Concentrated or sweetened milk and cream market in GCC

Earlier Report Observations

The GCC market for concentrated or sweetened milk and cream expanded from 905 thousand tons in 2018 to 944 thousand tons in 2019. This growth was driven by continuous product innovation, with Nestlé leading launches of new skimmed and semi-skimmed varieties and indulgent flavors like milk chocolate. Simultaneously, rising demand from the bakery and confectionery industries, along with increased adoption in cafes and restaurants for desserts and beverages, supported market volume.

After peaking in 2019, the market volume contracted to 886 thousand tons in 2020 and further to 784 thousand tons in 2021, reflecting a period of adjustment in consumption.

A recovery began in 2022, with volume reaching 850 thousand tons that year and climbing to 989 thousand tons in 2023. This rebound was fueled by the introduction of innovative formats and flavors, such as tube-packaged sweet potato condensed milk targeting professional chefs, and by the growing coffee culture in the region, which boosted usage in specialty drinks. Consumer trends toward premium and organic products also contributed to renewed demand.

Production concentrated or sweetened milk and cream in GCC

In kind, 2017-2020, K t

Top producers of concentrated or sweetened milk and cream, 2017-2020

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

GCC's production of concentrated or sweetened milk and cream has grown for the third year in a row. In 2020, output reached 514.5 thousand tons, showing a strong 18.8% increase from 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

Following two years of growth, the value of GCC's concentrated or sweetened milk and cream production fell in 2020. Output was valued at 2 026 million US dollars, down 13.2% from 2019. The peak value occurred in 2019 at 2 335 million US dollars, while the largest increase was in 2018 at 11.6%.

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

Exports concentrated or sweetened milk and cream from GCC

Exports in kind, K t

After declining for two years, GCC's exports of concentrated or sweetened milk and cream rebounded in 2020. Export volume hit 518.9 thousand tons, a 54.1% jump from 2019. From 2017 to 2020, exports grew by 31.7%, averaging 9.6% per year. The lowest volume was in 2019 at 336.6 thousand tons, and the biggest drop was in 2018 at 13.1%.

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

Between 2017 and 2020, GCC's exports in volume terms were quite diversified. Iraq accounted for 9.6% of the total, Somalia for 7.1%, and Yemen for 6.2%, together making up just 22.9% of all flows, with no single country dominating the market.

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

In 2020, GCC's exports of concentrated or sweetened milk and cream were valued at 1 344 million US dollars, up 6.0% from the previous year. Over the 2017-2020 period, export value increased by 35.3%, with an average annual growth rate of 10.6%. The largest decline was in 2019 at 3.7%, while the biggest increase was in 2018 at 32.5%.

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

From 2017 to 2020, GCC's export value was spread across many partner countries. Iraq represented 13.6% of the total, Somalia 10.2%, and Yemen 4.9%, together accounting for only 28.7% of all flows, indicating a broad distribution.

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 or sweetened milk and cream to GCC

Imports in kind, K t

In 2020, GCC's imports of concentrated or sweetened milk and cream stood at 890.7 thousand tons, a moderate 5.1% increase year-over-year. Over the 2017-2020 period, imports rose by 2.3%, with an average annual growth rate of 0.8%. The lowest volume was in 2019 at 847.3 thousand tons, and the largest decline also occurred in 2019 at 3.8%.

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

Throughout 2017-2020, GCC's imports in volume terms were not heavily concentrated on a few key suppliers. New Zealand made up 18.0% of imports, the Netherlands 16.4%, and Germany 4.7%, together totaling just 39.1% of all flows, reflecting a diverse sourcing pattern.

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 imports of concentrated or sweetened milk and cream were valued at 2 624 million US dollars, rising 15.1% from 2019. From 2017 to 2020, import value increased by 10.6%, with an average annual growth rate of 3.4%. The lowest value was in 2019 at 2 279 million US dollars, and the largest decline also happened in 2019 at 5.4%.

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

Between 2017 and 2020, New Zealand was the top supplier to GCC, accounting for 24.3% of import value, followed by the Netherlands at 18.1% and Germany at 4.9%. Together, these three made up 47.3% of total imports, but with many other smaller partners involved, the market remained broadly diversified.

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

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