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

The UAE dairy foods market was valued at USD 5.04 Billion in 2024. The market is set to grow at a notable CAGR of 4.60% during the forecast period of 2025-2034 to reach a value of USD 7.90 Billion by 2034. The rapidly growing population and demographic diversity in the country are fostering the demand for a broad array of international and specialty dairy products.

Key Market Trends and Insights:

• The Dubai dairy foods market dominated the market in 2024 and is projected to grow at a CAGR of 5.1% over the forecast period.
• By distribution channel, the online retail segment is projected to witness a CAGR of 6.1% over the forecast period.
• By product type, cheese is expected to register 5.4% CAGR over the forecast period.

Market Size & Forecast:

• Market Size in 2024: USD 5.04 Billion
• Projected Market Size in 2034: USD 7.90 Billion
• CAGR from 2025 to 2034: 4.60%
• Fastest-Growing Regional Market: Dubai

As of December 2024, the population in the UAE reached 12.50 million, largely driven by an influx of expatriates who accounted for 11.06 million of the total. This rapidly evolving demographic landscape has led to a shift in dairy food consumption in the UAE. Particularly, Abu Dhabi and Dubai are witnessing strong growth in dairy consumption, prompting leading brands to diversify offerings as per the evolving dietary preferences in the UAE dairy foods market. For instance, in 2023, Al Rawabi launched a functional dairy range targeting health-conscious consumer. This evolving landscape presents strong growth potential for global dairy producers entering the UAE market.

Meanwhile, the increasing efforts for reinforcing food security and reducing import dependency are significantly supporting the UAE dairy foods market growth. Amid the ongoing supply chain uncertainties, the country is prioritizing the development of resilient domestic food systems to provide access to safe, nutritious, and affordable dairy products. In November 2018, the UAE government announced the National Food Security Strategy 2051, a long-term goal to position the UAE among the top countries globally in food security. Given the country’s limited arable land and high import reliance, the strategy prioritizes expanding local dairy manufacturing capabilities.

Also, the UAE dairy foods market is increasingly embracing advanced technologies to modernize production systems, improve product consistency, and reduce resource consumption. This digital and automation-led shift includes smart farm monitoring systems, AI-driven herd management, and energy-efficient chilling and pasteurization methods. Additionally, it also includes the development of sustainable, recyclable packaging solutions to enhance shelf life and lower the carbon footprint.

A notable example of this modernization is the Meliha Dairy Factory in Sharjah, established in June 2024 by Ektifa, an arm of the Department of Agriculture and Livestock (DAL), in collaboration with Tetra Pak. The factory is equipped with advanced filling technology and utilities infrastructure. Through this partnership, the companies ensure the use of organic production methods, recyclable Tetra Top® packaging, and end-to-end support, reflecting their dedication to offering sustainable and locally grown dairy products. Such developments are likely to boost the UAE dairy foods market growth.

Key Trends and Recent Developments

May 2025

Five major food producers of the UAE, namely Al Ain Farms, Marmum Dairy, Al Ajban Chicken, Golden Eggs (Al Jazira Poultry), and Saha Arabian Farms, together formed a business entity Al Ain Farms Group (AAFG). Through this entity, the group will focus on dairy, poultry, juice, and egg production, in efforts to support the long-term food security and industrial innovation goals of the country.

April 2025

Al-Ain Farms made a significant investment in Indonesia to boost the country’s domestic milk production and lower its reliance on imports. This initiative comes along with support from government incentives such as exemption from import duties on livestock and equipment, low-interest financing, and livestock insurance.

December 2024

Emirates Food Industries, through its subsidiary National Dairy, achieved a key milestone for its Hayatna brand by receiving the official "Made in the Emirates" certification from the Ministry of Industry and Advanced Technology. This recognition affirms Hayatna’s status as a fully Emirati-owned and locally produced brand. With a herd of over 7,000 Holstein cows and annual milk production exceeding 45 million liters, Hayatna plays a vital role in supporting the UAE’s food security and self-sufficiency goals in the dairy sector.

October 2023

Nutridor established a dairy factory worth AED 75 million at Dubai Industrial City to locally produce Abevia dairy products and boost its output to double, i.e., 120,000 liters daily. This action comes in efforts to minimize import reliance, meet growing regional demand, support the UAE’s food security and sustainability goals, and boost local manufacturing under initiatives like “Make it in the Emirates” and D33.

Rising demand for organic and easily digestible dairy products

The surging demand for organic and health-centric alternatives, particularly those offering A2A2 protein, known for its superior digestibility and nutritional profile, is propelling the UAE dairy market growth. Urban consumers in Dubai, Abu Dhabi, and Sharjah are fuelling the preference for clean-label, locally sourced products that align with wellness and sustainability values. Reflecting this trend, in February 2025, Sharjah-based brand Ektifa, launched an organic laban beverage after the overwhelming response to its A2A2-rich full-fat milk, which led to long queues across retail outlets. Evolving consumer preference aligns with the national goals around food security and sustainable agricultural practices, further supporting segment growth.

Premium and halal-certified dairy products gain traction

The demand for premium and halal-certified dairy products is rising in the Gulf Cooperation Council (GCC) region, especially the UAE, driven by growing health awareness and a preference for trusted global brands. The diverse demographics and strict food safety rules position the UAE as an ideal destination for international dairy exporters. For instance, in June 2025, Russia-based H&N (Health & Nutrition) began exporting Prostokvashino UHT milk and cream to the UAE from its halal-certified Yalutorovsk Dairy Plant and announced plans to introduce more products across the GCC during 2024-25. Such expansions support the UAE dairy foods market growth.

Growing consumer preference for high-protein, guilt-free indulgent dairy products

The UAE dairy foods market is witnessing significant growth attributed to the health-conscious consumer trends, particularly the rising preference for high-protein, low-calorie, and no-added-sugar indulgent products. This shift caters to busy professionals, millennials, and diet-conscious consumers seeking ‘better-for-you' dairy products. The demand for protein-rich desserts and guilt-free snacks is rising, further supported by their increasing product availability through quick-service platforms. In June 2024, the Brooklyn Creamery introduced its protein ice cream bars containing 5 g of protein in the UAE through Noon Minutes. The launch catered to the booming performance and wellness dairy segment in the region.

Integration of Advanced Food-Tech

The ‘Make it in the Emirates’ campaign, launched by the Ministry of Industry and Advanced Technology, is pushing the use of advanced processing technologies across industry, including the dairy sector. This has boosted domestic production capacity. It fosters strong public-private partnerships and investments to support clean-label, value-added dairy production, which is driving the UAE dairy food products market growth. For instance, in June 2025, AAFG and Finnish food-tech innovator FoodIQ signed a joint development agreement that brought FoodIQ’s patented Multi-Layer Cooker (MLC) technology to the UAE. The collaboration enabled flexible and eco-efficient production of both dairy and plant-based products.

International trade expansion

The booming international trade expansion, supported by the presence of an open economy and robust retail infrastructure in the country, is fueling the UAE dairy foods market growth. The demand for premium, functional, and specialty dairy products is growing rapidly. A multicultural and health-conscious consumer base across the country has resulted in a surge in the consumption of products like lactose-free milk, probiotic-rich kefir, and organic cheese, prompting global players to expand in the market, thereby boosting growth. Citing an instance, in November 2024, Lifeway Foods Inc. began exporting kefir, lactose-free kefir, ProBugs, and Farmer Cheese to UAE supermarkets and hypermarkets.

UAE Dairy Foods Industry Segmentation

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

Market Breakup by Product Type

• Milk
• Cheese
• Dessert
• Yogurt
• Butter
• Others

Key Insight: The cheese segment leads the UAE dairy foods market, attributed to the rising cheese consumption due to the popularity of Western and Mediterranean cuisines across the country. Milk continues to witness steady demand as a staple. The yogurt segment growth is fuelled by the rising preference for specialty products like probiotic, Greek, and A2A2 yogurts among urban, nutrition-aware buyers. Meanwhile, the shift toward natural cooking fats is boosting demand for butter across households. The dessert segment showcases moderate growth due to the premiumization and flavour innovation in dairy desserts, which is attracting young UAE consumers seeking luxurious, cafe-style indulgence at home.

Market Breakup by Distribution Channel

• Hypermarkets and Supermarkets
• Specialty Stores
• Online Retail
• Convenience Stores
• Others

Key Insight: The online retail segment is the major revenue source for the UAE dairy foods market, resulting from its rapid expansion due to digital adoption, home delivery services, and subscription-based dairy models. Hypermarkets and supermarkets are experiencing notable growth in the UAE dairy distribution landscape, mainly attributed to their wide product variety, in-store promotions, and one-stop shopping experience. Specialty stores are gaining traction among health-conscious consumers and those looking for premium or imported dairy items. Lastly, convenience stores witness preference for their last-mile access, especially in urban areas.

Market Breakup by Region

• Dubai
• Abu Dhabi
• Others

Key Insight: Dubai commands the largest share of the UAE dairy foods market revenue, owing to its dense population, high expatriate concentration, and cosmopolitan food culture. In addition, the existing advanced retail infrastructure and growing preference for international dairy brands contribute to high product demand in the city. Meanwhile, Abu Dhabi shows notable growth supported by high household incomes, increasing investments in modern retail formats, and improvement of cold storage facilities. The ‘others’ category includes Sharjah, Ajman, and other emirates, which are witnessing steady growth due to urbanization and widespread availability of dairy products across supermarket chains and e-commerce.

UAE Dairy Foods Market Share

By distribution channel, the online retail segment amasses the highest revenue

The online retail distribution channel leads the UAE dairy foods market and is set to expand at a 6.1% growth rate from 2025 to 2034. According to the 2025 Global Digital Shopping Index, the UAE ranked first globally for mobile shopping usage, with 67% of consumers using their smartphones for their most recent purchase. This number indicates the increasing consumer preference for convenient, contactless shopping, which has spurred the adoption of e-commerce platforms. In addition, busy lifestyles and the availability of quick home delivery of fresh and specialty dairy products further support this trend.

Meanwhile, the hypermarkets & supermarkets segment is anticipated to witness steady growth at a 4.9% CAGR through 2034 in the UAE dairy foods market. The segment growth is due to the availability of a wide range of products and a trusted shopping environment. Consumers continue to prefer these stores, as they offer diverse dairy products under one roof at competitive prices and offer promotional deals. Moreover, despite the rise of e-commerce, established retail chains witness high footfall as they provide reliable quality and fresh products, which attracts both local and expatriate families.

By product type, cheese represents the largest market portion

The cheese segment is gaining significant momentum in the UAE dairy foods market and is estimated to record notable growth at a 5.4% CAGR through 2034 mainly attributed to the increasing availability of regional flavoured cheeses for evolving consumer preferences. Dairy brands are creatively blending traditional tastes with modern convenience to attract diverse consumers in a competitive market. This strategy of offering culturally relevant options improves consumer engagement and builds brand loyalty, thereby propelling segment growth. For instance, in July 2024, Puck, launched its limited-edition Zaatar Cream Cheese, integrated with the Middle Eastern herb zaatar, across the UAE and Gulf countries.

Meanwhile, the yogurt segment is demonstrating the fastest growth in the UAE dairy foods market at 4.9% CAGR between 2025 and 2034. The segment’s growth is attributed to the growing consumption of yogurt in the UAE, prominently featured in daily diets. Local variants like labneh and Aryan are consumed with bread, rice, or grilled meats, making yogurt not just a side dish, but a culinary tradition passed through generations. Companies are introducing new products to their portfolios to meet the demand for genuine traditional flavors, stimulating segment growth. For example, in December 2024, Go Greek Yogurt expanded into the Middle East by setting up its store in Dubai and has plans for more outlets across the Gulf.

UAE Dairy Foods Market Regional Analysis

By region, Dubai remains the dominant region in the UAE dairy foods market

Dubai leads revenue contribution within the UAE dairy foods market and is projected to expand at a robust CAGR of 5.1% through 2034, attributed to the well-established retail infrastructure and robust F&B investments. Dubai Industrial City established itself as a manufacturing and logistics powerhouse by drawing over AED 350 million in investments from the food and beverage industry in 2024 alone. Innovation in value-added dairy products, cold chain extension, and sophisticated dairy processing facilities are all aided by this spike in capital input. The regulatory relaxation and free zone incentives provide prospects for growth for both domestic and international dairy firms.

As per the UAE dairy foods market analysis, Abu Dhabi held 31.4% share of the market revenue in 2024. The region will grow significantly through 2034, fuelled by public-private partnerships that promote inclusive dairy products manufacturing through social impact investment. As an example, the 2024 tripartite agreement between Schlumberger Middle East, Ma'an, and Zayed Higher Organization directly supports a cheese manufacturing plant run by People of Determination. The arrangement was in line with the country's goals for long-term development and industrial diversification. Such programs boost local dairy production capacity while also fostering regional market growth.

Competitive Landscape

The UAE dairy foods market players are heavily investing in product innovation to meet the evolving preferences of a multicultural consumer base. The rapid shift towards organic, lactose-free, plant-based, and fortified dairy products is pushing manufacturers to launch health-focused lines backed by nutritional research. Efforts are also directed at localizing flavors to appeal to regional tastes while maintaining international quality standards. Strategic branding and promotional campaigns across digital and retail platforms further amplify consumer engagement and brand loyalty.

UAE dairy foods companies are focused on strengthening market penetration by expanding cold chain infrastructure and retail partnerships, ensuring optimal shelf life and accessibility of fresh dairy products across the Emirates. Many firms are integrating advanced automation into processing facilities to enhance efficiency and traceability. Moreover, collaborations with local farms and government initiatives help boost domestic sourcing, reduce reliance on imports, and support sustainability goals, further propelling UAE dairy foods market expansion.

Almarai Company

Almarai, established in 1977 and headquartered in Saudi Arabia, is the largest vertically integrated dairy company in the Middle East. It has a strong regional distribution network, and it offers a variety of dairy, juice, bakery, and poultry products. Apart from this, it is a reputed brand in the UAE dairy foods market for its fresh milk, laban, and yogurt lines.

Carrefour Group

Carrefour, established in 1959 and operated in the UAE by Majid Al Futtaim, is among the leading hypermarket and supermarket chains. The firm is a crucial firm in retail dairy sales, offering both private-label and international dairy brands. Additionally, the group emphasizes affordability, variety, and innovation in fresh food categories.

Saudia Dairy and Foodstuff Company (SADAFCO)

Saudi-based dairy and food manufacturer, SADAFCO, is best known for its Saudia brand. It specializes in products like long-life milk, cheese, and ice cream across the Gulf. The company focuses on shelf-stable dairy goods and has a robust presence in both traditional and modern trade channels throughout the UAE dairy foods market.

Nestlé SA

Nestlé, established in 1866 and headquartered in Switzerland, is a global food and beverage giant that has a strong footprint in the dairy sector across the UAE and is focused on health, nutrition, and sustainability in product innovation. Its diverse portfolio includes milk powder, cream, and yogurt. The company also offers baby nutrition products under popular brands like Nido and NAN.

Other notable players in the UAE dairy food market include Danone S.A., Royal Frieslandcampina NV, Arla Foods amba, AI RAWABI, and Al Ain Farms, among others.

Key Highlights of the UAE Dairy Foods Market Report:

• Granular segmentation of the UAE dairy foods market across categories including milk, yogurt, butter, cheese, ice cream, and functional dairy, with forecasts extending to 2034.
• Spotlight on innovations such as plant-based alternatives, protein-fortified dairy, low-calorie indulgences, and AI-led personalization in consumer targeting and Q-commerce strategies.
• Comprehensive profiles of domestic and international dairy brands, including processing facilities, halal certifications, product lines, and distribution partnerships.
• In-depth analysis of regional consumption patterns with city-wise mapping across Dubai, Abu Dhabi, Sharjah, and emerging Tier 2 hubs aligned with tourism and expat-driven demand.
• Insights into demand surges propelled by health consciousness, social media-fuelled snacking trends, and growing preference for online and quick-commerce grocery platforms across UAE dairy foods market.
• Revenue categorization by retail, foodservice, QSRs, exports, and value-added SKUs to enable brands to optimize monetization strategies across segments.