The dairy products and alternatives market in the Middle East and Africa shows a striking contrast. Amidst rising inflation, many consumers prioritise value for money, while those with higher disposable incomes increasingly seek healthier options. This trend is expected to drive new product innovations, focusing on organic, fortified, high protein and gut health.
This report comes in PPT.
The Middle East and Africa is one of the key regions for growth in dairy products and alternatives, with a CAGR of 3% over the historic period, behind only Latin America. This provides some opportunities for companies to expand brand presence in the region.
Saudi Arabia’s Vision 2030 programme is aimed at generating jobs across various non-oil sectors to drive economic growth. Additionally, the country has seen a spike in tourism, a key goal of the programme, and which has significantly increased demand for dairy products such as milk, yoghurt and laban, a fermented milk beverage that is a staple in the Saudi diet.
Innovation trends are focusing on health and wellness, such as the UAE’s Meliha milk, which is rich in A2A2 protein and renowned for its numerous health benefits. Dairy manufacturers must cater to the diverse health benefits consumers seek by focusing on probiotics and gut health, expanding kefir selections and offering high-protein options to meet the needs of lactose-intolerant consumers.
Modern grocery retailers continue to dominate, whereas small local grocers remain the primary distribution channel in many African nations. In Saudi Arabia and the UAE, supermarkets and hypermarkets lead in dairy products and alternatives, appealing to consumers with wider product selections and competitive promotions. Meanwhile, e-commerce is rapidly expanding, fuelled by increasing demand for convenience amongst busy consumers.
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