Concentrated milk and cream market in GCC

Earlier Report Observations

The GCC concentrated milk and cream market expanded to 536.4 thousand tons in 2019, supported by Saudi Arabia's dominant production share and high growth rates in Qatar. However, in 2020, the market contracted sharply to 377.0 thousand tons due to global supply-chain disruptions and labor shortages caused by the COVID-19 pandemic.

The decline continued into 2021, with the market reaching 352.1 thousand tons, though government initiatives to develop the dairy sector and growing consumer focus on functional nutrition helped stabilize demand. Investments in production facilities for lactose-free and vegan dairy products, alongside shifting consumer preferences toward health-conscious options, drove a recovery to 411.8 thousand tons in 2022.

Further growth followed in 2023, with the market reaching 429.1 thousand tons. This was fueled by the launch of new lactose-free and plant-based product lines by major companies, policy shifts supporting diversification, and improved market access for new players entering the alternative dairy segment.

Production concentrated milk and cream in GCC

In kind, 2017-2020, K t

Top producers of concentrated milk and cream, 2017-2020

World map of production of concentrated milk and cream, 2017-2020

GCC's production of concentrated milk and cream has grown for the third year in a row. In 2020, output reached 257.3 K t, showing a significant 18.8% increase compared to 2019. Looking at the period from 2017 to 2020, production rose by 46.2%, which translates to an average annual growth rate of 13.5%.

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

In value, 2017-2020, M $ US

In 2020, the value of concentrated milk and cream production in GCC was 1 339 M $ US, down 10.0% from 2019. Over the 2017-2020 period, production value fell by 19.8%, averaging a 7.1% annual decline. The sharpest drop occurred in 2018 at 13.2%, while 2019 saw a modest increase of 2.7%.

Annual dynamics of production in GCC in value, 2017-2020, M $ US

Exports concentrated milk and cream from GCC

Exports in kind, K t

The market experienced notable volatility during the observed period. Import levels varied significantly, with a 2.7-fold difference between the low of 82.0 K t in 2018 and the high of 223.8 K t in 2020. In 2020, exports of concentrated milk and cream from GCC totaled 223.8 K t, marking an 81.4% surge from the previous year. The largest decline was recorded in 2018 at 54.6%.

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

From 2017 to 2020, no single market dominated GCC's exports of concentrated milk and cream. Iraq accounted for 3.7% of exports in kind, Libya for 3.2%, and Jordan for 2.9%, together making up just 9.8% of total exports. Many smaller partners held modest individual shares, reflecting a fragmented export structure.

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

GCC's exports of concentrated milk and cream in value terms have increased for the third consecutive year. In 2020, exports reached 441.2 M $ US, up 19.4% from 2019. Between 2017 and 2020, exports grew by 42.5%, with a compound annual growth rate of 12.5%.

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

Between 2017 and 2020, GCC's exports of concentrated milk and cream in value terms were spread across a wide range of markets. Iraq contributed 4.6% of exports, Jordan 4.0%, and Libya 3.6%, together accounting for only 12.2% of total flows, indicating a highly diversified export portfolio.

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

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

Imports concentrated milk and cream to GCC

Imports in kind, K t

After rising for two years, GCC's imports of concentrated milk and cream in volume declined. In 2020, imports stood at 343.6 K t, a 22.5% decrease from 2019. Over the 2017-2020 period, imports increased by 9.5%, with an average annual growth rate of 3.1%. The peak was in 2019 at 443.2 K t, which also saw the largest increase of 29.0%.

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

From 2017 to 2020, the Netherlands was the largest supplier of concentrated milk and cream to GCC, accounting for 22.5% of imports in kind, followed by Germany at 4.6% and Denmark at 3.0%. Together, these three countries made up 30.1% of total imports, highlighting a diversified import structure with many other suppliers.

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

GCC's imports of concentrated milk and cream in value terms have grown for the third year in a row. In 2020, imports amounted to 930.7 M $ US, showing a modest 8.4% increase from 2019. Over the 2017-2020 period, imports rose by 26.5%, with a compound annual growth rate of 8.2%.

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

Between 2017 and 2020, GCC's imports of concentrated milk and cream in value terms came from a broad array of suppliers. The Netherlands led with 32.2% of imports, followed by Germany at 6.4% and Denmark at 4.6%, together contributing 43.2% of total imports. Many other countries held smaller but notable shares, underscoring the diversity of the supply base.

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

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