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GCC Dairy Market to be Aided by the 7.6% Annual Growth of Region’s Fresh Milk Consumption between 2021-2026

According to a new report by EMR titled, ‘GCC Dairy Market Report and Forecast 2021-2026’, almost 750 million litres of fresh milk were consumed in 2017 in the GCC. Fresh milk consumption in the region is projected to witness an annual growth of 7.6% between 2021-2026.

The GCC dairy market is being driven by the rising demand for fresh milk, butter, and cheese in the region. The region is dependent on imports to meet the rising dairy demand as it has slow production expansion capabilities and limited natural resources. The expanding population of the region is also leading to increased consumption of dairy and dairy products, leading to greater import demand. Thus, the increasing imports of dairy into the region is contributing to the growth of the global dairy trade. The global dairy trade witnessed a hike of 15.3% in Q1 of 2018 as compared to the previous year, attaining a value of USD 33.9 billion in the period. The United Arab Emirates (UAE) is one of the major dairy importers in the GCC and globally. Its imports witnessed an estimated rise of 13.2% in 2017, as compared to the previous year. Saudi Arabia, another major dairy market in the region, is a major importer of cheese, butter, and other dairy products, with the domestic players primarily producing chilled and fresh dairy products like milk and yoghurt. The country accounts for over three-fourths of the dairy production and consumption in the region.

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The markets in the GCC is also being driven by the rising health consciousness among the consumers. Major players are developing innovative and premium products in response to consumer demand for mineral-enriched, low-calorie, low-fat and low-sugar dairy products. Al Rawabi, a UAE-based dairy company and a major player in the GCC dairy market, announced its plans to introduce heathier dairy options to meet the rising demand from consumers for more nutrient-rich products. The company introduced vitamin-enriched dairy products to help mitigate the growing vitamin D deficiency in the region. Its ‘Supermilk’ is enriched with vitamin along with other crucial minerals. The company, which caters to the cultural tastes of the region, also introduced vitamin and mineral-enriched laban, Nutreeboost, as a part of their new functional dairy products line. Their fortified product line was introduced as a part of their 2021 goals, which seeks to double their output by 2021 and expand their customer base to span other GCC countries along with some African countries. As a part of their 2021 vision, the company also seeks to reduce its dependency on imports to meet the domestic demand by expanding its production capacity. The increased dairy output by a leading player in the GCC dairy industry, thus, will aid the growth the regional market.

Market Breakup by Product and Country:

  • Fluid milk, UHT milk, flavoured milk, cream, butter, anhydrous milk fat (AMF), skimmed milk powder, whole milk powder, whey protein (powder and concentrate), lactose, casein, cheese, yoghurt, ice-cream, and probiotic dairy products are the major dairy products available in the GCC dairy market.
  • The major regional markets in the GCC are Saudi Arabia, United Arab Emirates, and Kuwait, among other GCC countries.

Key Findings of the Report:

  • The GCC dairy market is being driven by the rising regional population and the increasing disposable incomes.
  • The market is being aided by the growing health-awareness among the consumers, leading to increased consumption of dairy products like yoghurt and milk.
  • Local governments are investing in technologies that enable a more efficient handling of fresh milk across the various sections of the production process.
  • The rising expatriate population is leading to a change in consumption patterns and the increased consumption of processed dairy products.

Key Offerings of the Report:

  • The EMR report gives an overview of the GCC dairy market for the periods (2016-2020) and (2021- 2026).
  • The report provides the historical (2016-2020) and forecasted (2021- 2026) markets for the dairy products in the GCC.
  • It also assesses the regional dairy markets in the GCC for the period (2016-2020) and (2021- 2026).
  • It looks in-depth into the regional historical (2016-2020) and future (2021- 2026) price trends.
  • It analyses the trade data in the GCC market for the year 2020, covering the value and volume of the major exporting and importing countries.

Almarai Company, National Agricultural Development Company (NADEC), Al Rawabi Dairy Company, Al Ain Dairy, Saudia Dairy & Foodstuff Company (SADAFCO), Nestlé S.A., Fonterra Co-operative Group Limited, Arla Foods amba, and Lactalis Group are the key players in the GCC dairy market as identified by the EMR report. The comprehensive report covers their market share, capacity, and latest developments like mergers and acquisitions, plant turnarounds, and capacity expansions.

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Expert Market Research (EMR) is a leading market research and business intelligence company, ensuring its clients remain at the vanguard of their industries by providing them with exhaustive and actionable market data through its syndicated and custom market reports, covering over 15 major industry domains. The company's expansive and ever-growing database of reports, which are constantly updated, includes reports from industry verticals like chemicals and materials, food and beverages, energy and mining, technology and media, consumer goods, pharmaceuticals, agriculture, and packaging.

EMR leverages its state-of-the-art technological and analytical tools, along with the expertise of its highly skilled team of over a 100 analysts and more than 3000 consultants, to help its clients, ranging from Fortune 1000 companies to small and medium sized enterprises, easily grasp the expansive industry data and help them in formulating market and business strategies, which ensure that they remain ahead of the curve.

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