Oman Dairy Market Size & Industry Share | Report 2034

The Oman dairy market size has witnessed substantial growth in recent years, largely driven by the increased local milk production. The country’s milk production market, which reached an impressive 252.75 million tons in 2024, has played a pivotal role in shaping the trajectory of the dairy industry. The dairy market in Oman is set to experience a steady growth rate, with a Compound Annual Growth Rate (CAGR) of 1.60% projected for the forecast period from 2025 to 2034.

This report delves into various factors influencing the Omani dairy market, including the role of domestic milk production, market dynamics, key players in the industry, consumer preferences, technological advancements, and future prospects. The presence of key dairy companies, such as Mazoon Dairy Company, Oman Foodstuff Factory LLC, Modern Dairy Factory LLC, A’safwah Dairy, Almarai Company, and others, further intensifies the competitiveness and development of the industry.

1. Introduction to the Omani Dairy Market

Oman’s dairy market is an essential sector of its economy, contributing significantly to the agricultural and food industries. The country’s growing population, increased demand for dairy products, and favorable climatic conditions for dairy farming have supported the expansion of local milk production. Oman’s dairy industry is one of the most dynamic sectors within the agricultural landscape of the country.

In recent years, Omani dairy farms and processing companies have made substantial progress in increasing milk production capacity, which has led to a reduction in the dependency on dairy imports. This reduction is crucial for improving food security and building the nation’s self-sufficiency in dairy products. The dairy market’s success is also a result of improved farming practices, advanced processing technologies, and the expansion of distribution channels.

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2. Oman’s Milk Production Growth

The growth of Oman’s milk production market, which achieved 252.75 million tons in 2024, is one of the most important developments in the Omani dairy industry. The increasing domestic production of milk has allowed the country to enhance its position as a producer and supplier of high-quality dairy products. This growth is attributed to several factors, including:

• Improved Farm Management: Technological advancements and modern farming practices have enabled local dairy farmers to increase milk yield per cow and improve herd health. These advancements include precision agriculture techniques, better animal genetics, and advancements in animal nutrition.

• Supportive Government Policies: The Omani government has been actively promoting the growth of the dairy sector by offering subsidies, financial support, and incentives to dairy farmers. Such measures are designed to encourage domestic production and reduce reliance on imports.

• Rising Investment in Dairy Infrastructure: Oman’s dairy industry has witnessed considerable investment in infrastructure, including the construction of state-of-the-art dairy farms and processing plants. This has allowed local producers to meet the growing demand for dairy products, both domestically and for export.

• Favorable Climate Conditions: Oman’s relatively mild and arid climate, especially in regions such as Al Batinah, makes it conducive for dairy farming. This has allowed Omani farmers to raise cattle efficiently and produce high-quality milk.

• Technological Innovation in Milk Production: The adoption of innovative dairy farming technologies, such as automated milking systems and precision farming equipment, has contributed to a rise in milk production. These technologies help farmers monitor herd health, optimize feeding practices, and manage farm operations more efficiently.

3. Market Dynamics: Key Drivers of Growth

The Omani dairy market is expected to grow at a steady rate of 1.60% CAGR from 2025 to 2034. Several factors will contribute to the market’s positive growth outlook during this period.

3.1 Increasing Domestic Demand for Dairy Products

With the growth of the Omani population and the evolving dietary habits of its people, the demand for dairy products is increasing steadily. As more people embrace Western-style diets that incorporate milk, cheese, yogurt, and other dairy items, the need for both fresh and processed dairy products continues to rise.

Additionally, urbanization and increasing disposable incomes are also contributing to the higher consumption of dairy products. With a growing middle class and improved standards of living, Omani consumers are becoming more willing to spend on premium dairy products, including organic, fortified, and specialty dairy items.

3.2 Changing Consumer Preferences

Oman’s consumer preferences are shifting, with many individuals becoming more health-conscious. As a result, dairy products that are perceived as healthier, such as low-fat milk, organic yogurt, and lactose-free alternatives, are becoming increasingly popular. The demand for functional dairy products, such as those enriched with vitamins, minerals, and probiotics, is also on the rise.

The growing awareness of the health benefits of dairy, such as bone health and weight management, has led to an increase in demand for dairy-based snacks and beverages. These products appeal particularly to younger consumers, who are more inclined toward convenient, on-the-go dairy options.

3.3 Advancements in Dairy Processing Technologies

Innovations in dairy processing technologies have enhanced the quality and variety of dairy products available in the Omani market. Advances in packaging, pasteurization, and cold storage have improved the shelf life and freshness of dairy products, making them more accessible to consumers in remote areas. Additionally, the development of new flavors and product formulations has expanded the product portfolio, driving growth in the dairy sector.

3.4 Support from Key Market Players

The presence of significant players such as Mazoon Dairy Company, Oman Foodstuff Factory LLC, Modern Dairy Factory LLC, A’safwah Dairy, and Almarai Company plays a vital role in the growth of the dairy industry in Oman. These companies are continuously innovating to meet the demands of local consumers, and they have made considerable investments in dairy farming and processing technologies. Their efforts have enabled the Omani dairy market to keep up with the evolving demand for high-quality, diverse dairy products.

3.5 Export Opportunities

Oman’s strategic location near the Arabian Gulf provides opportunities for expanding dairy exports. The country is well-positioned to serve regional markets, particularly in the Middle East and North Africa (MENA) region, where demand for dairy products is growing. As a result, Oman’s dairy producers are looking to diversify their revenue streams by tapping into export markets, which will further support the sector’s growth.

4. Market Segmentation

The Omani dairy market can be broadly categorized into several segments based on product type, packaging, and distribution channels. Understanding these segments is crucial for identifying the opportunities and challenges in the market.

4.1 By Product Type

• Fresh Dairy Products: Fresh milk, yogurt, cream, and buttermilk are the most commonly consumed dairy products in Oman. Fresh milk is widely consumed by households, while yogurt and cream are increasingly popular as snacks and ingredients in cooking.

• Processed Dairy Products: This category includes cheese, butter, ice cream, and other processed dairy goods. Cheese is gaining popularity, particularly among the younger demographic, and is increasingly used in cooking and snacking.

• Functional Dairy Products: With rising health consciousness, functional dairy products like fortified milk, low-fat dairy, and lactose-free options are expected to see growth in demand.

4.2 By Packaging Type

• Bottled Milk: Bottled milk is commonly found in supermarkets, hypermarkets, and convenience stores. This packaging format has a long shelf life and is widely consumed by Omani families.

• Tetra Pak Packaging: The rise in demand for convenient, ready-to-drink dairy products has led to the increased use of Tetra Pak cartons, which are lightweight, portable, and have an extended shelf life.

• Plastic Containers and Cups: Yogurt and other dairy-based snacks are often packaged in plastic containers or cups, which are convenient for on-the-go consumption.

4.3 By Distribution Channels

• Supermarkets and Hypermarkets: These retail channels dominate the distribution of dairy products, offering a wide range of options and convenient access for consumers.

• Convenience Stores: Convenience stores are becoming increasingly popular for the sale of dairy products, especially for single-serve or grab-and-go items.

• Online Sales: The growth of e-commerce and online grocery shopping has also impacted the distribution of dairy products, particularly with the rise in demand for home delivery services.

5. Competitive Landscape

The competitive landscape of the Omani dairy market is marked by the presence of both local and international dairy producers. Major players like Mazoon Dairy Company, Oman Foodstuff Factory LLC, Modern Dairy Factory LLC, A’safwah Dairy, and Almarai Company are at the forefront of the market.

• Mazoon Dairy Company is one of the largest and most prominent dairy producers in Oman. The company offers a wide range of dairy products, including fresh milk, yogurt, and cheese.

• Oman Foodstuff Factory LLC is a key player that produces high-quality dairy products, focusing on both local consumption and export opportunities.

• Modern Dairy Factory LLC has established itself as a major supplier of fresh milk and other dairy items. Its strong distribution network and high-quality standards have helped it maintain a significant market share.

• A’safwah Dairy is another important player in the market, known for its high-quality dairy products and focus on innovation.

• Almarai Company is a well-established brand in the Middle East, and its presence in Oman has further strengthened the competition in the local dairy sector.

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