The Middle East and Africa dairy market holds increasing significance as regional populations grow and consumer preferences shift toward nutritious and value-added products. Rising urbanisation, improved cold chain infrastructure, and government initiatives promoting food security are expanding dairy consumption across both developing and affluent economies in the region. Countries like Saudi Arabia, the UAE, Egypt, and South Africa are investing in domestic production and advanced processing to reduce reliance on imports. For instance, in March 2024, Saudi Arabia's Almarai planned to invest over USD 4.8 billion by 2028 to enhance supply chain capabilities and food security, aligning with the nation's Vision 2030 economic diversification agenda.
The Middle East and Africa dairy market is experiencing significant growth, driven by increasing demand for diverse and health-conscious dairy products. Global dairy producers are expanding their presence in the region to capitalize on this potential. Qatar's Baladna Food Industries reported a record revenue of USD 316 million in 2024 and is focusing on high-protein dairy products, including a major partnership in Algeria aimed at creating the world's largest dairy farm.
Local players in the Middle East and Africa dairy market are also innovating to meet diverse consumer tastes and dietary needs. In Saudi Arabia, the Public Investment Fund launched Sawani, a camel dairy company, to tap into the niche market of camel milk products. The rise of plant-based alternatives is notable, with companies like IFFCO introducing THRYVE, the GCC’s first fully plant-based meat brand, and Starbucks adding vegan options to its menu in the UAE and Kuwait.
Key Trends and Recent Developments
December 2024
Yoghurt bar and café Go Greek Yogurt announced its expansion into the Middle East by opening a flagship location in Dubai. The company also announced its intention to enhance its presence in Saudi Arabia with the addition of a new location and open five new outlets in Kuwait. Through this, the company aims to capitalise on the growing demand for sustainable and responsible dining experiences.November 2024
Clover S.A. Proprietary Limited introduced Clover 1L UHT Flavoured Milk and the Tropika Drinking Yoghurt in the South African market. The Clover 1L UHT Flavoured Milk, available in chocolate and strawberry flavours, is designed to appeal to both adults and children, contains no added sugar, and is packed with essential nutrients like Vitamin D and calcium.September 2024
Danone’s subsidiary, Fan Milk, opened its new ambient dairy production line in Ibadan, Nigeria, to produce the ambient FanYogo drinking yoghurt. Through this, the company aims to capitalise on the growing demand for dairy products, including drinking yoghurts, in the Nigeria market.August 2021
Saudia Dairy and Foodstuff Company (SADAFCO) announced the opening of a new ice cream factory in Modon Industrial City No.1, Jeddah. The factory, covering an area of over 45,000 square metres, aims to increase the company’s share in the rapidly growing ice cream market in Saudi Arabia.Increasing trend of health and wellness
The growing trend of health and wellness is surging the demand for probiotic-rich dairy products, including fermented dairy drinks and yoghurts, that offer benefits such as improved immunity and digestion and better overall health. Moreover, the increasing customer focus on reducing calorie intake and sugar consumption is surging the demand for dairy products with low/no fat and sugar. Brands in the Middle East and Africa dairy market are responding by expanding their product lines to include these healthier alternatives, aligning with the global movement towards better nutrition and wellness. The convergence of these trends underscores a broader transformation in the MEA dairy market, emphasising the importance of health and wellness in consumer choices.Rising demand for halal-certified dairy products
The large Muslim population in the Middle East and Africa is boosting the demand for halal-certified dairy products, including yoghurt, milk, cheese, and ice cream, among others, that adhere to Islamic dietary laws. Dairy manufacturers are also investing in dedicated supply chains or facilities that follow halal guidelines, including sourcing halal-certified feed for livestock and ensuring halal slaughtering practices, supporting the growth of the Middle East and Africa dairy market. In Nigeria, in September 2024, for instance, Danone’s subsidiary, Fan Milk, inaugurated a new ambient dairy production line in Ibadan to produce FanYogo drinking yoghurt, aiming to cater to the increasing demand for dairy products in the region.Growing focus on sustainability
The rising emphasis on sustainability and growing environmental consciousness are shaping the Middle East and Africa dairy market landscape. Dairy farmers are increasingly adopting water-efficient farming practices, utilising sustainable feed sources, adopting recyclable and biodegradable packaging solutions, and implementing renewable energy sources and sustainable waste management practices to enhance the sustainability of dairy farming. In June 2024, Tetra Pak announced that the Department of Agriculture and Livestock (DAL) of the Government of Sharjah, through its commercial division Ektifa, will implement the most recent developments in Tetra Pak's sustainable packaging at its Meliha Dairy Factory, the first farm in the United Arab Emirates to incorporate authentic organic production methods.Technological advancements
The increasing deployment of automated milking systems (AMS), farm management software, and sensors to improve the efficiency of dairy farming is boosting the Middle East and Africa dairy market expansion. In East Africa, smart milking systems have been implemented to reduce manual labour, allowing cows to be milked multiple times daily, thereby increasing milk yields by up to 15%. These systems also improve animal welfare by enabling cows to be milked according to their natural rhythms, reducing stress and enhancing overall health. Besides, advancements in technologies such as artificial insemination and genomic selection aimed at driving milk yield, support herd health, and increasing the profitability of dairy farmers are expected to shape the Middle East and Africa dairy market trends and dynamics in the forecast period.Market Segmentation
The Expert Market Research’s report titled “Middle East and Africa Dairy Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:Breakup by Product
- Fluid/UHT/Flavoured Milk
- Cream
- Butter
- Skimmed Milk Powder /Non-fat Dry Milk
- Whole Milk Powder
- Whey Protein (Powder and Concentrate)
- Lactose
- Casein
- Cheese
- Yoghurt
- Ice-cream
- Probiotic Dairy Products
Market Breakup by Structure
- Co-Operative Dairies
- Private Dairies
Market Breakup by Region
- Saudi Arabia
- United Arab Emirates
- Turkey
- South Africa
Middle East and Africa Dairy Market Share
Rising Demand for Cream and Whey Protein in MEA’s Evolving Food Landscape
Cream consumption is experiencing a notable rise in the Middle East and Africa dairy market, driven by the burgeoning bakery and confectionery sectors, particularly in urban centers. This trend is fueled by the increasing demand for premium and indulgent products, as consumers seek high-quality ingredients for pastries, cakes, and desserts. The influence of Western food culture has introduced new product offerings and flavors, further stimulating the demand for cream-based products.With the rise of fitness and wellness trends, whey protein (powder and concentrate) is increasingly incorporated into health supplements and functional foods. Nigeria's growing health awareness and interest in fitness have contributed to the market's expansion, with both domestic and international whey protein supplement firms establishing a presence in the country.
Cooperative Models Empowering Small-Scale Dairy Farmers in South Africa
In countries like South Africa, cooperative models support small-scale farmers by providing access to markets and shared resources, fostering community development, thus impacting the Middle East and Africa dairy market. These cooperatives enable farmers to pool resources, share knowledge, and collectively negotiate better prices, which is particularly beneficial in a sector where individual smallholders often face challenges in market access and competitiveness. For instance, in the Eastern Cape province, agricultural cooperatives have been effective in empowering smallholder farmers to participate in sustainable agri-food chains, contributing positively to their livelihoods.Middle East and Africa Dairy Market Regional Analysis
UAE and South Africa are the Leading Dairy Markets in MEA
The UAE's dairy market is characterised by innovation, with a focus on health-oriented products and sustainability. The country's strategic location also facilitates dairy exports to neighboring regions. For instance, Al Rawabi Dairy Company has launched products like Protein Plus Milk and Immuno Boost, targeting consumers seeking nutritional benefits. Additionally, the Middle East and Africa dairy market is witnessing a rise in plant-based and lactose-free alternatives, aligning with global dietary trends and catering to diverse consumer preferences.South Africa's dairy sector is well-established, with a focus on both domestic supply and exports. The industry supports a significant portion of the agricultural workforce and contributes to the national economy. South Africa was a net exporter of dairy products in 2023, the first time since 2014. The country primarily exports to the Southern African Development Community region, with Botswana accounting for 98% of total dairy product exports in 2024.
Competitive Landscape
Key players in the Middle East and Africa dairy market are strengthening their regional presence through localized production facilities and partnerships with distributors to improve supply chain efficiency. They are focusing on enhancing product portfolios with value-added and health-oriented dairy offerings, including lactose-free, fortified, and low-fat variants. Investments are also being directed toward modernizing processing technologies to meet evolving consumer demands and international quality standards.In response to increasing demand for halal and culturally aligned products, leading dairy companies are prioritising compliance with religious and regional dietary requirements. They are also expanding their retail reach through e-commerce platforms and urban retail chains to cater to rising urban populations. Sustainability initiatives, including water-efficient processing and eco-friendly packaging, are gaining attention as companies work to align with environmental goals and secure long-term consumer trust.
Almarai Company
Almarai Company, founded in 1977 and headquartered in Riyadh, Saudi Arabia, is one of the world’s largest vertically integrated dairy companies. It is also the largest food and beverage manufacturer and distributor in MENA. Some of its renowned brands are Farm’s Select, 7DAYS, Almarai, Nura, Almarai Refresh, and Premier Chef, among others. In 2023, the company reported net income of SAR 2.049 billion.Arla Foods amba
Arla Foods amba, founded in 1881 and headquartered in Sønderhøj, Denmark, is a cooperative that is owned by 7,999 dairy farmers in Sweden, Denmark, the UK, Luxembourg, the Netherlands, Belgium, and Germany. Its prominent brands such as Lurpak®, Puck®, Arla®, and Castello® are sold in over 120 countries. In 2023, the company generated revenue of EUR 13.7 billion.Lactalis Group
Lactalis Group, established in 1933 and headquartered in Laval, France, is a prominent dairy company. With a presence in around 100 countries, the company 80 000 collaborators and 250 production sites. In 2022, the company generated revenue of EUR 28.3 billion.Clover Industries Limited
Clover Industries Limited, established in 1898 and headquartered in Johannesburg, South Africa, is a leading food and beverage company. Some of its prominent brands include Nutrikids, Clover SnackPack, Numel, Clover Krush, Nolac, and Manhattan Ice Tea, among others. It has an extensive presence in the African continent.Other key players in the Middle East and A are Nestlé S.A., Fonterra Co-operative Group Limited, and Danone S.A., among others.
Key Features of the Report
- Comprehensive analysis of MEA dairy market trends, drivers, and challenges
- Segmented insights by product type, distribution channel, and region
- Evaluation of key regulatory and trade dynamics impacting market growth
- Assessment of innovation in halal-certified and value-added dairy products
- Overview of major players and competitive landscape developments
- Future outlook with forecasts and strategic recommendations for stakeholders
- Industry-focused insights tailored to evolving regional trends
- Reliable data backed by experienced research professionals
- Customizable reports to fit client-specific business needs
- Proven support for strategic planning and investment decisions
Table of Contents
Companies Mentioned
The key companies featured in this Middle East and Africa Dairy market report include:- Nestlé S.A.
- Fonterra Co-operative Group Limited
- Danone S.A.
- Almarai Company
- Arla Foods amba
- Clover Industries Limited
- Lactalis Group
Table Information
Report Attribute | Details |
---|---|
No. of Pages | 143 |
Published | August 2025 |
Forecast Period | 2025 - 2034 |
Estimated Market Value ( USD | $ 21.96 Billion |
Forecasted Market Value ( USD | $ 37.51 Billion |
Compound Annual Growth Rate | 5.5% |
Regions Covered | Africa, Middle East |
No. of Companies Mentioned | 8 |