Middle East & Africa Dairy Alternative Market Research Report, 2030

The Middle East and Africa Dairy Alternatives Market is segmented into By Source (Soy, Almond, Coconut, Rice, Oats, Others); By Product (Milk, Yogurt, Cheese, Ice Cream, Creamer, Others); By Formulation (Flavored, Plain); By Distribution Channel (Supermarket & Hypermarkets, Convenience Stores, Online Retail, Others).

Middle East & Africa dairy alternatives market to grow at 9.28% CAGR, driven by evolving dietary habits and growing demand for plant-based nutrition.

Dairy Alternative Market Analysis

The Middle East and Africa (MEA) dairy alternatives market has been experiencing a steady transformation in recent years, driven by evolving consumer preferences, health concerns, dietary restrictions, and environmental considerations. Several significant developments occurred in the market, including Saudia's launch of the first locally produced oat milk in the UAE and Tres Marias' introduction of a new range of plant-based dairy products across the Middle East. Additionally, Koita has demonstrated remarkable market penetration by expanding its distribution network to over 500 F&B outlets across the UAE, including prestigious establishments like the Ritz Carlton and The Four Seasons, indicating growing mainstream acceptance of dairy alternatives. Manufacturers are responding to this trend by developing products with clean labels, such as organic, allergen-free, and no-added-sugar variants. The industry has seen a particular focus on innovative ingredients and functional formulations, with manufacturers working with new sustainable crops to produce nutritious alternative protein options to traditional dairy products. This shift is particularly evident in the premium segment, where brands are emphasizing environmental credentials alongside health benefits, appealing to the growing vegan food segment. Countries like the UAE are investing in local production facilities, while African countries are exploring regional agricultural inputs to reduce dependency. Raw material availability is a critical concern, particularly in arid parts of the Middle East where water-intensive crops like almonds and oats are not viable. However, alternatives like coconut (grown in East Africa) and soy (in countries like Nigeria and Ghana) offer some promise for regional production. The MEA market also sees competition from traditional dairy products and substitutes like camel milk in the Middle East or fermented milk beverages in Africa, which are perceived as healthier and more accessible. According to the research report "Middle East and Africa Dairy Alternatives Market Research Report, 2030," published by Actual Market Research, the Middle East and Africa Dairy Alternatives market is anticipated to grow at more than 9.28% CAGR from 2025 to 2030. Culturally, there has been a slow but steady acceptance of dairy alternatives, especially in urban centers where global trends influence local behaviors. The influence of Western food culture through digital media, international travel, and the presence of multinational food brands has exposed consumers to a wider variety of food choices. In the Middle East, particularly in the Gulf countries such as the UAE, Saudi Arabia, and Qatar, there is a strong uptake of dairy alternatives, driven by affluent, health-conscious consumers who are increasingly aware of the links between diet and chronic health conditions such as obesity and diabetes. In Africa, South Africa stands out as a leading market for plant-based products, reflecting a growing middle class and openness to dietary experimentation among younger demographics. Consumers are becoming more discerning, seeking products that not only align with their health goals but also meet ethical and environmental standards. As sustainability becomes a global concern, plant-based alternatives are being embraced not just for their perceived health benefits but also for their lower environmental impact compared to traditional dairy. This shift is particularly important in the resource-scarce Middle East, where water usage and food security are key issues. Additionally, religious practices and fasting periods, especially during times like Ramadan, have led consumers to seek light, plant-based beverages and meals, further supporting the market's growth. Urban dwellers often have better access to modern retail channels such as supermarkets and health food stores, where dairy-free products are more readily available. They are also more likely to be influenced by global health trends, including plant-based diets. This urban migration is particularly notable in rapidly growing cities across Africa and the Middle East, where young, tech-savvy populations are shaping future consumption patterns.

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Market Dynamic

Market DriversPopulation Growth and Urbanization: The MEA region is experiencing rapid population growth, especially in countries like Egypt, Nigeria, Saudi Arabia, and the UAE. Urbanization is also accelerating, leading to lifestyle changes and a growing demand for convenient, packaged, and nutritious foods. Dairy ingredients—such as milk powder, whey proteins, and dairy fats—are essential components in infant nutrition, bakery, confectionery, and ready-to-eat products, driving increased consumption across both emerging and developed parts of the region. • Increasing Government Support for Local Dairy Development: Several governments in the region are actively investing in domestic dairy production to reduce dependence on imports and enhance food security. Countries like Saudi Arabia and the UAE have launched large-scale dairy farming and processing projects, while others in Africa are receiving international aid and private investment to build dairy cooperatives and processing units. These efforts are boosting the supply and use of dairy ingredients in local food industries, especially in value-added product categories. Market ChallengesHarsh Climatic Conditions and Limited Agricultural Resources: Many parts of the MEA region, particularly the Middle East and arid regions of Africa, face water scarcity, high temperatures, and limited arable land, making large-scale dairy farming and milk production difficult. This leads to high reliance on imported dairy ingredients, exposing the region to global price volatility and supply disruptions. The lack of consistent local milk production also limits the ability to develop a fully integrated dairy ingredients supply chain. • Affordability and Income Disparities: In several African countries, low income levels and high food costs make dairy products less accessible to large segments of the population. Even in wealthier Middle Eastern countries, premium or functional dairy products may be limited to higher-income consumers. This affordability gap affects the overall market potential for specialized or high-value dairy ingredients like whey protein isolate or dairy-based nutraceuticals. Market TrendsStrong Growth in Infant Formula and Nutritional Products: With high birth rates in Africa and increasing awareness of child nutrition in the Middle East, the demand for infant formula and pediatric nutrition products is rising steadily. Dairy ingredients such as demineralized whey, lactose, and milk protein concentrates are key components in these products. International and regional manufacturers are expanding their presence in this segment, recognizing the long-term growth potential. • Rising Adoption of Clean-Label and Halal-Certified Ingredients: Consumers in the region, particularly in the Middle East, are placing growing importance on ingredient transparency and religious dietary compliance. There is increasing demand for dairy ingredients that are Halal-certified, non-GMO, and free from artificial additives. This trend is encouraging local and global dairy ingredient suppliers to adapt their formulations and labeling practices to meet religious and cultural preferences, as well as rising consumer awareness around food safety and health.

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Dairy Alternative Segmentation

By Source Soy
Almond
Coconut
Rice
Oats
Others
By Product Milk
Yogurt
Cheese
Ice Cream
Creamer
Others
By Formulation Flavored
Plain
By Distribution Channel Supermarket & Hypermarkets
Convenience Stores
Online retail
Others
MEAUnited Arab Emirates
Saudi Arabia
South Africa

Rice-based dairy alternatives are experiencing moderate growth in the Middle East and Africa due to limited consumer familiarity and relatively lower nutritional appeal compared to other plant-based options like almond, soy, and oat. Rice-based dairy alternatives are growing at a moderate pace, primarily because of consumer preferences shaped by cultural familiarity, nutritional expectations, and economic considerations. Unlike soy or almond milk, which have been more heavily marketed and adopted in global wellness trends, rice milk lacks a strong consumer identity in this region. Many consumers remain unfamiliar with rice milk as a viable alternative to traditional dairy, and in markets where awareness is growing, rice milk often struggles to stand out due to its perceived lower protein content and watery texture. This is particularly relevant in regions where dietary protein is a major concern due to widespread nutritional deficiencies or where consumers actively seek out dairy alternatives that closely mimic the taste and nutritional profile of cow’s milk. Moreover, rice milk is naturally high in carbohydrates and sugars, which makes it less appealing to health-conscious consumers or those managing conditions like diabetes—a growing health concern in the Middle East. Additionally, in markets like the Gulf Cooperation Council (GCC) countries, premium plant-based products tend to attract more affluent consumers who often gravitate towards more nutrient-dense and trendy options such as almond and oat milk, which are marketed as superior in both health benefits and taste. On the African continent, the moderate pace of rice milk’s growth can also be attributed to infrastructure and agricultural limitations. Rice production in many African countries is not as industrialized or efficient as in Asia, making rice milk either expensive to produce locally or reliant on imports, which raises costs and reduces accessibility. Furthermore, the dairy alternatives market itself is still emerging in much of Africa, with many consumers only beginning to explore options beyond traditional animal milk or local plant-based drinks like tigernut or millet-based beverages. This limits the market space and shelf presence for rice milk. Creamer products in the Middle East and Africa dairy alternatives industry are experiencing moderate growth due to limited consumer awareness and the preference for traditional dairy cream in culturally entrenched culinary practices. The moderate growth of creamer products within the dairy alternatives sector in the Middle East and Africa is primarily influenced by the deep-rooted cultural attachment to traditional dairy cream and a general lack of widespread consumer awareness about plant-based creamer options. In many parts of the Middle East and Africa, dairy cream plays a significant role not only in everyday cooking and beverages like coffee and tea but also in ceremonial and festive dishes, where its taste, texture, and richness are highly valued. This cultural preference for animal-derived cream makes it challenging for plant-based creamers to gain rapid traction, as consumers often perceive these alternatives as inferior in flavor and mouthfeel. Moreover, the dairy industry in these regions has historically been strong and well-established, with local dairy farming providing fresh cream that is both accessible and affordable, particularly in rural and semi-urban areas. This availability reduces the immediate necessity for alternative creamers in households and the foodservice sector. Additionally, the plant-based creamer market is relatively nascent and underdeveloped in these regions, with limited product variety, distribution channels, and targeted marketing strategies to educate consumers on the benefits and uses of dairy-free creamers. Many consumers, especially older generations, are unfamiliar with how to incorporate these products into their cooking or daily routines, which slows adoption rates. In the Middle East, the coffee culture is booming, yet many cafes and consumers still favor traditional dairy cream due to its richer taste and the perception that it better complements Arabic coffee or tea. Similarly, in Africa, while urban populations are beginning to explore plant-based lifestyles and healthier alternatives, the bulk of the population remains reliant on traditional dairy products, partly due to cost factors, supply chain limitations, and ingrained dietary habits. Plain formulations dominate the Middle East and Africa dairy alternatives market because of consumer preference for versatile, neutral-tasting products that can be easily incorporated into a wide range of traditional dishes and beverages. Plain formulations hold the largest share in the dairy alternatives industry primarily due to their versatility and alignment with regional dietary habits. Consumers in these regions often seek neutral-flavored dairy alternatives that can seamlessly replace traditional milk in a variety of culinary applications, from cooking and baking to beverages like tea and coffee. Plain dairy alternatives provide a blank canvas that allows users to customize their taste and integrate the product into culturally significant recipes without altering the familiar flavors. This adaptability is crucial in markets where food culture is deeply embedded and diverse, and consumers tend to prepare meals that rely on traditional flavor profiles. Unlike flavored or sweetened dairy alternatives, which might not suit local tastes or could clash with the spices and ingredients commonly used in Middle Eastern and African cuisines, plain formulations offer a simple and functional option that caters to a broad audience. Furthermore, the growing health awareness in the region has driven consumers to prefer plain, minimally processed foods with no added sugars or artificial flavorings, aligning well with plain dairy alternatives. Many consumers associate plain formulations with being healthier and more natural, which resonates with rising concerns about sugar intake and dietary wellness, especially as conditions such as diabetes and obesity are becoming more prevalent in parts of the Middle East and Africa. Economically, plain dairy alternatives often cost less to produce and purchase compared to specialty or flavored variants, making them more accessible in price-sensitive markets. Additionally, the retail infrastructure in these regions, which is still developing for plant-based products, favors simpler, staple-like offerings that can be stocked and sold consistently without the risk of limited appeal that more niche flavored options might face. Supermarkets and hypermarkets dominate the dairy alternatives distribution channel in the Middle East and Africa due to their extensive reach, wide product variety, and growing consumer preference for one-stop shopping experiences. In the Middle East and Africa, supermarkets and hypermarkets have emerged as the largest distribution channel for dairy alternatives, driven by their ability to provide a broad assortment of products under one roof, making them highly convenient and appealing to consumers seeking plant-based dairy options. These retail formats have been rapidly expanding across urban and suburban areas, benefiting from increasing urbanization, rising middle-class populations, and changing consumer lifestyles that favor organized retail over traditional markets. Unlike small grocery stores or open-air markets, supermarkets and hypermarkets offer a clean, climate-controlled environment with reliable supply chains, which is especially important for the storage and preservation of perishable dairy alternatives. This ensures product freshness and consistent availability, which are critical factors for consumers trying new or niche items such as plant-based milk, creamers, and yogurts. Moreover, supermarkets and hypermarkets typically stock a wider range of dairy alternative brands and formulations, including plain, flavored, organic, and specialty products, catering to the diverse tastes and dietary needs of the region’s multicultural population. This variety encourages consumers to explore and adopt dairy alternatives at their own pace. Another key driver is the modern shopping experience that these channels offer, including attractive product displays, promotional offers, and sampling opportunities that help build consumer awareness and trial of dairy alternatives. In contrast, traditional channels like small retailers, convenience stores, or local markets often have limited shelf space and lower product variety, restricting consumer choices. Furthermore, supermarkets and hypermarkets often operate within international retail chains or local conglomerates that are increasingly focusing on expanding their plant-based and health food sections to meet the rising demand among younger, health-conscious, and expatriate consumers in the Middle East and Africa.

Dairy Alternative Market Regional Insights

South Africa is leading the Middle East and Africa dairy alternative industry due to its growing urban middle class, increasing lactose intolerance, and expanding awareness of health, sustainability, and ethical food choices. South Africa’s leading position in the Middle East and Africa dairy alternative industry is the result of a confluence of demographic, health, and socio-economic trends that have reshaped consumer behavior and market dynamics. A significant portion of the South African population is lactose intolerant, particularly among Black African communities, creating a strong natural demand for non-dairy alternatives. This biological factor, combined with a growing awareness of the health risks associated with traditional dairy—such as high saturated fat content, hormone use, and potential allergenicity—has driven many consumers to explore plant-based options like soy, oat, almond, rice, and coconut milk. At the same time, South Africa’s urban population is rapidly expanding, and with it, a more educated, health-conscious middle class has emerged. These consumers are actively seeking products that align with wellness trends, including low-cholesterol, low-sugar, and digestive-friendly alternatives. The rise of lifestyle-related diseases such as obesity, diabetes, and hypertension has further fueled demand for healthier food and beverage choices, pushing dairy alternatives into the mainstream. Parallel to health motivations, ethical and environmental concerns are increasingly influencing food choices. Issues like climate change, animal welfare, and resource conservation are becoming more prominent in public discourse, particularly among younger South Africans who are more globally connected through social media and digital platforms. This shift is encouraging plant-based diets not just for personal well-being, but also as a sustainable lifestyle choice.

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Companies Mentioned

  • Danone SA
  • Archer-Daniels-Midland Company
  • Juhayna Food Industries
  • DSM-Firmenich AG

Table of Contents

  • 1. Executive Summary
  • 2. Market Dynamics
  • 2.1. Market Drivers & Opportunities
  • 2.2. Market Restraints & Challenges
  • 2.3. Market Trends
  • 2.3.1. XXXX
  • 2.3.2. XXXX
  • 2.3.3. XXXX
  • 2.3.4. XXXX
  • 2.3.5. XXXX
  • 2.4. Supply chain Analysis
  • 2.5. Policy & Regulatory Framework
  • 2.6. Industry Experts Views
  • 3. Research Methodology
  • 3.1. Secondary Research
  • 3.2. Primary Data Collection
  • 3.3. Market Formation & Validation
  • 3.4. Report Writing, Quality Check & Delivery
  • 4. Market Structure
  • 4.1. Market Considerate
  • 4.2. Assumptions
  • 4.3. Limitations
  • 4.4. Abbreviations
  • 4.5. Sources
  • 4.6. Definitions
  • 5. Economic /Demographic Snapshot
  • 6. Middle East & Africa Dairy Alternatives Market Outlook
  • 6.1. Market Size By Value
  • 6.2. Market Share By Country
  • 6.3. Market Size and Forecast, By Source
  • 6.4. Market Size and Forecast, By Product
  • 6.5. Market Size and Forecast, By Formulation
  • 6.6. Market Size and Forecast, By Distribution Channel
  • 6.7. United Arab Emirates (UAE) Dairy Alternatives Market Outlook
  • 6.7.1. Market Size by Value
  • 6.7.2. Market Size and Forecast By Source
  • 6.7.3. Market Size and Forecast By Product
  • 6.7.4. Market Size and Forecast By Distribution Channel
  • 6.8. Saudi Arabia Dairy Alternatives Market Outlook
  • 6.8.1. Market Size by Value
  • 6.8.2. Market Size and Forecast By Source
  • 6.8.3. Market Size and Forecast By Product
  • 6.8.4. Market Size and Forecast By Distribution Channel
  • 6.9. South Africa Dairy Alternatives Market Outlook
  • 6.9.1. Market Size by Value
  • 6.9.2. Market Size and Forecast By Source
  • 6.9.3. Market Size and Forecast By Product
  • 6.9.4. Market Size and Forecast By Distribution Channel
  • 7. Competitive Landscape
  • 7.1. Competitive Dashboard
  • 7.2. Business Strategies Adopted by Key Players
  • 7.3. Key Players Market Positioning Matrix
  • 7.4. Porter's Five Forces
  • 7.5. Company Profile
  • 7.5.1. Danone SA
  • 7.5.1.1. Company Snapshot
  • 7.5.1.2. Company Overview
  • 7.5.1.3. Financial Highlights
  • 7.5.1.4. Geographic Insights
  • 7.5.1.5. Business Segment & Performance
  • 7.5.1.6. Product Portfolio
  • 7.5.1.7. Key Executives
  • 7.5.1.8. Strategic Moves & Developments
  • 7.5.2. DSM-Firmenich AG
  • 7.5.3. Archer-Daniels-Midland Company
  • 7.5.4. Juhayna Food Industries
  • 8. Strategic Recommendations
  • 9. Annexure
  • 9.1. FAQ`s
  • 9.2. Notes
  • 9.3. Related Reports
  • 10. Disclaimer

Table 1: Global Dairy Alternatives Market Snapshot, By Segmentation (2024 & 2030) (in USD Billion)
Table 2: Influencing Factors for Dairy Alternatives Market, 2024
Table 3: Top 10 Counties Economic Snapshot 2022
Table 4: Economic Snapshot of Other Prominent Countries 2022
Table 5: Average Exchange Rates for Converting Foreign Currencies into U.S. Dollars
Table 6: Middle East & Africa Dairy Alternatives Market Size and Forecast, By Source (2019 to 2030F) (In USD Billion)
Table 7: Middle East & Africa Dairy Alternatives Market Size and Forecast, By Product (2019 to 2030F) (In USD Billion)
Table 8: Middle East & Africa Dairy Alternatives Market Size and Forecast, By Formulation (2019 to 2030F) (In USD Billion)
Table 9: Middle East & Africa Dairy Alternatives Market Size and Forecast, By Distribution Channel (2019 to 2030F) (In USD Billion)
Table 10: United Arab Emirates (UAE) Dairy Alternatives Market Size and Forecast By Source (2019 to 2030F) (In USD Billion)
Table 11: United Arab Emirates (UAE) Dairy Alternatives Market Size and Forecast By Product (2019 to 2030F) (In USD Billion)
Table 12: United Arab Emirates (UAE) Dairy Alternatives Market Size and Forecast By Distribution Channel (2019 to 2030F) (In USD Billion)
Table 13: Saudi Arabia Dairy Alternatives Market Size and Forecast By Source (2019 to 2030F) (In USD Billion)
Table 14: Saudi Arabia Dairy Alternatives Market Size and Forecast By Product (2019 to 2030F) (In USD Billion)
Table 15: Saudi Arabia Dairy Alternatives Market Size and Forecast By Distribution Channel (2019 to 2030F) (In USD Billion)
Table 16: South Africa Dairy Alternatives Market Size and Forecast By Source (2019 to 2030F) (In USD Billion)
Table 17: South Africa Dairy Alternatives Market Size and Forecast By Product (2019 to 2030F) (In USD Billion)
Table 18: South Africa Dairy Alternatives Market Size and Forecast By Distribution Channel (2019 to 2030F) (In USD Billion)
Table 19: Competitive Dashboard of top 5 players, 2024

Figure 1: Global Dairy Alternatives Market Size (USD Billion) By Region, 2024 & 2030
Figure 2: Market attractiveness Index, By Region 2030
Figure 3: Market attractiveness Index, By Segment 2030
Figure 4: Middle East & Africa Dairy Alternatives Market Size By Value (2019, 2024 & 2030F) (in USD Billion)
Figure 5: Middle East & Africa Dairy Alternatives Market Share By Country (2024)
Figure 6: United Arab Emirates (UAE) Dairy Alternatives Market Size By Value (2019, 2024 & 2030F) (in USD Billion)
Figure 7: Saudi Arabia Dairy Alternatives Market Size By Value (2019, 2024 & 2030F) (in USD Billion)
Figure 8: South Africa Dairy Alternatives Market Size By Value (2019, 2024 & 2030F) (in USD Billion)
Figure 9: Porter's Five Forces of Global Dairy Alternatives Market

Dairy Alternative Market Research FAQs

Urban lifestyles and exposure to global trends are increasing demand for convenient and health-focused dairy alternatives.

Halal certification and cultural acceptance are crucial for product adoption, especially in Muslim-majority countries.

Higher prices compared to conventional dairy limit widespread adoption, especially in lower-income segments.

Innovation in taste, texture, and fortified nutrition is key to attracting more consumers and expanding the market.
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Middle East & Africa Dairy Alternative Market Research Report, 2030

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