Middle East and Africa Dairy Alternatives Market Outlook

The Middle East and Africa dairy alternatives market size reached nearly USD 1.18 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 12% from 2025 to 2034. By 2034, the market is expected to reach approximately USD 3.27 billion. The market's growth is being driven by the increasing demand for plant-based products due to rising health concerns, dietary restrictions, and a shift towards more sustainable food choices. Additionally, consumers in the region are becoming more conscious of lactose intolerance, cholesterol concerns, and the environmental impact of animal-based dairy products. These factors are influencing the adoption of dairy alternatives, including plant-based milk, yogurt, cheese, and other products, across the Middle East and Africa. The rise in veganism, vegetarianism, and flexitarian diets further supports this market trend, as consumers seek dairy-free alternatives that are perceived to be healthier and more eco-friendly.

Middle East and Africa Dairy Alternatives Market Trends

One of the key trends in the Middle East and Africa dairy alternatives market is the increasing preference for plant-based milks, particularly those made from soy, almonds, oats, and rice. These plant-based milks are becoming more widely available and are gaining popularity due to their perceived health benefits, such as being lower in saturated fats and cholesterol-free. Soy milk, in particular, is leading the market due to its high protein content and versatility, while almond milk and oat milk are also gaining traction due to their pleasant taste profiles and health benefits. Consumers are increasingly switching to plant-based milks as they align with their dietary preferences and ethical considerations, contributing significantly to the growth of the market.

Another prominent trend is the rise in the availability of plant-based yogurt and cheese. Traditional dairy products are being replaced with plant-based versions made from nuts, seeds, and grains. Almond-based yogurt and soy-based cheese are being widely consumed as alternatives to conventional dairy, particularly in regions with a higher concentration of lactose-intolerant individuals. As the demand for these products rises, many food manufacturers are launching new and improved plant-based yogurt and cheese options to meet consumer needs for texture, taste, and nutritional value.

Finally, the growing availability of online shopping and convenience stores is significantly influencing the market. As e-commerce continues to expand across the Middle East and Africa, consumers can easily access a variety of dairy alternatives. This convenience, combined with growing awareness of health and environmental benefits, is driving the market's expansion in both urban and rural areas.

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Middle East and Africa Dairy Alternatives Market Growth

The Middle East and Africa dairy alternatives market is set to witness substantial growth, primarily driven by the rising demand for plant-based products and the increasing awareness of health benefits associated with dairy alternatives. The shift in consumer preferences towards plant-based diets, combined with concerns over lactose intolerance, heart health, and environmental sustainability, is fueling the adoption of dairy alternatives in the region.

One key factor contributing to market growth is the increasing awareness of lactose intolerance. Many consumers in the Middle East and Africa are turning to dairy alternatives due to lactose intolerance or the desire to reduce their dairy consumption. This trend is particularly evident in countries with higher rates of lactose intolerance, such as Saudi Arabia and parts of North Africa, where a significant portion of the population seeks lactose-free alternatives to traditional dairy products.

The demand for plant-based protein is another driver of market growth. As consumers increasingly look for protein-rich alternatives to meat and dairy products, plant-based milk, yogurt, and other dairy alternatives are gaining popularity. These alternatives offer a healthy source of protein, making them an attractive option for those seeking to increase their plant-based protein intake.

Distribution channels also play a significant role in the market's growth. With an increasing number of supermarkets, hypermarkets, convenience stores, and online platforms offering dairy alternatives, the accessibility of these products is improving. E-commerce, in particular, is playing an essential role in the market's expansion, especially in the wake of the COVID-19 pandemic, which has accelerated the shift toward online grocery shopping.

Middle East and Africa Dairy Alternatives Market Segmentation

The Middle East and Africa dairy alternatives market can be segmented based on source, product, distribution channel, and region.

Breakup by Source:

1. Soy – Soy is one of the most widely used ingredients in dairy alternatives due to its high protein content and versatility. Soy-based milk, yogurt, and cheese are some of the most popular dairy alternatives, especially in markets such as South Africa and the UAE.
2. Almond – Almond milk has gained significant popularity in the region due to its mild taste and health benefits. It is often marketed as a low-calorie, lactose-free alternative to dairy milk and is widely available in supermarkets and online stores.
3. Rice – Rice milk is another common plant-based milk option that is gaining traction, particularly in regions with large populations that are sensitive to soy or nut-based products. It is often preferred for its neutral taste and low-allergen properties.
4. Oats – Oat milk has become increasingly popular due to its creamy texture and slightly sweet flavor, which makes it a popular choice for coffee and cereals. It is also a growing choice in various countries in the region.
5. Others – Other plant-based sources include coconut milk, hemp milk, and flaxseed milk, all of which are finding their place in the Middle East and Africa market.

Breakup by Product:

1. Milk – Plant-based milk is the dominant product in the dairy alternatives market. With a variety of options such as soy, almond, and oat milk, the demand for plant-based milk is growing due to the increasing awareness of lactose intolerance and health benefits.
2. Yoghurt – Plant-based yogurt alternatives are also growing in popularity, especially those made from soy, almond, and coconut. These products are being marketed as healthy alternatives to traditional yogurt, particularly in countries where dairy consumption is low.
3. Cheese – The plant-based cheese segment is expanding, with numerous brands offering dairy-free cheese made from nuts, soy, and other plant sources. The demand for plant-based cheese is being driven by consumers’ interest in reducing dairy consumption and adopting vegan diets.
4. Ice-cream – Plant-based ice cream is gaining traction in the region. Coconut milk, almond milk, and oat milk-based ice creams are becoming popular among consumers who are looking for dairy-free indulgence options.
5. Creamers – Plant-based creamers are increasingly being used in coffee, tea, and cooking. They are available in a variety of formulations, including almond, oat, and soy, and are widely available in both supermarkets and online platforms.
6. Others – Other dairy alternative products include butter, spreads, and snacks, which are growing in popularity as part of the plant-based food trend.

Breakup by Distribution Channel:

1. Supermarkets and Hypermarkets – Supermarkets and hypermarkets are key distribution channels for dairy alternatives. These stores provide easy access to a wide range of dairy-free products, catering to the growing demand for plant-based food options.
2. Convenience Stores – Convenience stores are increasingly stocking dairy alternatives to meet the demand from consumers who want quick and easy access to plant-based products.
3. Online – The online distribution channel has experienced significant growth in recent years. Consumers are increasingly purchasing dairy alternatives through e-commerce platforms, benefiting from the convenience of home delivery and a wider selection of products.
4. Others – Other distribution channels include specialty stores and health food stores, which cater to consumers looking for organic and natural dairy alternatives.

Breakup by Region:

1. Saudi Arabia – Saudi Arabia is one of the largest markets for dairy alternatives in the Middle East, driven by a high percentage of lactose-intolerant individuals and a growing interest in plant-based diets.
2. United Arab Emirates – The UAE is another key market for dairy alternatives, particularly in cosmopolitan cities like Dubai and Abu Dhabi, where there is an increasing demand for vegan and health-conscious food products.
3. Nigeria – Nigeria is experiencing growth in the dairy alternatives market, driven by the rising awareness of health and wellness, as well as the demand for plant-based milk and other dairy alternatives.
4. South Africa – South Africa is a leading market in Africa for dairy alternatives, with a growing middle class and increased awareness of veganism and lactose intolerance contributing to the demand.
5. Others – Other countries in the Middle East and Africa, including Egypt, Kenya, and Morocco, are also witnessing growth in the dairy alternatives market as consumers increasingly turn to plant-based products.

Market Key Players

Several key players are leading the dairy alternatives market in the Middle East and Africa, including:

1. Danone S.A. – Danone is a global leader in the dairy alternatives market, offering a wide range of plant-based products such as soy milk, almond milk, and yogurt.
2. Nestlé S.A. – Nestlé offers various dairy alternatives, including soy-based milk, rice milk, and almond-based yogurt, catering to the growing demand for plant-based products in the region.
3. Blue Diamond Growers – Blue Diamond Growers is a prominent player in the almond milk sector, providing high-quality almond-based products that cater to health-conscious consumers.
4. Oatly AB – Oatly is a leading provider of oat-based dairy alternatives, offering milk, yogurt, and ice cream products that are popular in the Middle East and Africa.
5. Freakin Healthy – Freakin Healthy offers a range of plant-based dairy alternatives, focusing on health-conscious and vegan consumers.