Camelicious holds prices despite 30% cost rise

The UAE camel milk producer says it absorbed a sharp increase in production costs rather than pass them to consumers.

Staff Writer
Camelicious
Image: Instagram/@camelicious.arabia

Article summary

AI Generated

Camelicious has held retail prices on its camel milk range despite production costs rising roughly 30% between Q1 and Q2 2026, driven by global geopolitical pressures. The company says it chose to absorb the increase rather than reduce affordability during a period when consumers are watching their spending.

Key points

  • Camelicious absorbed a ~30% production cost rise in 2026
  • Retail prices across the camel milk range held unchanged
  • CEO cites consumer trust and long-term category growth as rationale

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Camelicious has kept retail prices on its camel milk range unchanged despite production costs rising approximately 30 per cent between the first and second quarters of 2026, a pressure the company attributes to the current geopolitical situation and its knock-on effects across food supply chains.

The Dubai-based producer said it chose to absorb the additional costs rather than pass them on to consumers, framing the decision as a long-term investment in category growth rather than a short-term commercial trade-off.

“Every business has faced increasing costs over recent months, but we believe our social responsibility extends beyond short-term commercial decisions. Our focus is on building long-term relationships with consumers, encouraging trial, increasing accessibility and supporting the growth of the long term growth of the camel milk category across the UAE and the globe. Camel milk remains a unique product with exceptional nutritional value and a rich heritage in this region. We want more consumers to discover and experience it, rather than making camel milk less accessible during a period when many households are carefully managing their spending,” Hesham Yehia, Acting Chief Executive Officer of Camelicious said in a statement.

Hesham Yehia, Acting Chief Executive Officer of Camelicious. Image: Supplied

The company said the pricing decision sits alongside broader commitments to local production, animal welfare and quality assurance. Camelicious supplies retailers, hospitality partners and direct consumers across the UAE.

The move is notable given the scale of cost absorption. A 30 per cent rise in input costs over a single quarter is a material squeeze for any food producer, and the decision to hold pricing will weigh on margins until costs ease or volumes grow.

“We have always believed sustainable growth comes from earning consumer trust. By maintaining our pricing, we’re investing in the long-term future of both our consumers and the camel milk category itself,” Yehia concluded.

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