United Arab Emirates Dairy Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

United Arab Emirates Dairy Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The UAE dairy market is projected to witness a CAGR of 4.73% during the forecast period (2021- 2026).

Due to the COVID-19 pandemic, UAE's imports of dairy products were reduced in the first quarter, particularly cheese and flavored milk products, including chocolate milk. Additionally, the lockdown has nearly halted the revenue growth of the UAE milk industry because of weak sales of value-added products, like cheese, flavored milk, curd, and yogurt, among others, which has indirectly impacted the sales of dairy products in the country.

The dairy sector, being one of the significant revenue-generating food sectors in the United Arab Emirates, has a need for the development and introduction of better products. Furthermore, the government of the country is focusing on developing the production capacities to decrease the dependency on imports.

Moreover, higher per capita sales of dairy products in the country can be attributed to the expanding economy and booming population, along with rising tourist inflow in the United Arab Emirates, driving the market forward.

Key Market TrendsEscalating Demand for Functional Dairy

The increase in health-conscious consumers across the country has led to a shift in eating preferences, mostly toward healthy and nutritious products. Availability of high nutritional value, which includes high-protein content, probiotics, vitamins (vitamin D and B12), and minerals (like potassium, iodine, and calcium), is the key factor that has led to the increased adoption of functional dairy products among consumers, thus, stimulating the UAE dairy products market growth. For instance, Al Rawabi offers functional products, which include vitamin-D milk – full cream, vitamin-D milk – low cream, super milk full cream, super milk low fat, strawberry, mango, orange, peach, green tea, and vanilla flavored and nutrient boost the milk product demand with significant shelf life.

Milk Holds a Significant Market Share

The rising per capita milk consumption, an increasing population, and the increasing demand for a nutrient-rich diet are rapidly driving the growth of the market studied. Consumers in the United Arab Emirates spend a major portion of their incomes on white milk, due to the rising consumption of milk as a pro-health beverage in the country. Additionally, the market in the United Arab Emirates is characterized by a high preference for traditional home cooking. As a result, plain white milk is widely demanded by consumers in the country for cooking purposes and direct consumption, wherein most Arabian dishes, especially desserts, require milk in their preparation.​ A major trend in the market is the increasing demand for long-life products available in tetra packs and other forms of long-life packaging due to their improved storability has been noticed, hence, boosting the market growth.

Competitive Landscape

The UAE dairy market is highly competitive, with vaious local, regional, and international players operating in the market studied. The key strategies adopted by major players are new product innovations, mergers and acquisitions, expansion, and partnership to cater to consumer demand. The prominent players in the market are Al Rawabi Dairy Company, Almarai Company, Fonterra Brands LLC, Arla Foods, and Nestlé SA, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Danone SA
The Kraft Heinz Company
Fonterra Co
Operative Group
Nestle SA
General Mills Inc.
Royal Frieslandcampina NV
Groupe Lactalis
Arla Foods amba
Al Rawabi Dairy Company
YAS Holding
National Food Products Company

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