Saudi Arabia Uht Milk Market
Saudi Arabia UHT Milk Market, By Product (Full cream UHT Milk, Skimmed UHT Milk, Semi-Skimmed UHT Milk); By Distribution Channel (B2B, B2C); By Source (Animal Based, Plant Based); By Application (Dairy Products, Bakery and Confectionery, Milk-based Beverages), Trend Analysis, Competitive Landscape & Forecast, 2022–2028
- Published Date: November 2022
- Report ID: BWC22499
- Available Format: PDF
- Page: 107
Report Overview
Spurring demand for food products with a prolonged shelf life, decreasing logistics and storage costs, rapid urbanization, favorable demographics, and growing technology advancements are projected to propel the expansion of Saudi Arabia UHT Milk Market size at a steady growth rate during forecast period 2022 and 2028.Saudi Arabia UHT Milk Market - Industry Trends & Forecast Report, 2028
Saudi Arabia UHT (Ultra-High Temperature) milk market size is expected to expand at a steady CAGR of 8.2% during the forecast period between 2022 and 2028. Major growth factors of Saudi Arabia UHT milk market include an increased emphasis on longer shelf life of food and beverage products, reduced logistics and storage costs, and improved technology. UHT milk can also be maintained at ambient temperature for at least six months without refrigeration. This enables the shipment of UHT milk to areas without sufficient cold chain facilities. In addition, UHT milk can also be served without being heated or boiled, which is convenient for working individuals due to hectic schedules coupled with growing milk benefits awareness as it nutrient-rich product. As UHT is popular owing to its ease of storage and use, and nutritional value, Saudi Arabia UHT milk market is expected to grow during the period in analysis.
Saudi Arabia UHT Milk Market - Overview
UHT milk or Ultra High Temperature milk is sterilized at an extremely high temperature and maintaining it there for few seconds before quickly cooling to room temperature. Therefore, this process eliminates almost all the potential pathogens present in milk. Consumers prefer UHT milk, because of its extended shelf life. UHT milk also requires less processing time and contains high nutritional value. Recent COVID-19 pandemic created a unique growth opportunity for UHT milk market participants to develop new UHT-based health drinks. The pandemic situation also boosted the demand for UHT milk and other shelf-stable products. Therefore, window of opportunity for companies was created to develop new recipes and products to meet the consumer’s growing demand for many food products, including UHT milk. Furthermore, consumers prefer UHT milk and dairy products to improve their immunity as there are several health benefits associated with UHT milk, including its ability to improve bone health and reduce the risk of certain cancers.
Saudi Arabia UHT Milk Market
Growth Drivers
Surging demand for extended shelf-life of food and beverages
A spurring demand for food products with prolonged shelf life, an increased consumption of milk and dairy products, and an increase in the application of UHT technology in new product development are expected to boost the growth of Saudi Arabia UHT milk market. Ongoing technological and scientific advancements are contributing to the expansion of food and beverage shelf life, hence favoring the adoption of UHT processing techniques. Owing to the perishable nature of milk and curd, among other dairy products, UHT processing is fast gaining popularity in the dairy business.
Growing adoption of innovative technologies
COVID-19 pandemic increased demand for bacteria- and microorganism-free food, contributing to high adoption of UHT technology and boosting market growth. In accordance with this, the incorporation of innovative technologies, such as artificial intelligence (AI), into UHT processing technology for better productivity is expected to be a major driving force for Saudi Arabia UHT market during the forecast period.
Restraints
High initial investments
The food and beverages sector necessitates a significant initial investment in the purchase and installation of UHT processing equipment, as well as maintenance cost, which is an expensive addition that impacts the operating profit margins of food and beverage processors and manufacturers. Instead of installing UHT processing equipment, manufacturers seek more cost-effective alternatives. Compared to UHT facilities, processing equipment, such as pasteurizer units, require less initial investment and save on annual maintenance costs. As specialized equipment is necessary for treating the target products as well as making multiple packages utilizing diverse raw materials, the initial capital investment for UHT processing equipment is expensive. As a result, the mix of these problems prevents manufacturers from entering the UHT processing market, functioning as a restraint for the overall market growth.
Impact of COVID–19 on Saudi Arabia UHT Milk Market
COVID–19 pandemic adversely affected Saudi Arabia UHT milk market due to decrease in demand for UHT milk as consumers have become more concerned about the safety of milk products. In addition, the closure of schools and businesses led to a decline in sales of UHT milk as many consumers are no longer buying milk for their daily needs. As a result of the decrease in demand, prices of UHT milk declined, and many companies have been forced to reduce production. A decrease in demand for UHT milk also due to consumers opting for alternative products such as fresh milk and plant-based milk. This resulted in a decrease in sales for UHT milk manufacturers and has forced some companies to exit the market. However, pandemic increased online grocery shopping, which is expected to drive the revenue growth in the Saudi Arabia UHT milk market. In addition, COVID-19 pandemic also increased demand for bacteria- and microorganism-free food, contributing to high adoption of UHT technology and boosting market growth. As a result, the adoption of digitalized techniques, such as artificial intelligence (AI), into UHT processing technology for better productivity is expected to be a major driving force in the market over the forecast period.
Saudi Arabia UHT Milk Market
Segmental Coverage
Saudi Arabia UHT Milk Market - By Product Type
Based on product type, Saudi Arabia UHT milk market is divided into Full cream UHT Milk, Skimmed UHT Milk, and Semi-Skimmed UHT Milk segments. The skimmed UHT milk segment held the highest share in the market in 2021 due to its flavor and texture benefits. Furthermore, the high nutritional value such as protein and calcium content in skimmed milk products is expected to propel the Saudi Arabia UHT milk market forward.
Saudi Arabia UHT Milk Market - By Distribution Channel
Based on distribution channel, Saudi Arabia UHT Milk Market is bifurcated into B2B (Business to Business) and B2C (Business to Consumer) segments. The B2C segment is further divided into specialty stores, modern trade, convenience stores, departmental stores and online. The B2C segment dominates the market, as retailers totally depending on importers. Majority of supermarkets offer direct purchasing capabilities. These same supermarkets import a large amount of dry, refrigerated, and dairy products. Furthermore, the regional milk market is becoming dominated by a small number of large enterprises, making entry into the market extremely challenging, particularly in terms of business expansion.
Saudi Arabia UHT Milk Market - By Source
On basis of source, Saudi Arabia UHT milk market is bifurcated into Animal-based and Plant-based. The animal-based segment is divided into cow milk, goat milk, buffalo milk, camel milk, and others. Similarly, the plant-based segment is subdivided into soy, coconut, almond, and others.
Saudi Arabia UHT Milk Market - By Application
On basis of application, Saudi Arabia UHT milk market is divided into dairy products, bakery and confectionery, milk-based beverages, and other segments.
Competitive Landscape
Saudi Arabia UHT milk market is fiercely competitive with Saudia Dairy & Foodstuff Company (SADAFCO), NAJRAN DAIRY Company, National Agricultural Development Company (NADEC), Dana Dairy, and United National Dairy Company. To further enhance their market share, these players are primarily focused on the development of innovative and efficient products, new product releases, market initiatives, mergers and acquisitions, and other collaborative activities.
Scope of the Report
Attributes |
Details |
Years Considered |
Historical Data – 2018–2021 |
Base Year – 2021 |
|
Estimated Year – 2022 |
|
Forecast – 2022–2028 |
|
Facts Covered |
Revenue in USD Million |
Market Coverage |
Saudi Arabia |
Product/ Service Segmentation |
Product Type, Distribution Channel, Source, Application |
Key Players |
Saudia Dairy & Foodstuff Company (SADAFCO), NAJRAN DAIRY Company, National Agricultural Development Company (NADEC), Dana Dairy, United National Dairy Company. |
By Product
-
Full cream UHT milk
-
Skimmed UHT milk
-
Semi-skimmed UHT milk
By Distribution Channel
-
B2B
-
B2C
By Source
-
Animal Based
-
Cow Milk
-
Goat Milk
-
Buffalo Milk
-
Camel Milk
-
Others
-
Plant Based
-
Soy
-
Coconut
-
Almond
-
Others
By Application
-
Dairy Products
-
Bakery and Confectionery
-
Milk-based Beverages
-
Others
- Research Framework
- Research Objective
- Product Overview
- Market Segmentation
- Executive Summary
- Saudi Arabia UHT Milk Market Insights
- Industry Value Chain Analysis
- DROC Analysis
- Growth Drivers
- Increasing demand for food products with an extended shelf life
- Marginal nutritional changes in products such as milk
- Reduction in logistics and storage costs
- Emergence of innovative technologies to increase productivity
- Restraints
- High initial investments
- Opportunity
- COVID-19 pandemic provided significant opportunity for developing UHT-based Health drinks
- Challenges
- High product quality requirement for UHT treatment
- Variations in environmental mandates across regions
- Growth Drivers
- Technological Advancements/Recent Developments
- Regulatory Framework
- Porter’s Five Forces Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of New Entrants
- Threat of Substitutes
- Intensity of Rivalry
- Saudi Arabia UHT Milk Market Overview
- Market Size & Forecast by Value, 2018–2028
- By Value (USD Million)
- Market Share & Forecast
- By Product
- Full cream UHT milk
- Skimmed UHT milk
- Semi-skimmed UHT milk
- By Distribution Channel
- B2B
- B2C
- Specialty Stores
- Modern Trade
- Convenience Stores
- Departmental Stores
- Online
- Others
- By Source
- Animal Based
- Cow Milk
- Goat Milk
- Buffalo Milk
- Camel Milk
- Others
- Plant-Based
- Soy
- Coconut
- Almond
- Others
- Animal Based
- By Application
- Dairy Products
- Bakery and Confectionery
- Milk-based Beverages
- Others
- By Product
- Market Size & Forecast by Value, 2018–2028
- Competitive Landscape
- List of Key Players and Their Offerings
- Market Share Analysis, 2021
- Competitive Benchmarking, By Operating Parameters
- Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
- Impact of Covid-19 on Saudi Arabia UHT Milk Market
- Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook)
- Saudia Dairy & Foodstuff Company (SADAFCO)
- NAJRAN DAIRY Company
- National Agricultural Development Company (NADEC)
- Dana Dairy
- United National Dairy Company
- Other Prominent Players
- Key Strategic Recommendations
- Research Methodology
- Qualitative Research
- Primary & Secondary Research
- Quantitative Research
- Market Breakdown & Data Triangulation
- Secondary Research
- Primary Research
- Breakdown of Primary Research Respondents, By Region
- Assumption & Limitation
- Qualitative Research
*Financial information in case of non-listed companies will be provided as per availability
**The segmentation and the companies are subjected to modifications based on the in-depth secondary for the final deliverable
List of Figures
Figure 1 Saudi Arabia UHT Milk Market Segmentation
Figure 2 Saudi Arabia UHT Milk Market Value Chain Analysis
Figure 3 Company Market Share Analysis, 2021
Figure 4 Saudi Arabia UHT Milk Market Size, By Value (USD Million), 2018–2028
Figure 5 Saudi Arabia UHT Milk Market Share, By Product, By Value, 2018–2028
Figure 6 Saudi Arabia UHT Milk Market Share, By Distribution Channel, By Value, 2018–2028
Figure 7 Saudi Arabia UHT Milk Market Share, By Source, By Value, 2018–2028
Figure 8 Saudi Arabia UHT Milk Market Share, By Application, By Value, 2018–2028
List of Tables
Table 1 Saudi Arabia UHT Milk Market Size, By Product, By Value, 2018–2028
Table 2 Saudi Arabia UHT Milk Market Size, By Distribution Channel, By Value, 2018–2028
Table 3 Saudi Arabia UHT Milk Market Size, By Source, By Value, 2018–2028
Table 4 Saudi Arabia UHT Milk Market Size, By Application, By Value, 2018–2028
Table 5 Saudia Dairy & Foodstuff Company (SADAFCO) Company Overview
Table 6 Saudia Dairy & Foodstuff Company (SADAFCO) Financial Overview
Table 7 NAJRAN DAIRY Company Overview
Table 8 NAJRAN DAIRY Company Financial Overview
Table 9 National Agricultural Development Company (NADEC) Company Overview
Table 10 National Agricultural Development Company (NADEC) Financial Overview
Table 11 Dana Dairy Company Overview
Table 12 Dana Dairy Financial Overview
Table 13 United National Dairy Company Overview
Table 14 United National Dairy Financial Overview
Market Segmentation
By Product
-
Full cream UHT milk
-
Skimmed UHT milk
-
Semi-skimmed UHT milk
By Distribution Channel
-
B2B
-
B2C
By Source
-
Animal Based
-
Cow Milk
-
Goat Milk
-
Buffalo Milk
-
Camel Milk
-
Others
-
Plant Based
-
Soy
-
Coconut
-
Almond
-
Others
By Application
-
Dairy Products
-
Bakery and Confectionery
-
Milk-based Beverages
-
Others
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