Upward trend for UAE dairy products

26-10-2021 | |
Photo: Shutterstock
Photo: Shutterstock

The United Arab Emirates (UAE) dairy products market is forecast to reach US$2.47 billion by 2026. The region is steadily growing with demand for flavoured and organic dairy products on an upward trend.

The UAE dairy products market stood at US$1.66 billion in 2020 and the forecast is that it will reach US$2.47 billion by 2026 with a CAGR of 6.89%. Changing consumer lifestyle is also a major factor in pushing this growth factor when it comes to dairy products in UAE, says a report by TechSci Research. There is focus on organic milk and growing demand from young population.

Tremendous change in dairy

The UAE market has experienced a major change taking place with a focus on nutritional value offered by dairy products. The report states that the “introduction of value-added dairy products, changing consumption patterns, growing penetration of international players, etc., are further fueling the growth of dairy products market in the UAE.”

With the Covid-19 pandemic impacting sectors worldwide, here it has led to more awareness for healthy eating and drinking habits among consumers with a surge seen in demand for dairy products across the country post lockdown, as they are considered a healthier option. It is perceived that post the pandemic period, the shift in consumers’ focus towards preventive health management practices is expected to drive the growth of the dairy market, said the report.

Global dairy market prices

Dairy products popular in UAE

• Dairy milk (majority market share)
• Ghee & butter
• Ice-cream & milk cream
• Cheese & spread
• Yogurt, etc.

Dairy companies in UAE

In the UAE, dairy product producers honing in on maximising the dairy farmer investment by creating programmes and resources to drive dairy products demand and build consumer confidence to ensure a strong future for the dairy industry in the country.

To remain competitive in the market, companies are continuously involved in new product development and strategic development. In terms of speed of growth, the online sales segment is the fastest-growing as it is convenient due to better logistic systems, added the report.

Leading players in the UAE dairy products market:

Al Rawabi Dairy
Gulf & Safa Dairies
Al Ain Farms
Gulf & Safa
Marmum Dairy Farm
• Emirates Industry for Camel Milk & Products
Al Bustan Al Khaleej Est
Fonterra Brands
United Kaipara Dairies

Global dairy market prices

In the UAE, higher per capita sales of dairy products in the country can be attributed to expanding economy and booming population along with rising tourist inflow in the Middle East. The UAE dairy products market has been divided into 3 main major regions – Dubai, Abu Dhabi, Sharjah and the rest of the UAE. Dubai holds the largest share as it is a popular tourist destination. Dubai has dominated the UAE dairy products market due to the large population and high per capita income.

The UAE consists of 7 independent city-states: Abu Dhabi, Dubai, Sharjah, Umm al-Qaiwain, Fujairah, Ajman and Ra’s al-Khaimah.

van Dijk
Zana van Dijk Editor Dairy Global