Increasing demand for flavored and organic dairy products among the UAE population and changing consumer lifestyle are driving the UAE dairy products market towards steady growth.
According to TechSci Research report, “UAE Dairy Products Market By Type (Dairy Milk, Ghee & Butter, Ice Cream & Milk Cream, Cheese & Spread, Yogurt, Others), By Distribution Channel (Supermarket /Hypermarket, Grocery Stores, Online & Others), By Region, Competition Forecast & Opportunities, 2026”, the UAE dairy products market stood at USD1.66 billion in 2020 and is projected to reach USD2.47 billion by 2026F with a CAGR of 6.89%. Dairy products, also known as milk products, are types of food which are made from the milk of mammals, most commonly cow, goat, camels, buffaloes, sheep, and other cattle. Dairy products include food items such as milk, cheese and spreads, yogurt, ice cream, milk cream, ghee, butter, and other products like condensed milk cream, pudding, milk powders, etc.
Dairy products market in the UAE is witnessing a tremendous change due to increasing emphasis on nutritional value of dairy products. Introduction of value-added dairy products, changing consumption patterns, growing penetration of international players, etc. are further fueling the growth of dairy products market in the UAE. Value added dairy products, changing consumer preference towards low fat dairy products, increasing per capita spending, etc., are projected to drive the growth of the UAE dairy products market.
The COVID-19 pandemic led to the rise in awareness for healthy eating and drinking habits among the consumers. Thus, a rise in demand for dairy products has been observed across the country post lockdown, as they are considered a healthier option. During and post the pandemic period, the shift in consumers’ focus towards preventive health management practices is expected to drive the growth of the dairy market.
Large players along with the help of the government have established collection and cooling centers in order to manage the storage and distribution of raw milk efficiently. Collection and cooling centers are technologically advanced, where milk can be stored for longer hours at specified locations, and then finally transferred to factories for further processing of dairy products. Moreover, integration of latest technology would enable easy monitoring of cattle health and feeds vis-a-vis limiting human interference. New processing technologies of converting milk into other dairy products with a longer shelf life has reduced losses associated with the perishability of milk and has opened up new markets for surplus milk production.
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The UAE dairy products market consists of the following segments, by type, by distribution channel, by region and by company. In terms of type, the UAE dairy product market is divided into dairy milk, ghee & butter, ice cream & milk cream, cheese & spread, yogurt and others. Among these, dairy milk accounted for the majority of market share in the UAE dairy products market in 2020 followed by cheese and spread. This is due to the rise in awareness of value-added dairy products among consumers, focus on organic milk and growing demand from young population. In terms of distribution channels, the UAE dairy products market is divided into supermarket /hypermarket, grocery stores, online & others. Among these, supermarket /hypermarket accounted for the majority of market share of more than 60% in UAE dairy products market in 2020 and will continue to dominate the market during the forecast period. The online sales segment is the fastest-growing as it is convenient due to better logistic systems.
In terms of region, the UAE dairy products market is divided into Dubai, Abu Dhabi, Sharjah and Rest of UAE. Among which, Dubai has dominated the UAE dairy products market due to the large population and high per capita income. Additionally, dairy products companies in the UAE are continuously focusing on maximizing the dairy farmer investment by creating programs and resources to drive dairy products demand and build consumer confidence to ensure a strong future for the dairy industry in the country. To remain competitive in the market, companies are continuously involved in new product development and in new strategic development.
Some of the leading companies in UAE dairy products market are Almarai Company, Al Rawabi Dairy Co Llc, Al Ain Farms, Gulf & Safa Dairies Co LLC and Marmum Dairy Farm LLC.
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“Dairy products are considered a beneficial source nutrition for preventive healthcare. They are consumed highly in order to maintain a proper health and lifestyle. The growing middle-class population, with rising disposable income, is becoming highly aware of the importance of diet and nutrition for long term good health. Growing awareness about the preventive health among consumers is expected to increase the consumption of dairy products in UAE.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
“UAE Dairy Products Market By Type (Dairy Milk, Ghee & Butter, Ice Cream & Milk Cream, Cheese & Spread, Yogurt, Others), By Distribution Channel (Supermarket /Hypermarket, Grocery Stores, Online & Others), By Region, Competition Forecast & Opportunities, 2026”, has evaluated the future growth potential of dairy products market in the UAE and provides statistics and information on market structure, size, share and future growth. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment decision. Besides, the report also identifies and analyzes the emerging trends along with the essential drivers, challenges and opportunities present in the UAE dairy products market.
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