Saudi Arabia Milk Powder Market Set to Reach $699 Million by 2033

Saudi Arabia Milk Powder Market Overview

According to Renub Research Latest Report Saudi Arabia milk powder market is projected to grow from US$ 401.4 million in 2024 to US$ 699.17 million by 2033, registering a CAGR of 6.36% between 2025 and 2033. Factors such as rising health consciousness, population growth, increasing retail networks, and robust government support for food security under Vision 2030 are fueling this growth.

Milk powder remains a staple in Saudi households, widely used in infant formulas, nutritional foods, and culinary applications. Its long shelf life, convenience, and consistent quality make it an indispensable part of the Saudi diet. Moreover, the cultural preference for dairy products and the significant expatriate population have further strengthened the demand, particularly for infant formula.

Saudi Arabia is also an active player in milk powder trade, ranking as the 29th largest exporter of dried milk in 2022, with exports valued at $32.6 million. The country exports mainly to neighboring Gulf nations such as Kuwait, Oman, UAE, Bahrain, and Mauritania, while also importing high-quality milk powder from the US, Belgium, Poland, Germany, and New Zealand to meet domestic demand.

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Key Growth Drivers

Expansion of Retail Networks

The rapid growth of supermarkets, hypermarkets, and e-commerce platforms has significantly increased the accessibility of milk powder across Saudi Arabia. Urban and rural consumers alike can now access a wide range of products with ease. Retailers are dedicating more shelf space to both domestic and international brands, offering consumers choice and convenience.

E-commerce platforms have further strengthened the market by enabling home delivery, online ordering, and access to diverse brands, catering to the tech-savvy population. Enhanced brand visibility through these channels also allows companies to reach broader consumer segments, boosting sales and market penetration.

Growing Demand for Infant Formula

Infant formula is a critical driver of milk powder demand in Saudi Arabia. Both domestic population growth and the expatriate community contribute to a consistent need for baby formula. Cultural practices, medical recommendations, and the convenience offered by ready-to-use formulas have reinforced their widespread adoption.

Infant formula is nutritionally fortified with essential vitamins, minerals, and proteins, ensuring optimal growth and development. Its rising usage highlights the vital role of milk powder in early childhood nutrition, making it a priority segment within the Saudi market.

Government Initiatives and Vision 2030

Saudi Arabia’s Vision 2030 emphasizes food security, economic diversification, and increased domestic dairy production. Government policies aim to enhance local dairy farming, infrastructure, and production technologies, ensuring a steady supply of high-quality milk powder.

In addition, the government supports imports of premium milk powder to meet consumer demand. These initiatives stabilize prices, secure supply chains, and strengthen the overall market by balancing domestic production with international imports. Vision 2030’s strategic investments in the dairy sector are thus critical to market expansion and consumer access.

Market Challenges

Competition from Local and International Brands

Saudi Arabia’s milk powder market is highly competitive, with domestic and international players vying for market share. Local brands enjoy strong consumer trust and deep understanding of regional preferences. International brands leverage global experience, advanced technology, and financial strength to deliver innovative, high-quality products.

Companies are constantly differentiating their offerings through marketing, packaging innovations, and product diversification. Value-added products such as fortified milk powders, lactose-free options, and organic formulations are increasingly popular, helping brands maintain competitiveness in a saturated market.

Health and Dietary Shifts

The rising popularity of plant-based diets presents a challenge for traditional milk powder. Products such as almond, soy, oat, and coconut milk powders are gaining traction among health-conscious consumers, lactose-intolerant individuals, and those seeking low-cholesterol alternatives.

To address this shift, dairy manufacturers are investing in lactose-free variants, fortified milk powders, and functional nutrition products. Marketing campaigns highlighting the health benefits of dairy are also being employed to retain consumer interest and counter the growing trend toward plant-based substitutes.

Whole Milk Powder vs. Skimmed Milk Powder

Whole Milk Powder (WMP)

Whole milk powder dominates the Saudi market due to its rich taste, creamy texture, and versatility in cooking, baking, and beverages. Its longer shelf life and ease of storage make it a convenient and reliable option for households. WMP remains a key segment, supported by traditional culinary practices and consumer preference for full-flavored dairy products.

Skimmed Milk Powder (SMP)

Skimmed milk powder is witnessing growing popularity among health-conscious consumers, those seeking lower-fat dairy options, and applications in infant formula and nutritional foods. The rising focus on dietary well-being is expected to increase SMP’s market share in the coming years.

The market trend indicates a shift toward healthier products, reflecting global dietary patterns and increased consumer awareness of nutrition and wellness.

Saudi Government Policies and Market Impact

Saudi Arabia enforces strict regulations for dairy imports to ensure safety and quality. The Saudi Food and Drug Authority (SFDA) mandates compliance with Halal certification, health documentation, and origin certificates. Import tariffs, sometimes up to 40%, depend on local production levels, influencing pricing and competitiveness.

Bilingual labeling in Arabic and English and cold-chain logistics are mandatory to maintain product quality in the Kingdom’s hot climate. These regulations foster consumer confidence, create a level playing field for domestic and international brands, and stimulate market innovation.

Overall, government oversight and import regulations ensure safe, high-quality products while promoting competition and innovation within the milk powder sector.

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Market Segmentation

By Type

Whole Milk Powder (WMP)

Skimmed Milk Powder (SMP)

Dairy Whitener

Buttermilk

Fat-Filled

Other

By Application

Nutritional Food

Infant Formula

Confectionaries

Baked Sweets

Savories

Other Uses

Each segment caters to specific consumer needs, ranging from general nutrition and convenience to specialized infant and health-focused applications.

Top Milk Powder Brands in Saudi Arabia

Almarai – Saudi Arabia’s leading dairy brand, renowned for premium milk powders, infant formulas, and quality-focused products.

Nido (Nestlé) – Offers fortified full-cream milk powder and infant formulas, known for nutritional value and consistent quality.

Safi – A homegrown brand providing full-cream and infant milk powders, catering to budget-conscious yet quality-focused consumers.

Anchor (Fonterra) – Globally recognized for high-quality milk powders, including infant and full-cream variants.

Al Safi Danone – Focuses on nutrition and sustainability, offering a wide range of high-standard milk powder products for families.

These brands dominate the market by offering products designed for diverse age groups, nutritional needs, and culinary applications, strengthening their market positions through quality, trust, and innovation.

Market Outlook and Future Trends

The Saudi Arabia milk powder market is projected to grow steadily, driven by:

Rising urbanization and working population, increasing demand for convenience foods such as infant formula.

Expansion of retail and e-commerce networks, improving product accessibility.

Health-conscious consumption patterns, promoting skimmed, fortified, and specialty milk powders.

Government support under Vision 2030, ensuring food security and investment in domestic dairy production.

Whole milk powder is expected to maintain dominance due to versatility and consumer preference, while skimmed milk powder and fortified variants will gain market share in response to health and wellness trends.

Infant formula is poised to remain a key segment, supporting both nutritional requirements and convenience for working parents. Manufacturers that innovate, comply with regulations, and adapt to changing consumer preferences will have a competitive advantage in this growing market.

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