiencing growth. The butter category is a key component of the market, with a notable share driven by its use in both household consumption and food service industries. The future of the Middle East dairy market depends on the sustained economic growth in the region, successful management of supply chain challenges, and ongoing adaptation to changing consumer preferences and health trends. Investment in local dairy production and sustainable farming practices will play a crucial role in securing the long-term growth trajectory.

Middle East Dairy Market: A Comprehensive Report (2019-2033)
This in-depth report provides a comprehensive analysis of the Middle East dairy market, offering invaluable insights for industry professionals, investors, and strategic decision-makers. Covering the period from 2019 to 2033, with a focus on 2025, this report dissects market dynamics, competitive landscapes, and future growth trajectories across diverse segments. Key players like Nestlé SA, Almarai Company, and Danone SA are analyzed, along with emerging trends shaping this dynamic market.
Middle East Dairy Market Market Structure & Innovation Trends
This section analyzes the competitive landscape, innovation drivers, and regulatory influences within the Middle East dairy market. We explore market concentration, examining the market share held by key players such as Nestlé SA, Almarai Company, and Danone SA. The report also details significant mergers and acquisitions (M&A) activities, including deal values, and their impact on market structure. Innovation drivers, such as consumer demand for healthier and more sustainable dairy products, are examined alongside regulatory frameworks impacting product development and distribution. The analysis also considers the influence of product substitutes and evolving end-user demographics on market dynamics. For example, the increasing health consciousness of consumers drives demand for low-fat and organic dairy options. The report also explores the role of M&A activities, like Almarai's acquisition of Binghatti Beverages, highlighting its impact on expanding product portfolios and market reach. The estimated total M&A value for the period 2019-2024 is estimated at xx Million.

Middle East Dairy Market Market Dynamics & Trends
This section delves into the key factors shaping the Middle East dairy market's growth trajectory. We analyze market growth drivers, such as rising population, increasing disposable incomes, and changing consumer preferences towards convenient and value-added dairy products. The report also explores technological disruptions, including automation in dairy processing and innovative packaging solutions. Consumer preferences, including shifting demand towards organic, functional, and specialized dairy products, are examined in detail. The competitive dynamics are scrutinized, highlighting the strategies employed by leading players to maintain and expand market share. The Compound Annual Growth Rate (CAGR) for the forecast period (2025-2033) is projected at xx%, with market penetration expected to reach xx% by 2033. The impact of government regulations and health initiatives is also considered.

Dominant Regions & Segments in Middle East Dairy Market
This section identifies the leading regions, countries, and segments within the Middle East dairy market. Saudi Arabia and the UAE are projected to remain dominant markets due to factors like high population density, strong economic growth, and favorable government policies. The report provides a detailed analysis of the performance of each country (Bahrain, Iran, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates, Rest of Middle East), highlighting key growth drivers and market dynamics specific to each region. The Off-Trade distribution channel will likely continue to dominate, driven by the expanding supermarket and hypermarket presence across the Middle East. Within product categories, Butter is a significant segment.
- Key Drivers for Saudi Arabia: Strong domestic demand, government support for the dairy industry, and significant investments in dairy processing infrastructure.
- Key Drivers for UAE: High per capita income, strong tourism sector, and well-developed retail infrastructure.
- Key Drivers for Butter Segment: Traditional culinary preferences, increasing consumption in both household and food service sectors.
The report also examines the performance of the On-Trade channel (Warehouse clubs, gas stations, etc.), analyzing its growth potential and market characteristics.
Middle East Dairy Market Product Innovations
The Middle East dairy market is witnessing significant product innovation, driven by consumer demand for healthier, more convenient, and value-added dairy products. Companies are investing in the development of new product formats, such as ready-to-drink dairy beverages, flavored yogurts, and functional dairy products enriched with probiotics and vitamins. Technological advancements in dairy processing are enabling the production of higher-quality, longer-shelf-life products. These innovations are enhancing consumer experience and helping dairy companies differentiate their offerings in a competitive market.
Report Scope & Segmentation Analysis
This report segments the Middle East dairy market across various parameters:
- Distribution Channel: Off-Trade (supermarkets, hypermarkets, etc.) and On-Trade (restaurants, cafes, etc.). The Off-Trade channel is projected to witness faster growth due to the expansion of organized retail in the region.
- Country: Bahrain, Iran, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates, and Rest of Middle East. Saudi Arabia and the UAE are expected to be the largest markets.
- Category: Butter and other dairy products. Butter remains a key category, driven by traditional culinary habits. Each segment’s growth projection, market size, and competitive dynamics are discussed in detail.
Key Drivers of Middle East Dairy Market Growth
Several factors are driving the growth of the Middle East dairy market: rising population, increasing disposable incomes, changing dietary habits, government initiatives promoting domestic dairy production, and the expanding organized retail sector. Further, technological advancements in dairy processing and packaging are enhancing efficiency and product quality. The increasing preference for convenient, ready-to-consume dairy products fuels this market's expansion.
Challenges in the Middle East Dairy Market Sector
The Middle East dairy market faces several challenges, including dependence on imports for feedstock, fluctuations in raw material prices, stringent regulatory requirements, and intense competition. Water scarcity and climate change also pose significant threats. Supply chain disruptions and price volatility for key raw materials are also major hurdles. These factors can impact profitability and market stability.
Emerging Opportunities in Middle East Dairy Market
The Middle East dairy market presents several emerging opportunities, including the growing demand for functional and organic dairy products, the increasing adoption of innovative packaging technologies, and the expansion of e-commerce channels. Growing health consciousness opens avenues for value-added and specialized dairy products. Investments in research and development to improve production efficiency and enhance product quality also offer significant opportunities.
Leading Players in the Middle East Dairy Market Market
- Nestlé SA
- Almarai Company
- AlRawabi Dairy Company
- The National Agricultural Development Company (NADEC)
- Danone SA
- Arla Foods Amba
- National Food Products Company
- Saudia Dairy and Foodstuff Company (SADAFCO)
- Groupe Lactalis
Key Developments in Middle East Dairy Market Industry
- June 2021: Almarai acquired Binghatti Beverages Manufacturing's production facility in the UAE for USD 58.54 Million, expanding its beverage portfolio.
- August 2021: Saudia Dairy and Foodstuff Company opened a new ice cream factory in Jeddah, Saudi Arabia, enhancing its product range.
- May 2022: Saudia Dairy and Foodstuff Company announced the construction of a new sales depot in Makkah, Saudi Arabia, strengthening its distribution network.
Future Outlook for Middle East Dairy Market Market
The Middle East dairy market is poised for robust growth in the coming years, driven by a combination of factors including rising disposable incomes, increasing urbanization, and growing consumer demand for convenient and value-added dairy products. Strategic investments in dairy processing infrastructure, coupled with innovative product development and efficient distribution networks, will further propel market expansion. The market will witness increased competition and a shift towards premium and specialized dairy products.
Middle East Dairy Market Segmentation
-
1. Category
-
1.1. Butter
-
1.1.1. By Product Type
- 1.1.1.1. Cultured Butter
- 1.1.1.2. Uncultured Butter
-
1.1.1. By Product Type
-
1.2. Cheese
- 1.2.1. Natural Cheese
- 1.2.2. Processed Cheese
-
1.3. Cream
- 1.3.1. Double Cream
- 1.3.2. Single Cream
- 1.3.3. Whipping Cream
- 1.3.4. Others
-
1.4. Dairy Desserts
- 1.4.1. Cheesecakes
- 1.4.2. Frozen Desserts
- 1.4.3. Ice Cream
- 1.4.4. Mousses
-
1.5. Milk
- 1.5.1. Condensed milk
- 1.5.2. Flavored Milk
- 1.5.3. Fresh Milk
- 1.5.4. Powdered Milk
- 1.5.5. UHT Milk
- 1.6. Sour Milk Drinks
-
1.7. Yogurt
- 1.7.1. Flavored Yogurt
- 1.7.2. Unflavored Yogurt
-
1.1. Butter
-
2. Distribution Channel
-
2.1. Off-Trade
- 2.1.1. Convenience Stores
- 2.1.2. Online Retail
- 2.1.3. Specialist Retailers
- 2.1.4. Supermarkets and Hypermarkets
- 2.1.5. Others (Warehouse clubs, gas stations, etc.)
- 2.2. On-Trade
-
2.1. Off-Trade
Middle East Dairy Market Segmentation By Geography
-
1. Middle East
- 1.1. Saudi Arabia
- 1.2. United Arab Emirates
- 1.3. Israel
- 1.4. Qatar
- 1.5. Kuwait
- 1.6. Oman
- 1.7. Bahrain
- 1.8. Jordan
- 1.9. Lebanon

Middle East Dairy Market REPORT HIGHLIGHTS
Aspects | Details |
---|---|
Study Period | 2019-2033 |
Base Year | 2024 |
Estimated Year | 2025 |
Forecast Period | 2025-2033 |
Historical Period | 2019-2024 |
Growth Rate | CAGR of 3.44% from 2019-2033 |
Segmentation |
|
Table of Contents
- 1. Introduction
- 1.1. Research Scope
- 1.2. Market Segmentation
- 1.3. Research Methodology
- 1.4. Definitions and Assumptions
- 2. Executive Summary
- 2.1. Introduction
- 3. Market Dynamics
- 3.1. Introduction
- 3.2. Market Drivers
- 3.2.1. Rising Demand for Clean Label Food & Beverage Products; Rising Demand for Dairy Products
- 3.3. Market Restrains
- 3.3.1. Presence of Preservatives in Ready Meals may Hamper the Market Growth
- 3.4. Market Trends
- 3.4.1. OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- 4. Market Factor Analysis
- 4.1. Porters Five Forces
- 4.2. Supply/Value Chain
- 4.3. PESTEL analysis
- 4.4. Market Entropy
- 4.5. Patent/Trademark Analysis
- 5. Middle East Dairy Market Analysis, Insights and Forecast, 2019-2031
- 5.1. Market Analysis, Insights and Forecast - by Category
- 5.1.1. Butter
- 5.1.1.1. By Product Type
- 5.1.1.1.1. Cultured Butter
- 5.1.1.1.2. Uncultured Butter
- 5.1.1.1. By Product Type
- 5.1.2. Cheese
- 5.1.2.1. Natural Cheese
- 5.1.2.2. Processed Cheese
- 5.1.3. Cream
- 5.1.3.1. Double Cream
- 5.1.3.2. Single Cream
- 5.1.3.3. Whipping Cream
- 5.1.3.4. Others
- 5.1.4. Dairy Desserts
- 5.1.4.1. Cheesecakes
- 5.1.4.2. Frozen Desserts
- 5.1.4.3. Ice Cream
- 5.1.4.4. Mousses
- 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. Powdered Milk
- 5.1.5.5. UHT Milk
- 5.1.6. Sour Milk Drinks
- 5.1.7. Yogurt
- 5.1.7.1. Flavored Yogurt
- 5.1.7.2. Unflavored Yogurt
- 5.1.1. Butter
- 5.2. Market Analysis, Insights and Forecast - by Distribution Channel
- 5.2.1. Off-Trade
- 5.2.1.1. Convenience Stores
- 5.2.1.2. Online Retail
- 5.2.1.3. Specialist Retailers
- 5.2.1.4. Supermarkets and Hypermarkets
- 5.2.1.5. Others (Warehouse clubs, gas stations, etc.)
- 5.2.2. On-Trade
- 5.2.1. Off-Trade
- 5.3. Market Analysis, Insights and Forecast - by Region
- 5.3.1. Middle East
- 5.1. Market Analysis, Insights and Forecast - by Category
- 6. United Arab Emirates Middle East Dairy Market Analysis, Insights and Forecast, 2019-2031
- 7. Saudi Arabia Middle East Dairy Market Analysis, Insights and Forecast, 2019-2031
- 8. Qatar Middle East Dairy Market Analysis, Insights and Forecast, 2019-2031
- 9. Israel Middle East Dairy Market Analysis, Insights and Forecast, 2019-2031
- 10. Egypt Middle East Dairy Market Analysis, Insights and Forecast, 2019-2031
- 11. Oman Middle East Dairy Market Analysis, Insights and Forecast, 2019-2031
- 12. Rest of Middle East Middle East Dairy Market Analysis, Insights and Forecast, 2019-2031
- 13. Competitive Analysis
- 13.1. Market Share Analysis 2024
- 13.2. Company Profiles
- 13.2.1 Nestlé SA
- 13.2.1.1. Overview
- 13.2.1.2. Products
- 13.2.1.3. SWOT Analysis
- 13.2.1.4. Recent Developments
- 13.2.1.5. Financials (Based on Availability)
- 13.2.2 Almarai Company
- 13.2.2.1. Overview
- 13.2.2.2. Products
- 13.2.2.3. SWOT Analysis
- 13.2.2.4. Recent Developments
- 13.2.2.5. Financials (Based on Availability)
- 13.2.3 AlRawabi Dairy Company
- 13.2.3.1. Overview
- 13.2.3.2. Products
- 13.2.3.3. SWOT Analysis
- 13.2.3.4. Recent Developments
- 13.2.3.5. Financials (Based on Availability)
- 13.2.4 The National Agricultural Development Company (NADEC
- 13.2.4.1. Overview
- 13.2.4.2. Products
- 13.2.4.3. SWOT Analysis
- 13.2.4.4. Recent Developments
- 13.2.4.5. Financials (Based on Availability)
- 13.2.5 Danone SA
- 13.2.5.1. Overview
- 13.2.5.2. Products
- 13.2.5.3. SWOT Analysis
- 13.2.5.4. Recent Developments
- 13.2.5.5. Financials (Based on Availability)
- 13.2.6 Arla Foods Amba
- 13.2.6.1. Overview
- 13.2.6.2. Products
- 13.2.6.3. SWOT Analysis
- 13.2.6.4. Recent Developments
- 13.2.6.5. Financials (Based on Availability)
- 13.2.7 National Food Products Company
- 13.2.7.1. Overview
- 13.2.7.2. Products
- 13.2.7.3. SWOT Analysis
- 13.2.7.4. Recent Developments
- 13.2.7.5. Financials (Based on Availability)
- 13.2.8 Saudia Dairy and Foodstuff Company (SADAFCO)
- 13.2.8.1. Overview
- 13.2.8.2. Products
- 13.2.8.3. SWOT Analysis
- 13.2.8.4. Recent Developments
- 13.2.8.5. Financials (Based on Availability)
- 13.2.9 Groupe Lactalis
- 13.2.9.1. Overview
- 13.2.9.2. Products
- 13.2.9.3. SWOT Analysis
- 13.2.9.4. Recent Developments
- 13.2.9.5. Financials (Based on Availability)
- 13.2.1 Nestlé SA
List of Figures
- Figure 1: Middle East Dairy Market Revenue Breakdown (Million, %) by Product 2024 & 2032
- Figure 2: Middle East Dairy Market Share (%) by Company 2024
List of Tables
- Table 1: Middle East Dairy Market Revenue Million Forecast, by Region 2019 & 2032
- Table 2: Middle East Dairy Market Revenue Million Forecast, by Category 2019 & 2032
- Table 3: Middle East Dairy Market Revenue Million Forecast, by Distribution Channel 2019 & 2032
- Table 4: Middle East Dairy Market Revenue Million Forecast, by Region 2019 & 2032
- Table 5: Middle East Dairy Market Revenue Million Forecast, by Country 2019 & 2032
- Table 6: United Arab Emirates Middle East Dairy Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 7: Saudi Arabia Middle East Dairy Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 8: Qatar Middle East Dairy Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 9: Israel Middle East Dairy Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 10: Egypt Middle East Dairy Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 11: Oman Middle East Dairy Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 12: Rest of Middle East Middle East Dairy Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 13: Middle East Dairy Market Revenue Million Forecast, by Category 2019 & 2032
- Table 14: Middle East Dairy Market Revenue Million Forecast, by Distribution Channel 2019 & 2032
- Table 15: Middle East Dairy Market Revenue Million Forecast, by Country 2019 & 2032
- Table 16: Saudi Arabia Middle East Dairy Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 17: United Arab Emirates Middle East Dairy Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 18: Israel Middle East Dairy Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 19: Qatar Middle East Dairy Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 20: Kuwait Middle East Dairy Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 21: Oman Middle East Dairy Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 22: Bahrain Middle East Dairy Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 23: Jordan Middle East Dairy Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 24: Lebanon Middle East Dairy Market Revenue (Million) Forecast, by Application 2019 & 2032
Frequently Asked Questions
1. What is the projected Compound Annual Growth Rate (CAGR) of the Middle East Dairy Market?
The projected CAGR is approximately 3.44%.
2. Which companies are prominent players in the Middle East Dairy Market?
Key companies in the market include Nestlé SA, Almarai Company, AlRawabi Dairy Company, The National Agricultural Development Company (NADEC, Danone SA, Arla Foods Amba, National Food Products Company, Saudia Dairy and Foodstuff Company (SADAFCO), Groupe Lactalis.
3. What are the main segments of the Middle East Dairy Market?
The market segments include Category, Distribution Channel.
4. Can you provide details about the market size?
The market size is estimated to be USD XX Million as of 2022.
5. What are some drivers contributing to market growth?
Rising Demand for Clean Label Food & Beverage Products; Rising Demand for Dairy Products.
6. What are the notable trends driving market growth?
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.
7. Are there any restraints impacting market growth?
Presence of Preservatives in Ready Meals may Hamper the Market Growth.
8. Can you provide examples of recent developments in the market?
May 2022: Saudia Dairy and Foodstuff Company (SADAFCO) announced the construction of a new sales depot in the holy city of Makkah, Saudi Arabia.August 2021: As a part of the expansion, Saudia Dairy and Foodstuff Company opened an ice cream factory in Jeddah.June 2021: Almarai, the well-known dairy company in the Middle East, bought Binghatti Beverages Manufacturing's production facility in the UAE for AED 215 million (USD 58.54 million) to expand its product range. This acquisition is expected to enhance Almarai's ability to serve its customers by increasing the range of beverage products in the region.
9. What pricing options are available for accessing the report?
Pricing options include single-user, multi-user, and enterprise licenses priced at USD 3800, USD 4500, and USD 5800 respectively.
10. Is the market size provided in terms of value or volume?
The market size is provided in terms of value, measured in Million.
11. Are there any specific market keywords associated with the report?
Yes, the market keyword associated with the report is "Middle East Dairy Market," which aids in identifying and referencing the specific market segment covered.
12. How do I determine which pricing option suits my needs best?
The pricing options vary based on user requirements and access needs. Individual users may opt for single-user licenses, while businesses requiring broader access may choose multi-user or enterprise licenses for cost-effective access to the report.
13. Are there any additional resources or data provided in the Middle East Dairy Market report?
While the report offers comprehensive insights, it's advisable to review the specific contents or supplementary materials provided to ascertain if additional resources or data are available.
14. How can I stay updated on further developments or reports in the Middle East Dairy Market?
To stay informed about further developments, trends, and reports in the Middle East Dairy Market, consider subscribing to industry newsletters, following relevant companies and organizations, or regularly checking reputable industry news sources and publications.
Methodology
Step 1 - Identification of Relevant Samples Size from Population Database



Step 2 - Approaches for Defining Global Market Size (Value, Volume* & Price*)

Note*: In applicable scenarios
Step 3 - Data Sources
Primary Research
- Web Analytics
- Survey Reports
- Research Institute
- Latest Research Reports
- Opinion Leaders
Secondary Research
- Annual Reports
- White Paper
- Latest Press Release
- Industry Association
- Paid Database
- Investor Presentations

Step 4 - Data Triangulation
Involves using different sources of information in order to increase the validity of a study
These sources are likely to be stakeholders in a program - participants, other researchers, program staff, other community members, and so on.
Then we put all data in single framework & apply various statistical tools to find out the dynamic on the market.
During the analysis stage, feedback from the stakeholder groups would be compared to determine areas of agreement as well as areas of divergence