Report Overview

Saudi Arabia Dairy Ingredients Market - Industry Trends & Forecast Report, 2028

Saudi Arabia dairy ingredients market is projected to grow at a CAGR of 5.6% during the forecast period of 2023 and 2029. The market is flourishing owing to the increasing health and wellness awareness among consumers which is prompting them to shift towards a nutrition-rich diet, which includes dairy products. As a result, local as well as international brands are increasingly launching new products to boost their product penetration in Saudi Arabia market. The country is also registering a shift towards vegetarianism due to popular culture and increasing consciousness towards animal cruelty in the meat industry, which could boost the demand for dairy ingredients in the forecast period.

Saudi Arabia Dairy Ingredients Market

Growth Drivers

Rising Awareness about Health and Wellness

Dairy products are a good source of essential nutrients including calcium, potassium, vitamin D, and protein. Therefore, regular consumption of these products offers various health benefits such as maintaining and building strong bones, maintaining healthy blood pressure, supporting normal growth, and brain development as well as better immune functioning. Therefore, the consumption of dairy products is extremely common in almost all age groups. Due to this, the demand for dairy ingredients is surging in Saudi Arabia, and various brands are increasingly launching new products to tap into this market. This is resulting in lucrative growth for the overall Saudi Arabia dairy ingredients market.

Restraints

Increasing Demand for Alternatives

The increasing prevalence of lactose intolerance among people along with rising consciousness towards animal cruelty in the dairy industry is providing a lucrative market for vegan dairy alternatives in Saudi Arabia. However, this is emerging as a major concern for the dairy ingredients market in the region. The younger population is especially inclined towards vegan milk products that offer the same levels of nutritional value as dairy products. These products can also be easily used for producing other food items. Therefore, this acts as a major restraining factor for the market growth in the forecast period.

Impact of COVID-19 on Saudi Arabia Dairy Ingredients Market

The unprecedented COVID-19 pandemic outbreak negatively impacted the growth of the Saudi Arabia dairy ingredients market. The rising concern among consumers surrounding the spread of zoonotic diseases resulted in a significant decline in demand for dairy ingredients, which led to significant losses to the market. Furthermore, the lockdown protocols imposed by the Saudi government to curb the virus spread halted the distribution and supply chains for dairy ingredients as well as operations of the end–users, which also affected the market. However, the market is expected to recover in the post COVID–19 period due to a surge in health consciousness among people to improve their immunity.

Saudi Arabia Dairy Ingredients Market

Segmental Coverage

Saudi Arabia Dairy Ingredients Market – By Product

Based on the product, Saudi Arabia's dairy ingredients market is categorized into milk powder, casein & caseinate, whey ingredients, lactose, and proteins. The milk powder segment holds the highest market share in Saudi Arabia dairy ingredients market. There are two types of milk powders available in the market i.e., skimmed milk powders and whole milk powders. This product is especially popular in the commercial industry where food producers can buy milk powders in bulk and can preserve the stock for a long period.

Saudi Arabia Dairy Ingredients Market – By Form

Based on form, Saudi Arabia dairy ingredients market is segregated into dry and liquid. The dry form of dairy ingredients is getting extremely popular in Saudi Arabia and therefore, holds a higher share of the market. These products offer all the necessary nutrients like zinc, potassium, calcium, and magnesium, and have a longer shelf life compared to liquid form. The dry form of dairy ingredients also proves to be an effective solution to boost accessibility to dairy products where adequate refrigeration methods are unavailable and products can get spoiled due to high temperatures.

Saudi Arabia Dairy Ingredients Market – By Livestock

Based on livestock, Saudi Arabia dairy ingredients market is segmented into cows, buffaloes, goats, sheep, and camels. The Cows segment accounted for the highest market share in 2022 and are expected to dominate the forecast period as well. Cow milk is believed to have higher nutritional value compared to other livestock as it is rich in fat, protein, sugar, and micronutrients like calcium and vitamin D. It is also a source of clean water. The extraction of dairy ingredients from cow milk is simple and economical compared to other sources, which therefore serves as a significant driving force for the market's expansion.

Saudi Arabia Dairy Ingredients Market – By Application

Based on application, Saudi Arabia dairy ingredients market is segmented into bakery & confectionery, dairy products, sports nutrition products, infant formulas, and others. The bakery and confectionery segment accounts for the highest market share owing to the use of a wide range of dairy ingredients in the making of bakery products. Dried milk is gaining huge popularity in baking as a substitute for fresh fluid milk as it provides better texture as well as adds fats and sugar which gives crisp crust, flavor, and color to baked goods.

Competitive Landscape

Major players operating in Saudi Arabia dairy ingredients market include Almarai Company, Nestle, Dunkin’ AL SAFI, SADAFCO, Mondelēz International, Nadec, NADA DAIRY, Forsan Foods and Consumer Products Ltd., Ornua Co-operative Limited, and Halwani Bros. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In January 2022 - Arla Foods, a Danish–Swedish dairy company, invested over SAR 64 million (USD 15.39 million) since September 2021 into the Saudi Arabian dairy business production line.

Scope of the Report

By Product

• Milk Powder

• Casein & Caseinate

• Whey Ingredients

• Lactose

• Proteins

By Form

• Dry

• Liquid

By Livestock

• Cows

• Buffaloes

• Goats

• Sheep

• Camels

By Application

• Bakery & Confectionery

• Dairy Products

• Sports Nutrition Products

• Infant Formulas

• Others

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Dairy Ingredients Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Surging demand for dairy protein
         2. Rising awareness about health and wellness
         3. Increasing product launches
      2. Restraints
         1. Increasing demand for alternatives
         2. Rising incidents of lactose intolerance and milk allergies
      3. Opportunities
         1. Technology advancements to enhance production efficiency
         2. Increasing innovative marketing strategies and celebrity endorsements
      4. Challenges
         1. High capital investment in manufacturing dairy ingredients
   3. Technological Advancement/Recent Development
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Dairy Ingredients Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Product
         1. Milk Powder
         2. Casein & Caseinate
         3. Whey Ingredients
         4. Lactose
         5. Proteins
      2. By Form
         1. Dry
         2. Liquid
      3. By Livestock  
         1. Cows
         2. Buffaloes
         3. Goats
         4. Sheep
         5. Camels
      4. By Application
         1. Bakery & Confectionery
         2. Dairy Products
         3. Sports Nutrition Products
         4. Infant Formulas
         5. Others
5. Competitive Landscape
   1. List of Key Players and Their Range
   2. Saudi Arabia Dairy Ingredients Company Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, and others)
6. Impact of Covid-19 on Saudi Arabia Dairy Ingredients Market Industry
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook)
   1. Almarai Company
   2. Nestle
   3. Dunkin’ AL SAFI
   4. SADAFCO
   5. Mondelēz International
   6. Nadec
   7. NADA DAIRY
   8. Forsan Foods and Consumer Products Ltd.             
   9. Ornua Co-operative Limited
   10. Halwani Bros
   11. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation

List of Figures

Figure 1        Saudi Arabia Dairy Ingredients Market Segmentation                                                               

Figure 2        Saudi Arabia Dairy Ingredients Market Value Chain Analysis                                                               

Figure 3        Company Market Share Analysis, 2021                                                               

Figure 4        Saudi Arabia Dairy Ingredients Market Size, By Value (USD Million), 2019–2029                                                                  

Figure 5        Saudi Arabia Dairy Ingredients Market Share, By Product, By Value, 2019–2029                                                                  

Figure 6        Saudi Arabia Dairy Ingredients Market Share, By Form, By Value, 2019–2029                                                           

Figure 7        Saudi Arabia Dairy Ingredients Market Share, By Livestock, By Value, 2019–2029                                                               

Figure 8        Saudi Arabia Dairy Ingredients Market Share, By Application, By Value, 2019–2029                                                                           

List of Tables                                                                                              

Table 1         Saudi Arabia Dairy Ingredients Market Size, By Product, By Value, 2019–2029

Table 2         Saudi Arabia Dairy Ingredients Market Size, By Form, By Value, 2019–2029

Table 3         Saudi Arabia Dairy Ingredients Market Size, By Livestock, By Value, 2019–2029

Table 4         Saudi Arabia Dairy Ingredients Market Size, By Application, By Value, 2019–2029

Table 5         Almarai Company Overview

Table 6         Almarai Company Financial Overview

Table 7         Nestle Company Overview

Table 8         Nestle Financial Overview

Table 9         Dunkin’ AL SAFI Company Overview

Table 10        Dunkin’ AL SAFI Financial Overview

Table 11        SADAFCO Company Overview

Table 12        SADAFCO Financial Overview

Table 13        Mondelēz International Company Overview

Table 14        Mondelēz International Financial Overview

Table 15        Nadec Company Overview

Table 16        Nadec Financial Overview

Table 17        NADA DAIRY Company Overview

Table 18        NADA DAIRY Financial Overview

Table 19        Forsan Foods and Consumer Products Ltd. Company Overview

Table 20        Forsan Foods and Consumer Products Ltd. Financial Overview

Table 21        Ornua Co-operative Limited Company Overview

Table 22        Ornua Co-operative Limited Financial Overview

Table 23        Halwani Bros Company Overview

Table 24        Halwani Bros Financial Overview