Middle East and Africa Dairy Market

The Middle East and Africa dairy market, valued at USD 44 billion, is growing due to increasing consumption of milk, cheese, and yogurt, health trends, and e-commerce opportunities.

Region:Global

Author(s):Shubham

Product Code:KRAD0785

Pages:90

Published On:August 2025

About the Report

Base Year 2024

Middle East and Africa Dairy Market Overview

  • The Middle East and Africa Dairy Market is valued at approximately USD 44 billion, based on a five-year historical analysis. This growth is primarily driven by increasing consumer demand for dairy products, rising health consciousness, and the expansion of the food service industry. The market has seen a surge in the consumption of milk, cheese, and yogurt, reflecting changing dietary preferences and a growing population.
  • Key players in this market include countries like Saudi Arabia, Egypt, and South Africa, which dominate due to their large populations and established dairy industries. Saudi Arabia benefits from significant investments in dairy farming and processing, while Egypt has a strong local demand for dairy products. South Africa's diverse dairy sector and export capabilities further enhance its market position.
  • In 2023, the Saudi Food and Drug Authority issued the "Technical Regulation for Dairy Products" (SFDA.FD 995:2023), mandating enhanced food safety standards in the dairy sector. This regulation requires stricter quality control, regular inspections, and compliance with international safety benchmarks, aiming to improve consumer confidence and ensure the safety of dairy products in the market.
Middle East and Africa Dairy Market Size

Middle East and Africa Dairy Market Segmentation

By Type:The dairy market can be segmented into various types, including milk, cheese, yogurt and fermented milk, butter and spreads, cream, powdered milk, and dairy desserts. Each of these subsegments caters to different consumer preferences and dietary needs. Milk, particularly fresh and UHT, remains a staple, while cheese and yogurt are gaining popularity due to their versatility and health benefits.

Middle East and Africa Dairy Market segmentation by Type.

By End-User:The dairy market serves various end-users, including households, the food service industry, retail chains, and food manufacturers. Households are the largest consumers, driven by the need for daily nutrition. The food service industry, including hotels and restaurants, is also a significant contributor, as it incorporates dairy products into diverse culinary offerings.

Middle East and Africa Dairy Market segmentation by End-User.

Middle East and Africa Dairy Market Competitive Landscape

The Middle East and Africa Dairy Market is characterized by a dynamic mix of regional and international players. Leading participants such as Almarai Company, Danone S.A., Nestlé S.A., FrieslandCampina, Lactalis Group, Arla Foods, Al Ain Dairy, Pinar Süt, Al Safi Danone, Clover Industries Limited, Tetra Pak International S.A., Fonterra Co-operative Group Limited, Saudia Dairy & Foodstuff Company (SADAFCO), Parmalat South Africa (a Lactalis company), Juhayna Food Industries contribute to innovation, geographic expansion, and service delivery in this space.

Almarai Company

1977

Riyadh, Saudi Arabia

Danone S.A.

1919

Paris, France

Nestlé S.A.

1866

Vevey, Switzerland

FrieslandCampina

2008

Amersfoort, Netherlands

Lactalis Group

1933

Laval, France

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Revenue Growth Rate (YoY %)

Market Penetration Rate (Regional Share, Outlets, Distribution Reach)

EBITDA Margin (%)

Product Portfolio Breadth (Number of SKUs, Product Categories)

Supply Chain Efficiency (Lead Time, Cold Chain Coverage)

Middle East and Africa Dairy Market Industry Analysis

Growth Drivers

  • Increasing Demand for Dairy Products:The Middle East and Africa region has witnessed a significant increase in dairy consumption, with per capita dairy consumption rising to 38 liters in future. This growth is driven by a burgeoning population, projected to reach 1.5 billion in future, and urbanization trends that enhance access to dairy products. Additionally, the region's dairy market is expected to benefit from a growing middle class, which is anticipated to increase demand for high-quality dairy products, further stimulating market growth.
  • Rising Health Consciousness:Health awareness among consumers in the Middle East and Africa is on the rise, with 65% of the population actively seeking healthier food options. This trend has led to increased demand for dairy products perceived as nutritious, such as yogurt and cheese, which are rich in calcium and protein. The World Health Organization reports that dairy consumption can help combat malnutrition, particularly in children, thus driving further growth in the dairy sector as families prioritize healthful diets.
  • Expansion of Retail Channels:The retail landscape in the Middle East and Africa is evolving, with the number of supermarkets and hypermarkets increasing by 15% annually. This expansion facilitates greater access to dairy products, allowing consumers to purchase a wider variety of items conveniently. Additionally, the rise of modern trade channels, including online grocery shopping, has made dairy products more accessible, contributing to increased sales and market penetration across urban and rural areas alike.

Market Challenges

  • Supply Chain Disruptions:The dairy industry in the Middle East and Africa faces significant supply chain challenges, exacerbated by geopolitical tensions and climate change. Disruptions led to a 20% increase in transportation costs, impacting the timely delivery of dairy products. Additionally, logistical issues, such as inadequate infrastructure and limited cold storage facilities, hinder the efficient distribution of dairy goods, resulting in product spoilage and increased prices for consumers.
  • Fluctuating Raw Material Prices:The dairy sector is heavily affected by the volatility of raw material prices, particularly feed costs, which have surged by 30% in the past year due to global supply chain issues. This fluctuation poses a significant challenge for dairy farmers, who struggle to maintain profitability amid rising operational costs. The unpredictability of raw material prices can lead to increased retail prices, potentially reducing consumer demand for dairy products in the region.

Middle East and Africa Dairy Market Future Outlook

The future of the dairy market in the Middle East and Africa appears promising, driven by increasing consumer demand for diverse dairy products and a growing focus on health and nutrition. Innovations in dairy processing and technology are expected to enhance product quality and shelf life, while e-commerce growth will facilitate wider distribution. As governments continue to support the dairy sector through subsidies and infrastructure improvements, the market is poised for sustainable growth, adapting to changing consumer preferences and environmental considerations.

Market Opportunities

  • Growth in E-commerce for Dairy Products:The rise of e-commerce platforms presents a significant opportunity for the dairy market, with online sales projected to increase by 25% in future. This shift allows dairy producers to reach a broader audience, particularly in urban areas where consumers prefer the convenience of online shopping. Enhanced logistics and delivery services will further support this trend, making dairy products more accessible to consumers.
  • Innovations in Dairy Processing:Advancements in dairy processing technology are creating opportunities for product differentiation and quality enhancement. The introduction of new processing techniques can extend shelf life and improve nutritional profiles, catering to health-conscious consumers. With an estimated investment of $200 million in dairy technology expected in future, companies can leverage these innovations to capture market share and meet evolving consumer demands.

Scope of the Report

SegmentSub-Segments
By Type

Milk (Fresh, UHT, Flavored, Organic, Fortified)

Cheese (Processed, Unprocessed, Local Varieties, Imported)

Yogurt and Fermented Milk (Yogurt, Laban, Buttermilk, Probiotic Drinks)

Butter and Spreads (Butter, Ghee, Dairy Spreads)

Cream (Fresh Cream, Whipping Cream, Sour Cream)

Powdered Milk (Whole, Skimmed, Infant Formula)

Dairy Desserts (Ice Cream, Puddings, Frozen Dairy Treats)

By End-User

Households

Food Service Industry (Hotels, Restaurants, Cafés)

Retail Chains (Supermarkets, Hypermarkets, Grocery Stores)

Food Manufacturers (Bakeries, Confectionery, Processed Foods)

By Distribution Channel

Supermarkets/Hypermarkets

Convenience Stores

Online Retail/E-commerce

Direct Sales (Farmers, Cooperatives)

By Region

GCC Countries (Saudi Arabia, UAE, Qatar, Kuwait, Oman, Bahrain)

North Africa (Egypt, Algeria, Morocco, Tunisia, Libya)

Sub-Saharan Africa (South Africa, Nigeria, Kenya, Ethiopia, Others)

Others (Levant, Iran, Israel)

By Product Form

Liquid

Solid/Semi-solid

Powdered

By Packaging Type

Bottles

Tetra Packs/Cartons

Cans

Pouches

Others

By Price Range

Economy

Mid-Range

Premium

Others

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Food and Agriculture Organization, Ministry of Agriculture)

Dairy Product Manufacturers and Producers

Distributors and Retailers in the Dairy Sector

Logistics and Supply Chain Companies

Industry Associations (e.g., Middle East Dairy Association)

Financial Institutions and Banks

Export and Import Agencies (e.g., Customs Authorities)

Players Mentioned in the Report:

Almarai Company

Danone S.A.

Nestle S.A.

FrieslandCampina

Lactalis Group

Arla Foods

Al Ain Dairy

Pinar Sut

Al Safi Danone

Clover Industries Limited

Tetra Pak International S.A.

Fonterra Co-operative Group Limited

Saudia Dairy & Foodstuff Company (SADAFCO)

Parmalat South Africa (a Lactalis company)

Juhayna Food Industries

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Middle East and Africa Dairy Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Middle East and Africa Dairy Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Middle East and Africa Dairy Market Analysis

3.1 Growth Drivers

3.1.1 Increasing Demand for Dairy Products
3.1.2 Rising Health Consciousness
3.1.3 Expansion of Retail Channels
3.1.4 Government Support for Dairy Farming

3.2 Market Challenges

3.2.1 Supply Chain Disruptions
3.2.2 Fluctuating Raw Material Prices
3.2.3 Regulatory Compliance Issues
3.2.4 Competition from Non-Dairy Alternatives

3.3 Market Opportunities

3.3.1 Growth in E-commerce for Dairy Products
3.3.2 Innovations in Dairy Processing
3.3.3 Export Potential to Emerging Markets
3.3.4 Increasing Investment in Dairy Technology

3.4 Market Trends

3.4.1 Shift Towards Organic Dairy Products
3.4.2 Rise of Plant-Based Dairy Alternatives
3.4.3 Focus on Sustainable Dairy Practices
3.4.4 Digital Transformation in Dairy Supply Chains

3.5 Government Regulation

3.5.1 Food Safety Standards
3.5.2 Subsidies for Dairy Farmers
3.5.3 Import Tariffs on Dairy Products
3.5.4 Environmental Regulations on Dairy Production

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Middle East and Africa Dairy Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Middle East and Africa Dairy Market Segmentation

8.1 By Type

8.1.1 Milk (Fresh, UHT, Flavored, Organic, Fortified)
8.1.2 Cheese (Processed, Unprocessed, Local Varieties, Imported)
8.1.3 Yogurt and Fermented Milk (Yogurt, Laban, Buttermilk, Probiotic Drinks)
8.1.4 Butter and Spreads (Butter, Ghee, Dairy Spreads)
8.1.5 Cream (Fresh Cream, Whipping Cream, Sour Cream)
8.1.6 Powdered Milk (Whole, Skimmed, Infant Formula)
8.1.7 Dairy Desserts (Ice Cream, Puddings, Frozen Dairy Treats)

8.2 By End-User

8.2.1 Households
8.2.2 Food Service Industry (Hotels, Restaurants, Cafés)
8.2.3 Retail Chains (Supermarkets, Hypermarkets, Grocery Stores)
8.2.4 Food Manufacturers (Bakeries, Confectionery, Processed Foods)

8.3 By Distribution Channel

8.3.1 Supermarkets/Hypermarkets
8.3.2 Convenience Stores
8.3.3 Online Retail/E-commerce
8.3.4 Direct Sales (Farmers, Cooperatives)

8.4 By Region

8.4.1 GCC Countries (Saudi Arabia, UAE, Qatar, Kuwait, Oman, Bahrain)
8.4.2 North Africa (Egypt, Algeria, Morocco, Tunisia, Libya)
8.4.3 Sub-Saharan Africa (South Africa, Nigeria, Kenya, Ethiopia, Others)
8.4.4 Others (Levant, Iran, Israel)

8.5 By Product Form

8.5.1 Liquid
8.5.2 Solid/Semi-solid
8.5.3 Powdered

8.6 By Packaging Type

8.6.1 Bottles
8.6.2 Tetra Packs/Cartons
8.6.3 Cans
8.6.4 Pouches
8.6.5 Others

8.7 By Price Range

8.7.1 Economy
8.7.2 Mid-Range
8.7.3 Premium
8.7.4 Others

9. Middle East and Africa Dairy Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Revenue Growth Rate (YoY %)
9.2.4 Market Penetration Rate (Regional Share, Outlets, Distribution Reach)
9.2.5 EBITDA Margin (%)
9.2.6 Product Portfolio Breadth (Number of SKUs, Product Categories)
9.2.7 Supply Chain Efficiency (Lead Time, Cold Chain Coverage)
9.2.8 Brand Recognition (Consumer Awareness, Awards, Rankings)
9.2.9 Innovation Index (New Product Launches, R&D Spend)
9.2.10 Sustainability Initiatives (Water/Energy Use, Packaging, Animal Welfare)

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Almarai Company
9.5.2 Danone S.A.
9.5.3 Nestlé S.A.
9.5.4 FrieslandCampina
9.5.5 Lactalis Group
9.5.6 Arla Foods
9.5.7 Al Ain Dairy
9.5.8 Pinar Süt
9.5.9 Al Safi Danone
9.5.10 Clover Industries Limited
9.5.11 Tetra Pak International S.A.
9.5.12 Fonterra Co-operative Group Limited
9.5.13 Saudia Dairy & Foodstuff Company (SADAFCO)
9.5.14 Parmalat South Africa (a Lactalis company)
9.5.15 Juhayna Food Industries

10. Middle East and Africa Dairy Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Government Procurement Policies
10.1.2 Budget Allocations for Dairy Products
10.1.3 Supplier Selection Criteria

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in Dairy Processing Facilities
10.2.2 Energy Consumption Patterns
10.2.3 Infrastructure Development Initiatives

10.3 Pain Point Analysis by End-User Category

10.3.1 Quality Assurance Issues
10.3.2 Supply Chain Reliability
10.3.3 Pricing Volatility

10.4 User Readiness for Adoption

10.4.1 Awareness of Dairy Product Benefits
10.4.2 Accessibility of Dairy Products
10.4.3 Consumer Preferences

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Measurement of ROI in Dairy Investments
10.5.2 Expansion into New Markets
10.5.3 Long-term Sustainability Practices

11. Middle East and Africa Dairy Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Framework


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail vs Rural NGO Tie-ups


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service


7. Value Proposition

7.1 Sustainability

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 JV

10.2 Greenfield

10.3 M&A

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 JVs

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Activity Timeline
15.2.2 Milestone Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of industry reports from regional dairy associations and agricultural ministries
  • Review of market trends and statistics from international organizations such as FAO and WHO
  • Examination of consumer behavior studies and dairy consumption patterns in the Middle East and Africa

Primary Research

  • Interviews with dairy farm owners and operators to understand production challenges
  • Surveys with distributors and retailers to gauge market demand and pricing strategies
  • Focus groups with consumers to explore preferences and purchasing habits related to dairy products

Validation & Triangulation

  • Cross-validation of findings through multiple data sources, including trade publications and government reports
  • Triangulation of insights from primary interviews with secondary data trends
  • Sanity checks conducted through expert panel reviews comprising industry veterans and market analysts

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total dairy market size based on national agricultural output and consumption data
  • Segmentation of the market by product types such as milk, cheese, yogurt, and butter
  • Incorporation of demographic factors influencing dairy consumption across different regions

Bottom-up Modeling

  • Collection of production data from major dairy farms and cooperatives in the region
  • Analysis of sales data from key retailers and distributors to establish market penetration rates
  • Estimation of average pricing for various dairy products to calculate revenue potential

Forecasting & Scenario Analysis

  • Utilization of historical growth rates to project future market trends through 2030
  • Scenario modeling based on economic factors, regulatory changes, and health trends impacting dairy consumption
  • Development of baseline, optimistic, and pessimistic forecasts to account for market volatility

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Dairy Farm Operations60Farm Owners, Production Managers
Retail Dairy Sales70Store Managers, Category Buyers
Dairy Product Distribution50Logistics Coordinators, Distribution Managers
Consumer Dairy Preferences100Household Decision Makers, Health-Conscious Consumers
Food Service Sector Insights40Restaurant Owners, Catering Managers

Frequently Asked Questions

What is the current value of the Middle East and Africa Dairy Market?

The Middle East and Africa Dairy Market is valued at approximately USD 44 billion, driven by increasing consumer demand for dairy products, rising health consciousness, and the expansion of the food service industry.

Which countries dominate the Middle East and Africa Dairy Market?

What are the main types of dairy products in the Middle East and Africa?

How is the dairy market in the Middle East and Africa expected to grow?

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