GCC Dairy Market: Size, Trends, Growth Drivers, and Future Outlook (2025-2034)

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GCC Dairy Market Outlook

According to the report by Expert Market Research (EMR), the GCC dairy market size attained a value of USD 11.05 Billion in 2024. Aided by rising health awareness, increasing demand for diverse dairy products, and expanding applications of dairy in various industries, the market is projected to grow at a CAGR of 5.30% between 2025 and 2034, reaching a value of USD 18.52 Billion by 2034.

Dairy products, including milk, cheese, yoghurt, butter, and cream, are integral to the diet and culture of the GCC region. Rich in essential nutrients such as calcium, protein, and vitamins, dairy products support health and wellness. The market in the GCC region is shaped by a unique combination of cultural preferences, modern dietary trends, and economic growth.

Drivers of Market Growth

The growth of the GCC dairy market is primarily driven by an increasing population coupled with rising disposable incomes. As consumer purchasing power improves, there is an enhanced demand for premium and value-added dairy products, such as flavoured milk, organic dairy, and lactose-free products.

Health and wellness trends are significantly influencing consumer preferences in the GCC region. The growing awareness of the nutritional benefits of dairy products has led to an increased focus on products enriched with probiotics, vitamins, and minerals. Additionally, the demand for functional dairy products, such as those promoting digestive health or immunity, is on the rise.

Rapid urbanisation and the expansion of modern retail channels also play a crucial role in market growth. Supermarkets, hypermarkets, and e-commerce platforms are making dairy products more accessible to consumers, offering a wide variety of options.

The region's hot climate drives consistent demand for dairy-based beverages such as laban (a traditional fermented drink) and flavoured milk, which provide refreshment and hydration. Meanwhile, the hospitality and tourism industry in the GCC countries, particularly in the UAE and Saudi Arabia, is contributing to the increasing consumption of high-quality dairy products.

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Emerging Trends

Several trends are shaping the GCC dairy market:

  • Premiumisation: Consumers in the GCC region are increasingly seeking premium dairy products that offer superior taste, nutritional benefits, and unique flavours. This trend is particularly evident in the growing demand for gourmet cheeses, organic milk, and speciality yoghurts.

  • Sustainability: Environmental sustainability is becoming a priority for both producers and consumers. Companies are adopting eco-friendly packaging solutions and sustainable farming practices to align with consumer values and regulatory requirements.

  • Digitalisation: The digital transformation of retail channels is revolutionising the way consumers purchase dairy products. Online platforms and mobile applications offer personalised recommendations, subscription models, and doorstep delivery, enhancing convenience and accessibility.

  • Functional Dairy:: Functional dairy products enriched with probiotics, omega-3 fatty acids, and plant-based nutrients are gaining popularity as consumers focus on health and wellness. These products cater to specific needs, such as digestive health, immunity, and weight management.

GCC Dairy Market Segmentation

The GCC dairy market can be divided based on by flavor, by category, by product type, end-use, sales channel and region.

Breakup by Product

  • Fluid Milk
  • UHT Milk
  • Flavoured Milk
  • Cream
  • Butter
  • Anhydrous Milk Fat (AMF)
  • Skimmed Milk Powder (SMP)
  • Whole Milk Powder (WMP)
  • Whey Protein (Powder and Concentrate)
  • Lactose
  • Cheese
  • Yogurt
  • Ice cream
  • Others

Market Breakup by Region

  • Saudi Arabia
  • United Arab Emirates
  • Kuwait
  • Oman
  • Qatar
  • Bahrain

Competitive Landscape

Some of the major key players explored in the report by Expert Market Research are as follows:

  • Almarai Company
  • National Agricultural Development Company (NADEC)
  • Al Rawabi Dairy Company
  • Al Ain Dairy
  • Saudia Dairy & Foodstuff Company(SADAFCO)
  • Nestlé SA
  • Fonterra Co-operative Group Limited
  • Arla Foods Ambassador
  • Lactalis Group
  • Others

Challenges and Opportunities

The GCC dairy market faces several challenges, including supply chain complexities, fluctuating raw material costs, and water scarcity, which impacts domestic dairy production. The reliance on imported dairy products to meet local demand further exposes the market to global price volatility and trade disruptions.

Despite these challenges, the market offers significant opportunities. The growing focus on local dairy production, supported by government initiatives and investments, is creating a more resilient supply chain. Additionally, the rising demand for organic and plant-based dairy alternatives presents new avenues for growth.

Innovations in dairy processing and packaging technologies are further enhancing product quality and shelf life, addressing consumer preferences for convenience and sustainability.

Future Outlook

The GCC dairy market is poised for robust growth over the next decade, driven by evolving consumer preferences, technological advancements, and supportive government policies. The shift towards healthier and more sustainable food choices will continue to shape the market landscape.

The rise of plant-based dairy alternatives, including almond milk, soy milk, and coconut-based yoghurts, is expected to gain momentum, particularly among health-conscious and environmentally aware consumers. At the same time, traditional dairy products will remain a staple, underscoring the importance of innovation in flavour and formulation.

Investments in domestic dairy production, research and development, and infrastructure are expected to strengthen the region’s dairy sector. By adopting advanced technologies, such as precision farming and automated processing, producers can enhance efficiency and meet the growing demand for high-quality products.

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