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Middle East and Africa Dairy Alternatives Market - Growth, and Forecasts (2023-2028)

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  • 120 Pages
  • April 2023
  • Region: Africa, Middle East
  • Mordor Intelligence
  • ID: 4828295
UP TO OFF until Dec 31st 2023
The Middle East and Africa dairy alternatives market is projected to record a CAGR of 6.76% over the forecast period.

The COVID-19 pandemic resulted in a sudden increase in the use of plant-based substitutes in the Middle East and Africa. There was a huge demand in Saudi Arabia for more organic, lactose-free, and non-dairy milk options during COVID-19. People opted for products using oats, almonds, soy, and peas in milk, i.e., plant-based milk, as an alternative. According to the Blue Diamond Growers' report of April 2022, the sales of almonds in the Middle East increased by 29% since the previous year. Consumers working from home during the pandemic embraced e-commerce and healthier diets.

As a result of COVID-19, online sales of plant-based milk and other goods increased in the Middle East. For example, Koita Foods, a dairy and plant-based drinks company, registered a significant rise of 350% in online sales in 2021. The growing intolerance toward lactose sugar, which is present in animal-derived dairy products, creates demand for dairy alternatives to maintain the required nutritional level in the body. The increasing demand for dairy alternatives among the millennial population is strongly driving the market studied. This is due to the nutritional benefits, unique flavors of non-dairy products, and lifestyles of the working population in the region. The high cost of production associated with dairy alternatives is one of the restraining factors associated with the market studied.

MEA Dairy Alternatives Market Trends

Rising Inclination Toward Vegan and Plant-based Dairy Products

Dairy alternatives have a broad scope for product development, attracting the attention of manufacturers to contribute to the market studied. These days, milk substitutes or vegan products are becoming popular. The functional efficacy and high sustainability claims offered by plant-derived products drive the plant-based dairy market in the Middle East. The intake of animal-based products is associated with high cholesterol levels, fat, and calories, increasing the risk of cardiac diseases, high blood sugar levels, and obesity. Hence, non-vegan consumers are also shifting toward dairy-free food and beverages, expanding the consumer base for plant-based dairy products. This drives the demand for soy, almond, and oats-based dairy products. For instance, in May 2022, Koita Foods launched new barista-friendly plant-based milk. The milk is available in five different flavors: oat milk, coconut milk, almond milk, soy milk, and almond-coconut mix flavor.

Increasing Lactose Intolerant Population

An increasing number of residents in the United Arab Emirates are suffering from lactose intolerances, thereby increasing the demand for dairy alternatives. More patients complaining of food reactions in the United Arab Emirates are claiming to be intolerant to what was thought to be household staples, such as bread, milk, and cheese. Treatment for those disorders includes avoiding dairy, lactase supplements (such as Lactaid), and lactose-free products. Rising cases of lactose intolerance, increasing health consciousness among consumers, and changing lifestyles are expected to bolster the growth of the dairy alternative market in the Middle East. Unsweetened dairy alternatives are becoming more popular as customers attempt to eliminate the excess calories brought on by added sugar. Consumers also use dairy alternatives to reduce their calorie intake because traditional dairy products are often fairly rich. Several local companies have also jumped on this trend. Leading in this space are brands such as Alpro, Arla, Soyfresh, and Koita, providing a range of options to consumers, including fortified plant milk.

MEA Dairy Alternatives Market Competitor Analysis

Some major players in the Middle East and African dairy alternatives market include Hain Celestial, Dean Foods Company, Freakin Healthy, Campbell Soup Company, SunOpta Inc., and others. Global giants, such as Dean Foods Company (with the acquisition of Good Karma Foods), has been continuously putting efforts into innovative solutions through the launch of new products in terms of new categories, flavors, ingredient profile, etc. An advanced distribution network gives an upper edge to the manufacturers to expand their range of products across the country. Moreover, it is crucial for players to continuously innovate, operate, and grow in the market due to the rapidly changing consumer demands and preferences. Product innovation and expansion are some of the most preferred strategies adopted by players operating in the dairy alternatives market. The major players in the market are also adopting marketing campaigns as a key strategy to strengthen their positions in the market studied.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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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 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 Product Type
5.1.1 Food Yogurt Frozen Desserts Other Foods
5.1.2 Beverage Soy Milk Almond Milk Coconut Milk Rice Milk Other Beverages
5.2 Distribution Channel
5.2.1 Hypermarkets/Supermarkets
5.2.2 Convenience Stores
5.2.3 Online Retail Channels
5.2.4 Other Distribution Channels
5.3 Geography
5.3.1 United Arab Emirates
5.3.2 South Africa
5.3.3 Rest of Middle East and Africa
6.1 Market Share Analysis
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Hain Celestial Group
6.3.2 Dean Foods Company
6.3.3 SunOpta Inc.
6.3.4 Blue Diamond Growers Inc.
6.3.5 Freedom Food Groups Ltd
6.3.6 Groupe Danone
6.3.7 Archer Daniels Midland Company
6.3.8 Earth's Own Food Company
6.3.9 Eden Foods Inc.
6.3.10 Cambell Soup Company
6.3.11 Tres Marias
6.3.12 Freakin Healthy

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Hain Celestial Group
  • Dean Foods Company
  • SunOpta Inc.
  • Blue Diamond Growers Inc.
  • Freedom Food Groups Ltd
  • Groupe Danone
  • Archer Daniels Midland Company
  • Earth's Own Food Company
  • Eden Foods Inc.
  • Cambell Soup Company
  • Tres Marias
  • Freakin Healthy