UAE Dairy Market

UAE Dairy Market Size and Share:

The UAE dairy market size was valued at USD 4.8 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 7.0 Billion by 2033, exhibiting a CAGR of 4.30% from 2025-2033.  The rising population and urbanization in the country, evolving consumer dietary habits, increasing health consciousness among people, ongoing product innovation in the dairy sector, and the implementation of supportive government policies are some of the factors pushing the market forward.

The UAE has experienced rapid population growth in recent years, which is a significant driver for increased demand in various sectors, including dairy. As of 2023, the country’s population is 10.17 million, with a notable percentage of expatriates (88.5%). Urbanization trends have led to more families and individuals in urban centers, such as Dubai and Abu Dhabi, where dairy consumption is more frequent due to lifestyle habits. The growing number of households, combined with a rising preference for convenience foods, is boosting milk production in UAE. As cities become more densely populated, there’s a rising need for diversified dairy products, including packaged milk, cheeses, and yogurt, all of which cater to different dietary preferences. Moreover, urban consumers often lean toward convenience and health-consciousness, making dairy products that offer nutritional benefits, such as fortified milk, more popular. This demographic shift not only impacts local consumption but also fosters a growing export market for dairy goods, with the UAE positioned as a regional hub.

In recent years, the UAE has witnessed a shift in consumer behavior towards healthier eating habits, with a greater focus on nutrition. Dairy, being a primary source of protein, calcium, and vitamins, is increasingly incorporated into daily diets. The government’s emphasis on public health through initiatives such as the UAE Food Security Strategy (launched in 2020) also plays a pivotal role in promoting nutritional awareness. The popularity of health and wellness trends has led to the introduction of low-fat, lactose-free, and plant-based dairy products. These products cater to the growing demand from consumers with dietary restrictions, such as lactose intolerance or vegan preferences. Additionally, the rising awareness around obesity, particularly among the youth population, is prompting consumers to adopt healthier dairy alternatives. According to a latest report, more than 39% of the adult population in UAE is obese, highlighting the importance of functional and low-calorie dairy options in curbing health issues. Products like probiotic yogurt, fortified milk with vitamin D, and other value-added dairy items are gaining significant traction, reflecting this shift in dietary habits.

UAE Dairy Market Trends:

Health Consciousness

The health-conscious UAE consumers make for increased demand for more nutritious and functional foodstuffs, such as the dairy sector. This aspect is primarily driven by escalating concerns regarding lifestyle diseases; these include diabetes, heart disease, and osteoporosis, where dairy products happen to play a key role in maintaining good health. Today, people are being marketed to, for instance, dairy items such as milk, yoghurt, and cheese because of their potential benefit to bone health; with calcium being the prime prevention of osteoporosis. By the report of 2023 from the UAE Ministry of Health and Prevention, the deficiency of calcium remained a major health problem especially within women and children populations by which awareness of and therefore consumption of fortified dairy produce has increased. Functional dairy products supplemented with probiotics, omega-3, and other vitamins become more popular when consumers require products that serve more health benefits than purely nutritional values. High protein dairy is also in growing demand because of the fitness culture and athleticism. This is a growing health trend wherein dairy serves as a choice source for high-quality proteins and microminerals.

Product Innovation

Innovation in the dairy industry has been a key driver of market growth for the UAE. Competition has now led to both local and international brands of dairy coming up with innovative products to meet changing consumer demand. In 2023 and 2024, some exciting development has been around plant-based dairy alternatives such as oat milk, almond milk, and soy-based yogurt. These products target consumers who are more health-conscious and include vegans and those with lactose intolerance. The UAE plant-based dairy market has recorded advancements, and although most other countries have registered about 36% increase in the demand owing to the younger, more health-conscious, and lifestyle-oriented consumers, the UAE figures are far more typical. The dairy products also changed to satisfy the taste and dietary requirements of consumers. Besides flavored dairy and functional products, these include protein-enhanced yogurts, probiotic drinks, and low-fat cheeses. The government, however, has encouraged more innovations in the dairy market with respect to local products that are also organic and sustainable in their production.

Government Support and Investment

According to the latest UAE dairy market news, the government has really started working actively towards the local dairy industry to shore up food security and enhance productivity. Under the UAE National Food Security Strategy that was announced in 2020, efforts would be made to reduce the dependence on food imports and increase self-sufficiency in all core areas, including dairy. Accordingly, there have been increased investments in dairy farming and production facilities. For instance, initiatives by the UAE's Ministry of Climate Change and Environment have aimed at improving the sustainability of dairy farms through the application of the latest advances in agricultural technologies and innovations. Modern irrigation systems, feed optimization, and animal health management systems are included together with increasing milk yield and quality. The government has focused on sustainability in the food production chain along with the carbon footprint of environmental goals. Local dairy producers benefit from this, resulting in further domestic high-quality dairy supply.

UAE Dairy Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the UAE dairy market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on product type.

Analysis by Product Type:

• Liquid Milk
• Flavored Milk
• Cream
• Butter
• Cheese
• Yoghurt
• Ice Cream
• Anhydrous Milk Fat (AMF)
• Skimmed Milk Powder (SMP)
• Whole Milk Powder (WMP)
• Whey Protein
• Lactose Powder
• Curd
• Others
   

Liquid milk is one of the largest segments in the UAE dairy market. It is highly consumed because of its convenience, nutritional value, and versatility. Regular cow's milk, as well as fortified options, are in high demand. Consumers often prefer fresh, pasteurized milk and long-life milk for its extended shelf life. The segment also benefits from the rise in health-consciousness, as there is growing interest in milk enriched with vitamins and minerals, such as Vitamin D and calcium.

Flavored milk has gained popularity in the UAE for its taste and appeal among children and adults. Popular flavors include chocolate, strawberry, and vanilla. Demand for flavored milk arises from its perception as a fun and tasty way to consume milk while providing added nutritional benefits, such as protein, calcium, and vitamins. Product innovations like low-fat and fortified variants have also expanded its consumer base.

Cream is an important ingredient in most culinary uses, whether cooking and baking or dessert preparation. The demand for cream in the UAE is on the rise as the country's food and beverage industry is thriving. Both fresh and long-life cream are used in restaurants and homes. With a high demand for premium dairy products, there is an increasing demand for rich, premium cream, such as whipping cream, in premium food establishments.

The consumption of butter in the UAE has been steady, primarily driven by its use in cooking, baking, and as a spread. While the interest in plant-based alternatives is growing, butter continues to be a staple in many homes. High-quality butter from fresh cream is in high demand, particularly in the premium segment. The increasing influence of Western cuisines and a thriving foodservice sector are also boosting butter usage in different culinary applications.

Cheese is one of the fastest-growing segments within the UAE dairy market. Growing international influence on domestic food is attributed to diversifying preferences for various varieties of cheese, including mozzarella, cheddar, and feta. More and more local and foreign brands are doing well due to the increasing demand in sandwiches, salads, and snacks. The growth of the foodservice sector, restaurants and fast food chains, raises cheese consumption.

Yoghurt is a highly versatile and popular dairy product in the UAE, particularly consumed for breakfast, snacks, and desserts.  The demand for Greek yoghurt, probiotic, and low-fat options is increasing as consumers seek functional foods that contribute to digestive health and overall wellness. Local and international brands continue to innovate in the yoghurt category, with flavored, low-sugar, and fortified variants gaining popularity. The increasing health-conscious population further accelerates yoghurt consumption.

Hot weather is consistent throughout the year, creating a steady demand for ice cream in the UAE. The market ranges from simple dairy-based to advanced plant-based options, but it is also seen with a high premium, artisanal ice cream brands. It is characterized by a number of exotic flavors, which are also seen to have healthier alternatives, like sugar-free and low-fat options. With the increasing trend towards indulgence and comfort foods, the segment is expected to continuously expand, particularly within the hospitality and retail sectors.

Anhydrous milk fat is a concentration form of butterfat with the demand of this application because of the versatility required for food processing, most notably in the baking area, confectionery production, and other dairy processing applications. Rising trends and increases in the demand to high-quality and fat rich ingredient for premium food have pushed the AMF segment forward as the long shelf life combined with easy storage has influenced many manufacturers.

Skimmed milk powder is widely used in the production of dairy products, including beverages, confectionery, and bakery items. The demand for low-fat and calorie-conscious products has been fueling the popularity of SMP, as it offers the benefits of milk without the fat content. In the UAE, it is also commonly used in infant formulas, further driving the growth of the segment. The growth in demand for powdered milk in the food processing industry increases the growth rate of the market.

Whole milk powder is widely used in all food and beverages, from dairy products, to baked goods and desserts.   It is highly valued for its convenience, extended shelf life, and ability to be reconstituted into liquid milk. In the UAE, WMP is widely used in the production of dairy beverages and processed foods. This product's demand is promoted by the ever-increasing food processing industry and expanding foodservice sectors, and various local and international brands that depend on its flexibility.

Whey protein has recently found immense popularity in the UAE for its high content, primarily among the masses associated with fitness and other bodily and health-related workouts by individuals. It has numerous applications in protein supplement shakes, nutritional drinks, as well as energy bars. This awareness about muscle development and recovery as well as managing weight through intake has catapulted the demand for whey protein. Fitness activities booming within the UAE combined with higher disposable incomes boosted growth for the segment.

Lactose powder is applied across food processing, infant formula, and pharmaceutical products, and it is primarily absorbed by people who are free from lactose intolerance; hence, the demand can be attributed to the developing functional food sector. Moreover, the increasing availability of lactose-free products across the UAE dairy market contributes to the dual demand: for lactose powder and its counterparts.

Curd, a staple in many Middle Eastern and South Asian diets, is gaining popularity in the UAE due to its versatile use in cooking, as a snack, and in desserts. The demand for curd is driven by its cultural significance, health benefits, and ability to serve as a base for various dairy products, such as yogurt and cheese. In addition, the increasing demand for probiotic-rich foods which are considered to be gut-friendly is driving curd consumption in the UAE. The segment is likely to grow further as more and more consumers are opting for traditional and functional dairy products.

Regional Analysis:

• Dubai
• Abu Dhabi
• Sharjah
• Others
   

Dubai, as the economic and cultural hub of the UAE, is a prominent dairy market with one of the highest demands across various segments. The city's diverse population, including a large expatriate community, fuels the demand for a wide variety of dairy products. Dubai's thriving retail sector, along with a booming hospitality industry, drives substantial consumption of dairy products such as flavored milk, cheese, yogurt, and ice cream. The city's strong focus on health and wellness also influences dairy preferences.

Abu Dhabi, the capital of the UAE, holds a significant share of the dairy market, driven by its wealth, government initiatives, and large population. With a high standard of living and growing health consciousness, consumers in Abu Dhabi are increasingly opting for premium dairy products like organic milk, yogurt, and cheese. The region's robust infrastructure and emphasis on food security further contribute to the market's expansion, with local production and sustainable practices gaining traction.

Sharjah's dairy market has been growing steadily, supported by its expanding population and economic diversification. As the third-largest emirate, Sharjah has seen increased consumption of dairy products, especially in household and retail segments. The demand for affordable dairy products such as milk, butter, and yogurt is strong, alongside growing interest in health-oriented dairy items. The emirate's proximity to Dubai and its competitive pricing also make it an attractive market for dairy producers

Competitive Landscape:

Leading players in the UAE dairy market are actively engaging in strategies aimed at enhancing their market share and meeting the growing demand for diverse dairy products. These companies are focusing on product innovation, such as introducing lactose-free, low-fat, and plant-based dairy alternatives, to cater to the health-conscious consumer base. Many are also expanding their portfolios to include fortified and functional products, such as probiotic yogurts, protein-enriched milk, and organic dairy options, responding to the increased focus on nutrition and wellness. In addition, premium dairy offerings are gaining traction, with brands introducing specialty cheeses, artisanal ice creams, and high-quality butter. Furthermore, established players are investing in state-of-the-art production facilities and adopting sustainable practices to increase production efficiency and reduce their environmental footprint.

The report provides a comprehensive analysis of the competitive landscape in the UAE dairy market with detailed profiles of all major companies, including:

• Almarai
• AI RAWABI
• Arla Foods Group
• Gulf Safa Dairies (ADH) Company L.L.C.
• Unikai Foods PJSC

Latest News and Developments:

• In April 2024, the ruler of Sharjah, UAE, inaugurated the first phase of Mleiha Dairy farm, which will provide unadulterated milk straight from the source. The dairy will import 1000 cows from Denmark, which will carry A2A2 genes and boast approximately 18 unique characteristics.
• In September 2024, Puck launched a limited-time flavor jar of its Zaatar cream cheese. These new jars will be available at selected retailers across Oman, Kuwait, Lebanon, UAE, Bahrain, and KSA.
• In September 2024, New Zealand and UAE signed a trade agreement, which will eliminate all dairy tariffs. This will provide the necessary certainty for the continued growth of dairy trade between the two countries.
• In June 2024, Department of Agriculture and Livestock (DAL) of the Government of Sharjah announced that it will deploy latest advancements in sustainable packaging at its Meliha Dairy Factory, which is the first farm in UAE to integrate authentic organic production methods.

UAE Dairy Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UAE dairy market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the UAE dairy market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UAE dairy industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.