Oman Dairy Market Size and Analysis 2025-2034
- Saurabh Badoni
- Aug 20
- 4 min read
Oman Dairy Market
The Oman dairy market has been expanding steadily, reflecting the rising consumer demand for milk, cheese, yogurt, butter, and other dairy products. In 2024, the Oman dairy market volume was recorded at 252.75 million tons, and it is projected to reach 296.23 million tons by 2034, growing at a CAGR of 1.60% during the forecast period (2025–2034).
This growth is supported by the country’s increasing focus on self-sufficiency in dairy production, rising consumer awareness about health and nutrition, and changing dietary habits. Oman is also investing in modern dairy farming techniques, reducing reliance on imports, and expanding local production to meet domestic demand.
Oman Dairy Market Overview (2024–2034)
2024 Market Volume: 252.75 million tons
Forecast 2034 Volume: 296.23 million tons
CAGR (2025–2034): 1.60%
The demand for dairy products in Oman is primarily driven by:
Rising urban population and changing lifestyles.
Growth of foodservice and hospitality sectors.
Expanding supermarkets, hypermarkets, and online grocery platforms.
Preference for value-added dairy products like flavored milk, probiotic yogurt, and specialty cheese.
The market is also influenced by Oman’s Vision 2040 strategy, which emphasizes food security and domestic agricultural development.
Key Drivers of the Oman Dairy Market
1. Population Growth and Rising Income Levels
Oman’s growing population and higher disposable incomes are boosting the demand for premium and nutritious dairy products. Urban consumers are increasingly shifting toward healthier food choices, creating opportunities for organic and fortified dairy products.
2. Government Support for Dairy Farming
Oman’s government is investing in agricultural modernization and dairy farming projects to reduce dependency on imports. Local producers are encouraged through subsidies, livestock breeding programs, and technological adoption in dairy farms.
3. Growth of Quick-Service Restaurants (QSRs)
The expansion of QSR chains, cafes, and bakeries is driving higher consumption of cheese, butter, and cream. Pizza chains, coffee shops, and confectionery outlets contribute significantly to the growing demand for processed dairy.
4. Rising Awareness of Health and Nutrition
Consumers are becoming more aware of the benefits of dairy products, including their role in bone health, immunity, and balanced nutrition. This trend is increasing the demand for low-fat milk, probiotic yogurt, and fortified dairy alternatives.
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Oman Dairy Market Segmentation
Milk Market in Oman
Milk is the most consumed dairy product in Oman, with demand driven by households and foodservice outlets. Both fresh milk and UHT (long-life) milk are popular, while flavored milk is gaining traction among children and young adults.
Cheese Market in Oman
Cheese is widely used in fast food, bakery, and traditional dishes. The growing café culture and rising Western food preferences are boosting demand for mozzarella, cheddar, and specialty cheeses.
Yogurt and Probiotics
Yogurt consumption is rising due to increasing awareness of gut health. Flavored yogurt, Greek yogurt, and probiotic yogurt are popular choices, particularly among health-conscious consumers.
Butter and Cream
Butter and cream demand is supported by Oman’s expanding bakery and confectionery industry. With rising home baking trends and foodservice growth, consumption is expected to remain strong.
Dairy Alternatives in Oman
The trend of plant-based dairy alternatives is gradually gaining popularity. Almond milk, soy milk, and lactose-free dairy are being introduced in major supermarkets to cater to vegan and lactose-intolerant consumers.
Import and Export Trends
Oman has historically relied on dairy imports from neighboring GCC countries and international markets. However, recent years have seen an increase in local production capacity.
Imports: High for specialty cheese, butter, and milk powder.
Exports: Oman is emerging as an exporter to Yemen and other neighboring regions, leveraging its dairy production surplus.
Self-sufficiency drive: Projects like Mazoon Dairy Company are helping reduce import dependency.
Market Challenges
Climate conditions: Harsh weather and limited arable land make large-scale dairy farming challenging.
High production costs: Import dependency on cattle feed increases costs.
Competition from imports: Established brands from GCC and international players dominate the market.
Consumer shift to alternatives: A slow but steady rise in demand for vegan and plant-based dairy alternatives may limit growth for traditional dairy.
Opportunities in the Oman Dairy Industry
Investments in technology: Use of automation, AI, and modern milking systems to increase efficiency.
Value-added products: Rising demand for organic milk, protein-enriched dairy, and functional yogurts.
E-commerce expansion: Online grocery platforms driving direct-to-consumer dairy sales.
Sustainability focus: Eco-friendly packaging and sustainable farming methods are gaining importance among consumers.
Oman Dairy Market Forecast (2025–2034)
The Oman dairy market is projected to grow steadily at a CAGR of 1.60%, reaching 296.23 million tons by 2034. Growth will be fueled by:
Expanding local production capacity.
Rising demand for cheese and yogurt in the foodservice industry.
Introduction of innovative dairy products catering to changing consumer preferences.
Government initiatives for food security and agricultural sustainability.
FAQs on Oman Dairy Market
Q1. What was the size of the Oman dairy market in 2024?
The Oman dairy market was 252.75 million tons in 2024.
Q2. What is the expected growth rate of the Oman dairy market?
The market is projected to grow at a CAGR of 1.60% between 2025 and 2034.
Q3. Which dairy products are most consumed in Oman?
Milk, cheese, yogurt, butter, and cream are the most consumed, with strong growth in flavored and value-added dairy.
Q4. Is Oman focusing on dairy self-sufficiency?
Yes, projects like Mazoon Dairy aim to reduce reliance on imports and strengthen local dairy production.
Q5. Are plant-based dairy alternatives popular in Oman?
While still a niche segment, almond milk, soy milk, and lactose-free products are gaining popularity among health-conscious consumers.
Q6. Which sectors drive dairy demand in Oman?
Households, QSRs, bakeries, cafes, and the foodservice industry are the main demand drivers.
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