GCC Dairy Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2025-2034)

The GCC dairy market was valued at USD 11.05 Billion in 2024. Rising institutional demand from airlines, HORECA chains, and hospital catering services is significantly boosting bulk dairy procurement, prompting suppliers to scale up operations with quality assurance and cold chain integration. As a result, the market is expected to grow at a CAGR of 5.30% during the forecast period of 2025-2034 to reach a value of USD 18.52 Billion by 2034.

GCC dairy market growth is also accelerated by health-conscious consumers and a policy-backed ecosystem. Local governments are increasingly aiming for food self-sufficiency, especially in the dairy sector. Saudi Arabia’s Vision 2030, for instance, includes considerable investments in modernising livestock farming and building climate-resilient dairy infrastructure. Notably, Saudi Arabia’s agricultural GDP reached approximately SAR 114 billion in 2024.

Moreover, the GCC dairy industry is benefiting from robust infrastructural upgrades. UAE’s AgriTech initiatives are introducing vertical farming techniques even in dairy fodder cultivation. According to the UAE Ministry of Climate Change and Environment (MOCCAE), pilot hydroponic systems for cattle feed have reduced water consumption by nearly 60%, significantly reducing production costs. The market growth is also boosted by increased public-private partnerships. For instance, in January 2025, Almarai, the region’s dairy giant, launched a USD 1.8 billion expansion plan to tap into emerging dairy demand across Oman and Kuwait.

Rising regional consumption and strategic dairy diplomacy are further shaping the GCC dairy market dynamics as a resilient, high-opportunity space for B2B stakeholders. Governments have begun relaxing import duties for dairy technology, encouraging international players to collaborate with local firms.

Key Trends and Recent Developments

May 2025

With support from the Al Jisr Foundation, the Ministry of Agriculture, Fisheries, and Water Resources and the Food and Agriculture Organisation (FAO) signed a deal. The project aims to improve the dairy value chain, empower rural women, and promote economic development and strengthens the GCC dairy value chain by enhancing rural production capabilities and diversifying supply sources through community-led economic participation.

February 2023

Almarai completed the acquisition of International Dairy and Juice Limited (IDJ), a former joint venture with PepsiCo in Egypt and Jordan. This acquisition enabled the company to strategically expand in the wider region and hence, improves cross-border distribution efficiency, reinforcing the GCC’s dairy self-sufficiency ambitions amid growing demand.

February 2023

Baladna, a leading dairy and food manufacturer in Qatar, signed a significant manufacturing agreement with the France-based Bel Group. This partnership involved the production of The Laughing Cow cheese in jars, marking a strategic move to expand dairy offerings in Qatar, enabling premium product localisation and boosting high-value dairy exports within and beyond the GCC.

October 2022

Al Ain Farms launched a new range of lactose-free dairy products in the UAE, which includes Full Fat Fresh Milk 1L, Full Fat Long Life Milk 1L, Full Fat Fresh Yoghurt 400gr, and Full-Fat Laban 400gm, providing consumers with the nutritional benefits of dairy without lactose-related discomfort. This launch taps into rising health-conscious consumer bases, expanding category offerings for retailers and HORECA buyers across the UAE and GCC.

Rising Government Investment in Food Security

The GCC governments are actively funding the dairy industry to enhance local food production. In October 2023, Saudi Arabia’s Agricultural Development Fund launched a dairy subsidy programme, providing over USD 400 million to local farms. This push is reducing import dependency while boosting production volume, thereby propelling the GCC dairy market development. Such investments not only encourage homegrown dairy brands but also attract international technology providers. As a result, B2B suppliers dealing in milking equipment, smart feed systems, and cold chain logistics are increasingly tapping into these long-term public projects.

Surge in Functional Dairy Products

Functional dairy including probiotic yoghurt and fortified milk are accelerating the demand in the GCC dairy market. Brands like Nadec and Al Rawabi have introduced vitamin D-enriched milk and cholesterol-friendly yoghurt. The GCC health ministries are now encouraging dairy firms to adopt WHO guidelines for functional food labelling. These changes are drawing pharma-nutrition firms into co-developing products, creating a new opportunity for cross-sector collaboration. B2B players in biotechnology and clinical testing find fresh opportunities in providing technology for health-oriented dairy innovation.

Digitalization in Supply Chain

Digital traceability in dairy logistics is becoming a key priority for companies in the GCC dairy industry. Firms like Almarai and Baladna have rolled out blockchain-based milk tracking to enhance transparency and export-readiness. Supported by Bahrain’s 2024 Smart Agri Policy, dairy farms are integrating AI for feed monitoring and real-time yield analytics. These technologies are improving herd health and reducing spoilage. Companies offering SaaS platforms, IoT sensors, and blockchain infrastructure are becoming vital suppliers.

Cold Chain Infrastructure Expansion

The regional governments are increasingly investing in refrigerated logistics, crucial for maintaining dairy quality in extreme temperatures, contributing to the GCC dairy market value. For example, GCC Standardization Organization (GSO) announced thermal packaging regulations for dairy transit. These upgrades reduce spoilage rates and further opens new opportunities for logistics and packaging firms to provide temperature-monitoring solutions. Companies offering RFID-enabled cold chain technology and sustainable refrigerants are experiencing higher B2B engagement across the region.

Growth of Plant-Based Dairy Alternatives

While traditional dairy remains dominant in the GCC dairy market, plant-based options are growing fast in terms of popularity, especially in cosmopolitan areas. UAE’s Ministry of Health formulated standards and guidelines for plant-based milk production, giving rise to oat and almond milk brands like Koita and Freakin’ Healthy. Startups are collaborating with regional dairy players to co-manufacture lactose-free and vegan dairy using existing infrastructure. This trend allows dairy processors to diversify without full operational overhaul.

GCC Dairy Industry Segmentation

The report titled “GCC Dairy Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market 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
• Yoghurt
• Ice-cream
• Others

Key Insight: UHT milk dominates the GCC dairy market owing to its operational cost efficiency. With energy-optimised filling systems and government support for shelf-stable dairy in schools, UHT milk has reduced regional milk wastage to a considerable extent. This product category is attracting interest from automation technology firms for aseptic packaging, and logistics companies that specialise in ambient temperature transit. The combination of functional benefits, public distribution, and industrial scale makes UHT the most strategically significant product for B2B stakeholders in the region.

Market Breakup by Region

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

Key Insight: Saudi Arabia, with its huge population and high per capita dairy consumption, boasts a significant dairy market share in the GCC. The regional market further benefits from the government's emphasis on encouraging local dairy production to improve self-sufficiency and food security. Being the largest economy in the GCC region, the market experiences heavy demand for dairy products with subsidies on cattle feed, zero-interest farm loans, and refrigerated transport upgrades. Domestic players are further focusing on technology integration, including robotic milking, GPS cattle tracking, and AI-based feed analysis.

GCC Dairy Market Share

By Type, UHT Milk Accounts for the Dominant Share of the Market

UHT milk remains the largest revenue generator in the market, driven by its shelf stability and widespread preference among bulk buyers like hotels and institutions. Companies like Almarai and Al Safi Danone are scaling up UHT production using aseptic filling lines imported from Germany, optimising both safety and scalability. Schools and airlines are key institutional consumers, often placing monthly volume contracts. UHT’s logistical ease makes it an ideal option among foodservice distributors, which is attracting packaging technology firms and automation partners to invest in this product category.

Flavoured milk experiences rapid growth in the GCC dairy market. Youth-centric marketing and increasing demand for on-the-go nutrition are fuelling the product’s growth. Companies like Lacnor and Al Ain Dairy are launching sugar-free, protein-packed variants targeting fitness-enthusiasts and millennials. More importantly, Baladna’s chocolate protein milk has grown widely popular for its low-sugar, high-calcium profile. The rapid surge in this particular category is attracting flavouring and nutraceutical ingredient suppliers to enter into long-term partnerships with dairy firms.

GCC Dairy Market Regional Analysis

By Region, Saudi Arabia Registers the Leading Position in the Market

Saudi Arabia occupies the major share of the GCC dairy market revenue. The country’s dairy industry is heavily supported by government-led food security policies. As part of Vision 2030, the nation has achieved 129% of dairy self-sufficiency. Meanwhile, Almarai alone produces 1.5 billion litres of milk annually, making it the largest vertically integrated dairy player in the region. These developments offer massive opportunities for B2B suppliers dealing in feed processing, livestock health, and sustainable packaging, stimulating the GCC dairy market revenue growth.

The UAE market is growing at a rapid speed, driven by high consumer spending and tech-driven farming. Brands like Al Ain and Koita are expanding their product offerings with the launch of clean-label, organic dairy products. The growing expatriate population is also driving product diversification. Moreover, UAE has become a hub for dairy automation, bio-packaging, and digital marketing agencies specialising in F&B outreach.

Competitive Landscape

Key GCC dairy market players like Almarai, Nadec, Al Rawabi, and Baladna are evolving into innovation hubs. Their areas of focus include energy-efficient dairy farms, digital supply chains, and R&D for health-forward products. Strategic collaborations with European dairy technology firms are emerging. One key example includes Nadec’s deal with Tetra Pak for smart packaging solutions.

GCC dairy companies are also carving out niches, especially in vegan dairy and traceability technology. Players are aiming for export expansion to Africa and Southeast Asia. Private equity is increasingly funding mid-tier brands with niche focus, including organic, ethnic flavours, and high-protein variants. Opportunities lie in automation, AI-driven livestock health, and co-branding for clean-label dairy products. Functional dairy demand, digital supply chains, flavoured milk innovation, cold-chain upgrades, and plant-based dairy integration are further reshaping the market into a high-value, tech-driven and health-focused sector.

Almarai Company

Almarai Company, founded in 1977 and headquartered in Riyadh, Saudi Arabia, is a prominent player in the dairy market. They offer a wide range of dairy products such as milk, cheese, yogurt, along with juices and bakery items.

National Agricultural Development Company (NADEC)

National Agricultural Development Company (NADEC), established in the early 1980s and based in Riyadh, Saudi Arabia, is a key player in the dairy industry. Their product range includes dairy products, red meat, vegetables, and fruits.

Al Rawabi Dairy Company

Al Rawabi Dairy Company, founded in 1989 and headquartered in Dubai, United Arab Emirates, is a significant dairy producer in the region. The company offers a variety of dairy items to consumers, contributing to the availability of fresh and quality dairy products in the UAE.

Nestlé S.A

Nestlé S.A, established in 1866, is a global food and beverage conglomerate headquartered in Switzerland, Europe. Its portfolio includes dairy products, coffee, water, baby food, breakfast cereals, confectionery, and pet foods.

Other key players in the market are Saudia Dairy & Foodstuff Company (SADAFCO), Nestlé S.A., Fonterra Co-operative Group Limited, Arla Foods amba, and Lactalis Group, among others.

Key Highlights of the GCC Dairy Market Report:

• Clear visibility into multi-year market trends and forward-looking projections up to 2034.
• Product innovation trends including fortified dairy for metabolic health and lactose-free variants for Gulf consumers.
• Competitive analysis covering regional giants, cooperative models, and international dairy exporters entering the GCC corridor.
• Country-specific insights on import dependency, local production shifts, and consumption hotspots in Saudi Arabia, UAE, and Kuwait.
• Investment-centric findings aligned with cold storage infrastructure, packaging automation, and halal-certified dairy production.

Why Rely on Expert Market Research?

• Dedicated insights into agro-processing, halal nutrition, and temperature-controlled supply chain sectors.
• Customised recommendations for importers, distributors, and regional cooperatives expanding product portfolios.
• Real-time perspectives gathered from dairy technologists, procurement heads, and regulatory authorities across the GCC.
• Strategy-led forecasting embedded with demand elasticity models, climate impact factors, and policy foresight.