Milk and cream market in GCC

Earlier Report Observations

Between 2018 and 2021, the GCC milk and cream market expanded from 3.5 million tonnes to 4.8 million tonnes. This growth was supported by the implementation of unified regulatory frameworks, including a mechanism to facilitate agricultural imports and mandatory quarantine systems introduced in 2018. The enactment of a Gulf-wide anti-commercial fraud law in 2019 enhanced consumer protection and market integrity. Investments in agricultural research, such as the partnership with ICARDA in 2020, and a focus on sustainability and biotechnology in 2021 boosted production efficiency.

Market volume dipped to 3.9 million tonnes in 2022 before rebounding sharply to 5.1 million tonnes in 2023. The recovery in 2023 coincided with the expansion of the packaging sector, which grew at a 4.2% annual rate, and an increase in the number of dairy processing and packaging companies in Dubai to around 583.

In 2024, Gulf cooperation in agriculture intensified, with the activation of 23 logistic centers in Saudi Arabia and continued investments in sustainable farming technologies to address water scarcity and climate change.

Production milk and cream in GCC

In kind, 2017-2020, K t

Top producers of milk and cream, 2017-2020

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

Milk and cream production in the GCC has grown for the second year in a row. In 2020, the region produced 4 393 thousand tonnes, marking a strong 10.2% increase from the previous year. Looking at the period from 2017 to 2020, production rose by 18.6%, with an average annual growth rate of 5.9%. The lowest production level was in 2018, at 3 588 thousand tonnes. That year also saw the largest decline, with a drop of 3.1%. In contrast, 2019 recorded the biggest increase, with production jumping by 11.1%.

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

In value, 2017-2020, M $ US

Milk and cream production in the GCC has increased in value for the second consecutive year. In 2020, the output was valued at 4 246 million US dollars, representing a 14.5% rise compared to the year before. Over the 2017-2020 period, production value grew by 4.7%, with a compound annual growth rate of 1.5%. The lowest value was recorded in 2018, at 3 305 million US dollars, which also saw the steepest decline of 18.5%.

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

Exports milk and cream from GCC

Exports in kind, K t

Milk and cream exports from the GCC have fallen for the second year in a row. In 2020, exports reached 307.0 thousand tonnes, down 1.7% from 2019. The highest export volume was in 2018, at 339.1 thousand tonnes, which also experienced the largest increase of 12.3%. The biggest decline occurred in 2019, with a drop of 7.8%.

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

From 2017 to 2020, milk and cream exports from the GCC were spread across many partner countries. Iraq accounted for 15.4% of exports, Jordan for 8.9%, and Yemen for 6.0%. Together, these three countries made up just 30.3% of total export flows, indicating a highly diversified 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

After two years of decline, milk and cream exports from the GCC have rebounded. In 2020, exports were valued at 296.8 million US dollars, up 2.1% from the previous year. Over the 2017-2020 period, however, export value decreased by 10.2%, with an average annual decline of 3.5%. The lowest value was in 2019, at 290.6 million US dollars, which also saw the largest drop of 6.9%.

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

Between 2017 and 2020, milk and cream exports in value terms were distributed across a wide range of partner countries. Iraq held a 19.6% share, Jordan 7.6%, and Yemen 6.6%. Combined, these three countries represented only 33.8% of total export flows, highlighting the broad geographic spread of GCC exports.

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

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

Imports milk and cream to GCC

Imports in kind, K t

Milk and cream imports into the GCC have decreased for the second consecutive year. In 2020, imports stood at 123.9 thousand tonnes, a sharp 55.1% drop from the previous year. Over the 2017-2020 period, imports fell by 49.8%, with an average annual decline of 20.5%. The peak import volume was in 2018, at 297.7 thousand tonnes, which also recorded the largest increase of 20.7%.

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

From 2017 to 2020, key suppliers of milk and cream to the GCC included Germany, with a 7.8% share of imports, France at 3.7%, and New Zealand at 3.5%. Together, these three countries accounted for just 15.0% of total imports, showing that no single supplier dominated the market.

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

Milk and cream imports into the GCC have declined for the third year in a row. In 2020, imports were valued at 238.6 million US dollars, a significant 16.4% decrease from the year before. Between 2017 and 2020, import value fell by 33.3%, equating to an annualized decline of 12.6%.

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

Over the 2017-2020 period, milk and cream imports in value terms were characterized by a wide distribution across markets. France accounted for 8.4% of imports, Germany for 7.4%, and New Zealand for 6.0%. Together, these three suppliers made up only 21.8% of total import flows, underscoring the diversity of sources for GCC imports.

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

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