SAUDI ARABIA DAIRY MARKET 2026

2016 – 2026 SAUDI ARABIA DAIRY MARKET FORECAST ANDOPPORTUNITIES Published: July 2021 www.techsciresearch.com MARKET INTELLIGENCE . CONSULTING

Table of Contents S. No. Contents 1. Product Overview 2. Research Methodology 3. Impact of COVID-19 on Saudi Arabia Dairy Market 4. Executive Summary 5. Voice of Customer 5.1. Brand Awareness 5.2. Factors Influencing Purchase Decisions 5.3. Consumption Pattern 6. Saudi Arabia Dairy Market Outlook 6.1. Market Size & Forecast 6.1.1. By Value & Volume 6.2. Market Share & Forecast 6.2.1. By Type (Drinking Milk, Cheese, Yogurt, Ghee & Butter & Others) 6.2.2. By Distribution Channel (Supermarket/Hypermarket, Grocery Retail, Online & Others) 6.2.3. By Region 6.2.4. By Company (2020) 6.3. Market Map (Type and Region) 7. Saudi Arabia Drinking Milk Market Outlook 7.1. Market Size & Forecast 7.1.1. By Value & Volume 7.2. Market Share & Forecast © TechSci Research 2

Table of Contents S. No. Contents 7.2.1. By Distribution Channel 7.3. Pricing Analysis 8. Saudi Arabia Cheese Market Outlook 8.1. Market Size & Forecast 8.1.1. By Value & Volume 8.2. Market Share & Forecast 8.2.1. By Distribution Channel 8.3. Pricing Analysis 9. Saudi Arabia Yogurt Market Outlook 9.1. Market Size & Forecast 9.1.1. By Value & Volume 9.2. Market Share & Forecast 9.2.1. By Distribution Channel 9.3. Pricing Analysis 10. Saudi Arabia Ghee & Butter Market Outlook 10.1. Market Size & Forecast 10.1.1. By Value & Volume 10.2. Market Share & Forecast 10.2.1. By Distribution Channel 10.3. Pricing Analysis © TechSci Research 3

Table of Contents S. No. Contents 11. Import and Export Analysis 12. Market Dynamics 12.1. Drivers 12.2. Challenges 13. Market Trends and Developments 14. Policy and Regulatory Landscape 15. Saudi Arabia Economic Profile 16. Competitive Landscape 16.1. Almarai Company 16.2. Al Safi Danone Ltd. 16.3. The National Agricultural Development Company (NADEC) 16.4. NADA DAIRY 16.5. SAUDIA DAIRY & FOODSTUFF COMPANY (SADAFCO) 16.6. Danya Foods Ltd. 16.7. Forsan Foods & Consumer Products Company ltd 16.8. Modern Dairy Plant Company (BADR DAIRY) 16.9. Wardat Al Mashreq Food Factory 16.10. Ornua Ingredients International 15. Strategic Recommendations 16. About Us & Disclaimer © TechSci Research 4

Product Overview

Scope of Report Product of Interest (POI): Dairy Products Dairy products, also known as milk products, are type of food which are produced from the milk of mammals, most commonly cow, goat, camels, water buffaloes, sheep, and other cattle. Dairy products include food items such as drinking milk, ghee & butter, cheese, yogurt and other products like condensedmilkcream,pudding,milkpowders, etc. Saudi Arabia Dairy Market Market Segmentation BY TYPE BY REGION • Drinking Milk • Central Year Range • Ghee & Butter • Western • Cheese • Eastern • Yogurt • Southern Review Period • Others • Northern 2016 – 2019 BY DISTRIBUTION CHANNEL Base Year • Supermarket/Hypermarket 2020 • Grocery Retail Estimated Year • Online 2021E • Others (Convenience Stores, Forecourt Retailers, Non-Grocery Retailers, etc.) Forecast Period 2022F – 2026F © TechSci Research 6

Research Methodology

Research Methodology Market Formulating Developing List Data Data Data Profiling Questionnaire of Respondents Collection Validation Analysis In-depth secondary In order to conduct List of industry TechSci conducted Data obtained as a The data was scrutinized research was conducted to industry experts’ players and industry interviews with result of primary using MS-Excel, statistical determine top players in interviews, TechSci specialists was industry experts and and secondary tools and internal the Saudi Arabia dairy formulated a detailed developed. industry players for research was proprietary database to market, overall market size discussion guide. data collection and validated through obtain qualitative and and segmental market size. verification. rigorous quantitative insights about triangulation. the Saudi Arabia dairy market. Primary Research Desk Research Company Analysis ✓ Identifying Key Opinion ✓ Recent Developments ✓ Market Participants Data Data Filter Research & Actionable Business ✓ Market Changing ✓ Key Strengths Collection & Analysis Intelligence Insights Solution Leaders Aspects/Dynamics ✓ Questionnaire Design ✓ Government Policies ✓ In-depth Interviews ✓ Conclusion Primary Research Secondary Paid Sources Research ✓ LinkedIn ✓ Company Websites ✓ Factiva ✓ TechSci Internal ✓ Company Annual ✓ Hoovers Database Reports ✓ White Paper Study ✓ Financial Reports ✓ Investor Presentations ✓ Regulatory Body ✓ Associations, etc. © TechSci Research 8

Research Methodology Baseline Methodology Our dedicated team of industry experts has monitored and analyzed various aspects of Saudi Arabia dairy market. The team has analyzed the outlook of various segments of this market, while considering the major influencing factors such as high consumption of milk and related products. The study includes market forecasting, which would enable our clients to take better decisions while planning their strategy to achieve sustainability in Saudi Arabia dairy market. Note: In order to calculate the total volume market size of dairy products in Saudi Arabia, TechSci Research have maintained the uniformity among different measurable units of all the dairy segments. The conversion rate of 1.035 has been applied to convert the volume of drinking milk from Millilitre (ML) to Gram (GM). Methodology Followed for Calculation of Market Size: • Market Size by Value & Volume : Market size, in terms of value and volume, for the year 2020 was calculated based on information collected through exhaustive secondary research and primary surveys, with various key opinion leaders/stakeholders, such as dairy companies, suppliers, channel partners, end users, industry experts, and other industry participants. • The team interviewed more than 20–25 dairy companies, suppliers, 100-150 end users, and 15–20 industry experts and other value chain stakeholders in the Saudi Arabia dairy market to obtain the overall market size from 2016 to 2020, which was validated by the Delphi technique. Taking standard deviation into consideration, the market size was averaged out, to arrive at the market size data during 2016-2020. © TechSci Research 9

Research Methodology • Respondents were asked about the current and future market growth rates, market shares by type, by distribution channel, by region and by company. Removing the outlier responses, the geometric mean of growth estimates and supplier wise revenue shares generated across various segments were considered, to arrive at the final revenue shares. Revenue shares generated across various segments were further triangulated from other stakeholders. Methodology Followed for Calculation of Market Shares: • Market shares by type, by distribution channel, by region and by company were calculated based on the responses received through primary surveys with industry experts, in which the respondents were asked about the market shares or revenue generated from various segments of dairy market. The final shares were calculated by taking the geometric mean of the responses gathered from key opinion leaders after eliminating the outliers. Methodology Followed for Forecasting: • TechSci Research performed periodical checks on data collected through the surveys with logic checks and analyzed the survey results in SPSS/Tableau Software. • Data triangulation techniques were applied to fill the gaps and to present a more meaningful picture of the market. To forecast Saudi Arabia dairy market, TechSci Research used various forecast techniques such as: ✓ Moving Average ✓ Time Series Analysis ✓ Regression Analysis ✓ Econometric and Judgmental Analysis © TechSci Research 10

Research Methodology TechSci Research used its own forecast tool, which is based on the growth of various allied industries in respective regions. TechSci Research also used the impact analysis during short, medium and long term period to estimate the demand and to reach accurate market numbers. It should be noted that the figures compiled are only for the organized market including market share data. Partial List of Companies Interviewed Key Secondary Sources ▪ Almarai Company ▪ World Bank ▪ Al Safi Danone Ltd. ▪ TechSci Research Proprietary Database & Knowledge ▪ The National Agricultural Development Repository Company (NADEC) ▪ Company Annual Reports ▪ Nada Dairy ▪ Industry Magazines ▪ SAUDIA DAIRY & FOODSTUFF COMPANY ▪ Industry Reports (SADAFCO) ▪ News Dailies ▪ Danya Foods Ltd. ▪ Credible Paid Databases ▪ Forsan Foods & Consumer Products Company ltd ▪ Modern Dairy Plant Company (BADR DAIRY) ▪ Wardat Al Mashreq Food Factory ▪ Ornua Ingredients International © TechSci Research 11

Industry Brief According to TechSci Research report, “Saudi Arabia Dairy Market By Type (Drinking Milk, Cheese, Yogurt, Ghee & Butter & Others), By Distribution Channel (Supermarket/Hypermarket, Grocery Retail, Online, & Others), By Region, Competition Forecast & Opportunities, 2026”, the market was valued at USD5726.42 million in 2020, and it is estimated to reach USD7940.77 million by the end of 2026 growing with a CAGR of 5.66% in the forecast period. Key factors propelling the growth of Saudi Arabia dairy market are flourishing dairy industry, increasing disposable income, and entry of newmarketplayers.Thegrowing consumption of milk and other dairy products coupled with increasing awareness pertaining to the benefits of milk and related products are also accelerating the growth of dairy market in the country. Furthermore, popularity of packaged dairy goods and increasing inclination of consumers towards health & fitness are expected to fuel the market growth in next five years. Also, several international dairy product manufacturesare gaining popularity in Saudi Arabia which is leading to flourishing dairy industry in Saudi Arabia. With the growth in disorders like diabetes, high blood pressure, high cholesterol, obesity, and so on, the majority of the population is requesting dairy products regularly, as these products are free of adulterants and chemicals and have a high nutritional value. Dairy products are preferred by consumers since they do not contain excessive levels of chemicals. Switching to nutritious dairy products could help in controlling lifestyle related health problems. As a result of increased health concerns, the dairy products makers now have a huge opportunity to meet customer demand for high- quality dairy products. Saudi Arabia dairy market is also growing significantly due to aggressive advertising being used as a key marketing tool by dairy product manufactures through various channels. Moreover, availability of dairy products in convenient packaging is also acting as a growth driver for the market. Any marketing strategy's implementation is heavily influenced by packaging. An appealing package is critical for a brand's success and has the ability to boost profits. As a result, firms now deliberately package their items to entice customers. Apart from this, thriving e-commerce industry and increased circulation of dairy products on online channels are anticipated to augment the dairy market growth during the forecast period. The country is also witnessing establishment of large commercial dairy farms and manufacturers are adopting advanced technologies to meet the growing requirement for dairy products. Saudi Arabia dairy market can be segmented based on type, distribution channel and region. Based on type, the market can be categorized into drinking milk, cheese, yogurt, ghee & butter and others. Among them, drinking milk segment held the largest market share until 2020 and is further expected to remain the largest segment during the forecast period owing to growing health-consciousness among the consumers, coupled with growing awareness of health benefits of milk consumption. Major players operating in the Saudi Arabia dairy market are Almarai Company, Al Safi Danone Ltd., The National Agricultural Development Company (NADEC), NADA DAIRY, SAUDIA DAIRY & FOODSTUFF COMPANY (SADAFCO), Danya Foods Ltd., Forsan Foods & Consumer Products Company Ltd., Modern Dairy Plant Company (BADR DAIRY), Wardat Al Mashreq Food Factory, Ornua Ingredients International. Leading companies are adopting growth strategies such as new product launches, mergers & acquisitions and joint ventures. “Saudi Arabia is witnessing a shift towards healthier diet among consumers. Popularity of dairy products like ice cream and shakes is also providing profitable growth opportunities for dairy market. In coming years, the country is expected to become one of the largest market for dairy industry with easy availability of these products on various platforms. In addition to this, increasing consumption of butter and cheese and boom in food & beverage industry are further expected to support the growth of Saudi Arabia dairy market.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global managementconsulting firm. © TechSci Research 12

Sample Data -Snapshot Saudi Arabia Dairy Market Size, By Value (USD Million) & By Volume (Million Kg), 2016-2026F CAGR 2016-2020 CAGR 2021E-2026F By Value: xx% By Value: xx% By Volume: xxx% By Volume: xx% 2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F Value (USD Million) Volume (Million Kg ) Saudi Arabia Yogurt Market Share, By Distribution Channel, By Value, 2016-2026F 2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F Supermarket/Hypermarket 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% Grocery Retail 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% Online 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% Others 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% Saudi Arabia Dairy Market Share, By Type, By Value, 2016-2026F 2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F Drinking Milk 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Cheese 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% Yogurt 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% Ghee & Butter 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% Others 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% © TechSci Research 13

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