Saudi Arabia Milk Powder Market Size and Forecast 2025–2033

The Saudi Arabia Milk Powder Market is entering a phase of sustained growth, driven by demographic expansion, government-led food security initiatives, and rising consumer demand for convenient dairy formats. According to Renub Research, the Saudi market is projected to rise from US$ 401.4 million in 2024 to US$ 699.17 million by 2033, registering a robust CAGR of 6.36% between 2025 and 2033.

This momentum is shaped by several factors—from booming infant formula consumption to a rapidly modernizing retail ecosystem. As the Kingdom’s population becomes more health-conscious and digitally connected, milk powder continues to hold a central position in the country’s food landscape.

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Saudi Arabia Milk Powder Industry Overview

The milk powder industry in Saudi Arabia is undergoing a period of accelerated development. Several structural shifts—economic, demographic, and cultural—are collectively elevating demand.

Saudi Arabia's expanding population, including a large expatriate community, continues to drive milk powder consumption, especially in the infant nutrition category. Cultural preferences for powdered dairy, along with its long shelf life and suitability for local climatic conditions, make it a staple in Saudi kitchens.

Government initiatives under Vision 2030, aimed at boosting food security and strengthening domestic dairy production, have further supported the market. While Saudi Arabia imports a significant portion of its milk powder, strategic policies and infrastructure investments are helping the nation balance external dependence with internal capability.

Moreover, the growing retail ecosystem—spanning hypermarkets, supermarkets, convenience stores, and e-commerce platforms—is ensuring wider product availability than ever before. Online platforms, in particular, are reshaping consumer purchasing patterns, enabling easier access and broader choice.

Even with competition from plant-based dairy alternatives, milk powder remains a category with enduring demand and broad household penetration.

Saudi Arabia’s Trade Dynamics: Exports & Imports

Saudi Arabia plays a notable role in the regional dairy trade. In 2022, it ranked as the 29th largest exporter of dried milk globally, shipping goods worth $32.6 million.

Top export destinations include:

Kuwait – $11.5M

Oman – $7.64M

United Arab Emirates – $7.34M

Bahrain – $3.61M

Mauritania – $1.3M

Exports to Kuwait, Oman, and Mauritania grew significantly between 2021 and 2022, demonstrating strong regional demand for Saudi-made milk powder.

However, Saudi Arabia is also a major importer. In 2022, it became the 17th largest importer of milk powder, bringing in $156 million worth of dried dairy products.

Top supplying countries include:

Belgium – $25.6M

Poland – $22.8M

Germany – $21M

New Zealand – $20.2M

United States – $16.3M

These import patterns reflect both the Kingdom’s rising consumption and the government’s commitment to securing reliable dairy supply chains.

Key Growth Drivers for the Saudi Arabia Milk Powder Market

1. Expansion of Retail Networks

Saudi Arabia’s retail landscape has seen dramatic transformation over the past decade. The expansion of hypermarkets, supermarkets, and digital grocery channels has strengthened product availability and diversified brand options.

Retail chains like Lulu, Carrefour, and Danube are allocating more shelf space to various milk powder types—whole, skimmed, fat-filled, fortified, and specialty formulations. Meanwhile, e-commerce giants such as Amazon and local platforms like Noon are attracting tech-savvy consumers eager for convenience and home delivery.

The retail boom has enhanced:

Product visibility

Competitive pricing

Consumer awareness

Market penetration across urban and rural regions

Ultimately, improved distribution is accelerating overall market expansion.

2. Growing Infant Formula Demand

Infant formula continues to be one of the strongest contributors to the milk powder market in Saudi Arabia. The sector’s growth is supported by:

High birth rates among Saudi citizens

A significant expatriate population

Increased workforce participation among women

Greater emphasis on pediatric nutrition

Strong trust in global and local infant formula brands

Infant formula is often recommended by healthcare professionals and is perceived as a safe, nutritionally balanced alternative or supplement to breastfeeding.

As a result, the infant formula category is positioned to retain its leading market share through 2033.

3. Increasing Government Initiatives

Saudi Arabia’s Vision 2030 emphasizes food security, agricultural modernization, and reduced reliance on imports. The government is investing heavily in:

Dairy farm infrastructure

Technological upgrades

Import regulations and safety standards

Supply chain resilience

Authorities continue to encourage the import of premium milk powder while simultaneously supporting local dairy players such as Almarai and Al Safi Danone.

This balanced strategy ensures stable prices, consistent availability, and stronger market confidence.

Key Challenges in the Saudi Milk Powder Market

1. Fierce Competition Between Local and International Brands

Saudi Arabia is home to a highly competitive dairy market. Local brands have strong consumer trust, while international giants bring technological expertise and product innovation.

The competitive landscape pushes companies to focus on:

Clear brand differentiation

Nutrient-fortified products

Premium packaging

Value-added offerings such as organic or lactose-free options

To thrive, brands must maintain both quality and affordability.

2. Rising Demand for Plant-Based Dairy Alternatives

The Middle East, including Saudi Arabia, is witnessing growing interest in lactose-free and plant-based alternatives such as almond, oat, coconut, and soy milk.

This shift is driven by:

Increased health awareness

Rising lactose intolerance diagnoses

Interest in environmentally friendly food options

Milk powder manufacturers are responding by:

Launching lactose-free dairy powders

Strengthening nutritional campaigns

Innovating to meet evolving consumer preferences

While the shift is notable, traditional milk powder remains dominant due to cultural preferences and widespread culinary use.

Whole Milk Powder & Skimmed Milk Powder: Market Dynamics

Whole Milk Powder (WMP)

WMP maintains a leadership position in the Saudi market due to its:

Creamy texture

Versatility in beverages and cooking

Long shelf life

Strong cultural acceptance

It is widely used in households, bakeries, and foodservice sectors.

Skimmed Milk Powder (SMP)

SMP is rapidly gaining traction, especially among:

Fitness-conscious consumers

Households seeking low-fat alternatives

Manufacturers of nutritional foods and infant formulas

As Saudi consumers grow more health-aware, SMP’s share is expected to rise steadily through 2033.

Saudi Government Policies on Dairy Imports

Saudi Arabia’s dairy imports are governed by strict regulatory frameworks established by the Saudi Food and Drug Authority (SFDA). These regulations aim to ensure product quality, safety, and compliance with local standards.

Key import requirements include:

Halal certification

Certificate of origin

Health and safety clearance

Bilingual Arabic-English labeling

Tariffs up to 40% depending on product type

Adherence to cold-chain logistics

These regulations maintain consumer trust while encouraging domestic production investments.

Impact of Saudi Dairy Regulations on Market Dynamics

Regulations shape nearly every aspect of the dairy ecosystem.

For domestic manufacturers, they promote:

Higher product standards

Enhanced competitiveness

Opportunities for value-added innovation

For global exporters, they require:

Compliance upgrades

Product reformulation in some cases

Investment in logistics and storage

Ultimately, the regulatory framework supports a more transparent, competitive, and consumer-oriented marketplace.

Market Leadership: Whole Milk Powder & Infant Formula

Whole Milk Powder as a Market Staple

Due to its convenience, versatility, and rich flavor profile, WMP continues to be a Saudi household essential. Its extended shelf life gives it an edge in a region where fresh milk supply can fluctuate.

Infant Formula Dominating Application Segments

Infant formula is projected to remain the leading application category in the coming years. With more mothers joining the workforce and rising trust in pediatric nutrition science, demand for high-quality infant formulas is expected to intensify.

Top Milk Powder Brands in Saudi Arabia

1. Almarai

The most recognized dairy brand in the Gulf, offering premium milk powders and infant formulas. Its reputation for quality and freshness cements its market leadership.

2. Nido (Nestlé)

A household name with strong brand loyalty, Nido offers fortified milk powders tailored for various age groups.

3. Safi

A homegrown brand known for affordability and reliable quality, Safi is favored among price-conscious consumers.

4. Anchor (Fonterra)

A global dairy leader, Anchor’s full-cream and infant formulas are popular for their purity and nutritional value.

5. Al Safi Danone

Combining local presence with global expertise, the brand focuses on sustainable, nutritious dairy options.

Market Segmentation

By Type

Whole

Skimmed

Dairy Whitener

Buttermilk

Fat-Filled

Other

By Application

Nutritional Food

Infant Formulas

Confectionaries

Baked Sweets

Savories

Others

Company Analysis (3 Viewpoints Each)

Overview

Recent Developments

Revenue Analysis

Companies covered include:

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

Final Thoughts

The Saudi Arabia Milk Powder Market stands at the crossroads of demographic growth, modernization, and evolving consumer preferences. With supportive government policies, expanding retail infrastructure, and rising nutritional awareness, the market is poised for continued expansion through 2033.

While challenges persist—particularly competition from plant-based alternatives and global brands—the sector’s fundamentals remain strong. Milk powder will continue to play a key role in household consumption, infant nutrition, and the broader food industry.

As Vision 2030 accelerates progress across the food and agriculture sectors, Saudi Arabia’s milk powder market is well-positioned to experience steady and sustainable growth in the years ahead.