Saudi Arabia dairy market to reach US$7.6B by 2031 – Brands Beyond Border Marketing reports

SAUDI ARABIA – The Brands Beyond Border Marketing has reported that the Saudi Arabia dairy market is projected to reach US$7.58 billion by 2031, witnessing a massive shift from import reliance to a high-value, export-ready ecosystem.

Urbanization and busier lifestyles are increasing the demand for convenient, ready-to-consume dairy formats, including packaged milk, cheese snacks, and single-serve yogurts.

Government support under Vision 2030, which includes subsidies and infrastructure development for domestic dairy production, is helping to reduce reliance on imports and improve food self-sufficiency.

Technological improvements in dairy farming and processing have enhanced product quality and efficiency.

Additionally, consumers are increasingly favoring organic and hormone-free dairy products, contributing to evolving market preferences and creating new avenues for growth.

The competitive landscape is dominated by giants that are aligning their corporate goals with Vision 2030. Almarai is the sector dominator and is currently undergoing a massive SAR 18B expansion to bolster farm-to-logistics capacity.

Saudia Dairy & Foodstuff Company (SADAFCO)is the leader in long-life (UHT) milk and ice cream, leveraging a legacy of brand trust to capture the modern, “on-the-go” consumer.

NADEC Foods is a food security pioneer focusing on large-scale vertical integration and expanding its footprint into high-value fresh dairy segments.

Additionally, Arla Foods KSA Foods & Al Safi Danone are bringing global R&D to the Kingdom, specifically in the functional and probiotic categories that younger, health-conscious Saudis are demanding.

Despite structural hurdles like water scarcity, the industry is demonstrating resilience through resource efficiency.

Almarai, for instance, has achieved a 56% water recycling rate, turning sustainability into a competitive advantage and reinforcing the sector’s alignment with national priorities.

Saudi Arabia’s dairy exports hit US$1.03B in first nine months of 2025

Saudi Arabia’s exports of milk and dairy products reached US$1.03 billion (SR3.9 billion) during the first nine months of 2025, according to data released by the General Authority for Statistics and reviewed by Al-Eqtisadiah. 

The agricultural and industrial market for the dairy sector in the Kingdom is estimated at (US$5.87 billion) SR22 billion in 2024, according to Saudi Minister of Industry and Mineral Resources, Bandar Al-Khorayef, who spoke at the Saudi Dairy Forum in Al-Kharj.

He noted at the time that Saudi Arabia had achieved 129 per cent self-sufficiency in dairy products. 

Subscribe to receive our email newsletters with the latest news and insights from Africa, the Middle East and around the world. SUBSCRIBE HERE