The dairy products market in the United Arab Emirates is projected to grow at a CAGR (compound annual growth rate) of over seven percent between 2019 and 2024 owing to growing inclination towards dairy products, along with rising awareness about their health benefits for all age groups, coupled with continuous introduction of innovative flavours, especially in the yoghurt and milk segments.
These were the findings of UAE Dairy Products Market By Product Type, By Distribution Channel, Competition Forecast and Opportunities, 2024, a report by research-based global management consulting firm TechSci Research.
The growth of the UAE dairy products market is also fuelled by factors such as aggressive marketing by companies and online retailers for dairy products, thereby increasing visibility among the consumers.
Moreover, further consolidation of distribution channels by major manufacturers in the market across the region has aided the growth of the UAE dairy products market by increasing product accessibility.
In terms of distribution channel, the market has been categorised into four major segments, out of which supermarkets/hypermarkets captured a majority market share due to the availability of a variety of options under one roof and the assurance of quality dairy products.
On the basis of type, UAE dairy products market has been broadly categorized into dairy milk, ghee and butter, ice cream and milk cream, cheese and spread and yoghurt. Yoghurt dominated the market in 2018, and is expected to maintain its leading position in the coming years, as well due to the rising demand for probiotic foods and the growing consumption of yoghurt on daily basis.
Al Marai, Al Ain Dairy, Al Rawabi, Gulf and Safa were some of the leading players in the UAE dairy products market in 2018 and are anticipated to maintain their dominance during forecast period as well.
In terms of regions, Dubai dominated the market, with a share of over 48 percent in 2018. This region is expected to generate a significant demand for dairy products and anticipated to remain dominant till 2024 as well, owing to the population growth in the region, along with rising tourism.
“Factors like introduction of flavoured yoghurt and flavoured milk, rising per capita expenditure on dairy products due to growing disposable income, rising health awareness among consumers along with the benefits associated with dairy products consumption are fuelling growth in the UAE dairy products market,” said Karan Chechi, research director, TechSci Research.
“Moreover, increasing retail focus on dairy products and government initiatives towards encouraging the consumption of dairy products would further steer growth in the UAE dairy products market,” he added.
The report evaluated the future growth potential of UAE dairy products market and provides statistics and information on market structure, size, share and future growth. It was intended to provide cutting-edge market intelligence and help decision makers to take sound investment decisions.
Besides, the report also identified and analysed the emerging trends, along with essential drivers, challenges and opportunities present in the UAE dairy products market.
