Saudi Arabia Milk Powder Market Size and Forecast 2025–2033

Introduction

The Saudi Arabia milk powder market is experiencing steady expansion, driven by increasing consumer demand, population growth, and government initiatives aimed at strengthening food security. Milk powder has become an essential dairy product across Saudi households and the broader food industry because of its long shelf life, convenience, and nutritional value.

According to industry insights, the Saudi Arabia milk powder market is expected to reach US$ 699.17 million by 2033, rising from US$ 401.4 million in 2024, registering a compound annual growth rate (CAGR) of 6.36% from 2025 to 2033. This growth is primarily fueled by the rising demand for infant formula, expanding modern retail channels, increasing health awareness, and evolving dietary preferences among consumers.

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Milk powder plays a critical role in Saudi Arabia’s food supply chain due to the country’s climatic conditions, which limit large-scale dairy farming compared with cooler regions. As a result, both domestic production and imports contribute significantly to meeting consumer demand.

Saudi Arabia Milk Powder Industry Overview

Saudi Arabia’s milk powder industry has evolved rapidly over the past decade. With urbanization, rising incomes, and a growing expatriate population, the demand for convenient and shelf-stable dairy products continues to increase.

Milk powder is widely used in several applications including beverages, baked goods, confectionery products, nutritional supplements, and infant formulas. Its versatility and ease of storage make it particularly valuable in regions where fresh dairy distribution may be challenging.

Government programs supporting domestic food production and supply chain resilience are also strengthening the industry. Under Vision 2030, Saudi Arabia is investing heavily in agricultural technology, dairy farming infrastructure, and food manufacturing to reduce reliance on imports while maintaining a stable food supply.

Modern retail growth has also significantly boosted the availability of milk powder products. Supermarkets, hypermarkets, and online retail platforms now provide a wide variety of dairy brands and product types, allowing consumers to choose based on taste, nutrition, and affordability.

Saudi Arabia also participates actively in global dairy trade. In 2022, the country exported approximately $32.6 million worth of dried milk, ranking among emerging exporters. Key export destinations included Kuwait, Oman, the United Arab Emirates, Bahrain, and Mauritania.

On the import side, Saudi Arabia remains one of the largest dairy importers in the region, importing $156 million worth of milk powder in 2022. Major suppliers include the United States, Belgium, Poland, Germany, and New Zealand.

Key Growth Drivers in the Saudi Arabia Milk Powder Market

Expansion of Retail Networks

One of the strongest drivers of the milk powder market is the rapid expansion of retail infrastructure across Saudi Arabia. The country has witnessed remarkable growth in supermarkets, hypermarkets, and convenience stores over the past decade.

These modern retail outlets provide extensive shelf space for various dairy brands and product formats, improving product visibility and consumer access. Retailers frequently offer promotional campaigns, bundle deals, and discounts that further stimulate demand.

E-commerce platforms are also transforming the dairy market landscape. Online grocery platforms allow consumers to order milk powder products easily and receive them through home delivery services. This convenience has significantly increased product accessibility, particularly among busy urban consumers.

The integration of digital technologies in retail, including mobile payment systems and online marketplaces, is expected to further accelerate milk powder sales across the country.

Rising Demand for Infant Formula

Infant formula represents one of the most significant segments within the Saudi milk powder market. The demand for infant nutrition products continues to rise due to both demographic trends and lifestyle changes.

Saudi Arabia has a relatively young population and a steady birth rate. Additionally, the country hosts a large expatriate community from regions where infant formula consumption is widely accepted.

Modern parenting trends and increasing participation of women in the workforce have also contributed to the popularity of infant formula products. Many working parents rely on formula feeding as a convenient and nutritionally balanced alternative to breastfeeding.

Infant formula is enriched with essential nutrients such as proteins, vitamins, minerals, and fatty acids that support healthy infant development. As awareness about infant nutrition continues to grow, this segment is expected to remain a key driver of the milk powder industry.

Government Initiatives Supporting Food Security

Saudi Arabia’s government plays an important role in strengthening the dairy and milk powder market. Food security has become a national priority due to the country’s dependence on imports for many food products.

Through Vision 2030, the government is encouraging investments in local agriculture, dairy farms, and food processing facilities. These initiatives aim to increase domestic production while maintaining a balanced import strategy.

Support for dairy farming includes investments in modern farming technologies, improved cattle breeds, and sustainable water management systems. These initiatives are helping increase milk production capacity within the country.

At the same time, the government ensures that high-quality milk powder imports remain available to meet domestic demand. This balanced approach helps maintain price stability and consistent product availability across the market.

Challenges in the Saudi Arabia Milk Powder Market

Intense Competition from Local and Global Brands

The Saudi milk powder market is highly competitive, with both domestic dairy companies and international brands competing for market share.

Local producers benefit from strong consumer trust and a deep understanding of regional preferences. They often offer products tailored specifically to local tastes and dietary habits.

International brands, however, bring advanced manufacturing technologies, strong global brand recognition, and extensive research capabilities. These companies frequently introduce innovative products such as fortified milk powders, organic varieties, and specialized infant formulas.

As competition intensifies, companies are investing more heavily in marketing campaigns, packaging innovations, and product diversification to attract consumers and maintain brand loyalty.

Health and Dietary Shifts Toward Plant-Based Alternatives

Another emerging challenge for traditional milk powder producers is the growing popularity of plant-based diets. Increasing health awareness among consumers has led many individuals to explore dairy alternatives such as almond milk, soy milk, oat milk, and coconut milk.

These alternatives are often marketed as lactose-free, cholesterol-free, and environmentally sustainable options. As a result, some health-conscious consumers are reducing their intake of traditional dairy products.

Although plant-based milk alternatives currently represent a smaller share of the market, their rising popularity may influence future demand patterns.

To remain competitive, many dairy companies are introducing lactose-free milk powders and fortified dairy products designed to meet the evolving needs of health-conscious consumers.

Whole Milk Powder vs. Skimmed Milk Powder Demand

Whole milk powder (WMP) continues to dominate the Saudi Arabia milk powder market due to its rich taste, creamy texture, and versatility in cooking. It is widely used in beverages, bakery products, desserts, and traditional dishes.

Consumers often prefer whole milk powder because it closely resembles fresh milk in flavor and texture. Its longer shelf life also makes it a practical household staple.

On the other hand, skimmed milk powder (SMP) is gaining popularity among health-conscious consumers. Because it contains lower fat content, it is often used in nutritional foods, dietary products, and infant formula manufacturing.

As awareness about healthy eating grows, the demand for skimmed milk powder is expected to increase steadily in the coming years.

Government Policies Regulating Dairy Imports

Saudi Arabia maintains strict regulatory policies for dairy imports to ensure product safety and quality. The Saudi Food and Drug Authority (SFDA) oversees the import and distribution of dairy products, including milk powder.

Imported products must comply with strict documentation requirements such as:

Halal certification

Health certificates

Certificates of origin

Compliance with Saudi food safety standards

Additionally, dairy products must feature bilingual labeling in both Arabic and English. Labels must clearly display ingredients, nutritional information, and expiration dates.

Import tariffs may also apply depending on domestic production levels. In some cases, tariffs can reach up to 40 percent to protect local dairy industries.

Cold chain logistics are another critical requirement due to Saudi Arabia’s hot climate. Maintaining proper temperature conditions throughout storage and transportation ensures product quality and safety.

Leading Milk Powder Brands in Saudi Arabia

Several well-established brands dominate the Saudi milk powder market.

Almarai

Almarai is one of the most recognized dairy companies in the Middle East. The brand is widely trusted for its high-quality dairy products, including full cream milk powder and infant formula.

Nido (Nestlé)

Nestlé’s Nido brand is extremely popular among Saudi families. Its fortified milk powder products cater to children and adults, offering balanced nutrition and convenience.

Safi

Safi is a local dairy brand that produces affordable and nutritious milk powder products. Its strong distribution network helps it reach a wide range of consumers across the country.

Anchor (Fonterra)

Anchor, produced by New Zealand dairy giant Fonterra, is known for premium quality milk powders and infant nutrition products.

Al Safi Danone

This joint venture between Al Safi and Danone focuses on high-quality dairy products and nutritional innovations, contributing significantly to the Saudi dairy sector.

These companies continue to invest in product innovation, marketing, and distribution networks to maintain strong market positions.

Market Segmentation

By Type

Whole Milk Powder

Skimmed Milk Powder

Dairy Whitener

Buttermilk Powder

Fat-Filled Milk Powder

Others

By Application

Nutritional Food

Infant Formulas

Confectionery Products

Baked Sweets

Savories

Others

Company Analysis

The Saudi Arabia milk powder market features several important companies that contribute to industry growth.

Key players include:

Almarai Company

Rabouh Al Hofuf Establishment

M.M. Siddique Abdullah Trading Establishment

Gulf Dimensions Trading Establishment

AL-Juffaily for Trading

Shatha Abeer Ltd.

Riyadh Dairy Products Factory

These companies are analyzed based on three major perspectives: company overview, recent developments, and revenue performance.

Final Thoughts

The Saudi Arabia milk powder market is poised for sustained growth over the coming decade. With rising demand for infant nutrition, expanding retail networks, and strong government support for food security, the industry continues to evolve rapidly.

While competition and changing dietary preferences present challenges, the overall outlook remains positive. Companies that focus on product innovation, nutritional value, and supply chain efficiency are likely to thrive in the expanding dairy landscape.

As Saudi Arabia continues its economic transformation under Vision 2030, the milk powder market will remain an essential component of the country’s food and nutrition ecosystem.