The recent years situation of dairy production in Saudi Arabia

4.7/5 - (7 votes)

The value of dairy product

The statistics shows that Saudi Arabia’s milk consumption reached 729.4 million liters in 2012. As for retail value, it reached $ 685 million. Since 2007, yogurt consumption has grown at a rate of 6% annually, and yoghurt current consumption is 24.6 liters per capita. The normal temperature milk still dominates the market, accounting for 62%, while fresh milk now accounts for 38% of the market. Normal temperature milk has grown by 3.4% per year since 2007, but fresh milk has been growing at a rate of 11.3% per year. Therefore, the yogurt processing machine in Saudi Arabia has huge potentials.

The urbanization process has effectively promoted the development of dairy products, and the number of yogurt processing plants has also increased. Many investors have been focusing on yogurt processing machines, since they can gain high benefits, meanwhile, it lead to the sales of refrigerators.

The influence of yogurt to other fields

In recent years, the purchase of refrigerators has increased rapidly, because pasteurized yogurt has a short expiration date and needs to be stored in the refrigerator. By 2016, the overall market is expected to grow by 4.9% per year, and the growth rate of fresh milk is 5.6%, In addition, the milk with a long expiration date grows by 4.5%, and such a milk is processed by high temperature sterilization of yogurt processing machine.

The yogurt market is increasing with amazing speed, and the dominant market for fresh milk is Almarai, with a market share of 46%, followed by AlSafiDanone with 21%. In the end of 2012, Almarai restructured all of its long-lasting milks, both original and flavored types. Why? the growing demand for fresh milk products in Saudi Arabia and other GCC countries is constantly boosting, and people have a great concern about non-renewable groundwater resources as well.

According to the Saudi Gazette and the report issued by an international consulting firm called Zenith, Saudi Arabia is the largest dairy market in the Gulf region, accounting for 74% of the total market. The largest share of the Saudi dairy product market is fresh milk, accounting for 41%, followed by Laban (a kind of yogurt-like milk product), accounting for 21%. Thus, businessman from Saudi Arabia badly need yogurt making machine with high quality. The largest sales amount was cheese, accounting for 22% of the total, followed by fresh milk. Laban is the fastest growing dairy product, with a 9% growth rate in 2013.