Saudi Arabia UHT (Ultra-High Temperature) Milk Market to Grow at CAGR of 8.2% during 2018–2028


BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, expectsSaudi Arabia UHT (Ultra-High Temperature) milk market size to grow at a steady CAGR of 8.2% during the forecast period between 2022 and 2028. The expansion of Saudi Arabia UHT milk marketis driven by surging demand on food and beverage products with prolonged shelf life, reduced logistics and storage costs, and improved technology. UHT milk can also be kept at room temperature for at least six months without being refrigerated. This allows UHT milk to be shipped to places with insufficient cold chain facilities. UHT milk may be served without being cooked or boiled, which is ideal for students in hostel and working people with busy schedules, as well as rising milk benefits awareness as UHT milk serves as nutrient-rich product. As UHT milk is popular due to its convenience of storage, use, and nutritional value, the Saudi Arabia UHT milk market is projected to grow during the forecast period. However, the factors, such as lack of consumer’s awareness about UHT milk benefits, availability of substitutes, and high initial investments, are anticipated to hamper the growth of Saudi Arabia UHT milk market 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.

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Segmental Information

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 depend on importers. Many supermarkets offer direct purchasing capabilities. These same supermarkets import a large amount of dry, refrigerated, and dairy products. Furthermore, Saudi Arabia UHT 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.

Impact of COVID-19 on Saudi Arabia UHT Milk Market

Covid-19 caused uncertainty in all markets, along with the UHT milk market due to decreased demand for UHT milk as customers have become increasingly worried about the safety of milk products. Furthermore, the closure of schools and businesses has resulted in a decrease in UHT milk sales, as many consumers were not purchasing milk for their daily necessities. Prices for UHT milk plummeted because of the decrease in demand, and several producers have been compelled to restrict production. Furthermore, demand for UHT milk decreased because of consumers’ preference for alternative goods, such as fresh milk and plant-based milk. This has resulted in a drop in sales for UHT milk manufacturers, forcing some to back out. However, COVID-19 pandemic also increased sales for bacteria- and microorganism-free products, resulting in widespread use of UHT technology and market growth. As a result, the introduction of digitalized techniques, such as artificial intelligence (AI), into UHT processing technology for improved productivity is expected to be a major driving force in Saudi Arabia UHT milk market during the forecast period.

Competitive Landscape

Saudi Arabia UHT milk market is competitive. Prominent players in the market include 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 large companies are primarily focused on the development of innovative and efficient products, new product releases, market initiatives, mergers and acquisitions, and other collaborative activities.

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