Market Overview

The Middle East dairy market size reached USD 43,863 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 62,086 Million by 2033, exhibiting a growth rate (CAGR) of 3.94% during 2025-2033. This growth is driven by shifting dietary preferences and evolving consumer lifestyles in the region. Dairy products include a range of milk-derived items from camels, cows, buffaloes, and goats, serving as rich sources of essential nutrients. These products are vital for maintaining nutritional balance and preventing chronic diseases. More details can be found at the Middle East Dairy Market. 

How AI is Reshaping the Future of Middle East Dairy Market

• AI-driven precision farming is optimizing feed quality and livestock health monitoring, improving milk yield and quality in the Middle East dairy sector.
• Integration of AI in dairy processing plants enhances operational efficiency and quality control, reducing production costs and waste.
• Government-backed smart farming initiatives are leveraging AI technologies to support camel breeding farms in Saudi Arabia and UAE, boosting specialized milk production.
• AI-powered supply chain analytics are improving demand forecasting and inventory management, reducing shortages and ensuring steady product availability.
• AI-based consumer insights are enabling manufacturers to customize lactose-free and functional dairy products according to localized health trends.
• AI-driven marketing platforms are targeting health-conscious consumers effectively, supporting the increased adoption of camel milk and camel milk-based dairy products.

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Market Growth Factors

The Middle East dairy market growth is supported by a notable expansion in the region's food and beverage industry, particularly within the GCC countries. This surge has attracted investments focused on dairy production and processing infrastructure. The growing consumer awareness regarding health and nutrition is significantly steering demand, especially for camel milk, which has higher immunoglobulin and nutritional content compared to cow milk. Camel milk’s natural probiotic properties also promote digestion and provide immunity against infections, adding to its appeal. The region’s consumers are increasingly seeking health-beneficial products, which encourages manufacturers to innovate within the dairy segment and cater to evolving lifestyle demands.

Another critical driver is the rise in consumer spending power across the Middle East, stimulated by improving economic conditions and demographic growth. This improvement in purchasing capacity is enabling more consumers to afford premium and specialty dairy products. Concurrently, the establishment of camel breeding farms specifically for milk production in Saudi Arabia, the UAE, and Qatar underpins the production capacity in the region. This farming expansion supports the supply chain of camel milk and related dairy products, addressing growing consumer demand and enabling product diversification, thus fostering overall market growth.

Moreover, manufacturers have responded proactively by launching innovative dairy variants such as lactose-free, low-fat, and sugar-free products fortified with functional ingredients. This trend not only widens the consumer base but also satisfies the needs of consumers with dietary restrictions and health-conscious preferences. The dairy industry's adaptation to such health trends reflects a strategic move to capture a broader demographic and secure market share. Additionally, regional government support and increasing research in camel milk benefits are driving product development, contributing to the positive market outlook.

Market Segmentation

Product Type Insights:

• Liquid Milk
• Flavored Milk
• Cream
• Butter
• Cheese
• Yoghurt
• Ice Cream
• Anhydrous Milk Fat (AMF)
• Skimmed Milk Powder (SMP)
• Whole Milk Powder (WMP)
• Whey Protein
• Lactose Powder
• Curd
• Paneer

Country Insights:

• Saudi Arabia
• Turkey
• Israel
• United Arab Emirates
• Iran
• Iraq
• Qatar
• Kuwait
• Oman
• Jordan
• Bahrain
• Others

Recent Developement & News

• August 2025: Saudi Arabian government collaborated with educational institutions to integrate advanced dairy farming AI technologies, supporting camel breeding and milk production. This initiative is set to enhance nutritional security and livestock health monitoring in the region.
• May 2025: Almarai Company announced the expansion of its dairy processing facility in the UAE, incorporating AI-powered quality control systems and supply chain analytics to meet rising demand for functional and lactose-free dairy products.
• September 2025: Market reports indicate increasing consumer spending on premium camel milk products in Qatar, with a noted surge in specialty dairy product launches, reflecting growing health consciousness and diversified consumer preferences.

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