GCC Dairy Market Outlook

According to the report by Expert Market Research (EMR), the GCC dairy market size attained a value of USD 11.05 Billion in 2024. Aided by the increasing demand for dairy products and the growing applications of dairy in various industries, the market is projected to further grow at a CAGR of 5.30% between 2025 and 2034 to reach a value of USD 18.52 Billion by 2034.

The dairy market in the Gulf Cooperation Council (GCC) region is experiencing significant growth, driven by factors such as rising health consciousness, increasing urbanization, and a growing expatriate population. Dairy products, including milk, cheese, yoghurt, and butter, form an essential part of the daily diet in the region. The market is further influenced by the expansion of retail chains, e-commerce platforms, and government initiatives supporting local dairy production.

Key Drivers of the GCC Dairy Market

The rising health awareness among consumers has led to an increased demand for dairy products, particularly those with functional benefits such as probiotic yoghurt, fortified milk, and low-fat dairy options. The growing consumer inclination towards protein-rich diets has further fueled the demand for dairy products, given their high nutritional value.

The expanding retail sector in the GCC, including hypermarkets, supermarkets, and online grocery platforms, has facilitated easy access to a wide range of dairy products. The rise of e-commerce has further enhanced the convenience of purchasing dairy items, leading to increased sales.

Additionally, government initiatives aimed at reducing dependency on dairy imports and boosting local dairy production have significantly contributed to market growth. Countries such as Saudi Arabia and the United Arab Emirates have invested heavily in dairy farming infrastructure, resulting in increased production capacity and enhanced supply chain efficiency.

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Trends and Developments

The increasing consumer preference for organic and plant-based dairy alternatives is shaping the GCC dairy market. With the rise of lactose intolerance cases and veganism, plant-based milk options such as almond, soy, and oat milk are gaining popularity.

Technological advancements in dairy processing and packaging have improved product shelf life and quality, further driving market growth. Innovations in dairy farming, including automated milking systems and feed optimization, have enhanced productivity and efficiency.

The growing influence of Western dietary patterns, coupled with the increasing number of quick-service restaurants (QSRs) and cafes, has led to heightened demand for dairy-based beverages, cheese, and butter. The expansion of the hospitality and tourism industry in the GCC has also played a significant role in boosting dairy consumption.

GCC Dairy Market Segmentation

The GCC dairy market can be divided based on by flavor, 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
• Yogurt
• 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 SA
• Fonterra Co-operative Group Limited
• Arla Foods Ambassador
• Lactalis Group
• Others

Challenges and Opportunities

Despite the positive growth trajectory, the GCC dairy market faces challenges such as fluctuating raw material costs, supply chain disruptions, and climate-related constraints affecting local dairy production. The high reliance on imported dairy products remains a concern for market players.

However, increasing investments in local dairy farming, strategic collaborations, and technological advancements present significant opportunities for market expansion. The rising demand for premium and functional dairy products, including lactose-free and fortified variants, is expected to create lucrative growth avenues for manufacturers.

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