Dairy Products and Alternatives in the Middle East and Africa

February 2025

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.

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Key Findings

Middle East and Africa to record highest forecast CAGR

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 drives dairy growth 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.

Consumers look for health benefits in dairy products, including digestive health and high protein

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 and e-commerce continue to increase

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.

Scope
Key findings
Middle East and Africa records second strongest sales growth after Latin America
Growth momentum continues in 2024 thanks to easing inflation
Dairy remains the largest category in the Middle East and Africa
Dairy increased in most countries except for Nigeria which was negatively hit by inflation
Plant-based dairy registers highest growth in South Africa and Morocco
Dairy leads new sales added over 2019-2024
Dairy remains a staple item in most countries despite inflation
Meliha Dairy launches local Meliha A2A2 milk with health benefits in the UAE
Danone innovates on immune system and gut health dairy
Modern grocery retailers leading in the Middle East…
…while small local grocers tends to be the leading distribution channel in Africa
Rising market concentration in Saudi Arabia driven by the growth of local players
Top three players lead the market with diverse portfolios and regional presence
Danone and Nestlé present in all countries
Almost all brands in top 10 retain rankings
Forecast period sees positive value and volume growth
Bright future ahead for dairy products and alternatives in the region
Algeria: Market context
Algeria: Competitive and retail landscape
Cameroon: Market context
Cameroon: Competitive and retail landscape
Egypt: Market context
Egypt: Competitive and retail landscape
Israel: Market context
Israel: Competitive and retail landscape
Kenya: Market context
Kenya: Competitive and retail landscape
Morocco: Market context
Morocco: Competitive and retail landscape
Nigeria: Market context
Nigeria: Competitive and retail landscape
Saudi Arabia: Market context
Saudi Arabia: Competitive and retail landscape
South Africa: Market context
South Africa: Competitive and retail landscape
Tunisia: Market context
Tunisia: Competitive and retail landscape
United Arab Emirates: Market context
United Arab Emirates: Competitive and retail landscape
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