The market size of liquid milk processing in the UAE is around 195,000 tonnes. The consumption of milk in UAE is high (per capita consumption of 25.4 l p.a. while KSA is 22 liters p.a.)
This segment is highly capital intensive with requirement of large equipment required for processes like pasteurisation and homogenization. In addition to this there is need for cold storage facilities which adds further to the costs.
- There are opportunities for setting up UHT plant, milk spray business etc in the this sector
- Market oversaturated with dominant players ( Dubai- 2, UAE- 7 and others)
- Players are diversifying into milk based drinks and products (healthy variants)