Saudi Arabia Dairy Ingredients Market Size Set to Grow at a Steady CAGR of 5.6% during 2023–2029

Saudi Arabia Dairy Ingredients Market

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, expects Saudi Arabia dairy ingredients market size to grow at a steady CAGR of 5.6% during the forecast period between 2023 and 2029. The industry is expanding, because of consumers’ growing health and wellness consciousness and their resulting shift to nutrient-rich diets, which include dairy products. As a result, both domestic and foreign businesses are developing increasingly novel items to increase their product penetration in the Saudi Arabian market. Due to popular culture and growing awareness of animal cruelty in the meat sector, this area is also seeing a trend towards vegetarianism, which is expected to spur the demand for dairy components during the period in analysis.

Saudi Arabia Dairy Ingredients Market – Overview

Dairy ingredients are products that are manufactured from original milk and have around the same or more nutritional value. Milk powder, casein & caseinate, whey ingredients, lactose, and proteins, are some of the most popular and commonly used dairy ingredients in Saudi Arabia market. These products are commonly used in manufacturing a wide range of final milk products including butter, condensed and dried milk, cheese, ghee, and yogurt.

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Saudi Arabia Dairy Ingredients Market – By Application

Based on application, Saudi Arabia dairy ingredients market is segmented into bakery & confectionery, dairy products, sports nutrition products, infant formulas, and others. The bakery and confectionery segment accounts for the highest market share owing to the use of a wide range of dairy ingredients in the making of bakery products. Dried milk is gaining significant popularity in baking as a substitute for fresh fluid milk, as it provides better texture as well as adds fats and sugar which gives crisp crust, flavor, and color to baked goods.

Impact of COVID-19 on Saudi Arabia Dairy Ingredients Market

The unprecedented COVID-19 pandemic outbreak negatively impacted the growth of Saudi Arabia dairy ingredients market. The rising concern among consumers surrounding the spread of zoonotic diseases resulted in a significant decline in demand for dairy ingredients, which led to significant losses to the market. The lockdown protocols imposed by the Saudi government to curb the virus spread halted the distribution and supply chains for dairy ingredients as well as operations of the end–users, which also affected the market. However, the market is expected to recover during the post COVID–19 period due to a surge in health consciousness among people to improve their immunity.

Competitive Landscape

Major players operating in Saudi Arabia dairy ingredients market include Almarai Company, Nestle, Dunkin’ AL SAFI, SADAFCO, Mondelēz International, Nadec, NADA DAIRY, Forsan Foods and Consumer Products Ltd., Ornua Co-operative Limited, and Halwani Bros. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

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