Arla Foods has launched its first branded organic milk in the Middle East, the company’s biggest strategic growth market outside Europe, marking a significant milestone in its growth agenda.
The launch of Arla Organic Milk in the UAE forms part of the farmer-owned company’s ambitious business strategy, which is to become the number one organic dairy brand in the Middle East and North Africa by 2020. Arla also has plans to expand into Saudi Arabia and Kuwait in 2018.
Being both international and multi-cultural, UAE is typically a first-mover country in the region when it comes to consumer trends and it is where Arla first spotted the organic trend in the region.
Valued at USD 15 billion in 2014, the global organic dairy market is expected to exceed USD 26 billion by 2019, growing at a CAGR of 11.7%. The growing focus of consumers toward the consumption of organic food and beverages will compel manufacturers to launch innovative and exotic organic dairy products, Technavio says in a new report on global organic dairy products market.
In the last few years, innovative organic dairy products such as organic spoonable yogurt with granola and fruit toppings, Greek yogurt and organic milk containing anti-oxidants and healthy fatty acids like DHA, and omega 3 have been introduced into the market. These innovations combined with the financial benefits that manufacturers receive from governments to produce organic dairy products are driving the growth of the market.