GCC Dairy Market: Rising Consumption, Product Innovation & Growth Outlook

According to IMARC Group's latest research publication, GCC dairy market size reached USD 11.23 Billion in 2025. The market is projected to reach USD 17.05 Billion by 2034, exhibiting a growth rate of 4.75% during 2026-2034.

How AI is Reshaping the Future of GCC Dairy Market

• Livestock Health Monitoring and Disease Prevention: AI-powered wearable sensors track individual cow health metrics in real-time, detecting early signs of mastitis and lameness, reducing veterinary costs significantly.
• Automated Milking and Production Optimization: Robotic milking systems handle entire operations from milking schedules to yield tracking, boosting productivity while minimizing labor requirements across dairy farms.
• Quality Control and Contamination Detection: Real-time AI sensors monitor bacterial levels, fat composition, and texture variations during processing, cutting product defects and waste substantially.
• Cold Chain Management: Predictive algorithms use temperature and humidity sensors throughout storage and transport, preventing spoilage and maintaining freshness from farm to retail.
• Demand Forecasting and Inventory Management: Machine learning analyzes consumption patterns and seasonal trends, optimizing stock levels and reducing waste while ensuring consistent product availability.

How Vision 2030 is Revolutionizing GCC Dairy Industry

Vision 2030 is dramatically transforming the GCC dairy sector through ambitious food security and localization programs. Saudi Arabia launched a massive dairy industrial cluster in Al-Kharj spanning nearly 1 million square meters, featuring modern infrastructure designed specifically for dairy processing and value-chain industries. The Kingdom's agricultural GDP reached approximately SAR 114 billion, with targets to achieve 85% food processing localization through strategic investments. The UAE's Operation 300bn initiative aims to raise industrial manufacturing's GDP contribution to AED 300 billion, with dairy identified as a priority subsector. Abu Dhabi invested AED 10 billion to double its manufacturing capacity, while the emirate now accounts for 36% of the UAE's food processing sector. In December 2025, Sharjah inaugurated the Mleiha Dairy Factory capable of producing 100,000 liters daily across a 20,000-square-meter facility, strengthening food security.

GCC Dairy Market Trends & Drivers:

Population growth is fundamentally driving dairy demand across the Gulf region. The GCC population reached 61.2 million by the end of 2024, representing an increase of over 2.1 million people and reflecting a growth rate of 3.6% according to GCC Statistical Center data. This expansion directly enlarges the consumer base requiring consistent dairy supplies for household consumption, while younger demographics show heightened nutritional awareness and willingness to explore innovative dairy formats. The presence of diverse expatriate communities introduces varied consumption preferences spanning different cultural backgrounds, compelling producers to diversify portfolios accommodating ethnic cuisines and regional flavor profiles. Urbanization trends concentrating populations in metropolitan centers facilitate efficient distribution network development while creating concentrated demand nodes supporting specialized retail formats and premium dairy categories throughout the region.

Health consciousness and premiumization are reshaping consumption patterns significantly. Consumers across the Gulf are increasingly seeking functional dairy products enriched with probiotics, fortified with vitamins, and featuring reduced sugar alongside enhanced protein content to support immunity, digestive health, and active lifestyles. The UAE e-commerce market demonstrates this digital shift, reaching USD 507.2 Billion, with online platforms enabling convenient home delivery of temperature-sensitive dairy products and subscription-based purchasing models. French food-tech firm Nutropy is advancing its Saudi presence through precision fermentation to develop animal-free dairy proteins, meeting with government agencies and leading producers to explore collaborations supporting Vision 2030 goals. Rising disposable incomes enable consumers to prioritize quality and nutritional value over price, while parents increasingly view dairy as indispensable for children's growth during formative years.

Government initiatives and infrastructure investments are strengthening domestic production capabilities substantially. Strategic food security policies emphasize reducing import dependency and empowering local production through financial incentives, technological transfers, and research programs developing climate-adapted livestock varieties. Public-private partnerships facilitate knowledge exchange, supply chain modernization, and processing facility development that strengthens the entire value chain from farm operations through retail distribution. Investments focus particularly on camel dairy development, leveraging indigenous species naturally suited to harsh desert environments while producing milk with distinctive nutritional profiles. The expansion of modern retail formats, cold storage infrastructure, and advanced processing technologies collectively enhance product accessibility and quality consistency, positioning the GCC as an emerging regional dairy hub capable of serving both domestic markets and neighboring export destinations.

Get Complete 2026 Market Data at a Glance

GCC Dairy Market Industry Segmentation:

The report has segmented the market into the following categories:

Product Insights:

• Liquid Milk
• Cheese
• Laban
• Yogurt and Curd
• Butter and Clarified Butter
• Others

Distribution Channel Insights:

• Supermarkets and Hypermarkets
• Convenience Stores
• Specialist Retailers
• Online Stores
• Others

Application Insights:

• Bakery and Confectionary
• Clinical Nutrition
• Frozen Food
• Others

Country Insights:

• Saudi Arabia
• UAE
• Qatar
• Oman
• Kuwait
• Bahrain

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players being Arla Foods amba, Al Safi - Danone, Fonterra Co-operative Group Limited, GCMMF, Nestle S.A., Al Ain Farms, Al Rawabi Dairy Company, Almarai Company, Lactalis Group, National Agricultural Development Company (NADEC), and Saudia Dairy & Foodstuff Company (SADAFCO).

Recent News and Developments in GCC Dairy Market

• February 2025: Lulu Qatar unveiled its latest collection of premium British dairy products in collaboration with the Agriculture and Horticulture Development Board (AHDB) and the Department for Business and Trade (DBT). In addition to its existing UK offerings, the retailer has introduced an expanded, market-leading range of dairy products now available in most of its larger stores.
• December 2025: Sheikh Dr. Sultan bin Muhammad Al Qasimi, Ruler of Sharjah, inaugurated the Mleiha Dairy Factory and Farm, a sprawling 20,000-square-meter facility capable of producing 100,000 liters of milk daily. The project is set to play a key role in strengthening the emirate's food security and boosting sustainable local dairy production.
• April 2025: Saudi Arabia unveiled a large-scale dairy industrial cluster in Al-Kharj, around 90 kilometers southeast of Riyadh. Covering nearly one million square meters, the cluster features modern, purpose-built infrastructure designed to serve dairy producers and associated value-chain industries as part of the Kingdom's National Industrial Strategy.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.