The Oman dairy market continues to strengthen as the country invests heavily in domestic production and dairy self-sufficiency. Valued at 252.75 million tons in 2024, the market is projected to grow at a CAGR of 1.60% from 2025–2034, reaching 296.23 million tons by 2034. Oman’s national strategy to boost food security—combined with lifestyle changes, population growth, and rising preference for fresh dairy—is shaping a stable upward trajectory for the sector.Over the past decade, Oman has intensified efforts to reduce dependence on imports and enhance local dairy processing capacities. Major government-backed initiatives, such as agricultural infrastructure development, improved cold-chain networks, and livestock expansion programs, are reinforcing the domestic dairy ecosystem. These efforts align with the country’s broader Vision 2040 objectives, which emphasize food resilience and innovation across the agri-food sector.
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The market is segmented by product, including fresh milk, laban, milk powder, UHT milk, yoghurt and curd, cheese and butter, ice-cream, and other dairy items.
Fresh milk remains a dominant category, supported by increased herd sizes, improved cattle nutrition, and modern milking technologies.
Laban, a widely consumed traditional fermented drink, continues to see consistent demand due to its popularity in local diets and hot climatic conditions.
Milk powder remains essential for both household use and food processing, particularly within the bakery, confectionery, and beverage industries.
UHT milk retains strong market presence due to long shelf life and suitability for remote regions.
Yoghurt, curd, cheese, butter, and ice-cream categories are experiencing growth as consumer preferences shift toward flavored, high-protein, and value-added dairy products.
The Omani dairy sector has also benefited from improved production efficiencies driven by modern dairy farming techniques, smart feeding systems, and advanced quality testing practices. The expansion of retail channels—hypermarkets, supermarkets, convenience stores, and e-commerce grocery platforms—has further enhanced the availability of branded and fresh dairy across both urban and rural markets.
Leading companies shaping the landscape include Mazoon Dairy Company, which has played a transformative role through large-scale integrated dairy farms and state-of-the-art processing facilities. Other key players such as Oman Foodstuff Factory LLC, Modern Dairy Factory LLC, A’safwah Dairy, and regional giant Almarai Company continue to invest in new product development, enhanced distribution, and capacity expansions to meet rising consumer demand.
As Oman continues to prioritize food security, innovation, and high-quality domestic production, the dairy market is positioned for stable long-term growth, supported by increasing consumption of fresh and value-added dairy products.
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