Butter, dairy spreads and milk fats market in GCC

Earlier Report Observations

The GCC market for butter, dairy spreads, and milk fats experienced substantial growth from 2018 to 2022, with total market volume increasing from 107.0 thousand tons to a peak of 168.0 thousand tons. This expansion was supported by a consistent rise in domestic production, which more than doubled over the period, and generally growing import volumes.

After a contraction to 155.3 thousand tons in 2023, import volumes recovered to 134.8 thousand tons in 2024. This recovery coincided with strong consumer demand driven by a shift in preferences towards natural and healthy fats, increased use of butter in baking and cooking, and the emergence of premium product variants such as organic and grass-fed butter.

Production butter, dairy spreads and milk fats in GCC

In kind, 2017-2020, t

Top producers of butter, dairy spreads and milk fats, 2017-2020

World map of production of butter, dairy spreads and milk fats, 2017-2020

GCC's production of butter, dairy spreads, and milk fats has increased for the second year in a row. In 2020, output reached 23 522 tonnes, marking a robust year-over-year rise of 15.9%. Looking at the period from 2017 to 2020, production grew by 17.1%, which translates to an annualized rate of 5.4%. The lowest production level was recorded in 2018 at 19 519 tonnes, with the largest decline that year at 2.9%.

Annual dynamics of production in GCC in kind, 2017-2020, t

Exports butter, dairy spreads and milk fats from GCC

Exports in kind, K t

In 2020, butter, dairy spreads, and milk fats exports from GCC amounted to 13.3 thousand tonnes, representing a 13.9% decrease compared to the previous year. Over the 2017-2020 period, exports increased by 33.3%, with a compound annual growth rate of 10.0%. The lowest export volume was in 2018 at 9.1 thousand tonnes, while the peak occurred in 2019 at 15.5 thousand tonnes, with the largest increase that year at 69.1%.

Annual dynamics of product's exports from GCC in kind, 2017-2020, K t

From 2017 to 2020, no single market dominated GCC's butter, dairy spreads, and milk fats exports. Iran accounted for 22.6% of exports in kind, Jordan for 3.5%, and Iraq for 2.9%, together making up only 28.9% of total exports. The remainder was distributed among numerous smaller partners, each with modest individual shares.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from GCC in kind, 2017-2020

Exports in value, M $ US

After two years of growth, GCC's cross-border shipments of butter, dairy spreads, and milk fats declined. In 2020, exports reached 65.3 million US dollars, showing a sharp drop of 41.8% year-over-year. Over the 2017-2020 period, exports increased by 35.7%, with a compound annual growth rate of 10.7%. The highest value was recorded in 2019 at 112.0 million US dollars, with the largest increase that year at 57.6%.

Annual dynamics of product's exports from GCC in value, 2017-2020, M $ US

Between 2017 and 2020, the country structure of GCC's butter, dairy spreads, and milk fats exports in value terms was highly diversified. Iran contributed 22.2% of exports in value, Jordan 3.3%, and Iraq 3.0%, together accounting for just 28.6% of total flows. The remaining 71.4% came from a long tail of smaller markets.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from GCC in value, 2017-2020

Imports butter, dairy spreads and milk fats to GCC

Imports in kind, K t

GCC's imports of butter, dairy spreads, and milk fats have risen for the third consecutive year. In 2020, imports stood at 119.9 thousand tonnes, showing a solid increase of 10.6% compared to 2019. From 2017 to 2020, imports grew by 39.3%, equating to an annualized rate of 11.7%.

Annual dynamics of product's imports to GCC in kind, 2017-2020, K t

Over the 2017-2020 period, New Zealand, Denmark, and India emerged as the main sources for GCC's butter, dairy spreads, and milk fats imports in kind. New Zealand accounted for 34.5% of imports, Denmark for 13.5%, and India for 8.3%, together representing 56.3% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to GCC in kind, 2017-2020

Imports in value, M $ US

In 2020, GCC's butter, dairy spreads, and milk fats imports in value terms totaled 578.9 million US dollars, equivalent to a small gain of 1.1% compared to the previous year. Between 2017 and 2020, imports increased by 22.3%, with an annualized rate of 6.9%. The highest value was recorded in 2018 at 582.9 million US dollars, with the largest increase that year at 23.1%, while the largest decline occurred in 2019 at 1.8%.

Annual dynamics of product's imports to GCC in value, 2017-2020, M $ US

From 2017 to 2020, New Zealand, Denmark, and India led the ranking of suppliers for GCC's butter, dairy spreads, and milk fats imports in value terms. New Zealand accounted for 35.5% of imports, Denmark for 15.6%, and India for 9.1%, with their combined share reaching 60.2% of total imports.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to GCC in value, 2017-2020