The Middle East and Africa dairy market has been experiencing steady growth over the years, with demand for dairy products rising across the region. As of 2025, the market value stood at approximately USD 210.87 billion, and it is projected to grow at a compound annual growth rate (CAGR) of 4.70%, reaching nearly USD 318.81 billion by 2033. This article explores the current trends, opportunities, challenges, and competitive landscape of the dairy market in the Middle East and Africa.

Middle East and Africa Dairy Market Outlook

The Middle East and Africa dairy market outlook is promising, with an increasing demand for dairy products driven by changing dietary habits, a growing population, and rising urbanisation. The region’s dairy industry is projected to experience substantial growth over the next decade, with the dairy consumption in countries such as Saudi Arabia, the UAE, and South Africa seeing significant increases.

Key Drivers of Market Growth

Population Growth: With the growing population in both the Middle East and Africa, especially in urban areas, there is a corresponding increase in the demand for dairy products.

Health and Wellness Trends: There is a growing preference for healthier, protein-rich foods, contributing to the rising demand for dairy products like milk, cheese, and yogurt.

Rising Disposable Income: As incomes rise in many parts of the Middle East and Africa, consumers are shifting towards higher-quality dairy products.

Expanding Retail and E-commerce Channels: The rise in retail networks and online sales channels is helping increase dairy product availability and access, especially in rural areas.

Middle East and Africa Dairy Market Share Trends

The market share of the dairy industry in the Middle East and Africa is divided among various countries and dairy products. The following trends are dominating the market:

Milk Products Leading the Market:

Milk remains the largest product segment in the region’s dairy market, contributing significantly to the overall market share. The increasing consumption of milk-based products like milk powder, flavoured milk, and dairy beverages continues to dominate.

Growth of Plant-Based Dairy Alternatives:

There is a rising trend in the adoption of plant-based dairy products, particularly in countries with a significant vegetarian or vegan population. This trend is gaining momentum due to growing health-consciousness and concerns about lactose intolerance.

Premium Dairy Products:

Consumers in the region are increasingly opting for premium dairy products, including organic dairy and those with additional nutritional benefits such as fortified milk. This trend is expected to continue as the middle class grows, especially in Gulf Cooperation Council (GCC) countries.

Flavoured and Functional Dairy:

The demand for flavoured dairy, including flavoured yogurt and cheese, is increasing. Additionally, functional dairy products, such as probiotics and vitamin-enriched milk, are gaining popularity among health-conscious consumers.

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Middle East and Africa Dairy Market Key Segments

The dairy market in the Middle East and Africa can be segmented by product type, distribution channel, and country. Here’s a breakdown of the key segments:

By Product Type:

Milk: Whole milk, skim milk, and milk powder are some of the leading categories.

Cheese: Soft cheese, hard cheese, and processed cheese are popular across various segments.

Yogurt: Both plain and flavoured yogurt varieties have seen growth in the region.

Butter and Ghee: These traditional dairy products are highly consumed in several Middle Eastern and African countries.

By Distribution Channel:

Supermarkets/Hypermarkets: These retail stores account for a significant share of dairy product sales in urban areas.

Convenience Stores: Growing convenience store chains are contributing to increased dairy sales.

Online Sales: E-commerce platforms are becoming increasingly important for the distribution of dairy products.

By Region:

Gulf Cooperation Council (GCC) Countries: Saudi Arabia, UAE, and Qatar lead the dairy market in the Middle East.

Sub-Saharan Africa: South Africa holds a major share of the market, with growing demand from other parts of the continent, including Nigeria and Kenya.

Middle East and Africa Dairy Market Opportunities and Challenges

Opportunities:

Investment in Dairy Farming: With significant investments in local dairy farming, the region has the potential to reduce reliance on imports and boost domestic production.

Rising Consumer Awareness: There is an opportunity for brands to introduce innovative and healthier dairy products to meet growing consumer health awareness.

Growing Retail Market: The expansion of modern retail formats and supermarkets offers greater access to dairy products for consumers across the region.

Diverse Dairy Demand: With a diverse population, dairy companies have the opportunity to cater to various tastes and dietary preferences, including lactose-free and plant-based alternatives.

Challenges:

High Import Dependence: Many countries in the Middle East and Africa depend on dairy imports, which exposes the market to external shocks like price volatility or supply chain disruptions.

Climate and Water Scarcity: Dairy farming in regions like the Middle East faces challenges related to water scarcity and extreme temperatures, making local production more expensive.

Price Sensitivity: Many consumers in Africa, in particular, are price-sensitive, limiting the growth of premium dairy products in certain segments of the market.

Lactose Intolerance: A significant portion of the population in some countries is lactose intolerant, posing a challenge for the growth of traditional dairy consumption.

Competitive Landscape

The competitive landscape of the Middle East and Africa dairy market is marked by a few major players and a growing number of local and international brands.

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