Dairy products and alternatives in 2025: The big picture
In 2025, value sales of dairy products and alternatives in Saudi Arabia increased, driven by price increases, premiumisation, and a sustained consumer interest in functional, high-quality offerings. Despite inflation and changing consumption habits that slowed volume growth in some categories, the strong demand for health-linked benefits such as gut support, protein enrichment, and lactose-free options kept overall value performance robust. Yoghurt and sour milk products experienced particularly strong momentum, fuelled by seasonal spikes and innovations in kefir-based products. Cream, drinking milk products, and butter also benefited from increased demand during Ramadan and the trend towards richer at-home consumption, which aligned with cultural and religious practices.
Key trends in 2025
Demand for dairy products and alternatives in Saudi Arabia was driven by several key trends in 2025, which reflected evolving consumer preferences and economic conditions. Consumers increasingly sought specific value from their dairy purchases, with a rising demand for functional benefits, convenient formats, and lifestyle-driven innovation. Probiotic-rich options, such as kefir, and lactose-free lines gained significant traction, especially among health-conscious shoppers. Brands such as Activia responded to this trend with targeted launches, such as its Mix & Go breakfast pots, which combined yoghurt with granola, catering to the growing snacking and protein-enriched dairy trend. High protein milk also became more visible, with Almarai expanding its protein milk range to appeal to fitness-conscious consumers. Additionally, Noug introduced flavoured camel milk, including a chocolate option aimed at children, which combined traditional ingredients with modern health positioning. These innovations were crucial in meeting the diverse health and lifestyle needs of consumers, thereby driving overall performance.
Competitive Landscape
Almarai Co Ltd maintained its position as the leading player in dairy products and alternatives in 2025. Almarai’s extensive portfolio, which includes milk, yoghurt, cheese, and cream, played a significant role in its overall leadership. The company’s strong brand equity, combined with a widespread distribution network and continuous investment in product quality and innovation, ensured it retained a value share of 31%. Almarai’s price-tiering strategy proved effective, allowing the company to appeal to both value-driven and premium-oriented consumers in an environment marked by rising inflation. This strategic approach not only enhanced Almarai’s market reach but also solidified its reputation as a versatile and reliable player.
Channel developments
The retail landscape of dairy products and alternatives in Saudi Arabia continued to be characterised by a dominance of supermarkets and hypermarkets, which accounted for the majority of distribution in 2025. These modern formats are favoured for their extensive product ranges, frequent promotional activities, and robust shopper confidence in their chilled storage practices. However, the share of offline retail has experienced a gradual decline as consumers, particularly in urban areas, increasingly turn to digital shopping platforms.
What next for dairy products and alternatives?
Despite the maturity of staples such as milk and yoghurt, the future growth of dairy products and alternatives in Saudi Arabia over the forecast period is expected to remain robust, driven by premiumisation, diversification of formats, and sustained demand for functional and fortified products. Rising awareness of digestive health, protein content, and clean labels will support both volume and value growth. Continued investment in shelf stable and on-the-go formats will enhance accessibility, catering to various consumption occasions.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Saudi Arabia 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 Saudi Arabia, 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 Saudi Arabia 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 Saudi Arabia?
- Which are the leading brands in Dairy Products and Alternatives in Saudi Arabia?
- How are products distributed in Dairy Products and Alternatives in Saudi Arabia?
- 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 Saudi Arabia?
- 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 Saudi Arabia
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
Baby Food in Saudi Arabia
KEY DATA FINDINGS
Mixed category performance shaped by premiumisation and shifting parental preferences
Nestlé retains lead of baby food, with strong brand performances driving growth
Health and beauty specialists retains dominance, while e-commerce remains dynamic
Modest performance as baby food stabilises but remains mature
Wellness trend to gain traction but remains concentrated among niche audiences
Digital platforms and innovation offer support but not scale
Butter and Spreads in Saudi Arabia
KEY DATA FINDINGS
Strong daily demand drives growth, with butter the most popular format
Almarai strengthens convincing leadership with dynamic performance
Supermarkets dominates distribution, while e-commerce sees fastest growth
Steady growth expected as consumers prefer trusted products for daily use
Natural positioning matters, but health is not a key purchase driver
Innovation remains limited, but sustainability and local sourcing are slowly gaining traction
Cheese in Saudi Arabia
KEY DATA FINDINGS
Growth supported by rising variety and format expansion
Almarai maintains slim leadership, while Dari’s growth is encouraging
Supermarkets retains dominance, while e-commerce accelerates
Cheese to record stable growth, driven by daily relevance and lifestyle alignment
Health-conscious younger consumers seek natural and cleaner labels
Packaging innovation and tech integration to support growth
Drinking Milk Products in Saudi Arabia
KEY DATA FINDINGS
Solid growth in milk consumption driven by rising health awareness and demographic expansion
Strong competition continues to define local drinking milk products
Offline dominance with gradual digital momentum
Growth ahead to be driven by innovation and consumer shifts
Health and wellness to increasingly shape consumer preferences
Sustainability efforts and digital progress
Yoghurt and Sour Milk Products in Saudi Arabia
KEY DATA FINDINGS
Growth supported by evolving lifestyles, innovation and expanding functionality
Almarai retains dominance, while Al Safi Danone strengthens offer through portfolio expansion
Modern grocery remains dominant while e-commerce gains ground
Health awareness and lifestyle changes to support steady growth
Wellbeing and functionality will shape future innovation
Sustainability and local sourcing expected to gain momentum
Other Dairy in Saudi Arabia
KEY DATA FINDINGS
Indulgence and familiarity drive growth in key other dairy categories
Almarai retains leadership, while NADEC records fastest growth in 2025
Discounters and e-commerce gain ground as consumers seek value and convenience
Other dairy to maintain steady growth supported by availability, product variety, and lifestyle shifts
Health-led consumption to shape innovation and positioning in other dairy
Sustainability, digitalisation, and innovation to influence future positioning
Plant-Based Dairy in Saudi Arabia
KEY DATA FINDINGS
Rising health awareness and product variety support category growth
Leading brands expand presence through trusted lines and local innovations
Modern grocery retail dominates, while e-commerce gains momentum
Plant-based dairy to grow steadily as health and lifestyle trends gain traction
Category offers room for growth in new plant-based formats
Sustainability and innovation to shape future development
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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