Saudi Arabia Milk Powder Market Size and Share Analysis - Growth Trends and Forecast Report 2025-2033

Saudi Arabia was the world's 29th largest exporter of dried milk in 2022, with $32.6 million in exports. In the same year, Saudi Arabia's top export was milk powder, which came in at number 212th. Kuwait ($11.5M), Oman ($7.64M), the United Arab Emirates ($7.34M), Bahrain ($3.61M), and Mauritania ($1.3M) are Saudi Arabia's top export destinations for milk powder.

Saudi Arabia's milk powder exports to Kuwait ($7.59M), Oman ($5.5M), and Mauritania ($1.29M) grew at the fastest rates between 2021 and 2022. Bringing in Saudi Arabia became the 17th largest milk powder importer in the world in 2022, bringing in $156 million. In the same year, milk powder ranked as Saudi Arabia's 201st most imported good. The main suppliers of milk powder to Saudi Arabia are the United States ($16.3M), Belgium ($25.6M), Poland ($22.8M), Germany ($21M), and New Zealand ($20.2M).

Growth Drivers for the Saudi Arabia Milk Powder Market

Expansion of Retail Networks

One major factor propelling the growth of the Saudi Arabian milk powder market is the expansion of retail networks, which include supermarkets, hypermarkets, and e-commerce platforms. Milk powder products are becoming more widely available to a wider range of consumers, including those in both urban and rural areas, as contemporary retail outlets multiply. To accommodate a range of consumer preferences, supermarkets and hypermarkets provide more shelf space for different milk powder brands and formats. By offering customers the ease of online ordering, home delivery, and a greater selection of products, e-commerce platforms further improve accessibility. In a nation where the public is becoming more tech-savvy, this accessibility is essential. Furthermore, by increasing brand visibility, these enlarged retail networks enable businesses to reach a wider audience and increase sales across a range of demographic groups.

Growing Infant Formula Demand

A major factor driving the Saudi Arabian milk powder market's expansion is the strong demand for baby formula, which is mostly driven by both domestic births and the country's sizable expat population. Due to cultural choices, medical advice, and a growing tendency toward convenience in childrearing, infant formula is commonly used in Saudi Arabia. This demand is further increased by the large number of expatriates, especially from nations with high birth rates. Because infant formula contains vital vitamins, minerals, and proteins for a baby's development, many parents—both domestic and foreign—rely on it. The milk powder segment is a vital market category in Saudi Arabia due to the country's rising reliance on formula and growing awareness of its significance for newborn health.

Increasing Government Initiatives

Initiatives for food security and Saudi Arabia's Vision 2030 are key factors propelling the market for milk powder. Vision 2030 places a strong emphasis on diversifying the economy, lowering the nation's dependency on food imports, and promoting the growth of indigenous dairy and agricultural output. As a result, more money is being invested in regional dairy farms, infrastructure, and technology to improve the quantity and quality of milk produced. In order to meet consumer demand and guarantee a steady supply, the government also keeps encouraging the importation of premium milk powder. Enhancing food security, maintaining price stability, and guaranteeing the supply of necessary dairy goods, such as milk powder, are the goals of these programs. This supports market expansion and consumer access by strengthening both domestic production and imports of milk powder.

Challenges in the Saudi Arabia Dried Milk Market

Competition from Local and International Brands:

Both domestic and foreign brands are fighting for market share in the Saudi Arabian milk powder industry, which is highly competitive. Local dairy producers can provide goods that are suited to local tastes and needs since they have earned consumer trust and an awareness of regional preferences. International brands, on the other hand, frequently benefit from worldwide experience, cutting-edge technology, and more robust financial resources, which allow them to provide premium, inventive goods at affordable costs. Producers are always innovating and differentiating their offers through marketing techniques, packaging, and product quality as a result of this rivalry. To keep a competitive edge in the congested market, businesses are responding by launching value-added items like organic alternatives, fortified milk powders, and customized formulations for babies and health-conscious consumers.

Health and Dietary Shifts

The market for traditional milk powder is facing a major challenge as plant-based diets are becoming increasingly popular in Saudi Arabia due to rising health and wellness consciousness. Concerns about lactose intolerance, cholesterol, and environmental sustainability are driving consumers to look for alternatives including almond, soy, oat, and coconut milk. A rising number of health-conscious people are drawn to these plant-based products since they are frequently promoted as healthier, lower-calorie alternatives. The market for traditional dairy-based powders is therefore declining, which is bad news for milk powder manufacturers. Many businesses are engaging in marketing techniques to highlight the nutritional advantages of dairy products and are looking into ways to expand their offers, such as releasing lactose-free or fortified milk powders, in order to stay competitive.

Whole Milk Powder and Skimmed Milk Powder Demand in Saudi Arabia

In Saudi Arabia, whole milk powder (WMP) holds a leading position in the milk powder market because of its rich taste, creamy texture, and applicability in many different culinary uses. It is used extensively in baking, cooking, and in the preparation of beverages, hence being a common household item. The ease of its longer shelf life and storage also adds to its popularity among consumers looking for dependable dairy options.

Skimmed milk powder (SMP), however, is gaining popularity, especially among consumers who are health-conscious and also those looking for lower-fat dairy products. Its uses are growing in nutritional foods, infant formula, and dry mixes, led by growing concern for dietary well-being and health.

Though WMP is leading the market at the moment, expanding demand for healthy products will raise SMP's market share in the future. Such a transition echoes global tendencies for healthier food choices and increased product diversification across the dairy space.

Saudi Government Policies on Dairy Imports

Strict policies governing the import of dairy products by the government of Saudi Arabia guarantee safety and quality within food products. These imports are regulated by the Saudi Food and Drug Authority (SFDA), with products having to conform to local standards and carrying documentation such as Halal certificates, certificates of origin, and health certifications. Imported dairy products are also charged tariffs, up to a maximum of 40% for some products, based on local production levels. All dairy products also have to carry bilingual labels in Arabic and English, listing ingredients and expiration dates. The importers have to follow cold chain logistics in order to preserve product integrity because of Saudi Arabia's climatic conditions being hot. Keeping these regulations in line ensures consumers with safe and quality dairy products.

Impact of Saudi Dairy Regulations on Market Dynamics

Saudi Arabia's strict dairy policies strongly influence the domestic dairy sector, affecting domestic manufacturers and international exporters alike. The Saudi Food and Drug Authority (SFDA) guarantees all imported dairy foods are of very high safety and quality standards and must have a Halal stamp of approval along with correct paperwork. Such guidelines ensure consumer confidence in dairy items as well as encourage equitable competition between local and foreign suppliers.

Application of import tariffs with reference to the level of domestic production affects the prices and amount of imports, allowing domestic manufacturers to compete favorably. Conversely, global brands of dairy products have to re-engineer their processes to ensure conformity with the standards, potentially improving quality guarantees but at added expense. Other aspects include demand for cold storage standards in handling dairy imports affecting logistics, making investment in current storage and transportation facilities more favorable. Overall, these regulations foster a safer, more transparent market while stimulating innovation and competition.

Whole milk powder remains popular due to versatility and consumer preference

Whole milk powder could remain considerable in the Saudi Arabia milk powder market. This is because of its versatility and dietary value. It is a handy dairy alternative for numerous culinary applications, including baking, cooking, and making drinks. Further, whole milk powder's longer shelf life and ease of storage make it an attractive choice for clients seeking convenient dairy solutions. Its wealthy flavor and creamy texture contribute to its reputation, solidifying its function as a central section of the milk powder market.

The market for milk powder in Saudi Arabia may see infant formula take the lead

Infant formula might hold a dominant position in the Saudi Arabia milk powder market. This is due to its essential role in infant nutrients. With a developing population and increasing urbanization, more moms are joining the workforce, leading to a higher demand for convenient infant feeding solutions. Infant formulation presents a reliable source of vital nutrients for toddlers, ensuring proper increase and development. Moreover, stringent guidelines and amicable standards instill acceptance among consumers, bolstering infant formula's popularity as a dependent preference for infant nutrition in the Saudi Arabian market.

Top Milk Powder Brands in Saudi Arabia

Almarai

Almarai is the most well-known and highly trusted dairy brand in Saudi Arabia and the wider Gulf region. It is famous for its premium milk powders, such as full-cream and infant formula, and has a strong market leadership. The company focuses on quality, freshness, and nutrition, and this has helped the brand gain immense popularity among Saudi people.

Nido (Nestlé)

Nido, Nestlé's global brand, is another top player in the Saudi Arabian milk powder market. The company has a variety of milk powders catering to various age groups, such as Nido Fortified Full Cream Milk Powder. Nido is well known for its quality, taste, and nutritional value, and thus it is a preferred choice for most families.

Safi

Safi is a popular homegrown brand supplying milk powder product, such as full cream and infant milk formulas. It gained a solid position in the Saudi market because it emphasizes high-quality production and availability. Safi is popular with consumers seeking economic yet healthy milk powder products.

Anchor (Fonterra)

Anchor, which is a Fonterra brand, is readily available in Saudi Arabia and enjoys a good reputation for its high-quality dairy products. The milk powder products of the brand, particularly its full-cream and infant formulas, enjoy a good reputation for their quality and are therefore well sought after by health-conscious consumers.

Al Safi Danone

Al Safi Danone provides a variety of dairy products, such as milk powders, with a keen emphasis on nutrition and high standards. The company is owned by the global dairy behemoth Danone and is renowned for its ecological attitude and commitment to offering healthy dairy products to Saudi families.

These are among the leading players in the Saudi milk powder industry, with products designed to meet various consumer needs, ranging from general nutrition to specific infant formulas.

Market Segmentation

Type – Milk Powder Market breakup in 6 viewpoints:

• Whole
• Skimmed
• Dairy Whitener
• Buttermilk 
• Fat-Filled 
• Other

Application – Market breakup in 6 viewpoints:

• Nutritional Food
• Infant Formulas
• Confectionaries
• Baked Sweets
• Savories
• Others

All the Key players have been covered from 3 Viewpoints:

•     Overview
•     Recent Development
•     Revenue Analysis

Company Analysis:

• Almarai Company
• Rabouh Al Hofuf Est.
• M.M.Siddique Abdullah Trading Est.
• Gulf Dimensions Trading Est.
• AL-Juffaily for Trading
• Shatha Abeer Ltd.
• Riyadh Dairy Products Factory

Report Details: