The Saudi dairy market valued at $5.72 billion in 2020, is estimated to reach $7.94 billion by the end of 2026, growing with a CAGR of 5.66%, according to TechSci Research report.
The key factors propelling the growth of Saudi Arabia dairy market are flourishing dairy industry, increasing disposable income, and entry of new market players.
The growing consumption of milk and other dairy products coupled with increasing awareness pertaining to the benefits of milk and related products are also accelerating the growth of dairy market in the country.
Furthermore, popularity of packaged dairy goods and increasing inclination of consumers towards health & fitness are expected to fuel the market growth in next five years. Also, several international dairy product manufactures are gaining popularity in Saudi Arabia which is leading to flourishing dairy industry in Saudi Arabia.
With the growth in disorders like diabetes, high blood pressure, high cholesterol, obesity, and so on, the majority of the population is requesting dairy products regularly, as these products are free of adulterants and chemicals and have a high nutritional value.
Dairy products are preferred by consumers since they do not contain excessive levels of chemicals. Switching to nutritious dairy products could help in controlling lifestyle related health problems. As a result of increased health concerns, the dairy products makers now have a huge opportunity to meet customer demand for high-quality dairy products.
Saudi Arabia dairy market is also growing significantly due to aggressive advertising being used as a key marketing tool by dairy product manufactures through various channels.
Moreover, availability of dairy products in convenient packaging is also acting as a growth driver for the market. Any marketing strategy's implementation is heavily influenced by packaging. An appealing package is critical for a brand's success and has the ability to boost profits. As a result, firms now deliberately package their items to entice customers.
Apart from this, thriving e-commerce industry and increased circulation of dairy products on online channels are anticipated to augment the dairy market growth during the forecast period. The country is also witnessing establishment of large commercial dairy farms and manufacturers are adopting advanced technologies to meet the growing requirement for dairy products.
Major players operating in the Saudi Arabia dairy market are Almarai Company, Al Safi Danone Ltd., The National Agricultural Development Company (NADEC), NADA DAIRY, SAUDIA DAIRY & FOODSTUFF COMPANY (SADAFCO), Danya Foods Ltd., Forsan Foods & Consumer Products Company Ltd., Modern Dairy Plant Company (BADR DAIRY), Wardat Al Mashreq Food Factory, Ornua Ingredients International. Leading companies are adopting growth strategies such as new product launches, mergers & acquisitions and joint ventures.
“Saudi Arabia is witnessing a shift towards healthier diet among consumers. Popularity of dairy products like ice cream and shakes is also providing profitable growth opportunities for dairy market. In coming years, the country is expected to become one of the largest market for dairy industry with easy availability of these products on various platforms. In addition to this, increasing consumption of butter and cheese and boom in food & beverage industry are further expected to support the growth of Saudi Arabia dairy market,” said Karan Chechi, Research Director with TechSci Research.-- TradeArabia News Service
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