Saudi Arabia Milk Powder Market Trends & Summary
Market Overview
The Saudi Arabia milk powder market is projected to reach US$ 699.17 million by 2033, growing from US$ 401.4 million in 2024, at a CAGR of 6.36% from 2025 to 2033. The increasing demand for infant formula, the expansion of retail networks, government food security initiatives, changing consumer preferences, and population growth are key drivers behind this growth. Additionally, increased health consciousness and the preference for long-lasting dairy products have fueled demand in various applications, including nutritional foods, confectionaries, and baked goods.
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Market Segmentation
By Type:
- Whole Milk Powder
- Skimmed Milk Powder
- Dairy Whitener
- Buttermilk Powder
- Fat-Filled Milk Powder
- Other Variants
By Application:
- Nutritional Food
- Infant Formulas
- Confectionaries
- Baked Sweets
- Savories
- Others
Industry Dynamics
Growth Drivers
1. Expanding Retail Networks and E-commerce Growth
The proliferation of hypermarkets, supermarkets, and e-commerce platforms has significantly increased consumer accessibility to milk powder products. E-commerce, in particular, has seen substantial growth, offering a wide variety of milk powder brands with doorstep delivery services. This shift is influenced by the increasing digital literacy and convenience-focused purchasing behavior of Saudi consumers.
2. Rising Demand for Infant Formula
Infant formula remains one of the strongest growth segments in the Saudi milk powder market. This is driven by:
- A high birth rate and expanding expatriate population
- Increasing numbers of working mothers, leading to a higher demand for convenient feeding solutions
- Growing awareness of the nutritional benefits of infant formula, fortified with essential vitamins and minerals
3. Government Initiatives & Vision 2030
Under Saudi Arabia’s Vision 2030, the government is focusing on reducing food import dependency and boosting domestic dairy production. Investment in local dairy farms and food security programs ensures a consistent supply of high-quality milk powder in the market. Additionally, subsidies and trade agreements have enhanced both domestic production and import stability.
4. Growing Health Consciousness & Dietary Shifts
The demand for fortified and specialized milk powders, such as lactose-free, low-fat, and organic variants, is increasing due to growing health awareness. Many consumers are now seeking milk powders enriched with:
- Protein (for muscle growth and fitness)
- Calcium & Vitamin D (for bone health)
- Probiotics & DHA (for improved digestion and cognitive function)
Challenges in the Market
1. Intense Competition Among Domestic and International Brands
Saudi Arabia’s milk powder market is highly competitive, with both local and global brands vying for market share.
- Local brands leverage their understanding of cultural preferences and dietary habits
- Global brands dominate in premium quality, innovative formulations, and aggressive marketing To maintain competitiveness, companies are focusing on product differentiation, including organic, fortified, and flavored milk powders.
2. Shift Toward Plant-Based Dairy Alternatives
The rise of plant-based milk alternatives poses a challenge to traditional dairy powders. Consumers concerned about lactose intolerance, cholesterol levels, and environmental impact are shifting to almond, soy, oat, and coconut milk powders. This has led major dairy brands to innovate and introduce lactose-free and plant-based dairy blends to retain market share.
Export & Import Trends
Saudi Arabia’s Milk Powder Exports
In 2022, Saudi Arabia was ranked 29th among global milk powder exporters, with an export value of $32.6 million. The top export destinations were:
- Kuwait ($11.5M)
- Oman ($7.64M)
- United Arab Emirates ($7.34M)
- Bahrain ($3.61M)
- Mauritania ($1.3M)
Saudi Arabia’s Milk Powder Imports
Saudi Arabia was the 17th largest milk powder importer in 2022, with imports valued at $156 million. The leading suppliers were:
- Belgium ($25.6M)
- Poland ($22.8M)
- Germany ($21M)
- New Zealand ($20.2M)
- United States ($16.3M)
Competitive Landscape
The market is characterized by strong competition among multinational corporations and local dairy firms. The leading players focus on expanding distribution channels, R&D, and marketing strategies to increase their consumer base.
Key Market Players (Covered in Three Viewpoints: Overview, Recent Developments, Revenue Analysis)
- Almarai Company
- Rabouh Al Hofuf Est.
- M.M. Siddique Abdullah Trading Est.
- Gulf Dimensions Trading Est.
- AL-Juffaily for Trading
- Shatha Abeer Ltd.
- Riyadh Dairy Products Factory
Future Outlook & Trends
- Infant Formula to Dominate the Market: With increasing urbanization and a rise in working mothers, infant formula is expected to remain the leading category.
- Whole Milk Powder to Maintain Popularity: Due to its versatility and extended shelf life, whole milk powder will continue to be a household staple.
- Growth in Fortified & Organic Milk Powder: Demand for health-focused products will drive innovation in fortified, lactose-free, and organic milk powders.
- Technology & Production Advancements: Investment in advanced dairy processing technologies will enhance both domestic production and import quality standards.
Conclusion
The Saudi Arabia milk powder market is set for significant growth, driven by rising demand for infant formula, expanding retail distribution, and increasing health awareness. While competition from plant-based alternatives poses challenges, the market is expected to innovate and adapt to evolving consumer preferences. With government support, strategic investments, and consumer-driven innovations, the industry is well-positioned for sustainable long-term expansion.
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