Saudi Arabia Dairy Market to Grow with a CAGR of 5.76% through 2028

Saudi Arabia Dairy Market is being propelled by the growing awareness of the health benefits of dairy products and expanding retail distribution network.

According to TechSci Research report, “Saudi Arabia Dairy Market - Industry Size, Share, Trends, Competition Forecast & Opportunities, 2029”, the Saudi Arabia Dairy Market stood at USD 6219.39 million in 2022 and is anticipated to grow with a CAGR of 5.76% in the forecast period, 2024-2028. The Saudi Arabian dairy industry has witnessed remarkable growth and transformation, evolving from heavy reliance on dairy imports to domestic self-sufficiency. Government-led initiatives, such as the King Salman Program for Agricultural Development, have been pivotal in boosting local production. With a rapidly growing population and changing dietary preferences, the sector is expanding to meet rising domestic demand. Technological advancements and modernization efforts, including sustainable practices and renewable energy use, have enhanced productivity and environmental sustainability. The industry's strategic shift towards export opportunities aligns with Saudi Arabia's economic diversification goals. The Saudi Arabian dairy sector presents significant investment prospects, poised for continued development and innovation.

Government-led initiatives have played a central role in reshaping the Saudi dairy sector. The King Salman Program for Agricultural Development, in particular, has provided significant financial and technical support to local farmers and agribusinesses. Through subsidies, low-interest loans, and access to modern farming techniques, the government aims to enhance the efficiency and productivity of dairy production. This program, along with other strategic efforts, seeks to reduce the country's reliance on dairy imports and ensure long-term food security. These initiatives have created a conducive environment for investment, fostering the growth of the local dairy industry.

The industry's expansion is closely tied to the increasing domestic demand for dairy products. The Saudi population has been rapidly growing, and with it, the need for dairy items, including milk, yogurt, cheese, and other dairy derivatives. Furthermore, changing dietary preferences and a growing awareness of the nutritional benefits associated with dairy consumption have contributed to the rising demand for these products. As a result, the Saudi dairy sector has had to adapt and modernize its production capabilities to meet the needs of an ever-expanding consumer base.

Technological advancements have been a critical driver of growth and modernization within the Saudi Arabian dairy industry. The introduction of cutting-edge equipment and practices has significantly enhanced production efficiency and product quality. Modern dairy farms have been equipped with automated milking systems, advanced cooling and storage facilities, and improved herd management techniques. These innovations not only increase productivity but also ensure the health and welfare of dairy animals, ultimately leading to higher-quality dairy products. In the processing sector, there is a strong focus on maintaining strict quality control standards, which is essential for producing dairy items that meet the expectations of both local and international consumers.

Browse over XX market data Figures spread through 83 Pages and an in-depth TOC on "Saudi Arabia Dairy Market.”

Government support and technological advancement have also facilitated the diversification of dairy products. Beyond traditional dairy offerings, the sector has seen the development of value-added products. Flavored yogurts, fortified milks, and lactose-free alternatives are just a few examples of the innovative products that cater to changing consumer preferences and expand the industry's offerings. This diversification allows the dairy industry to remain competitive and better respond to consumer demands.

Export opportunities have emerged as another key driver of growth in the Saudi dairy sector. The country's government, in line with its Vision 2030 plan, is focusing on diversifying the economy away from oil dependency. This shift includes promoting non-oil sectors like agriculture and food production, creating a strong emphasis on expanding the local dairy industry. To facilitate exports, Saudi dairy companies have aimed to meet international quality and safety standards, such as HACCP (Hazard Analysis and Critical Control Points) and ISO certification. By meeting these global standards, Saudi dairy products can gain a competitive edge in international markets. As a result, the industry is poised to become an important contributor to the country's economic diversification efforts.

Despite these promising developments, the Saudi Arabian dairy industry also faces notable challenges that require careful consideration. Water scarcity poses a significant obstacle, as dairy farming relies on water for both cattle hydration and crop cultivation, particularly for animal feed. Saudi Arabia's arid climate necessitates efficient water management practices, along with the exploration of alternative feed sources to alleviate this challenge.

Saudi Arabia Dairy market is segmented into type, sales channel, and region.

Based on sales channel, the market is segmented into supermarkets/hypermarkets, departmental stores, online, others.

Hypermarkets and supermarkets have emerged as the dominating segment in the Saudi Arabian dairy industry. These large retail chains offer a wide range of dairy products, making them easily accessible to consumers across the country. The convenience and one-stop shopping experience they provide have contributed to their prominence. Moreover, hypermarkets and supermarkets often stock dairy items from both local and international brands, catering to diverse consumer preferences. This segment's extensive reach and prominence make it a vital distribution channel for dairy products in Saudi Arabia, shaping consumer choices and influencing the market's overall dynamics.

Major companies operating in Saudi Arabia Dairy market are:

• Almarai Company
• Al Safi Danone Ltd.
• The National Agricultural Development Company (NADEC)
• Nada Dairy
• Saudia Dairy & Foodstuff Company (SADAFCO)
• Danya Foods Ltd.
• Forsan Foods & Consumer Products Company ltd
• Modern Dairy Plant Company (Badr Dairy)
• Wardat Al Mashreq Food Factory
• Ornua Ingredients International

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“ The Saudi Arabian dairy industry has undergone significant transformation, driven by a combination of government initiatives, changing consumer preferences, and economic diversification efforts. The country has shifted from heavy dependence on dairy imports to aspiring for self-sufficiency and food security. Government programs, including the King Salman Program for Agricultural Development, have supported local dairy production. Rising domestic demand, driven by population growth and increased health awareness, has also fueled the industry's expansion. Technological advancements, sustainability efforts, and the embrace of e-commerce have further shaped the sector. The industry's future promises growth and diversification, with yogurt and online retail emerging as notable segments.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

“Saudi Arabia Dairy Market By Type (Drinking Milk, Cheese, Yogurt, Ghee & Butter, Others), By Sales Channel (Supermarkets/Hypermarkets, Departmental Stores, Online, Others) By Region, By Competition Forecast & Opportunities, 2018-2028F, has evaluated the future growth potential of Saudi Arabia Dairy market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision-makers make sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Saudi Arabia Dairy market.

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