The Saudi Arabia Dairy Alternatives Market size is estimated at USD 57.59 million in 2024, and is expected to reach USD 79.08 million by 2029, growing at a CAGR of 6.55% during the forecast period (2024-2029).



Easy availability of dairy alternatives products through wide retail sector is boosting the growth.




  • Among distribution channels, the off-trade channel dominates the sales of dairy alternatives in Saudi Arabia. Among the off-trade channels, supermarkets and hypermarkets accounted for the majority share of dairy alternative sales, i.e., 67.8% in 2022.

  • Strong penetration of quick-service restaurants, the popularity of street food culture, and the well-established network of cafes are the key factors supporting the on-trade consumption of dairy alternative products in Saudi Arabia. The sales value of dairy alternatives through on-trade increased by 23.2% in 2022 compared to 2021.

  • Convenience stores are the second most widely preferred off-trade distribution channels after supermarkets and hypermarkets to purchase dairy alternative products in Saudi Arabia. The sales value of dairy-alternative products through convenience stores is anticipated to grow by 17.9% in 2025 compared to 2022. The broader reach and easy access to private-label brands are the key factors driving the sales of dairy alternative products through convenience stores.

  • Online channels are expected to be the fastest-growing retail channel in the off-trade segment. The sales value of dairy alternatives through online retail channels registered a growth rate of 48.9% from 2020 to 2022. The online retail channel offers a wide variety of dairy alternative options than traditional grocery stores, making it easier for consumers to find the specific product they need.




Saudi Arabia Dairy Alternatives Market Trends



The consumption of non-dairy alternatives is increasing in Saudi Arabia due to concerns for animals and sustainability, prevalence of lactose intolerance, and changing dietary habits




  • Non-dairy butter is majorly consumed among all dairy alternatives across the country. The key motivations for consumers to adopt non-dairy butter are concerns for animals or sustainability and changes in dietary habits. Thus, the per capita consumption of non-dairy butter experienced an increase of 2.21% in 2022 compared to 2021.

  • The growing prevalence of lactose intolerance is another reason consumers switch to dairy alternatives. For example, in Saudi Arabia, more than 30% of the population has lactose intolerance. One out of every three people in Saudi Arabia is aware of lactose intolerance disorder and its related factors.

  • The per capita consumption of plant-based is expected to increase by 6.21% in 2023-2024 due to the increasing prevalence of milk allergies, which is driving the demand for plant-based milk worldwide. For example, soy milk is a rich source of vitamins, proteins, and potassium and has a lower calorie content than cow’s milk. Due to its high nutrient content, it is considered an ideal substitute for dairy products.

  • The increasing demand for non-dairy yogurt is being led by millennials with busy lifestyles, promoting the consumption of ready-to-eat, on-the-go snacks. Companies are introducing different variants in terms of flavors and health claims to cater to the changing tastes and preferences of consumers.



Saudi Arabia Dairy Alternatives Industry Overview



The Saudi Arabia Dairy Alternatives Market is fragmented, with the top five companies occupying 7.63%. The major players in this market are Blue Diamond Growers, Britvic Plc, Danone SA, Koita Milk and Saudia Dairy and Foodstuff Company (SADAFCO) (sorted alphabetically).



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