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Saudi Arabia Milk Powder Market Size & Forecast 2025–2033

Rising Demand, Retail Expansion & Food Security Goals are Transforming the Kingdom’s Dairy Powder Landscape

By Diya DeyPublished 2 months ago 5 min read

The Saudi Arabia milk powder market is entering a dynamic growth phase. Backed by rising population, expanding retail infrastructure, nutrition awareness, and the government’s long-term food security goals, the market is expected to reach US$ 699.17 million by 2033, growing from US$ 401.4 million in 2024 at a CAGR of 6.36% (2025–2033), according to Renub Research.

From household tea cups to infant feeding bottles, milk powder remains deeply rooted in Saudi lifestyles. And while consumer tastes evolve and alternatives surface, dairy powder continues to be a pantry essential shaping the Food & Beverage ecosystem across the Kingdom.

A Market Powered by Demographics, Demand & Government Direction

Saudi Arabia’s milk powder market reflects a convergence of strong fundamentals:

Population growth: The Kingdom is seeing a steady population rise with a young demographic, driving ongoing consumption of nutritional products.

Expat presence: Millions of expatriates bring diverse dietary patterns, expanding demand for dairy-based convenience formats.

Cultural consumption patterns: Milk and its derivatives play a major role in Saudi diets, beverages, desserts, and infant care routines.

Retail transformation: Hypermarkets, supermarkets, and fast-growing digital grocery platforms have dramatically increased product reach.

Policy focus on food security: Vision 2030 emphasizes national self-sufficiency and sustainable food supply—creating opportunities for both domestic production and strategic imports.

The result? A market where availability, affordability, convenience, and nutrition align, creating fertile ground for long-term expansion.

Saudi Arabia’s Position in the Global & Regional Milk Powder Trade

Despite strong domestic brands and dairy infrastructure, Saudi Arabia remains highly active in international dairy trade:

In 2022, the Kingdom was the 29th largest exporter of dried milk, shipping goods worth US$ 32.6 million.

Key export destinations included:

Kuwait – US$ 11.5M

Oman – US$ 7.64M

UAE – US$ 7.34M

Bahrain – US$ 3.61M

Mauritania – US$ 1.3M

The fastest growing export markets during 2021–2022 were Kuwait, Oman, and Mauritania.

On the import side:

Saudi Arabia became the 17th largest milk powder importer globally in 2022, importing products worth US$ 156 million.

Top suppliers included:

Belgium – US$ 25.6M

Poland – US$ 22.8M

Germany – US$ 21M

New Zealand – US$ 20.2M

United States – US$ 16.3M

These figures highlight Saudi Arabia’s dual role as both a dairy exporter and major importer, giving it strategic leverage in the global dairy supply chain.

Growth Drivers Fueling the Saudi Milk Powder Boom

1. Rapid Retail Network Expansion

Modern retail infrastructure continues to unlock market growth:

Large format stores such as Lulu, Carrefour, Panda, Danube, and Tamimi Markets ensure nationwide availability.

Shelf space for dairy powder has expanded significantly across categories like infant nutrition, baking, health supplements, and beverage mixers.

E-commerce platforms like Noon, Amazon KSA, Nana, and Carrefour Online are reshaping consumer buying behavior through fast delivery, subscription models, and discounts.

With tech-adoption rising and logistics improving, milk powder brands now reach not only metro cities but also rural and semi-urban households more efficiently than ever.

2. Surging Demand for Infant Formula

One of the most powerful demand drivers is infant nutrition:

Higher birth rates among nationals and expatriates steadily expand the infant feeding segment.

Dual-income households and working mothers prefer formula due to convenience, accessibility, and long shelf life.

Pediatric endorsements, fortified formulas, and rising awareness about early childhood nutrition further strengthen segment growth.

Infant formula is now one of the most resilient and fastest-growing sub-categories of the market.

3. Government Support & Vision 2030 Initiatives

Under Vision 2030, Saudi Arabia is:

Boosting domestic dairy production

Enhancing food supply resilience

Investing in cold chain infrastructure

Facilitating strategic dairy imports to balance availability and price

Encouraging partnerships between global and local dairy players

These initiatives ensure market stability, long-term availability, and price moderation, especially for essential categories like milk powder.

Challenges Reshaping Competitive Strategies

1. Rising Competition from Local & Global Brands

The market is dominated by both domestic giants and global dairy leaders. Competition pressures brands to differentiate through:

Fortified nutrition blends

Sugar-free or low-fat variants

Baby-safe formulations

Premium packaging and shelf differentiation

Digital marketing and retail activations

2. Increase in Plant-Based and Lactose-Free Alternatives

Despite strong dairy loyalty, niche consumer segments are gradually shifting towards options like:

Oat milk powder

Almond milk powder

Lactose-free dairy powder

Soy and coconut blends

This trend is driven by:

Lactose intolerance concerns

Sustainability awareness

Clean-label movement

To counter this, dairy brands are launching lactose-free, high-protein, organic, and vitamin-fortified milk powders to retain health-first consumers.

Whole vs Skimmed Milk Powder: A Tale of Two Preferences

Category Market Outlook Key Drivers

Whole Milk Powder (WMP) Current market leader Creamier taste, versatile usage, longer shelf life, preferred for beverages & cooking

Skimmed Milk Powder (SMP) Fast-growing challenger Rising health consciousness, low-fat demand, adoption in nutritional foods and infant formulas

While WMP dominates today, SMP is gaining momentum, reflecting a broader shift towards mindful consumption and fat-reduced diets.

Saudi Dairy Regulations: A Pillar of Safety & Market Trust

To ensure consumer safety, the Saudi Food and Drug Authority (SFDA) enforces strict dairy import regulations:

✅ Mandatory Halal certification

✅ Country of origin and health documentation

✅ Arabic + English bilingual labeling

✅ Cold chain logistics compliance

✅ Tariffs up to 40% depending on domestic output levels

These regulations do two things simultaneously:

Protect consumers

Support local producers against unfair import dependency

By ensuring quality while stimulating domestic competitiveness, Saudi dairy policy sustains long-term market balance.

Milk Powder by Type & Application: Market Breakdown

By Type

Whole

Skimmed

Dairy Whitener

Buttermilk

Fat-Filled

Others

By Application

Nutritional Food

Infant Formulas

Confectionaries

Baked Sweets

Savories

Others

Top Milk Powder Brands in Saudi Arabia

1. Almarai

Market leader and household name

Known for quality and product consistency

Strong retail penetration across GCC

2. Nido (Nestlé)

Leader in infant and fortified powder segment

Trust-driven positioning and deep distribution

3. Safi

Popular local brand

Value-driven offerings for budget households

4. Anchor (Fonterra)

Appeals to nutrition-conscious and premium buyers

Renowned for product reliability

5. Al Safi Danone

Combines global dairy expertise with local reach

Focused on sustainable and healthy dairy production

Key Companies Analyzed in the Market

Almarai Company

Rabouh Al Hofuf Est.

M.M. Siddique Abdullah Trading Est.

Gulf Dimensions Trading Est.

AL-Juffaily for Trading

Shatha Abeer Ltd.

Riyadh Dairy Products Factory

Each company is evaluated based on:

Overview

Recent Developments

Revenue Insights

Market Outlook: Where is Saudi Milk Powder Headed?

The Kingdom’s milk powder industry is becoming:

🔹 More retail accessible

🔹 Nutritionally smarter

🔹 Digitally discoverable

🔹 Globally integrated

🔹 Strategically sustainable

With a strong migration towards fortified nutrition, dominance of infant formula demand, improved supply chain, and government support, the sector is positioned for consistent growth through 2033.

Final Thoughts

Saudi Arabia’s milk powder market is more than a grocery aisle category—it is a pillar of the Kingdom’s nutrition landscape, retail evolution, and food security ambitions. Whether driven by convenience, infant nutrition, cultural importance, or government vision, milk powder continues to shape daily consumption at scale.

As brands innovate, retail grows, and consumer awareness rises, this market will remain a thriving reflection of Saudi Arabia’s broader economic transformation and evolving lifestyle needs.

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About the Creator

Diya Dey

Market Analyst

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