Yoghurt and Sour Milk Products in Saudi Arabia

PROSPECTS

Health conscious consumers go Greek in search of protein

Following the burgeoning health and wellness trend in the kingdom, international brands of Greek yoghurt started to be imported into the country over the review period with these mainly being sold in modern grocery retailers. In 2018 Al Othman Agricultural & Processing Co introduced the first local Greek yoghurt under its Nada brand.

Plain yoghurt benefits from lower price, traditional usages and healthier image

Plain yoghurt remained the largest category of yoghurt and sour milk products in Saudi Arabia, with it being used in traditional savoury dishes as labneh, as well as being consumed on its own. Following the steep price increase in 2018 some consumers have also switched from more expensive flavoured yoghurt to plain yoghurt instead.

Health benefits expected to help drive the development of drinking yoghurt

Due to the typically rich diets of consumers in the Middle East digestive problems are commonplace and this has supported the development of drinking yoghurt in Saudi Arabia. The presence of probiotics in products such as Activia and Actimel are said to help boost immunity, support regular bowel movements and lower cholesterol and blood pressure, among other benefits.

COMPETITIVE LANDSCAPE

Greek yoghurt seeing growing competition as leading players enter the race

Nada was the most dynamic brand in yoghurt and sour milk products in 2019. The brand continued to perform strongly following the launch of its Greek yoghurt in 2018, with this being followed by the first Greek drinking yoghurt, which is high in protein and low in fat and sugar.

Almarai retains strong lead as it continues to innovate

Dairy giant Almarai Co Ltd retained the lead in yoghurt and sour milk products in 2019. With its well-known Almarai brand it enjoys strong loyalty among local consumers thanks to the popularity of its high-quality and innovative products.

As Nada enters drinking yoghurt Al Safi Danone faces up to new competition

Al Safi Danone Ltd dominates drinking yoghurt in Saudi Arabia with its popular and well established brands Activia, Actimel and Danino, the latter of which uses Disney characters on its packaging to attract children. Having seen little competition over the review period 2019 saw the entry of Saudi Arabia’s first Greek drinking yoghurt under the Nada brand.

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