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GCC Dairy Market Size, Share, Trends, Growth, Report and Forecast 2024-2032

GCC Dairy Market outlook

According to the report by Expert Market Research (EMR), the GCC dairy market size reached a value of USD 10.49 billion in 2023. Aided by increasing demand for dairy products and the growing applications of dairy in various sectors, the market is projected to further grow at a CAGR of 5.3% between 2024 and 2032 to reach a value of USD of 16.70 billion by 2032.

Dairy products, encompassing a wide range of items such as milk, cheese, yoghurt, and butter, are integral to the daily diet of many consumers in the GCC (Gulf Cooperation Council) region. The sector has seen significant growth due to rising health awareness, increasing disposable incomes, and the expanding population. Dairy products are not only vital for their nutritional benefits but also serve as key ingredients in culinary traditions across the GCC countries.

The rising health consciousness among consumers in the GCC region is a significant driver of the dairy market in GCC. With growing awareness of the nutritional benefits of dairy products, such as high protein, calcium, and vitamin content, there is an increasing preference for dairy as part of a balanced diet. This shift towards healthier eating habits has significantly boosted the demand for various dairy products.

The GCC region has experienced substantial population growth and rapid urbanisation, contributing to the increased demand for dairy products. Urbanisation has led to changes in lifestyle and dietary patterns, with a greater inclination towards ready-to-eat and convenient food options, including dairy products. The influx of expatriates in GCC countries has also diversified consumer preferences, further driving GCC dairy market growth.

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Continuous innovations in dairy products, including the introduction of functional and fortified dairy items, are propelling market growth. There is a growing trend of incorporating probiotics, vitamins, and minerals in dairy products to enhance their health benefits. Additionally, the development of low-fat, lactose-free, and organic dairy products caters to the specific needs of health-conscious consumers and those with dietary restrictions.

Government initiatives and investments in the dairy sector are playing a crucial role in market expansion. GCC governments are focusing on achieving self-sufficiency in dairy production by supporting local dairy farms and companies. Investments in modern dairy farming techniques, infrastructure development, and technological advancements are enhancing production capacities and ensuring the availability of high-quality dairy products.

The market can be categorised on the basis of product type into milk, cheese, yoghurt, butter, and others. Milk holds the largest market share due to its widespread consumption as a staple beverage and its use in various culinary applications. Cheese and yoghurt are also significant segments, driven by their popularity in traditional and modern cuisines. Butter, though a smaller segment, remains essential for its use in cooking and baking, consequently driving up the GCC dairy market share.

Technological advancements in dairy farming and processing are playing a crucial role in market growth. Innovations such as automated milking systems, advanced pasteurisation techniques, and efficient supply chain management enhance production efficiency and product quality. These advancements help meet the rising demand for dairy products while addressing challenges related to shelf life and transportation.

As per the GCC dairy market analysis, Saudi Arabia holds the largest market share due to its large population and significant investments in the dairy sector. The UAE is also a major market, driven by its diverse population and high consumption of dairy products. Other GCC countries are experiencing steady growth, supported by government initiatives, and increasing consumer demand.

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GCC Dairy Market Segmentation

The market can be divided based on product and region

Market 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

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the GCC dairy market. Some of the major 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

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