GCC Dairy Market Size, Share, Trends and Industry Report (2025-2034)

GCC Dairy Market Outlook

According to the report by Expert Market Research (EMR), the GCC dairy market attained a value of USD 11.05 billion in 2024. Aided by rising consumer demand for high-quality, nutritious dairy products and supported by strong government initiatives aimed at enhancing regional food security, the market is expected to grow at a CAGR of 5.30% during 2025-2034, reaching USD 18.52 billion by 2034.

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Dairy products remain an essential part of daily diets across the Gulf Cooperation Council (GCC) countries, including Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain, and Oman. The region's dairy industry has evolved rapidly over the past decade, driven by increasing population, rising disposable incomes, and growing consumer preference for convenient and fortified food products. The expansion of modern retail formats, rising penetration of international dairy brands, and increasing adoption of advanced dairy farming technologies have further supported the market's robust growth.

With a strong focus on food self-sufficiency, GCC governments are investing heavily in modern dairy farms, advanced feed systems, cold chain logistics, and sustainable agricultural practices. These initiatives are boosting domestic production capacity and reducing reliance on dairy imports, thereby stimulating the growth of the regional dairy market.

GCC Dairy Market Size and Share

In 2024, the GCC dairy market reached USD 11.05 billion, supported by high consumption of fresh milk, yoghurt, cheese, butter, and value-added dairy products. Saudi Arabia holds the largest market share, accounting for a significant portion of the region's dairy production and consumption. The UAE follows closely, driven by its diverse population base, expanding retail sector, and strong demand for premium dairy categories.

Qatar and Kuwait are also among the fastest-growing markets, supported by growing expatriate populations and increasing adoption of western dietary preferences. Bahrain and Oman, although smaller markets, show consistent growth due to rising urbanisation and increasing focus on domestic dairy production capabilities.

The dairy beverages segment, including fresh milk, flavoured milk, and laban, represents a major share of the market. Meanwhile, cheese, butter, and yoghurt categories continue to grow rapidly due to rising demand for international cuisines, packaged foods, and on-the-go snacks.

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GCC Dairy Market Trends

The GCC dairy market is witnessing several prominent trends that are shaping its future growth:

1. Rising Demand for Fortified and Functional Dairy Products: Consumers across the GCC are increasingly seeking dairy products enriched with vitamins, minerals, probiotics, and proteins. Functional yoghurt, probiotic drinks, and high-protein dairy snacks have gained strong traction among health-conscious individuals.

2. Growing Popularity of Organic and Clean-Label Dairy Products: With rising awareness of health and sustainability, organic milk, hormone-free products, and clean-label dairy items are gaining popularity, particularly in the UAE and Saudi Arabia.

3. Expansion of Plant-Based Dairy Alternatives: While traditional dairy dominates the market, plant-based alternatives such as almond milk, soy milk, and vegan cheese are rising in popularity among lactose-intolerant consumers and expatriate communities.

4. Growth of Ready-to-Drink Dairy Beverages: Convenient, on-the-go dairy options such as flavoured milk, laban drinks, and protein shakes are gaining widespread acceptance, especially among young consumers and working professionals.

5. Increased Focus on Sustainable Dairy Farming Practices: Technologies such as water-efficient cooling systems, automated feeding, and renewable energy are transforming the region's dairy farming operations, as sustainability becomes a major priority.

6. Digital Transformation of Dairy Supply Chains: Blockchain, IoT-enabled sensors, and smart logistics systems are improving transparency, cold chain efficiency, and quality control in dairy distribution networks.

Drivers of Growth

The GCC dairy market is being propelled by multiple key factors:

1. Growing Population and Rising Per Capita Income: The GCC region hosts a rapidly expanding population, including a large expatriate community with strong consumption patterns. Rising disposable incomes enhance the demand for premium and value-added dairy products.

2. Strong Government Support for Food Security: The governments of Saudi Arabia, Qatar, and the UAE have introduced multiple initiatives aimed at developing domestic dairy farms, supporting agritech innovations, and reducing reliance on imports.

3. Increasing Health and Wellness Awareness: The shift toward healthier lifestyles has led to greater consumption of low-fat, low-sugar, and fortified dairy products.

4. Expansion of Modern Retail and E-commerce: Supermarkets, hypermarkets, and online grocery platforms are significantly contributing to the accessibility and visibility of dairy products across the region.

5. Growing Tourism and Foodservice Sector: Hotels, restaurants, and cafes require high volumes of dairy products, boosting demand for cheese, butter, cream, and yoghurt.

6. Rising Adoption of Innovative Flavours and Product Formats: Manufacturers are introducing new flavours, textures, and convenient packaging, appealing to a wide range of consumer preferences.

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

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

Challenges

Despite its strong growth potential, the GCC dairy market faces several challenges:

• Harsh Climatic Conditions: Extreme temperatures raise operational costs for dairy farming, requiring investments in climate-controlled environments.

• High Dependence on Imported Feed: Limited domestic agricultural production necessitates reliance on imported livestock feed.

• Competition from Plant-Based Alternatives: The increasing popularity of plant-based milk, cheese, and yoghurts poses competition to traditional dairy products.

• Rising Production Costs: Energy consumption, logistics, and feed costs contribute to high production expenses for dairy companies.

Opportunities

However, the market also presents significant opportunities:

• Expansion of Organic, Lactose-Free, and Specialty Dairy Segments: Growing demand for premium and health-oriented products opens new avenues for product diversification.

• Advancement in Local Dairy Production Technologies: Smart farming solutions offer potential for increased efficiency and higher domestic output.

• Growing Tourism and Hospitality Sector: Hotels, cafés, and restaurants create strong demand for high-quality dairy ingredients.

• Rapid Digital Transformation in Retail: E-commerce growth presents new distribution opportunities for dairy brands.

GCC Dairy Market Forecast (2025-2034)

The GCC dairy market is expected to witness robust growth over the forecast period, driven by continued economic development, rising consumer awareness, and sustained investments in dairy production and processing. As governments strengthen food security frameworks and dairy companies expand their technological capabilities, regional dairy production is expected to increase significantly.

The market is projected to reach USD 18.52 billion by 2034, supported by favourable demographic trends, a strong foodservice industry, and growing demand for innovative dairy products. The rise of functional, organic, and premium dairy segments is likely to further accelerate market expansion.

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