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UAE Dairy Products Market Analysis 2017-18

UAE Dairy Products Market Analysis

Consumer Goods and Retail | Nov, 2017

Dairy products can be defined as products produced from milk, sourced from cows, buffaloes, goats, sheep, yaks, horses, camels and other mammals. Dairy products include products like cheese, butter, ice cream, condensed or dried milk and yogurt. Dairy or Dairy factory are the facilities that produces dairy products.

Dairy Value Chain

 

Nutrient Composition of Dairy Products (Per 100g)

 

Dairy Product

Energy (kcal)

Water (g)

Protein (g)

Fat (g)

Carbohydrate (g)

Cholesterol (mg)

Vitamin A (IU)

Whole Milk

61

88

3.29

3.34

4.66

14

126

Butter

717

16

0.85

81.11

0.06

219

3,058

Ice Cream

201

61

3.50

11.00

23.60

44

409

Buttermilk

40

90

3.31

0.88

4.79

4

33

Yogurt

63

85

5.25

1.55

7.04

6

66

Sweetened Condensed Milk

321

27

7.91

8.70

54.40

34

328

Cottage Cheese

103

79

12.49

4.51

2.68

15

163

 

The Benefits of Dairy Products

 

Dairy products provide variety of health benefits for consumers. Dairy products contain nutrients which are vital for health and maintenance of the human body. These nutrients include calcium, potassium, vitamin D and protein. The overall health of consumers improves by eating adequate dairy products every day. A diet rich in dairy and milk products is directly linked to increase the bone health also reduces risk of osteoporosis. Dairy is also associated with reduced risk of lowered blood pressure, type 2 diabetes, and decreased risk of cardiovascular disease in adults.

UAE Dairy Product Sector: A Snapshot

The consumption of dairy has been considered healthy in the UAE and all across the world, an endless variety of innovative dairy products like vitamin-enriched, low-fat, organic and lactose-free which seems to be driving demand for dairy products. The dairy industry of UAE is witnessing rapid growth in past few years, and has been fuelled by expanding economy, increasing population and the tourist numbers. Further, rising health awareness in UAE rising number of Western expatriates are also bringing their consumption habits, led to surge in the sale of healthy products. Also, awareness campaigns by governments in about healthy eating and obesity have encouraged people to choose these products wisely.

Trends Driving UAE Dairy Products Market

Increasing Health Awareness

Increasing health awareness about the milk and milk based products among the Youth population in UAE, has increased the market of Dairy products in the country during the estimated period. Rising Consumption of packaged milk and cheese has helped the dairy products market of UAE in growing. The nutritional benefits associated with the milk based products are getting popular among youth population in UAE, coupled with the adoption of proper health diet products such as milk, cheese along with health supplements, which helps in boosting the energy, has increased the UAE Dairy Products Market through forecast period.

Figure 1: UAE Per-Capita Health Expenditure, 2011-2014 (USD)

 

 

                                                                                                                 Source: World Bank 

Figure 2: UAE Per-Capita Household Final Consumption Expenditure, 2012-2016 (USD)



                                                                                                                      Source: World Bank 

 

Increasing Demand for Packaged Products

Changing Lifestyles, rapid urbanisation, coupled with increasing popularity of western and packaged products has given a push to the production and consumption of processed and packaged dairy products such as Ice-cream, Cheese, butter, etc. Packaged Cheese will be experiencing the strong growth in this category, as unpackaged products are becoming less popular, and packaged products is becoming widespread due to different options that consumers get through packaged products cheese such as cream cheese, processed cheese, etc. Tetra packs, which helps in increasing the shelf life of the product, are gaining attention of major manufacturers in the UAE to use these packs for dairy products. There is a need in the region to offer dairy products in such various packing options, which can help in keeping the product as bacteria free and increase products shelf life. The seven-layer packaging of tetra packs also allows manufacturers to ensure that dairy products do not get sour in a short period of time, and longevity. Moreover, the product can be stored for longer duration as well, keeping the same quality as it was during starting. The demand for packaged dairy products is increasing in the UAE, as consumers are becoming conscious about the hygiene of dairy products, as a result Dairy Products Market of UAE is expected to increase at a rapid rate during the forecast period.

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