Saudi Arabia Dairy Ingredient Market Research Report, 2030

Due to Vision 2030 and a national emphasis on food security and nutritional self-sufficiency, the dairy ingredients industry in Saudi Arabia is currently experiencing a significant shift. Dairy components, such as milk powders, whey proteins, casein, and lactose, are becoming more and more important for meeting the dietary needs of a growing and health-conscious populace as the Kingdom reduces its dependence on imports and improves its capacity for processing food domestically. In line with Vision 2030's goals of local manufacturing empowerment and economic diversification, notably in the agri-food industry, are these advancements. The initial use of dairy components in Saudi Arabia was in the processed food and baby nutrition industries, where high standards, a long shelf life, and nutritional value were crucial. These components are essential for the protein fortification, texture improvement, and lactose management of foods such as infant formula, fortified milk powders, flavored yogurts, and baked products. Given the nation's dry climate and low natural dairy production, these components help maintain high nutritional standards while also alleviating supply shortages. Major Saudi dairy manufacturers such as Almarai, Nadec, and Saudia Dairy have made significant investments in automation, spray drying, and cutting-edge fermentation techniques in response to rising demand in order to enhance the quality and efficiency of dairy component production. Fermentation techniques are producing novel probiotic and lactose-free products that cater to unique dietary requirements, while spray drying yields milk and whey powders with a longer shelf life. According to the research report, "Saudi Arabia Dairy Ingredient Market Research Report, 2030," published by Actual Market Research, the Saudi Arabia Dairy Ingredient market is anticipated to add to more than USD 470 Million by 2025–30. The majority of this expansion is a result of government programs that prioritize food security and encourage domestic production. Local farmers and agribusinesses have received significant financial and technical assistance from initiatives like the King Salman Program for Agricultural Development. The government is trying to improve the efficiency and output of dairy production by providing subsidies, low-interest loans, and access to cutting-edge agricultural methods. Companies like Arla Foods Ingredients have started campaigns to encourage dairy producers to develop novel, high-protein products in terms of product innovation. The Nutrilac® ProteinBoost line of proprietary microparticulated whey proteins, which are high in necessary amino acids, is highlighted in their 'Go High in Protein' campaign. The innovations of major Saudi Arabian providers, especially Almarai, have been aligned with local dietary needs. Fortified dairy goods are increasingly popular in response to rising health consciousness and the necessity to address nutritional inadequacies, particularly among young people, in accordance with Saudi Food and Drug Authority (SFDA) rules, which guarantee that dairy products satisfy strict safety and quality criteria.

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The market for dairy ingredients in Saudi Arabia has expanded dramatically and is now divided by type to satisfy the demands of a changing food and nutrition environment. Because of its long shelf life and portability, particularly in the dry climate of Saudi Arabia, milk powder is still the most widely utilized component. It is a crucial element in a wide range of products, including quick desserts, bakery items, and tea whiteners. Its production and domestic usage have increased as a result of government-backed dairy self-sufficiency programs. Whey components like whey protein isolate and concentrate have become increasingly popular, especially as the fitness sector and health-conscious consumers have grown. Their high bioavailability and rapid digestion make them perfect for protein bars, sports nutrition, and post-workout supplements. Whey is being used in medical nutrition products in the clinical setting to aid in muscle maintenance and rehabilitation. In the pharmaceutical and infant nutrition industries, lactose is essential as a sweetener, filler, and stabilizer. Lactose is an essential ingredient in formulas that closely resemble the makeup of breast milk because of the increasing demand for infant formula and baby food in Saudi Arabia. Due to their slow-digesting protein profile, casein and caseinates are commonly found in meal replacement shakes, processed cheese, and nutritional supplements. They are widely used in the manufacturing of processed foods because of their functional advantages, such as emulsification and water binding. The use of Milk Protein Concentrates/Isolates (MPC/MPI) is increasing in Saudi Arabia as a means of creating yogurts and dairy beverages that are high in protein and low in fat. Younger consumers who are looking for functional foods that promote their well-being are especially drawn to these components. Other ingredients, such bioactive dairy peptides and colostrum, are specialized but becoming increasingly popular, especially in infant nutrition and immune-enhancing foods. Dairy products like milk powder, whey, and caseinates are commonly employed in the bakery and confectionery industry to improve taste, color, and texture. Dairy ingredients help preserve the consistency and shelf life of baked items, pastries, and artisanal chocolates, particularly in cities like Riyadh and Jeddah, where there is an increasing demand for these Western-style treats. Rising birth rates and rising consumer expenditure on high-quality child nutrition are driving continued expansion in the market for infant formula. Lactose, milk protein isolates, whey proteins, and other dairy-derived ingredients supply the basic nutrients necessary for healthy growth and development. These components have been designed to mimic the nutritional composition of breast milk while adhering to the stringent nutritional criteria established by the SFDA. Young people and increased knowledge of fitness and well-being are driving the development of clinical nutrition and sports nutrition. Hydrolyzed casein and whey protein isolates are widely used in dietary supplements, fortified drinks, and shakes marketed to athletes and people with unique dietary needs. In this sector, they are essential because of their simple digestibility and great biological value. In the dairy products sector, milk protein concentrates and casein are essential components in the manufacture of flavored milk beverages, processed cheeses, and functional yogurts. These items are a growing component of the Kingdom's local food processing capacity and are geared toward evolving dietary choices. The use of convenience meals and dairy-based snacks is growing as a result of busy lives and a greater demand for on-the-go sustenance. In these foods, dairy components aid in protein fortification, creaminess, and texture. Dairy-derived bioactive peptides are also being used in other applications, such as medical meals and nutraceuticals, to promote immune function, bone health, and recuperation, particularly in the elderly and those with chronic illnesses. The majority of the components of milk-based foods are derived from raw milk, including casein, whole and skimmed milk powder, milk protein concentrates (MPC), and isolates (MPI). These are widely employed in classic dairy items like laban, processed cheese, and flavored milk, all of which are common in Saudi diets. In addition to their functional uses, such as improving mouthfeel, enhancing emulsification, and stabilizing dairy-based applications, milk-based components are essential for meeting protein requirements and maintaining calcium levels in diets. To reduce reliance on imports, the government's drive toward self-sufficiency has promoted local production of these components through partnerships with big dairy companies and investment in processing infrastructure. In contrast, whey-based components have become more popular, particularly in the areas of food innovation and high-performance nutrition. Among them are lactose, which is produced during cheese production, whey protein isolate (WPI), and whey protein concentrate (WPC). With increased health awareness, Saudi consumers are increasingly looking for functional foods that are high in the rapidly digestible, high-quality proteins that are found in whey. Protein-rich beverages and fitness bars are examples of the diverse range of applications, as are specialized formulae for sports supplements and clinical nutrition. Whey is perfect for baby formulas and foods aimed at recovery because of its capacity to improve solubility and digestibility. In collaboration with foreign businesses, Saudi companies are investing in cutting-edge filtration and spray drying techniques to manufacture whey proteins of greater purity domestically.

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Nikita Jabrela

Business Development Manager

The dairy ingredient market in Saudi Arabia is divided by form into dry and liquid products, demonstrating how food producers adjust to both consumer choices and environmental limitations. The widespread use and strategic application of these ingredient forms has been impacted by the nation's warm environment and ambitious food production objectives. The foundation of the Saudi market is dry dairy ingredients because they are stable, have a long shelf life, and are simple to transport over long distances. These include milk protein concentrates, casein, whey powders, and milk powders. Saudi Arabia's logistical environment, where heat-resistant storage and transportation are crucial, is especially well-suited to the dry form. These substances are frequently used in processed foods, instant drinks, sweets, and baby meals. They are simple to incorporate into baking premixes, powdered beverage mixes, and high-protein ready meals, and they facilitate centralized production. Furthermore, their decreased need for refrigeration is consistent with the energy-saving measures advocated by Vision 2030. The usage of liquid dairy ingredients is increasing in fresh dairy and value-added products, even if they are less common in industrial supply chains. Liquid whey, yogurt bases, fresh cream, and liquid milk proteins are examples of these. Liquid ingredients provide better flavor and texture as the market moves toward premium, clean-label, and decadent dairy products like smoothies, probiotic beverages, and high-protein yogurts. The use of liquid ingredients is most prevalent in urban manufacturing hubs with access to cold chain logistics. However, because of their limited shelf life and greater sensitivity, producers have difficulty maintaining freshness and ensuring timely retail delivery. Even with these obstacles, improvements in real-time supply chain tracking, cold chain infrastructure, and aseptic packaging are increasing the viability of utilizing liquid ingredients. Considered in this report • Historic Year: 2019 • Base year: 2024 • Estimated year: 2025 • Forecast year: 2030 Aspects covered in this report • Dairy Ingredients Market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation

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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 The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.