Saudi Arabia Dairy Products Market Overview

Market Size in 2024: USD 5,800.0 Million

Market Size in 2033: USD 8,400.0 Million

Market Growth Rate 2025-2033: 3.5%

According to IMARC Group's latest research publication, "Saudi Arabia Dairy Products Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The Saudi Arabia dairy products market size was valued at USD 5,800.0 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 8,400.0 Million by 2033, exhibiting a CAGR of 3.5% during 2025-2033.

How AI is Reshaping the Future of Saudi Arabia Dairy Products Market

• Smart Dairy Farm Management and Herd Monitoring: AI-powered systems with IoT sensors and data analytics are revolutionizing dairy operations by providing real-time monitoring of cow health, milk yield prediction, and automated milking systems, increasing average milk yield by 11% while reducing veterinary expenses by 18% across farms like Almarai and Al Safi.
• Predictive Maintenance and Quality Control: AI-driven computer vision systems coupled with machine learning algorithms are enhancing quality control processes, enabling real-time defect detection, quality assessment, and process optimization across production lines, ensuring compliance with food safety standards and reducing waste.
• Supply Chain Optimization and Demand Forecasting: AI algorithms are improving supply chain efficiency through predictive analytics, optimizing inventory management, distribution routes, and cold-chain logistics, ensuring fresh dairy products reach consumers efficiently while minimizing spoilage and supporting food security goals.
• Automated Feeding and Nutrition Management: AI-enabled precision feeding systems with electronic monitoring of feed and water intake are optimizing dairy cattle nutrition, providing early detection of health and metabolic issues while improving feed efficiency and reducing carbon emissions per liter of milk produced.
• Blockchain Integration for Traceability: AI combined with blockchain technology is enhancing product traceability, transparency, and consumer trust by tracking dairy products from farm to table, supporting Saudi Arabia's Vision 2030 goals for sustainable food production and quality assurance.

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Saudi Arabia Dairy Products Market Trends & Drivers:

Saudi Arabia's dairy products market is experiencing robust growth, driven by rising health awareness, growing disposable incomes, and increasing demand for convenient packaged foods. The market is fueled by steady population growth reaching 32.2 million in 2022, with 42% foreign nationals and 63% of Saudis under age 30, creating sustained demand for dairy consumption. With per capita milk consumption increasing by 1.69% between 2021 and 2022 and urbanization projected to reach 97.6% by 2030, there's growing adoption of premium dairy products across butter, cheese, yogurt, and specialty categories.

The rapid expansion of retail infrastructure and government support initiatives is significantly boosting market demand. Government subsidies covering 30% of dairy farm equipment expenses, 100% of shipping costs for imported cattle, and 50% of irrigation equipment costs are driving domestic production. The Ministry of Environment, Water, and Agriculture's urban vertical farm project aims to launch 600-1,000 farms over five years, while the Agricultural Development Fund provides attractive financing for high-tech processes and technology adoption, strengthening local dairy production capabilities.

Technological advancements and shifting dietary preferences are creating new opportunities across multiple categories. The increasing demand for Western-style diets including cheese, butter, and cream in fast food culture, casual dining, and bakery applications is expanding market reach. Foreign investments and collaborations like the IFFCO Group-Tetra Pak partnership are accelerating sustainable packaging solutions and product innovation, with companies introducing organic, lactose-free, probiotic, and specialty dairy products including camel dairy to meet diverse consumer preferences across the Kingdom.

We explore the factors driving the growth of the market, including technological advancements, consumer behaviors, and regulatory changes, along with emerging Saudi Arabia dairy products market trends.

Saudi Arabia Dairy Products Market Industry Segmentation:

The report has segmented the market into the following categories:

Category Insights:

• Butter
  • Cultured Butter
  • Uncultured Butter
• Cheese
  • Natural Cheese
  • Processed Cheese
• Cream
  • Double Cream
  • Single Cream
  • Whipping Cream
  • Others
• Dairy Desserts
  • Cheesecakes
  • Frozen Desserts
  • Ice Cream
  • Mousses
  • Others
• Milk
  • Condensed Milk
  • Flavored Milk
  • Fresh Milk
  • Powdered Milk
  • UHT Milk
• Sour Milk Drinks
• Yogurt
  • Flavored Yogurt
  • Unflavored Yogurt

Distribution Channel Insights:

• Off-Trade
  • Convenience Stores
  • Online Retail
  • Specialist Retailers
  • Supermarkets and Hypermarkets
  • Others
• On-Trade

Breakup by Region:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Dairy Products Market

• February 2025: Almarai, Saudi Arabia's largest dairy company, announced the expansion of its AI-powered herd management system across all production facilities, investing USD 300 million in smart farming technologies that incorporate genetic optimization, satellite imagery, and drone analysis to evaluate pasture quality and optimize land use, targeting 15% improvement in operational efficiency by 2027.
• March 2025: The Ministry of Environment, Water and Agriculture launched a comprehensive dairy modernization program, allocating USD 500 million in subsidies and incentives for dairy farmers to adopt AI-assisted monitoring systems, automated feeding technologies, and climate-smart agricultural practices, supporting 500 dairy farms across the Kingdom to enhance productivity and sustainability.
• April 2025: Sawani firm expanded its Noug camel dairy product outlets to 15 locations across major cities including Jeddah, Dammam, and Mecca, introducing AI-powered quality control systems and blockchain-based traceability for premium camel dairy products, while partnering with international technology providers to implement predictive analytics for supply chain optimization and consumer demand forecasting.

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