Saudi Arabia Dairy Market Size

The Saudi Arabia dairy market is experiencing growth, with the market size projected to expand over the forecast period. The off-trade segment, particularly through supermarkets and hypermarkets, holds a significant portion of the market share, driven by the presence of major retail chains offering a variety of dairy products. The increasing demand for dairy in foodservice channels and the rising trend of eating out are contributing to the market's expansion. Additionally, the growth in online sales is supported by the high internet penetration rate in the region. Milk and cheese are the leading products in terms of market share within retail channels.

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Market Size of saudi arabia dairy Industry

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Saudi Arabia Dairy Market Summary
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https://s3.mordorintelligence.com/study%20period/1629296433432_test~study_period_study_period.svg Study Period 2017 - 2029
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Size (2024) USD 5.84 Billion
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Size (2029) USD 7.06 Billion
https://s3.mordorintelligence.com/hydraulic_fluids/1629285650767_test~hydraulic_fluids_hydraulic_fluids.svg Largest Share by Distribution Channel Off-Trade
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg CAGR (2024 - 2029) 3.87 %
https://s3.mordorintelligence.com/hydraulic_fluids/1629285650767_test~hydraulic_fluids_hydraulic_fluids.svg Fastest Growing by Distribution Channel Off-Trade

Major Players

Saudi Arabia Dairy Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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Saudi Arabia Dairy Market Analysis

The Saudi Arabia Dairy Market size is estimated at 5.84 billion USD in 2024, and is expected to reach 7.06 billion USD by 2029, growing at a CAGR of 3.87% during the forecast period (2024-2029).

5.84 Billion

Market Size in 2024 (USD)

7.06 Billion

Market Size in 2029 (USD)

2.54 %

CAGR (2017-2023)

3.87 %

CAGR (2024-2029)

Largest Market by Category

30.85 %

value share, Milk, 2023

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The Saudi government has introduced a range of initiatives and incentives, such as subsidies for dairy farmers, investment in research and development and others supporting the growth of segment.

Largest Market by Distribution Channel

89.52 %

value share, Off-Trade, 2023

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The growth of segment in the country is largely driven with the existence of an inviting place for customers to shop, as they are constantly drawn to make large purchases.

Fastest-growing Market by Category

5.41 %

Projected CAGR, Butter, 2024-2029

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The rising interest of consumers towards baking in Saudi Arabia is emerged to be one of the drivers for butter in the country, as a quick and practical source of nutrition.

Fastest-growing Market by Distribution Channel

3.92 %

Projected CAGR, Off-Trade, 2024-2029

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The technological advancements making freedom to browse digital catalogs without any hurry in a priceless way is driving off-trade retail channels through Online stores.

Leading Market Player

26.74 %

market share, Almarai Company, 2022

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The increased manufacturing capacities with efforts towards safety and quality of the products is making the Almarai Co., Ltd. to be the market leader in the year studied.

Popular supermarket and hypermarket chains coming up in the country, proving the rise in consumption through the channel

  • Among all distribution channels, the off-trade segment dominates the Saudi Arabian dairy market. Supermarkets and hypermarkets accounted for most of the share in the off-trade segment. In 2022, supermarkets and hypermarkets accounted for 61.92% of the value share. This was due to the strong penetration of popular chains such as Carrefour, Spinney's, Lulu, and Hyper Panda, providing a range of imported and locally made dairy products.
  • There is an increasing demand for dairy-based recipes from foodservice channels, which is boosting the market’s growth. Dairy sales in the on-trade channel are anticipated to grow by USD 6,042.2 million in 2025, up from USD 5,332.1 million in 2021. The growth in the segment is attributed to consuming food prepared away from home while eating out at a restaurant or ordering takeout. In 2023, 41% of Saudi Arabian consumers are expected to spend on eating out. In 2021, over 90% of Riyadh's 7.8 million population ate out at least once every week. The average monthly spending on eating out in a restaurant or ordering for delivery is SAR 1,330 (USD 355).
  • The rising number of internet users in the region is one of the major factors driving online sales of dairy products during the forecast period. In January 2023, there were 36.31 million internet users in Saudi Arabia. Saudi Arabia’s internet penetration rate stood at 99% of the total population at the beginning of 2023. Between 2022 and 2023, there was a growth of 539 thousand (+1.5%) internet users in Saudi Arabia.
  • Among all the dairy products, milk accounted for the majority of share in overall retail channels. In 2022, milk accounted for 30.6% of the total category. Cheese stood in second place with 24.3% of the value share.
Saudi Arabia Dairy Market

Saudi Arabia Dairy Industry Segmentation

Butter, Cheese, Cream, Dairy Desserts, Milk, Sour Milk Drinks, Yogurt are covered as segments by Category. Off-Trade, On-Trade are covered as segments by Distribution Channel.

  • Among all distribution channels, the off-trade segment dominates the Saudi Arabian dairy market. Supermarkets and hypermarkets accounted for most of the share in the off-trade segment. In 2022, supermarkets and hypermarkets accounted for 61.92% of the value share. This was due to the strong penetration of popular chains such as Carrefour, Spinney's, Lulu, and Hyper Panda, providing a range of imported and locally made dairy products.
  • There is an increasing demand for dairy-based recipes from foodservice channels, which is boosting the market’s growth. Dairy sales in the on-trade channel are anticipated to grow by USD 6,042.2 million in 2025, up from USD 5,332.1 million in 2021. The growth in the segment is attributed to consuming food prepared away from home while eating out at a restaurant or ordering takeout. In 2023, 41% of Saudi Arabian consumers are expected to spend on eating out. In 2021, over 90% of Riyadh's 7.8 million population ate out at least once every week. The average monthly spending on eating out in a restaurant or ordering for delivery is SAR 1,330 (USD 355).
  • The rising number of internet users in the region is one of the major factors driving online sales of dairy products during the forecast period. In January 2023, there were 36.31 million internet users in Saudi Arabia. Saudi Arabia’s internet penetration rate stood at 99% of the total population at the beginning of 2023. Between 2022 and 2023, there was a growth of 539 thousand (+1.5%) internet users in Saudi Arabia.
  • Among all the dairy products, milk accounted for the majority of share in overall retail channels. In 2022, milk accounted for 30.6% of the total category. Cheese stood in second place with 24.3% of the value share.
Category
Butter
By Product Type
Cultured Butter
Uncultured Butter
Cheese
By Product Type
Natural Cheese
Processed Cheese
Cream
By Product Type
Double Cream
Single Cream
Whipping Cream
Others
Dairy Desserts
By Product Type
Cheesecakes
Frozen Desserts
Ice Cream
Mousses
Others
Milk
By Product Type
Condensed milk
Flavored Milk
Fresh Milk
Powdered Milk
UHT Milk
Sour Milk Drinks
Yogurt
By Product Type
Flavored Yogurt
Unflavored Yogurt
Distribution Channel
Off-Trade
Convenience Stores
Online Retail
Specialist Retailers
Supermarkets and Hypermarkets
Others (Warehouse clubs, gas stations, etc.)
On-Trade
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Saudi Arabia Dairy Market Size Summary

The Saudi Arabia dairy market is experiencing steady growth, driven by a combination of factors including the dominance of off-trade distribution channels like supermarkets and hypermarkets, which hold a significant share of the market. Popular chains such as Carrefour, Spinney's, Lulu, and Hyper Panda are pivotal in offering a diverse range of both imported and locally produced dairy products. The market is further bolstered by an increasing demand for dairy-based recipes from foodservice channels, as more consumers opt for dining out or ordering takeout. The rise in internet penetration and the number of online users in the region is also contributing to the growth of online dairy sales, reflecting a broader shift towards digital shopping experiences.

In terms of product consumption, milk leads the market, followed by cheese, with both products benefiting from changing consumer preferences and lifestyle shifts. The Saudi government’s health and wellness campaigns are encouraging the consumption of healthier dairy products, which is aligning with the growing trend of health-conscious consumers seeking nutritional supplements in their diets. The adoption of Western food habits is driving cheese demand, particularly in the fast food sector, while laban remains a staple in the Arab diet. The market is moderately consolidated, with major players like Almarai Company, Arla Foods AmbA, Danone SA, SADAFCO, and NADEC leading the industry. These companies are actively expanding their operations and product offerings to meet the evolving consumer demands and capitalize on the market's growth potential.

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Saudi Arabia Dairy Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Category

      1. 1.1.1 Butter

        1. 1.1.1.1 By Product Type

          1. 1.1.1.1.1 Cultured Butter

          2. 1.1.1.1.2 Uncultured Butter

      2. 1.1.2 Cheese

        1. 1.1.2.1 By Product Type

          1. 1.1.2.1.1 Natural Cheese

          2. 1.1.2.1.2 Processed Cheese

      3. 1.1.3 Cream

        1. 1.1.3.1 By Product Type

          1. 1.1.3.1.1 Double Cream

          2. 1.1.3.1.2 Single Cream

          3. 1.1.3.1.3 Whipping Cream

          4. 1.1.3.1.4 Others

      4. 1.1.4 Dairy Desserts

        1. 1.1.4.1 By Product Type

          1. 1.1.4.1.1 Cheesecakes

          2. 1.1.4.1.2 Frozen Desserts

          3. 1.1.4.1.3 Ice Cream

          4. 1.1.4.1.4 Mousses

          5. 1.1.4.1.5 Others

      5. 1.1.5 Milk

        1. 1.1.5.1 By Product Type

          1. 1.1.5.1.1 Condensed milk

          2. 1.1.5.1.2 Flavored Milk

          3. 1.1.5.1.3 Fresh Milk

          4. 1.1.5.1.4 Powdered Milk

          5. 1.1.5.1.5 UHT Milk

      6. 1.1.6 Sour Milk Drinks

      7. 1.1.7 Yogurt

        1. 1.1.7.1 By Product Type

          1. 1.1.7.1.1 Flavored Yogurt

          2. 1.1.7.1.2 Unflavored Yogurt

    2. 1.2 Distribution Channel

      1. 1.2.1 Off-Trade

        1. 1.2.1.1 Convenience Stores

        2. 1.2.1.2 Online Retail

        3. 1.2.1.3 Specialist Retailers

        4. 1.2.1.4 Supermarkets and Hypermarkets

        5. 1.2.1.5 Others (Warehouse clubs, gas stations, etc.)

      2. 1.2.2 On-Trade

Saudi Arabia Dairy Market Size FAQs

The Saudi Arabia Dairy Market size is expected to reach USD 5.84 billion in 2024 and grow at a CAGR of 3.87% to reach USD 7.06 billion by 2029.

In 2024, the Saudi Arabia Dairy Market size is expected to reach USD 5.84 billion.

Milk Products in Saudi Arabia Market Report Snapshots

Saudi Arabia Dairy Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029