Saudi Arabia Dairy Products Market Opportunity and Forecast (2021 - 2026)

Saudi Arabia

The Saudi Arabian Dairy Products Market was valued at USD 4,807.70 million in 2020 and is projected to grow at a CAGR of 4.71 % during the forecast period (2021-2026)

COVID-19 has a significant impact on businesses and economies. COVID-19 has led to a major consumer shift, as customers are trying out new brands in the low-stock environment. During the initial wave of business and community shutdowns, dairy products were in high demand online, with e-commerce prices and out-of-stock levels increasing as more shoppers shifted from brick-and-mortar retailers due to COVID-19. A major issue is the disrupted supply chains, including dairy snacks, as, during the lockdown, Saudi Arabia closed their borders or raised trade barriers. However, during the lockdown, there was a rising interest in cooking and baking at home, which has led to the increased demand for dairy products like milk, butter, and cream. Also, the increasing demand for innovative on-the-go dairy products is consistently trending in the country as it a quick and convenient source of nutrition and energy, and protein.

Over the medium term, the Saudi Arabian dairy market is marked by high consumption of milk and milk products, as dairy forms a major part of the Saudi Arabian diet. The country give high importance to dairy products to meet its dietary requirements, which drives the dairy market. Additionally, several Saudi Arabian dishes require milk and cheese in their preparation, thereby, propelling the demand for the dairy market in the household consumption.Saudi Arabia also stands out as a major dairy importer globally, importing large volumes of milk and dairy products, including cheese. According to the data published by UN Comtrade, in 2018, Saudi Arabia was the second-largest importer of processed cheese worldwide, after the United Kingdom, with imports amounting to a value of over USD 253 million in the same year.Product innovations with respect to cheese have also been driving the market studied, as leading market players have been frequently launching new and competitive products that favor market growth by increasing the usage of dairy products for different purposes.

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