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Middle East & Africa Dairy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 114 Pages
  • June 2022
  • Region: Africa, Middle East
  • Mordor Intelligence
  • ID: 4622498
The Middle-East and African dairy market is forecasted to witness a CAGR of 3.50% during the forecast period (2022-2027).

In 2020, during the outbreak of COVID-19, Almarai, Middle East's largest dairy company, reduced its SKUs from 500 to 200 owing to the contraction in demand for dairy products such as butter and cheese from the foodservice industry amidst the increased consumer focus on stocking only essential products. The pandemic also resulted in significant disruption in milk collection, distribution, processing, and marketing activities in African countries. Small and informal milk collectors and processors faced traffic restrictions, and the unavailability of cold chain networks led to the spoilage of dairy products, which resulted in an increase in the cost of dairy products in the region.

The shift of Africans in milk production, processing, and marketing activities for income, coupled with the increasing support of European NGOs and dairy brands in assisting African local milk producers with infrastructure and technology, is anticipated to expand the size of the Middle-East and African dairy products market.

The Egyptian dairy industry has been witnessing a surge in investment from international dairy companies. In the recent past, Arla Foods, a Denmark-based global dairy product company, made a joint venture with Egypt-based dairy company Juhayna to distribute the former's dairy products across the country.

Key Market Trends

Growing Production of Milk and Milk Products in the Region

The production of milk and milk-based products has been witnessing a significant upsurge in the Middle Eastern Region, particularly in Saudi Arabia, due to the presence of over 62 dairy farms. Saudi Arabia is the largest dairy consumer among GCC countries due to the presence of a large population with substantial per capita spending on dairy products, including cheese and butter. Saudi Arabia is aiming to diversify in other industries apart from oil as part of its Vision 2030. Hence, it is expected to further strengthen the domestic dairy industry, thereby benefitting from the growth of the regional dairy products market in the coming years.

Increasing Demand for Yogurt

The increase in health consciousness among consumers has enabled them to opt for yogurt, as it has various health benefits, like improved digestion, enhanced immune function, and a reduced risk of many diseases, including obesity. The increasing availability of yogurt in multiple flavors, including coconut-cranberry, pineapple spinach kiwi, blueberry cucumber, and spiced apricot, entices the millennial and generation Z population toward the products. Growing penetration of organized retail channels and online retail networks has been providing consumers with a broad array of choices to opt from. Therefore, changing consumer preferences, coupled with the rising availability of different dairy products, is further expected to augment the growth of the market.

Competitive Landscape

The Middle-East and African dairy market is competitive, owing to the presence of large regional and domestic players in different countries. Mergers, expansions, acquisitions, partnerships, and new product developments are strategic approaches adopted by the leading companies to boost their brand presence. Major global players in the market include Sadafco, Almarai, Unikai Foods PJSC, CLOVER SA (PTY) LTD, and Gulf Safa Dairies (ADH) Company LLC.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 By Product Type
5.1.1 Milk
5.1.2 Cheese
5.1.3 Butter
5.1.4 Dairy Desserts
5.1.5 Yogurt
5.1.6 Other Product Types
5.2 By Distribution Channel
5.2.1 Supermarkets/Hypermarkets
5.2.2 Convenience Stores
5.2.3 Online Retail Stores
5.2.4 Other Distribution Channels
5.3 Geography
5.3.1 South Africa
5.3.2 Saudi Arabia
5.3.3 Kuwait
5.3.4 United Arab Emirates
5.3.5 Oman
5.3.6 Qatar
5.3.7 Rest of Middle-East and Africa
6.1 Most Active Companies
6.2 Market Share Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Sadafco
6.4.2 Almarai Company
6.4.3 Unikai Foods PJSC
6.4.4 Lacnor
6.4.5 National Food Products Company LLC
6.4.6 Ghadeer Dairy Company
6.4.7 Al Faisaliah Group
6.4.8 Al Rawabi Dairy
6.4.9 United National Dairy Co.
6.4.10 Najran Dairy Co. Ltd

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Sadafco
  • Almarai Company
  • Unikai Foods PJSC
  • Lacnor
  • National Food Products Company LLC
  • Ghadeer Dairy Company
  • Al Faisaliah Group
  • Al Rawabi Dairy
  • United National Dairy Co.
  • Najran Dairy Co. Ltd