Dairy products and alternatives in 2025: The big picture
Dairy products and alternatives is set to see growth in both volume and value terms in the United Arab Emirates in 2025. The country’s economic outlook remains positive, with growth increasingly being driven by non-oil sectors such as tourism, retail, and food and beverage. This diversification is creating favourable conditions for the expansion of the dairy products and alternatives market, as rising disposable incomes, urbanisation, and health-conscious lifestyles fuel demand for both traditional and alternative dairy products. The food sector, in particular, is benefiting from strong consumer engagement and government support for healthier living, sustainability, and food security - factors that are directly influencing product innovation and retail strategies.
Key trends in 2025
Sustainability is becoming an increasingly influential factor in the United Arab Emirates’ dairy products and alternatives market, as consumers grow more concerned about climate change and environmental impact. This shift is prompting a stronger preference for locally sourced dairy products, which are perceived to have a lower carbon footprint and support national food security goals. In response, major producers are adopting eco-friendly strategies, including sustainable farming practices, reduced packaging waste, and energy-efficient production methods. These efforts align with broader government initiatives focused on sustainability and are helping brands to build trust and relevance amongst environmentally conscious consumers. As awareness continues to rise, sustainability is expected to play a central role in shaping future innovation and purchasing decisions across both traditional and plant-based dairy segments.
Competitive Landscape
Almarai Co Ltd is set to continue to lead dairy products and alternatives in the United Arab Emirates in 2025, leveraging its strong brand reputation, extensive product portfolio, and vertically integrated operations. As the largest dairy company in the Middle East, Almarai has built its leadership through consistent investment in innovation, sustainability, and regional expansion. Its dominance spans multiple categories including milk, yoghurt, cheese, and functional dairy products, supported by a robust distribution network and a commitment to quality.
Channel developments
Hypermarkets remains the dominant distribution channel for dairy products and alternatives in the United Arab Emirates, accounting for the largest share of retail sales due to its extensive product assortments, competitive pricing, and strategic urban locations. As part of a broader retail landscape that includes supermarkets, convenience stores, and increasingly influential online platforms, hypermarkets such as Carrefour, Lulu, and Spinneys continue to attract consumers seeking both traditional and plant-based dairy options. Their prominence is reinforced by consumer trust in quality standards and promotional campaigns, especially in high-consumption hubs like Dubai. Despite the rise of e-commerce, hypermarkets maintain a critical role in shaping purchasing behaviour and driving market growth.
What next for dairy products and alternatives?
Over the forecast period, the dairy products and alternatives market in the United Arab Emirates is projected to maintain a steady growth trajectory, driven by rising health consciousness, population growth, and evolving consumer lifestyles. Urban centres like Dubai and Abu Dhabi will continue to lead consumption, supported by high disposable incomes and a growing preference for functional and premium dairy offerings. While the market is approaching maturity in traditional segments such as fresh milk and yoghurt, growth will be sustained by increased consumer awareness and demand for plant-based, lactose-free, and fortified products. Soft drivers such as product variety, consumer awareness, and lifestyle trends are expected to play a pivotal role, with consumers increasingly seeking products that align with health and wellness goals, dietary restrictions, and sustainability values.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in United Arab Emirates 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 United Arab Emirates, 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 United Arab Emirates 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 United Arab Emirates?
- Which are the leading brands in Dairy Products and Alternatives in United Arab Emirates?
- How are products distributed in Dairy Products and Alternatives in United Arab Emirates?
- 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 United Arab Emirates?
- 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 the United Arab Emirates
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 the United Arab Emirates
KEY DATA FINDINGS
Evolving lifestyles influencing demand
Nestlé stays out in front, while Holle Baby taps into organic trend
Hypermarkets leads distribution of baby food
Focus on career, financial stability and social status to impede category development
Rising health awareness to exert growing influence
Opportunities for special baby milk formula
Butter and Spreads in the United Arab Emirates
KEY DATA FINDINGS
Familiarity and versatility support growth
Arla Foods holds clear lead, while Westbury taps into trends towards ghee and plant-based products
Hypermarkets dominates distribution
Steady growth anticipated
Health and wellness supporting development of ghee
Increasing emphasis on sustainability
Cheese in the United Arab Emirates
KEY DATA FINDINGS
Cheese suited to both traditional and modern cuisines
Arla benefits from strength of flagship brand
Hypermarkets the dominant distribution channel
Manufacturers launching new products in response to evolving demand
Focus on health and wellness continues to sharpen
IQF offers notable potential
Drinking Milk Products in the United Arab Emirates
KEY DATA FINDINGS
Strong growth supported by consumer health consciousness
Broad offer underpins Almarai’s leadership
Hypermarkets continues to play key role in drinking milk products
Further expansion expected
Potential for further development of protein milk
AAFG reshaping dairy landscape
Yoghurt and Sour Milk Products in the United Arab Emirates
KEY DATA FINDINGS
Health and wellness and product innovation drive growth
Almarai to stay out in front despite share loss
Hypermarkets remains key, but players look to target health-conscious consumers more directly
Health and wellness trend and government initiatives provide a positive outlook
Supportive regulatory environment
Significant investment from market leader
Other Dairy in the United Arab Emirates
KEY DATA FINDINGS
Evaporated milk has strong cultural resonance
Frieslandcampina Middle East DMCC taps into local traditions of consumption
Hypermarkets benefits from broad offer meeting the needs of a wide range of consumers
Population growth to drive ongoing category expansion
Other dairy remains relatively untapped in terms of health and wellness
Expansion of e-commerce
Plant-Based Dairy in the United Arab Emirates
KEY DATA FINDINGS
Moving into the mainstream
Alpro contributes to the acceptance of plant-based dairy products
Hypermarkets a key platform for platform for discovering plant-based dairy
Well positioned for further growth
Opportunities for development of functional plant-based dairy
Growing role for e-commerce
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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