Dairy products and alternatives in 2025: The big picture
Retail value sales of dairy products and alternatives are expected to register growth of 4% in 2025. Kuwait’s dairy products and alternatives industry thrived in 2025, with value sales growth on a par with the gains of the previous two years. Beyond standard catalysts, such as a growing population and more job opportunities, expansion of this industry was also powered by evolving trends. These included a heightened focus on health and wellness, inflation being kept in check which cooled post-pandemic price hikes, and the entrance of an increasing number of young Kuwaiti women to the workforce.
Key trends in 2025
The health and wellness trend has shaped Kuwait’s market, not just in 2025 but throughout the entire review period. This trend manifested in various forms, from low-fat and fortified dairy products to lactose-free options and plant-based alternatives. Its momentum accelerated during the pandemic, as consumers boosted their intake of defensive supplements, seeking nutrients from natural sources, supplements, and fortified dairy. Particularly middle-to-high-income consumers readily embraced dairy products with health and wellness features, initially for immunity boosting during the pandemic, and later as a commitment to healthier living. Given Kuwait’s status as the world's fourth most obese country, this deeply embedded health awareness has profoundly benefited dairy products and alternatives, driving demand for functional items such as probiotic yoghurt, probiotic laban (yoghurt drink), vitamin-fortified laban, lactose-free milk, and plant-based dairy.
Competitive Landscape
Saudi company Almarai is expected to retain the lead in dairy products and alternatives overall in 2025. The company produces the Almarai brand, which is present in milk, cheese, and other dairy. The company has an extensive distribution reach in Kuwait and offers a wide range, including powder, condensed, shelf stable and fresh milk alongside cheese, butter, cream, yoghurt and sour milk drinks. Almarai has a strong cold chain system in place, ensuring that its fresh dairy products offer high quality. The company also continues to offer new products, launching banana and vanilla flavoured milk drinks towards the end of the review period. Almarai also benefits from strong social media marketing, with its online Ramadan advertisement being widely viewed in Kuwait and depicting ordinary people's journeys from despair to hope. Almarai is followed by two other popular domestic players, Kuwaiti Danish Dairy Co and Kuwait Dairy Co, both of which offer extensive ranges of good quality dairy.
Channel developments
Hypermarkets is expected to be the leading distribution channel within dairy products and alternatives overall in 2025, with the channel’s value share rising during the year overall. In large retailing formats such as hypermarkets, a separate aisle is allocated to chilled dairy products including fresh milk along with others like sour milk products and packaged cheese. In smaller formats such as supermarkets, a separate fridge is assigned for fresh milk, which constitutes around half an aisle’s size. Nearby fridges in the same aisle would include other types of dairy products such as sour milk products, packaged cheese, chilled dairy drinks, and others.
What next for dairy products and alternatives?
Value sales of dairy products and alternatives are set to rise over the forecast period. Despite the extensive array of brands and products currently present in Kuwait, dairy products and alternatives continues to present viable opportunities for new entrants. These new players can effectively leverage growth prospects within the health and wellness space, focusing on products with targeted attributes such as probiotics for gut health and those that enhance immunity. As a result, health and wellness coupled with rising consumer confidence will shape dairy products and alternatives’ growth patterns over the forecast period.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Kuwait with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
If you're in the Dairy Products and Alternatives industry in Kuwait, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Dairy Products and Alternatives in Kuwait report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Dairy Products and Alternatives in Kuwait?
- Which are the leading brands in Dairy Products and Alternatives in Kuwait?
- How are products distributed in Dairy Products and Alternatives in Kuwait?
- How is the rise of e-commerce and/or the expansion of modern grocery retail impacting traditional retail?
- What are the key health and wellness concerns driving, or challenging, sales in Dairy Products and Alternatives?
- How significant are vegan and vegetarian dietary requirements in determining sales growth in Kuwait?
- How has COVID-19 impacted consumer demand? To what extent have lockdown, home seclusion and stockpiling boosted sales? Will the longer term economic repercussions of the pandemic stimulate or suppress future growth?
- Where is future growth expected to be most dynamic?
- How significant will values-based claims, such as sustainability and ethical labelling, be in supporting future growth and brand equity?
Dairy Products and Alternatives in Kuwait
Dairy products and alternatives in 2025: The big picture
Key trends in 2025
Competitive Landscape
Channel developments
What next for dairy products and alternatives?
DISCLAIMER
Key Data Findings
2025 Developments
Modest growth of baby food mirrors relatively low population growth
Nestlé maintains its lead in baby food leveraging on its diversified portfolio and brand equity
Hypermarkets followed by supermarkets remain by far the most important channels for baby food in Kuwait
Prospects and Opportunities
Better growth prospects of baby food over the forecast period
Baby food brands focus heavily on health and wellness offerings to spur forecast period growth
Growing focus on advertising and promotion, including via retail e-commerce
Category Data
Key Data Findings
2025 Developments
Dairy posts solid growth while the government controls the prices of dairy essentials
Dairy continues to be characterised by both concentration and price-influenced competition
Hypermarkets extends its position in the distribution of dairy
Prospects and Opportunities
Robust growth prospects of dairy amid new product developments and demand for convenience
Higher company activity anticipated around health and wellness developments
Potential lifting of food subsidies leads to higher prices and the dampening of volume sales
Category Data
Key Data Findings
2025 Developments
Nascent plant-based dairy leverages on health benefits and expanding portfolios to continue growing
Alpro stregthens its gold standard image within plant-based dairy
Hypermarkets and supermarkets retain the outright lead in the distribution of plant-based dairy
Prospects and Opportunities
Lower yet positive growth of plant-based dairy over the forecast period due to decline in product novelty
Health and wellness trend provides growth opportunities as well as challenges
Manufacturers leverage on digital and technological advancements to drive growth of plant-based yoghurt
Category Data
The following categories and subcategories are included:
Dairy Products and Alternatives
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- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
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- Liquid Standard Milk Formula
- Powder Standard Milk Formula
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- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
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- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
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- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
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- Butter
- Cooking Fats
- Margarine and Spreads
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- Spreadable Cheese
- Processed Cheese excl Spreadable
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- Packaged Hard Cheese
- Unpackaged Hard Cheese
- Soft Cheese
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- Dairy Only Flavoured Milk Drinks
- Flavoured Milk Drinks with Fruit Juice
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- Fat-free Fresh Milk
- Semi Skimmed Fresh Milk
- Full Fat Fresh Milk
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- Fat-free Shelf Stable Milk
- Semi Skimmed Shelf Stable Milk
- Full Fat Shelf Stable Milk
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- Goat Milk
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- Powder Milk
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- Sour Milk Products
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- Drinking Yoghurt
- Flavoured Yoghurt
- Plain Yoghurt
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- Chilled Dairy Desserts
- Shelf Stable Dairy Desserts
- Chilled Snacks
- Coffee Whiteners
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- Flavoured Condensed Milk
- Plain Condensed Milk
- Evaporated Milk
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- Cream
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- Flavoured Fromage Frais and Quark
- Plain Fromage Frais and Quark
- Savoury Fromage Frais and Quark
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- Soy Drinks
- Other Plant-based Milk
- Plant-based Yoghurt
- Plant-based Cheese
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This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
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