Middle East & Africa’s dairy ingredients market to hit USD 8.72B by 2030, driven by growing population and rising demand for fortified nutrition.
The MEA region, while historically reliant on imported dairy products due to limited domestic production, has been gradually increasing its participation in the global dairy value chain. This includes local processing and repackaging of imported raw materials, as well as small-scale dairy farming initiatives aimed at improving self-sufficiency, particularly in North African countries like Morocco and Tunisia, and in East African nations like Kenya and Ethiopia. Conversely, export activities within the region remain modest but are growing, particularly from South Africa and Kenya, where local production and processing facilities are comparatively more developed. Raw material availability in MEA remains a key challenge due to climatic and infrastructural constraints. Arid and semi-arid environments limit the growth of pastureland and fodder, which are essential for dairy farming. Production capacities across MEA vary significantly by region and economic stability. For example, South Africa boasts a relatively mature dairy industry with established production, processing, and distribution systems, while countries facing political instability or economic hardship, such as Sudan or parts of the Sahel region, show limited development in this sector. In terms of certifications and regulatory restrictions, there is a growing emphasis on compliance with international quality and safety standards. Countries like the UAE and Saudi Arabia enforce strict food safety regulations, requiring dairy ingredients to meet standards such as ISO, HACCP, and Halal certifications. Regulatory harmonization remains a work in progress across the region, with some countries adopting more lenient standards due to lack of resources or institutional frameworks. Nonetheless, regional organizations and trade blocs such as the Gulf Cooperation Council (GCC), the African Continental Free Trade Area (AfCFTA), and COMESA are making efforts to streamline regulatory practices to facilitate trade and investment in the dairy sector. According to the research report "Middle East and Africa Dairy Ingredients Market Research Report, 2030," published by Actual Market Research, the Middle East and Africa Dairy Ingredients market is expected to reach a market size of more than USD 8.72 Billion by 2030. The population in the region is expanding rapidly, especially in sub-Saharan Africa, where high birth rates and urbanization are increasing the demand for convenient, shelf-stable, and nutritious food products. Rising income levels and changing lifestyles in urban centers across the Gulf countries and North Africa are driving a shift toward protein-rich and health-conscious diets, where dairy ingredients play a crucial role. Additionally, government support for agricultural modernization, food security initiatives, and private sector partnerships are fostering local dairy production, particularly in countries like Saudi Arabia, Kenya, and South Africa, helping to build regional supply chains. Consumers are showing increasing preference for products that are not only convenient but also offer functional benefits, such as high-protein or low-lactose options, which is spurring demand for specialized dairy ingredients. The influence of Western dietary habits and an expanding young population are further contributing to the diversification of consumption patterns. Online retail and improved cold chain logistics are also making dairy-based products more accessible to broader segments of the population, reinforcing market expansion. However, despite this positive trajectory, environmental regulations are beginning to exert a more pronounced impact on raw material sourcing and overall supply chain strategies. Water scarcity, land degradation, and carbon emission concerns are prompting both governments and companies to adopt more sustainable practices in dairy farming and processing. Dairy ingredient manufacturers in the MEA region must align with global environmental standards and certifications to maintain trade competitiveness and meet consumer expectations. Moreover, climate change poses a long-term risk to feed production and herd health, making it critical for the industry to invest in climate-resilient practices and alternative sourcing strategies.
Click Here to Download this information in a PDF
Asia-Pacific dominates the market and is the largest and fastest-growing market in the animal growth promoters industry globally
Download SampleMarket Drivers • Increasing Demand for Dairy-Based Nutrition and Infant Formula: The Middle East and Africa region is witnessing a rising demand for dairy ingredients driven largely by population growth and increasing urbanization. Infant formula and fortified dairy nutrition products are particularly popular, fueled by growing awareness of child nutrition among middle-class consumers. Countries like Saudi Arabia, the UAE, South Africa, and Nigeria show strong growth in these segments, pushing the need for high-quality milk powders, whey proteins, and other dairy components. • Growing Processed Food and Bakery Industry: The expansion of the processed food and bakery sectors in MEA is another key driver. As lifestyles become more urbanized and consumers seek convenience foods, demand for dairy ingredients such as butter, cheese, milk powders, and cream used in baked goods, snacks, and ready-to-eat meals is increasing. This is especially notable in countries with growing retail and foodservice sectors. Market Challenges • Dependence on Dairy Imports and Limited Local Production: A significant challenge in the MEA region is its heavy dependence on imports for dairy ingredients. Harsh climatic conditions and limited arable land restrict large-scale dairy farming in many countries, leading to reliance on imported milk powders and whey products. This dependence makes the market vulnerable to international price fluctuations, supply chain disruptions, and geopolitical factors. • High Costs and Infrastructure Gaps: The dairy ingredient supply chain in MEA faces issues related to cold storage infrastructure and refrigerated logistics. High transportation and storage costs, combined with limited processing facilities in some countries, hinder efficient distribution and add to the overall cost of dairy ingredients. These challenges can affect affordability and availability in remote or less developed areas. Market Trends • Increasing Adoption of Fortified and Functional Dairy Ingredients: There is a growing trend towards fortified dairy ingredients enriched with vitamins, minerals, and probiotics in the MEA region. Consumers are increasingly looking for health-enhancing food products to support immunity and overall wellness, especially post-pandemic. This trend is pushing manufacturers to innovate with functional dairy components for use in beverages, infant formula, and clinical nutrition. • Investment in Local Dairy Processing and Supply Chain Development: To reduce dependency on imports, several countries in the MEA region are investing in developing local dairy processing capabilities. Governments and private players are setting up new processing plants, improving cold storage infrastructure, and promoting local dairy farming through subsidies and technology adoption. This trend aims to build more resilient supply chains and support regional self-sufficiency in dairy ingredients.
By Type (Ingredient Type) | Milk Powder | |
Whey Ingredients | ||
Lactose | ||
Casein and Caseinates | ||
Milk Protein Concentrates/Isolates (MPC/MPI) | ||
Other Ingredients | ||
By Application | Bakery & Confectionery | |
Infant Formula | ||
Sports & Clinical Nutrition | ||
Dairy Products | ||
Convenience Foods | ||
Others | ||
By Source | Milk-Based Ingredients | |
Whey-Based Ingredients | ||
By Form | Dry | |
Liquid | ||
MEA | United Arab Emirates | |
Saudi Arabia | ||
South Africa |
Milk Protein Concentrates and Isolates (MPC/MPI) are moderately growing in the MEA dairy ingredients industry due to increasing demand for high-protein, clean-label, and functional dairy products driven by rising health awareness and evolving consumer preferences. The moderate growth of Milk Protein Concentrates (MPC) and Milk Protein Isolates (MPI) in the Middle East and Africa (MEA) dairy ingredients market is primarily fueled by a shift in consumer behavior towards healthier and more nutritious food options. Consumers in the region are increasingly seeking products that offer higher protein content, better nutritional profiles, and functional benefits, such as muscle recovery, weight management, and improved satiety. This is particularly evident among younger demographics and urban populations who are becoming more health-conscious, influenced by global wellness trends. Additionally, the rise of sports nutrition, dietary supplements, and special dietary needs (like lactose intolerance or allergen-free foods) is pushing manufacturers to incorporate MPC/MPI into a broader range of dairy and non-dairy applications. Moreover, the demand for clean-label products—those with fewer artificial additives and more natural ingredients—is growing rapidly in MEA markets. MPC and MPI, being minimally processed and derived directly from milk, align well with this trend, allowing brands to market their products as both natural and protein-rich. This appeal is supported by increasing awareness among consumers about the benefits of milk proteins in boosting immunity and supporting overall health, which resonates strongly in regions where nutrition-related health concerns are rising. Countries such as the UAE, Saudi Arabia, and South Africa are investing heavily in modern dairy production facilities and ingredient processing technologies, enabling local producers to incorporate high-quality milk proteins into value-added dairy products like yogurt, cheese, infant formula, and nutritional beverages. Convenience foods application is moderately growing in the MEA dairy ingredients industry due to the rising urbanization, changing lifestyles, and increasing demand for quick, easy-to-prepare, and ready-to-eat dairy-based products among busy consumers. The moderate growth of convenience foods as an application segment within the MEA dairy ingredients industry is closely linked to significant socio-economic and demographic changes occurring across the region. Urbanization is accelerating rapidly, leading to an expanding urban middle class with evolving consumer lifestyles characterized by busier schedules and a greater need for time-saving food solutions. As more people, particularly working professionals and young families, seek foods that are easy to prepare or ready to eat, the demand for convenience dairy products such as flavored yogurts, cheese snacks, dairy-based desserts, and ready-to-use dairy ingredients has increased. This shift is driving dairy manufacturers and ingredient suppliers to innovate and cater to convenience-focused offerings that align with consumers’ on-the-go lifestyles. In MEA countries, where dual-income households are becoming more common and women’s participation in the workforce is rising, the need for convenient yet nutritious food options is more pronounced. Dairy ingredients that enhance the texture, taste, and shelf life of convenience foods are becoming increasingly valuable in product formulation. Moreover, the growing penetration of modern retail outlets, supermarkets, and convenience stores across urban and suburban areas is facilitating easier access to a wide range of convenient dairy products, thereby boosting consumer uptake. The dairy industry in the MEA region is responding by incorporating dairy ingredients that support clean-label claims, longer shelf life, and easy preparation, meeting the expectations of both health-conscious and time-poor consumers. Milk-based ingredients dominate the MEA dairy ingredients industry because they are locally accessible, culturally preferred, and integral to traditional diets, supported by a strong dairy farming sector and growing regional production capabilities. The dominance of milk-based ingredients as the leading source type in the MEA dairy ingredients industry stems from a combination of cultural, economic, and agricultural factors deeply embedded in the region’s food system. Milk and its derivatives have been a cornerstone of traditional diets across Middle Eastern and African countries for centuries, making milk-based ingredients naturally preferred by consumers and food manufacturers alike. The region’s longstanding dairy consumption habits, which include products like fresh milk, yogurt, cheese, and laban (fermented milk drinks), create a strong foundation for demand that consistently drives the market for milk-derived ingredients. Nations such as Egypt, Sudan, Morocco, and South Africa have substantial dairy farming sectors that supply raw milk to processors, reducing reliance on imported dairy ingredients and supporting domestic industry growth. This local sourcing of milk-based ingredients also appeals to consumers and manufacturers who prioritize freshness, traceability, and product authenticity. Moreover, milk-based ingredients offer versatility and functional benefits that align well with a wide variety of food applications prevalent in the MEA market—from traditional dairy products to bakery, confectionery, and processed foods. Their nutritional profile, rich in proteins, calcium, and other essential nutrients, meets the region’s increasing consumer demand for wholesome and nutrient-dense foods amid growing health awareness. The cultural importance of milk in everyday meals, religious traditions, and hospitality further solidifies its role as a fundamental ingredient source. Dry form dairy ingredients lead the MEA market due to their extended shelf life, easier transportation and storage, and suitability for the region’s warm climate and growing industrial food production. The prominence of dry form dairy ingredients in the MEA dairy ingredients industry is fundamentally driven by practical, logistical, and economic factors that perfectly align with the region’s unique climate conditions, infrastructure challenges, and market needs. The Middle East and Africa experience generally warm to hot climates, which pose significant challenges for the storage and preservation of fresh and liquid dairy ingredients. Dry forms, such as milk powders, whey powders, and protein concentrates in powdered form, offer a stable, shelf-stable alternative that can withstand the region’s high temperatures without requiring continuous refrigeration. This makes dry dairy ingredients highly attractive for both manufacturers and distributors as they reduce spoilage risks and minimize reliance on costly cold-chain logistics, which can be underdeveloped or inconsistent in many parts of MEA. Transportation and storage efficiencies also make dry forms particularly well-suited to the MEA market. The powdered ingredients are lighter, occupy less volume, and have lower moisture content, leading to reduced freight costs and simplified handling compared to liquid dairy products. This efficiency benefits both local producers and importers, helping to bridge supply-demand gaps in areas where local dairy production is insufficient or seasonal. Given the region’s vast geographic spread and varying levels of infrastructure development, dry dairy ingredients facilitate wider distribution across urban and rural areas alike. Furthermore, the expanding food and beverage processing industry in the MEA relies heavily on dry dairy ingredients due to their versatility and ease of integration into various formulations. Powdered milk, whey protein, and milk protein concentrates are key inputs in a diverse range of products such as bakery items, confectionery, infant formula, nutritional supplements, and ready-to-eat meals which are growing in popularity as consumer preferences shift towards convenience and nutrition.
Click Here to Download this information in a PDF
Saudi Arabia is the largest player in the Middle East and Africa dairy ingredients industry due to its significant investments in dairy infrastructure, strong domestic demand, and role as a regional hub for dairy production and distribution. Saudi Arabia leads the Middle East and Africa (MEA) dairy ingredients industry largely because of its strategic investments in advanced dairy farming and processing capabilities, which have transformed the country into a major player in a region otherwise challenged by harsh climatic conditions and limited agricultural resources. Despite its desert environment, Saudi Arabia has built a highly efficient, technologically driven dairy sector supported by substantial government backing and private sector innovation. Leading dairy companies like Almarai have developed vertically integrated operations that control every aspect of the supply chain—from feed and dairy farms to processing and distribution—allowing for consistent, high-volume production of dairy ingredients such as milk powders, butterfat products, casein, and whey proteins. This infrastructure supports both domestic consumption and export to neighboring Gulf and African markets. A growing population, increasing urbanization, and rising income levels have fueled strong internal demand for dairy-based products such as yogurt, milk beverages, desserts, and infant nutrition, which in turn drives industrial demand for dairy ingredients. The country’s youthful demographic and shifting dietary habits, with a growing focus on health, wellness, and protein-enriched foods, have further intensified the demand for functional dairy ingredients in food and beverage manufacturing. Moreover, Saudi Arabia serves as a key distribution hub in the MEA region due to its well-developed logistics and strategic location, facilitating exports of dairy ingredients to markets across the Gulf Cooperation Council (GCC) countries and parts of North and East Africa. Government policies under Vision 2030 have prioritized food security and domestic food production, leading to continued investments in dairy technology, innovation, and sustainability, including efforts to reduce water usage and improve feed efficiency.
Click Here to Download this information in a PDF
We are friendly and approachable, give us a call.