With a 4% forecast CAGR from 2017 to 2022, the Middle East and Africa is predicted to outperform world sales, which are expected to see a 2% CAGR. Annual per capita sales in the region remain low, at US$31, corresponding to less than half of the world’s average.
Product affordability and an underdeveloped cold chain infrastructure in many markets remain key barriers to increased adoption of dairy products in many markets. However, markets with developed modern grocery channels, notably Saudi Arabia and the UAE, benefit from a wider availability of perishable dairy products. Both countries have higher per capita sales than the average for the Middle East and Africa for cheese.
Among the largest markets, Iran has seen a stagnation of sales, while Algeria and Saudi Arabia recorded rapid growth. In Algeria, the affordability of cheese was improved by small portions allowing cheese to be sold individually, as well as by products suitable for non-chilled storage enabling to lower unit prices and target low-income consumers.
Yoghurt and sour milk products has seen a strong performance across most key markets, notably Algeria and Egypt, although it has seen a decline in Iran. In Egypt, a shift from unpackaged to packaged yoghurt helped fuel growth, while drinking yoghurts also saw a rise in popularity.
*Source: Euromonitor International