UAE Dairy Products Market, By Type (Dairy Milk, Ghee & Butter, Ice Cream & Milk Cream, Cheese & Spread, Yogurt, Others), By Sales Channel (Supermarket/Hypermarket, Grocery Stores, Online, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

UAE Dairy Products Market was valued at USD 2.41 billion in 2024 and is anticipated to grow USD 3.19 billion by 2030 with a CAGR of 4.84% during the forecast period. The UAE dairy products market is witnessing steady growth, driven by increasing consumer awareness of health and nutrition, rising demand for functional dairy products, and the expanding expatriate population. The market includes milk, cheese, yogurt, and lactose-free or plant-based alternatives, catering to diverse dietary preferences. Government initiatives promoting food security and local dairy production further support growth. Technological advancements in packaging and extended shelf-life products enhance market competitiveness. E-commerce and modern retail channels contribute to higher accessibility. With a strong emphasis on innovation, sustainability, and premiumization, the UAE dairy industry is poised for continued expansion in the coming years.

Key Market Drivers

Rising Health Awareness and Demand for Functional Dairy Products

Consumers in the UAE are becoming increasingly health-conscious, leading to a surge in demand for dairy products that offer functional benefits. The awareness of the nutritional value of dairy, including its role in bone health, immunity, and digestion, is pushing sales of fortified milk, probiotic yogurts, and low-fat dairy alternatives. Additionally, protein-rich dairy products, such as Greek yogurt and high-protein milk, are gaining popularity among fitness enthusiasts and those seeking healthier dietary choices.

Lactose-free and plant-based dairy alternatives are also witnessing significant growth as more consumers experience lactose intolerance or prefer dairy-free options due to perceived health benefits. The demand for organic dairy is rising as well, as consumers look for chemical-free and preservative-free products that align with their wellness goals.

Growing Expatriate Population and Changing Dietary Preferences

The UAE has a diverse expatriate population, with a significant proportion of residents coming from South Asia, Europe, and other Middle Eastern countries. This demographic shift has led to an increased demand for a variety of dairy products that cater to different cultural tastes and dietary habits.

For example, South Asian consumers prefer dairy products like paneer, ghee, and lassi, while European and Western expatriates seek premium cheese, butter, and lactose-free options. The presence of a multicultural population has encouraged dairy manufacturers and retailers to expand their product offerings, ensuring that they cater to a broad spectrum of dietary needs and preferences.

Government Initiatives and Local Dairy Production Expansion

The UAE government has been actively promoting food security and self-sufficiency in dairy production to reduce dependence on imports. Several initiatives encourage local dairy farming, investment in agricultural technology, and sustainable dairy farming practices. Leading local dairy producers, such as Al Ain Farms and Al Rawabi, have invested in advanced dairy farming techniques, including automated milking systems and improved cattle nutrition programs, to enhance milk yield and quality.

Moreover, the government has introduced regulatory support to ensure high standards in dairy production, quality control, and packaging. The implementation of food safety laws and stringent labeling requirements has contributed to increased consumer trust in locally produced dairy products.

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Key Market Challenges

Harsh Climatic Conditions and High Production Costs

The UAE's arid climate presents significant challenges for dairy farming and local production. The high temperatures and lack of natural water sources make it difficult to maintain dairy farms without substantial investment in cooling systems, water conservation, and imported cattle feed. Dairy cows require optimal living conditions to maintain milk yield and quality, and the extreme heat can negatively affect productivity.

Due to these environmental constraints, dairy farms in the UAE rely heavily on imported feed, such as alfalfa and soybean meal, which increases production costs. Water scarcity further compounds the issue, as dairy farming requires significant water resources for cattle hydration and farm operations. The cost of producing milk in the UAE is significantly higher than in countries with favorable climates for dairy farming, leading to higher retail prices for locally produced dairy products.

Rising Competition from Plant-Based Dairy Alternatives

The growing consumer preference for plant-based dairy alternatives is posing a challenge to traditional dairy products in the UAE. Health-conscious consumers, as well as those with dietary restrictions such as lactose intolerance, are increasingly opting for non-dairy alternatives such as almond milk, oat milk, and soy-based yogurts. Global trends in veganism and flexitarian diets are also influencing consumer choices, leading to a shift in demand from traditional dairy to plant-based options.

Major retail chains and e-commerce platforms in the UAE are expanding their plant-based dairy offerings, further intensifying competition for conventional dairy brands. Companies like Alpro, Oatly, and local brands are aggressively marketing their dairy-free products as healthier, more sustainable alternatives, appealing to environmentally conscious consumers.

Key Market Trends

Growing Demand for Functional and Fortified Dairy Products

Consumers in the UAE are increasingly seeking dairy products that offer added health benefits beyond basic nutrition. Functional dairy products, such as probiotic yogurts, fortified milk, and high-protein dairy beverages, are gaining popularity as people focus on improving their digestive health, immunity, and overall well-being.

Fortified dairy products containing vitamins D, A, and calcium are in high demand, especially among individuals looking to prevent deficiencies and support bone health. Additionally, protein-enriched dairy options, including Greek yogurt and high-protein milk, are attracting fitness-conscious consumers and athletes who prioritize muscle recovery and energy-boosting nutrition.

Dairy brands in the UAE are responding to this trend by launching innovative products with added nutritional benefits. Companies are incorporating natural ingredients such as turmeric, collagen, and fiber into dairy-based beverages and yogurts to cater to consumers looking for holistic health solutions.

Rising Popularity of Plant-Based and Lactose-Free Dairy Alternatives

The demand for plant-based dairy alternatives is rapidly increasing in the UAE, driven by lactose intolerance concerns, vegan and flexitarian diets, and growing environmental awareness. Consumers are actively seeking non-dairy options such as almond milk, oat milk, soy milk, and coconut-based yogurts as substitutes for traditional dairy.

Major supermarket chains and online grocery platforms in the UAE are expanding their plant-based dairy sections, offering a variety of local and international brands. Companies such as Alpro, Oatly, and Koita are capitalizing on this trend by introducing dairy-free products that cater to health-conscious and environmentally aware consumers. Lactose-free dairy products are also gaining traction, providing an alternative for consumers with digestive sensitivities. Leading UAE dairy brands like Al Rawabi and Al Ain Farms have launched lactose-free milk options to meet this growing demand while ensuring that consumers continue to enjoy traditional dairy flavors without discomfort.

Segmental Insights

Sales Channel Insights

Supermarkets/Hypermarkets dominated the UAE dairy products market due to their extensive product variety, competitive pricing, and widespread accessibility. Leading retail chains such as Carrefour, Lulu Hypermarket, and Spinneys offer a vast selection of dairy products, including fresh milk, cheese, yogurt, and plant-based alternatives, catering to diverse consumer preferences. These large-format stores provide an organized shopping experience, promotional discounts, and bulk purchasing options, making them the preferred choice for consumers. Additionally, supermarkets and hypermarkets benefit from strong supplier partnerships, ensuring consistent product availability. Their dominance is further reinforced by high foot traffic in urban centers like Dubai and Abu Dhabi.

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Regional Insights

Dubai was the dominant region in the UAE dairy products market, driven by its high population density, strong retail infrastructure, and growing demand for premium dairy products. The city's diverse consumer base, including expatriates and health-conscious individuals, fuels demand for functional, organic, and plant-based dairy options. Dubai's well-developed distribution networks, including supermarkets, hypermarkets, and online platforms, ensure easy access to dairy products. Additionally, the presence of major dairy brands, advanced logistics, and strategic government initiatives supporting food security contribute to Dubai’s leadership in the market. Its position as a trade hub further enhances dairy imports and exports, solidifying its dominance.

Recent Developments

• In Oct 2024, Pure Ice Cream, owner of the Kwality brand, is investing approximately USD 21.7 million to build a 160,000-square-foot production facility in Dubai Industrial City. Scheduled to open in 2026, this plant aims to increase annual production capacity by 300%, reaching 30 million liters.

• In Jun 2024, the Brooklyn Creamery has launched high-protein ice cream bars in India and the UAE, each containing 5g of protein, 125 calories, and no added sugar. This responds to the rising demand for protein-rich desserts.

• In Feb 2025, Sharjah Agriculture and Livestock Production (Ektifa)'s dairy brand, Meliha, launched an organic laban beverage to meet the UAE's rising demand for organic dairy products. Available in 2-litre, 1-litre, and 180ml sizes, Meliha Laban is rich in easily digestible A2A2 protein.

• In October 2023, Nutridor, a leading player in the UAE’s food and beverage (F&B) sector and part of the TGI Group, inaugurated its advanced dairy production facility in Dubai Industrial City to cater to the growing demand for its dairy products.

Key Market Players

• Almarai Company
• Al Rawabi Dairy Co L.L.C.
• Al Ain Farms
• Gulf & Safa Dairies (ADH) Company L.L.C
• Marmum Dairy Farm L.L.C
• Emirates Industry for Camel Milk & Products Factory L.L.C
• Orontes Dairy Manufacturing LLC
• Balade Farms Food Industries LLC
• Unikai Foods PJSC
• Italian Dairy Products FZC

Report Scope:

In this report, the UAE Dairy Products Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• UAE Dairy Products Market, By Type:

o   Dairy Milk

o   Ghee & Butter

o   Ice Cream & Milk Cream

o   Cheese & Spread

o   Yogurt

o   Others

• UAE Dairy Products Market, By Sales Channel:

o   Supermarket/Hypermarket

o   Grocery Stores

o   Online

o   Others

• UAE Dairy Products Market, By Region:

o   Dubai

o   Sharjah

o   Abu Dhabi

o   Ajman

o   Rest of UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the UAE Dairy Products Market.

Available Customizations:

UAE Dairy Products Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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