GCC Dairy Market Outlook

The dairy market in the GCC (Gulf Cooperation Council) region has witnessed significant growth in recent years, driven by changing consumer preferences, increasing health awareness, and rising disposable incomes. According to a report by Expert Market Research (EMR), the GCC dairy market size reached a value of USD 11.05 Billion in 2024. The market is expected to grow at a compound annual growth rate (CAGR) of 5.30% during the forecast period from 2025 to 2034, ultimately reaching a market value of USD 18.52 Billion by 2034.

Dairy products have long been a staple in the diets of the people of the GCC, with milk, yogurt, cheese, and other dairy-based foods being integral components of daily nutrition. The region’s dairy market is influenced by various factors, including rising health awareness, a growing population, and an increasing demand for convenience foods. This growth is also fueled by a shift towards healthier dietary choices, which has heightened the demand for high-quality dairy products, particularly those with added health benefits.

Market Drivers

One of the key drivers behind the expansion of the GCC dairy market is the changing dietary preferences of consumers. As lifestyles become more fast-paced, there is a rising demand for convenience products. Ready-to-drink (RTD) dairy products, such as flavored milk and yogurt drinks, have gained popularity in the region. These products offer consumers a quick, nutritious option, fitting seamlessly into their busy schedules. Additionally, the growing awareness about the health benefits of dairy, such as its contribution to bone health, high protein content, and richness in vitamins and minerals, is helping drive the demand for dairy-based food products.

Moreover, the GCC region has seen a steady increase in the consumption of value-added dairy products, such as low-fat, high-protein, lactose-free, and organic varieties. Consumers are becoming more health-conscious and are actively seeking dairy products that align with their dietary preferences and health goals. For example, the growing trend of fitness and weight management has spurred the demand for high-protein dairy items, such as Greek yogurt, as well as lactose-free products that cater to those with dietary restrictions.

Get a Free Sample Report with Table of Contents@ https://www.expertmarketresearch.com/reports/gcc-dairy-market/requestsample

Demographic Shifts and Economic Factors

The GCC countries, which include Saudi Arabia, the United Arab Emirates, Qatar, Oman, Kuwait, and Bahrain, are experiencing rapid urbanisation and demographic shifts, which significantly impact consumer behavior and preferences. The region is witnessing a young, dynamic population that is increasingly conscious of their health and lifestyle choices. This demographic is more inclined to purchase dairy products that align with modern nutritional trends, such as those rich in probiotics, fortified with vitamins, or those offering functional benefits.

The region’s growing population, particularly in urban areas, is another factor fueling the demand for dairy products. As cities expand, the middle class continues to grow, increasing disposable incomes and changing consumption patterns. With higher levels of disposable income, consumers in the GCC are more willing to spend on premium dairy products, organic offerings, and innovative dairy-based foods, further supporting the market’s growth.

In addition, the rise in tourism and the expansion of the hospitality sector in the GCC countries have increased the demand for a variety of dairy products. Hotels, restaurants, and cafés, which serve both local and international customers, are offering an extensive range of dairy products to meet diverse dietary needs and preferences.

GCC Dairy Market Segmentation

The GCC dairy market can be divided based on by flavour, by category, by product type, end-use, sales channel and region.

Breakup by Product

• Fluid Milk
• UHT Milk
• Flavoured Milk
• Cream
• Butter
• Anhydrous Milk Fat (AMF)
• Skimmed Milk Powder (SMP)
• Whole Milk Powder (WMP)
• Whey Protein(Powder and Concentrate)
• Lactose
• Cheese
• Yoghurt
• Ice-cream
• Others

Market Breakup by Region

• Saudi Arabia
• United Arab Emirates
• Kuwait
• Oman
• Qatar
• Bahrain

Competitive Landscape

Some of the major key players explored in the report by Expert Market Research are as follows:

• Almarai Company
• National Agricultural Development Company (NADEC)
• Al Rawabi Dairy Company
• Al Ain Dairy
• Saudia Dairy & Foodstuff Company(SADAFCO)
• Nestlé S.A.
• Fonterra Co-operative Group Limited
• Arla Foods amba
• Lactalis Group
• Others

Challenges Facing the GCC Dairy Market

Despite its promising growth, the GCC dairy market faces several challenges that could hinder its expansion. One of the most pressing issues is the region's harsh climate, which limits local dairy production. The extreme heat and arid conditions in many GCC countries make it difficult to sustain large-scale dairy farming, which has led to heavy reliance on imports. This dependence on international dairy supply chains exposes the market to fluctuations in prices and potential disruptions in supply, especially during periods of geopolitical instability or economic downturns.

Another challenge facing the GCC dairy market is the growing competition from plant-based dairy alternatives. The rise of veganism and plant-based diets, driven by health concerns and ethical considerations, has led to a surge in the availability and popularity of plant-based milk, yogurt, and cheese. These alternatives, often made from almonds, soy, oats, and coconut, are increasingly being consumed in the GCC region, posing a challenge to traditional dairy products. While the market for plant-based alternatives is still relatively small in the GCC, it is expanding rapidly, especially among younger and health-conscious consumers.

Furthermore, the growing concern over food security and sustainability in the GCC region has prompted governments to invest in alternative protein sources, such as plant-based foods and lab-grown meats, which could reduce demand for traditional dairy products in the long term. Despite these challenges, dairy remains a cornerstone of the GCC diet, and the market continues to grow in response to shifting consumer demands.

Media Contact:

Company Name: Claight Corporation

Contact Person: George buttler, Corporate Sales Specialist – U.S.A.

Email: sales@expertmarketresearch.com

Toll Free Number: +1-415-325-5166 | +44-702-402-5790

Address: 30 North Gould Street, Sheridan, WY 82801, USA

Website: http://www.expertmarketresearch.com

Aus Site: https://www.expertmarketresearch.com.au