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Posted by on February 26, 2021

Market Reports on Saudi Arabia Provides the Trending Market Research Report on “Qatar Dairy Products Market – Growth, Trends, Covid-19 Impact and Forecasts (2021 – 2026)” under Food & Beverage category. The Qatar Dairy Products Market is projected to exhibit highest growth rate over report offers a collection of superior market research, market analysis, and competitive intelligence and industry reports.

The Qatar Dairy Products Market was valued at USD 623.38 million in 2020, and it is projected to witness a CAGR of 6.58% during the forecast period, 2021-2026

Qatar has majorly impacted by the COVID-19 pandemic, affecting its economy, supply chain, and trade, despite the increased government spending to ease the economic impact of COVID-19. The Qatari government took several preventive measures to prevent the spread of COVID-19, such as closing of businesses, schools, and universities and social distancing.

Correspondingly, the food and beverage industry of the country witnessed an unexpected downfall due to disturbed supply chain. The dairy industry of the country witnessed such a defeat due to transportation restrictions and labor shortages. Consequently, the suppliers were dumping milk due to supply chain disruption and falling consumer demand. However, as the dairy industry of the country moved toward self-sufficiency, trade barriers did not have much impact on the market.

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During the long term, the Qatari dairy products market is primarily driven by the rising health consciousness among the consumers who actively seek protein-rich food products. Moreover, factors, such as increasing government-run health and wellness campaigns, designed to combat obesity and related problems (diabetes, high blood pressure, heart disease, and high cholesterol), are encouraging consumers to purchase healthier products, which is directly fueling the dairy market.

Dairy-based products are naturally high in calcium content, and hence, they are perceived as nutritional snacking options. The health benefits of probiotic drinks, especially their ability to improve digestion and the immune system, are attracting consumers across all age groups to the market studied.

Key Market Trends
Increase In Livestock In Qatar

In addition to the initiatives to produce and store food staples, several companies are undertaking projects to increase in-country livestock numbers and strengthen the supply chain of dairy and meat products. Qatar achieved remarkable progress in the field of self-sufficiency in dairy products since May 2017. The country’s self-sufficiency in dairy products stood at 84% compared to 28% in May 2016, owing to the increasing number of cattle. Previously, for dairy products, the country relied on imports for 72% of its supply. Moreover, apart from the increasing government attention to support animal breeders, the private sector played a huge role in increasing livestock through its investment and new projects in the country. According to the MME (Ministry of Municipality and Environment), presently, there are around 1.5 million livestock in Qatar (August 2018), including 40,000 cows and 70,000 camels. In 2018, the Qatari government allocated QAR 105 million (approximately USD 28.4 million) of its budget for supporting the agriculture, fish, and livestock sector, with a view to achieve food demand in the coming years, which is likely to support the market studied.

Cheese Segment Held A Significant Share in The Market

The demand for higher-quality, better-tasting, and healthier, wholesome quality cheese, has become a point of concern among consumers, however high-calorie content in them is one of the major restraints, thus, creating a huge space for manufacturers to innovate. Moreover, vegan cheese made using various nut is vying the retail aisle of dairy cheese in forecast period. Additionally, cheese production in the Qatar is lagging behind the domestic consumption, though necessary actions are taken by the Government to produce locally, and between 2017-2018, production from Qatari farms including dairy products quadrupled, satisfying nearly 90% of the domestic demand. Though imports continue to increase as local production is insufficient in meeting the domestic demand for cheese. For instance, in 2020, the United States exported around USD 4.4 million (803 metric ton) worth cheese to Qatar as stated by USA Cheese Guild.

Competitive Landscape

The Qatar dairy products market is a fragmented market and comprises of regional and international competitors. The market is dominated by players like Nestle SA, Dandy Company Limited, Baladna, Ghadeer Dairy, and Gulf Food Production and others. The leading players in the dairy products market in this country enjoy a dominant presence across the country. Brand loyalty is a high impact factor, with the features being a prime parameter. Due to the increasing demand for dairy products in the country, companies operating in the international markets, especially GCC countries, have plans to expand their presence in the country. Moreover, some of the players are expanding production in the country to capture the increasing demand. For instance, in March 2019, to meet the local demand of dairy products, Arab Qatari Company for Dairy Production (Ghadeer) decided to expand its fresh milk production with additional 300 cattle.

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