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.
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.
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.
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.
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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Dairy Products and Alternatives
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