Page 10 - AA 2024

Editorial

Middle East Dairy Market Analysis

The Middle East Dairy Market size is es- is the leading category in the UAE market,
timated at 18.89 billion USD in 2024, and accounting for 26.8% of the market value
is expected to reach 23.43 billion USD by in 2022. Consumers in the country spend
2029, growing at a CAGR of 4.40% during a major portion of their income on milk as
the forecast period (2024-2029). they consider it a pro-health beverage.
Widespread adoption of distribu- • In the Middle East, the Israeli dairy in-
tion channels, led by remarkable sales dustry is considered one of the most ad-
through supermarkets and hypermarkets vanced. As of 2021, approximately 125,000
is propelling the growth cattle made up the Israeli dairy herd. In
the Israeli dairy industry, a cow produced
• In 2022, the distribution channel in the 12,000 kg of milk annually on average in
Middle East witnessed a growth of 2.69% Syrian women farmers learning-new 2021.
compared to 2021. Off-trade retailing skills to produce food-
dominated Middle East’s retail space dur- Middle East Dairy Market Trends
ing the review period (2017-2022). In 2022, two countries collectively accounted for a
off-trade retailing held a share of 81.26%. 52.2% share in the overall dairy products Increasing government-run health and
In the Middle East, consumers are highly volume sales across the region in 2022. The wellness campaigns driving dairy product
fascinated by off-trade retailing due to the key driving factors are the high production consumption in the region
greater convenience they get when pur- of raw milk, rising consumer preference • Consumers in the Middle East are de-
chasing dairy products. for quality dairy products, and adequate veloping a sense of healthy living and
industry regulation to facilitate the manu-
• On-trade retailing held a share of facturing and trading of dairy products. opting for food with functional attributes,
18.73% in the Middle East in 2022. In on- including probiotic yogurt and sour milk
drinks like laban and buttermilk. Consum-
trade channels (quick-service restaurants), • Saudi Arabia is the largest dairy pro-
the prices are fixed for dairy products, ducer in the GCC countries, supported by er demand for convenient and healthy on-
the-go snack options is the primary driver
while consumers are given several options the highest consumption of dairy products
in off-trade channels. In the Middle East, in the country. In 2022, the consumption of for the increasing consumption of dairy
snack products across the region.
off-trade channels offer dairy products at dairy products in Saudi Arabia reached
varied prices (low, medium, and high). The around USD 5,479 million, representing • Within the Middle East, Saudi Arabia
milk sold by these retailing units is avail- a 2.9% growth compared to the previous dominates the overall dairy market with
able from USD 2.78 to as high as USD 35.4. year, 2021. the highest consumption. The increasing
The availability of milk at varied prices • Iran’s dairy industry has a nominal pro- government-run health and wellness cam-
also promotes the buying power among duction capacity of 12 million metric tons paigns designed to combat obesity and re-
consumers as they can purchase the prod- per annum. Around 650 licensed dairy pro- lated problems (diabetes, high blood pres-
ucts that suit their affordability parameters. duction units are active across the country. sure, heart disease, and high cholesterol)
• In the Middle East, off-trade retailers Also, dairy exports rose by 14% in 2021, are encouraging consumers to purchase
focus on providing various dairy products, from 1.22 million tonnes to 1.39 million healthier products, thus directly fueling the
including different flavors such as unsweet- tonnes in 2022. dairy market in the country. The Saudi gov-
ened, chocolate, and vanilla. To increase • The United Arab Emirates is identified ernment has been ramping up efforts to
the consumer base, they offer consumers as the fastest-growing dairy market in the increase local production by encouraging
complete information about the products, Middle East. The UAE market is anticipated manufacturers and producers with incen-
such as product specifics (ingredient used, to grow by 13.4% in 2025 from 2022. Milk tives and subsidies.
seed used, and others). As a result, con-
sumers are engaged in purchasing their
milk beverages through off-trade modes.
• During the forecast period, the demand
for dairy products is expected to increase
due to the rising health consciousness
among the population. As a result, the de-
pendency on retailing units is expected to
grow during 2025-2026, as they offer con-
sumers higher visibility about the product.
Saudi Arabia plays a major role in the
consumption of dairy products in the re-
gion
• Saudi Arabia and Iran are identified
as the major markets in the region. These

8 Arab Agriculture 2024