Saudi Arabia dairy alternatives market report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

Saudi Arabia Dairy Alternatives Market Overview

The Saudi Arabia Dairy Alternatives Market is valued at USD 290 million, based on a five-year historical analysis. This growth is primarily driven by increasing health consciousness among consumers, a shift towards plant-based diets, and the rising prevalence of lactose intolerance. The demand for dairy alternatives has surged as consumers seek healthier and more sustainable options, leading to a significant expansion in product offerings and market penetration. Key drivers include a rising vegan and vegetarian population, greater awareness of the health benefits of plant-based products, and the introduction of fortified and functional beverages that cater to nutritional needs .

Key cities such as Riyadh, Jeddah, and Dammam dominate the market due to their large urban populations and higher disposable incomes. These cities are also witnessing a growing trend of health and wellness, which has led to increased consumption of dairy alternatives. The presence of major retail chains and health food stores in these urban areas further supports the market's growth. Additionally, the expansion of digital retail channels and growing millennial and Gen Z populations are accelerating market penetration .

In 2023, the Saudi government implemented the "National Strategy for Sustainable Agriculture" (issued by the Ministry of Environment, Water and Agriculture, 2023), which includes operational measures to promote the consumption of plant-based products such as dairy alternatives. This initiative provides subsidies for local producers and incentives for retailers to stock plant-based options, aiming to enhance food security and diversify the food supply. The regulation mandates compliance with product labeling standards, minimum nutritional fortification requirements, and eligibility thresholds for subsidy access, supporting sustainable agricultural practices and reducing reliance on traditional dairy farming .

Saudi Arabia Dairy Alternatives Market Segmentation

By Product Type:

The product type segmentation includes various categories such as Non-Dairy Milk, Non-Dairy Yogurt, Non-Dairy Cheese, Non-Dairy Ice Cream, Non-Dairy Creamers, and Others. Among these, Non-Dairy Milk is the leading subsegment, driven by consumer preferences for almond, soy, and oat milk. The increasing availability of diverse flavors, fortified options, and convenient packaging has further boosted its popularity. Non-Dairy Yogurt and Non-Dairy Cheese are also gaining traction as consumers seek healthier alternatives to traditional dairy products, with product innovation and new launches expanding choices for lactose-intolerant and vegan consumers .

By Source:

The source segmentation includes various plant-based sources such as Almond, Soy, Oat, Coconut, Rice, Cashew, and Other Plant Sources. Almond and Soy are the dominant sources due to their widespread acceptance and nutritional benefits. Oat milk is rapidly gaining popularity, particularly among health-conscious consumers, while Coconut and Rice are also notable for their unique flavors and lactose-free properties. The market is also seeing increased interest in blends and fortified products, which offer enhanced nutritional profiles and cater to evolving consumer preferences .

Saudi Arabia Dairy Alternatives Market Competitive Landscape

The Saudi Arabia Dairy Alternatives Market is characterized by a dynamic mix of regional and international players. Leading participants such as Almarai Company, National Agricultural Development Company (Nadec), Al Safi Danone Ltd., Al Watania Dairy, Al Rawabi Dairy Company, Al Ain Farms, Tetra Pak Arabia, Nestlé S.A., Danone S.A., Oatly AB, Blue Diamond Growers, Califia Farms, Silk (WhiteWave Foods, now part of Danone North America), So Delicious Dairy Free (Danone North America), Ripple Foods, Good Karma Foods contribute to innovation, geographic expansion, and service delivery in this space. These companies are focusing on product innovation, expanding distribution networks, and catering to the evolving preferences of Saudi consumers .

Almarai Company

1977

Riyadh, Saudi Arabia

National Agricultural Development Company (Nadec)

1981

Riyadh, Saudi Arabia

Al Safi Danone Ltd.

1998

Riyadh, Saudi Arabia

Al Watania Dairy

1980

Riyadh, Saudi Arabia

Al Rawabi Dairy Company

1989

Dubai, UAE

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Revenue (USD, Latest Fiscal Year)

Revenue Growth Rate (%)

Market Share (%)

Market Penetration Rate (Saudi Arabia, % of addressable market)

Customer Retention Rate (%)

Saudi Arabia Dairy Alternatives Market Industry Analysis

Growth Drivers

Increasing Health Consciousness:

The Saudi Arabian population is increasingly prioritizing health, with 65% of consumers actively seeking healthier food options. This trend is supported by the World Health Organization's report indicating that 75% of Saudi adults are overweight or obese. As a result, the demand for dairy alternatives, which are often lower in calories and fat, is rising. The market for plant-based milk alone is projected to reach 2 billion SAR, driven by this health-focused consumer behavior.

Rising Vegan and Plant-Based Diet Trends:

The number of vegans in Saudi Arabia has increased by 35% over the past five years, reflecting a significant shift towards plant-based diets. This trend is bolstered by the growing awareness of animal welfare and environmental sustainability. According to the Saudi Food and Drug Authority, the consumption of plant-based dairy alternatives is expected to grow by 30% annually, indicating a robust market potential for products like almond and soy milk.

Government Support for Sustainable Products:

The Saudi government has initiated several programs to promote sustainable agriculture and food production. In future, the government allocated 600 million SAR to support local producers of dairy alternatives. This funding aims to enhance production capabilities and reduce reliance on traditional dairy farming, which is resource-intensive. Such initiatives are expected to foster innovation and increase the availability of dairy alternatives in the market.

Market Challenges

High Production Costs:

The production of dairy alternatives often involves higher costs due to the sourcing of raw materials like nuts and soybeans. For instance, the cost of almond milk production can be up to 35% higher than traditional dairy. Additionally, the lack of local processing facilities increases transportation costs, making it challenging for producers to offer competitive pricing. This financial burden can limit market entry for new players and stifle innovation.

Limited Consumer Awareness:

Despite the growing interest in dairy alternatives, consumer awareness remains low, with only 45% of the population familiar with these products. A survey by the Saudi Ministry of Health revealed that many consumers still associate dairy alternatives with inferior nutritional value. This lack of understanding can hinder market growth, as consumers may be reluctant to switch from traditional dairy products to alternatives without proper education and marketing efforts.

Saudi Arabia Dairy Alternatives Market Future Outlook

The Saudi Arabia dairy alternatives market is poised for significant growth, driven by increasing health consciousness and government initiatives supporting sustainable practices. As consumer preferences shift towards plant-based diets, the demand for innovative and functional dairy alternatives is expected to rise. Additionally, the expansion of e-commerce platforms will facilitate greater access to these products, enhancing market penetration. Overall, the landscape is evolving, presenting opportunities for both established
ands and new entrants to capitalize on changing consumer behaviors.

Market Opportunities

Innovation in Product Offerings:

There is a growing opportunity for companies to innovate by introducing new flavors and formulations of dairy alternatives. For example, the introduction of fortified plant-based milks can cater to health-conscious consumers seeking additional nutrients. This innovation can attract a
oader customer base and increase market share, particularly among younger demographics.

Growth in E-commerce Platforms:

The rise of e-commerce in Saudi Arabia presents a significant opportunity for dairy alternative
ands. With online grocery sales projected to reach 15 billion SAR, companies can leverage digital platforms to reach consumers directly. This shift not only enhances convenience but also allows for targeted marketing strategies, increasing
and visibility and sales potential.

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