A dairy can refer to food products that come from milk of mammals, for example cows or goats. It includes cheese, milk, butter, yoghurt, and cream.

Dairy products offer various advantages for health. It provides nutrients that can build and maintain strong bones and is also good for your teeth and nerves.

Since it offers many benefits, there has been an increase in Saudi Arabia dairy market size. A research firm, GMI Research, noted that based on the product type, yoghurt is expected to grow at a higher CAGR from 2020 to 2027. It is due to the rising movement towards wellness-oriented lifestyle.

The Drivers

1.      Growing preference for dairy

Many people in Saudi Arabia have the increase inclination towards milk and dairy products. That includes ice cream, cheese, and other products, involving individuals of all ages. This is due to the good taste that the dairy products offer, the relatively affordable prices, and other personal preferences which can propel the market’s growth.

2.      Increase preference for halal food

As more people in Saudi Arabia are seeking for halal food, they want to ensure that the foods they will consume have met the Halal requirements. The dairy products manufacturers have to ensure that they comply with the halal standards and provide assurance to consumers.

3.      The availability across the country

Based on the distribution channel, supermarkets and hypermarkets will lead the market, since it offers easy availability across the country. It also offers attractive discounts. The online segment follows the lead, since it offers 24-hour 7-day service. The penetration of internet connectivity and the expansion of smartphone users drive the growth of the market through online channels.

The Opportunities Ahead

As the market keeps going in the right direction, it also has several opportunities looming on the horizon.

1.      Innovation in packaging and technology to improve the lifespan

Manufacturers have to keep innovating through research and development to find the right packaging and implement the right technology and method that can improve the product’s lifespan. It is important since dairy products, especially fresh milk, contains microbes and bacterial spores.

2.      Creative advertising and marketing

Advertising and marketing are important. With creative and out of the box marketing, it can increase brand awareness and ultimately gain more profits.

3.      Product development

With product development, manufacturers can grow the market even further. For example, by making new product types, launching new flavors, and other product development to engage more consumers.

4.      Integration with IoT

Dairy industry can integrate with IoT to improve production efficiency and productivity. Using its sensor-based system, farmers can detect illness of the cattle before it impacts the milk. The IoT can give real-time information regarding the temperature and the pulse of the cattle. Crucial information like this can increase milk yield, reduce labor, and increase revenue. This integration can further improve the quality of the products and decrease the use of resources.

Nevertheless, the dairy market also has challenges it needs to deal with. The growing number of lactose intolerant people will prevent them from consuming any dairy products, thus will hinder the market’s growth.