Saudi Arabia's Dairy Industry
The Kingdom of Saudi Arabia's dairy industry is a crucial pillar of the national economy, aligning closely with the strategic objectives outlined in Saudi Vision 2030. Through substantial investments and the adoption of advanced technologies, the industry is geared towards sustainable growth and increased self-sufficiency.
Dairy Cattle and Milk Production
Saudi Arabia hosts a dairy cattle population of approximately 600,000, which supports its aspirations for self-sufficiency in dairy production. The country produces around 2 million tonnes of milk annually, a result of modern farming practices and robust governmental support.
Milk Processing and Dairy Production
Annually, the nation processes about 1.8 million tonnes of milk, addressing both domestic and international demands. Saudi Arabia's cheese production stands at roughly 200,000 tonnes, while milk powder and whey production reach about 100,000 tonnes, catering to diverse consumer preferences.
Key Enterprises
Leading companies in the Saudi dairy market include Almarai, Al Safi Danone, and Nadec, offering a wide range of dairy products. Almarai and Al Safi Dairy Farms are noted for their advanced agricultural techniques and high milk yields.
Export and Import
Saudi Arabia exports approximately 500,000 tonnes of dairy products annually, targeting markets in the GCC, Middle East, and Africa. The nation imports about 300,000 tonnes of dairy products, focusing on those less commonly produced domestically.
Significant Events and Developments
The sector has witnessed improvements in yield and quality due to cutting-edge milk production technologies. Government initiatives aim to enhance food security through localized dairy farming and expand the international reach of leading dairy firms. Strategic agreements with China and exploratory ventures into Asian and African markets have strengthened Saudi Arabia's global market presence. The introduction of Protein Pudding by Arla Foods in Saudi Arabia has garnered significant consumer interest.
Future Prospects
The food and beverage industry in Saudi Arabia is projected to reach USD $24.29 billion by 2025, driven by innovation and strategic alignment with Vision 2030. Whole fresh milk production is anticipated to rise to 2.9 million tonnes by 2024, highlighting Saudi Arabia's expanding influence as a global dairy powerhouse. Almarai leads the sector with a focus on food security, sustainability, and digital transformation.
Feed and Water Resource Management
Saudi Arabia relies heavily on imported feed for dairy production, with over 80% of the feed base, including alfalfa, grains, and protein concentrates, being imported from countries like the U.S., Argentina, and Australia. To preserve water resources, the government has banned commercial cultivation of alfalfa.
International Collaboration
The Kingdom is a focal point for the expansion of French companies, with programs aimed at fostering consultations and commercial growth. These initiatives include sustainable development efforts aligned with Saudi Vision 2030. Measures similar to the sugar tax have prompted producers to reformulate products and reduce sugar content to maintain competitiveness. Tetra Pak demonstrates its commitment to sustainability through regional partnerships in the UAE and Saudi Arabia.
Additional Market Trends
An increase in demand for British cheese, particularly Cheddar, has been observed. Saudi Arabia is part of the Gulf Cooperation Council, which is the second-largest export market for UK dairy products outside Europe. Shoppers remain highly value-driven despite low inflation, and private label is gaining strong momentum as retailers expand their dairy ranges, now competing on quality and health benefits, not just price.
Modified: 2026/02/11