Factors propelling the growth of the market include increasing disposable income, and the entry of new players
The increasing awareness of the benefits of milk and related products is also accelerating the growth
The dairy market in Saudi Arabia is expected to expand at a compounded annual growth rate of 5.66% to reach $7.94 billion by the end of 2026, said local reports on Tuesday, July 27.
The market is currently valued at $5.72 billion in 2020, the reports quoted market intelligence firm TechSci Research as saying.
The key factors propelling the growth of the market are a flourishing dairy industry, increasing disposable income, and the entry of new players, said the reports.
The growing consumption of milk and other dairy products, and the increasing awareness of the benefits of milk and related products, are also accelerating the growth, the reports added.
The popularity of packaged dairy goods and increasing inclination of consumers towards health and fitness are expected to propel the market further.
With the growth in lifestyle disorders like diabetes, high blood pressure, high cholesterol, and obesity, the majority of the population is requesting dairy products regularly, said the reports.
The Saudi Arabia dairy market is also growing significantly due to aggressive advertising, the reports added.
Availability of dairy products in convenient packaging is also reportedly acting as a growth driver for the market.
The local reports quoted Karan Chechi, research director with TechSci Research, as saying: “Popularity of dairy products like ice cream and shakes is also providing profitable growth opportunities for dairy market.”
He added: “In coming years, the country is expected to become one of the largest markets for dairy industry with easy availability of these products on various platforms.”
He also said: “Increasing consumption of butter and cheese and boom in food & beverage industry is further expected to support the growth of Saudi Arabia dairy market.”