UAE Dairy Products Market to Grow with a CAGR of 4.84% through 2030
The UAE dairy products
market is expanding due to rising health awareness, increased demand for
functional dairy, growing expatriate population, and innovation in lactose-free
and plant-based alternatives, driving market growth.
According
to TechSci Research report, “UAE Dairy Products Market – By Region, Competition,
Forecast & Opportunities, 2030F”, the UAE Dairy Products market stood
at USD 2.41 billion in 2024 and is anticipated to grow USD 3.19 billion by 2030
with a CAGR 4.84% during
forecast period. The UAE dairy products market is experiencing steady
growth, driven by increasing consumer demand for high-quality dairy offerings, evolving
dietary preferences, and the country’s strong retail infrastructure. Despite
its arid climate and reliance on imports for a significant portion of its dairy
needs, the UAE has taken steps to enhance local dairy production through
government initiatives and private sector investments. The market encompasses a
wide range of dairy products, including milk, cheese, yogurt, butter, and
plant-based alternatives, catering to the country’s diverse population of
locals and expatriates.
One of the primary drivers of the UAE
dairy products market is the rising awareness of health and wellness. Consumers
are increasingly opting for dairy products enriched with probiotics, vitamins,
and minerals, contributing to the growing popularity of functional and
fortified dairy items such as probiotic yogurts and high-protein milk.
Additionally, the increasing prevalence of lactose intolerance has led to a
surge in demand for lactose-free and plant-based dairy alternatives.
Government initiatives supporting food
security and local dairy production are also playing a crucial role in market
expansion. Investments in dairy farms and production facilities, such as those
in Dubai Industrial City, are helping to reduce the UAE’s dependence on imports
and enhance the availability of fresh dairy products. Furthermore, the
country’s strategic location as a trade hub facilitates the easy import and
distribution of dairy products from global suppliers, ensuring a steady supply
in the market.
The challenge is the fluctuating cost of
raw materials. Dairy production requires significant investment in feed, water,
and energy, making it vulnerable to price volatility. Additionally,
sustainability concerns related to water usage and carbon emissions are pushing
dairy producers to adopt eco-friendly practices, which may require additional
investments in technology and infrastructure.
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" UAE Dairy Products Market”
The UAE dairy
products market is segmented into type, sales channel, regional distribution,
and company.
Based on the sales channel, the online segment is
the fastest-growing distribution channel in the UAE dairy products market,
driven by increasing consumer preference for convenience and digital shopping.
E-commerce platforms, grocery delivery apps, and direct-to-consumer
subscription services have revolutionized dairy product accessibility. Major
retailers like Carrefour, Lulu, and Amazon UAE offer a wide range of dairy
products online, with same-day and express delivery options. The rise of
health-conscious consumers and busy urban lifestyles has further fueled demand
for online dairy shopping. Additionally, promotions, personalized
recommendations, and digital payment options enhance customer engagement,
making online retail a key driver of market growth.
Based on the region,
Abu Dhabi is the fastest-growing region in the UAE dairy products market,
driven by increasing investments in local dairy production, rising consumer
demand for high-quality dairy, and expanding retail networks. Government
initiatives supporting food security, such as advanced dairy farms and
processing facilities, have bolstered local production. The region’s growing
population, high disposable income, and preference for organic and functional
dairy products further contribute to market expansion. Additionally, Abu
Dhabi’s rapid urbanization and the rise of e-commerce platforms have enhanced
dairy product accessibility, making it a key growth hub in the UAE’s evolving
dairy industry.
Major companies
operating in UAE Dairy Products market are:
- Almarai Company
- Al Rawabi Dairy
Co L.L.C.
- Al Ain Farms
- Gulf & Safa
Dairies (ADH) Company L.L.C
- Marmum Dairy
Farm L.L.C
- Emirates
Industry for Camel Milk & Products Factory L.L.C
- Orontes Dairy
Manufacturing LLC
- Balade Farms
Food Industries LLC
- Unikai Foods
PJSC
- Italian Dairy
Products FZC
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“The increasing
demand for plant-based and dairy-free alternatives. As more consumers adopt
vegan and flexitarian diets, the market for plant-based milk, cheese, and
yogurt is expanding. Almond, soy, and oat milk have gained popularity among
health-conscious consumers, prompting manufacturers to introduce innovative
dairy-free options. Another emerging trend is the growth of premium and organic
dairy products. Consumers in the UAE are willing to pay a premium for
high-quality, organic, and locally sourced dairy items. Brands such as Meliha
have introduced organic laban and milk products to cater to this growing
demand. Additionally, dairy brands are focusing on offering unique flavors and
specialty dairy products to differentiate themselves in the competitive market,”
said Mr. Karan Chechi, Research Director of TechSci Research, a research-based
management consulting firm.
UAE Dairy Products
Market, By Type (Dairy Milk, Ghee & Butter, Ice Cream & Milk Cream,
Cheese & Spread, Yogurt, Others), By Sales Channel
(Supermarket/Hypermarket, Grocery Stores, Online, Others), By Region,
Competition, Forecast & Opportunities, 2020-2030F”,
has evaluated the future growth potential of UAE Dairy Products 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 take sound investment decisions. Besides, the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in the UAE Dairy Products market.
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