Milk and cream market in Saudi Arabia

Earlier Report Observations

Saudi Arabia's production of milk and cream grew from 2 966 thousand tons in 2018 to 4 335 thousand tons in 2021, while the market volume expanded from 2 752 to 4 024 thousand tons. This sustained increase was driven by the commercial dairy sector's expansion through vertical and horizontal integration projects, supported by government incentives. Changing consumer behavior, with higher spending on food away from home and a shift toward restaurants and ready-to-eat meals, boosted demand. The launch of the 'Made in Saudi Arabia' program in 2020 further strengthened the domestic food industry by promoting local manufacturing and non-oil exports.

In 2022, production dropped to 3 320 thousand tons and market volume fell to 2 955 thousand tons. This decline coincided with the Ministry of Industry and Mineral Resources' 'Factories of the Future' initiative, which aimed to automate 4 000 Saudi factories, potentially causing temporary operational disruptions during the transition. The market recovered in 2023, with production reaching 4 220 thousand tons and market volume 3 947 thousand tons, supported by seasonal demand increases during the Ramadan period.

Production milk and cream in Saudi Arabia

In kind, 2017-2020, K t

Top producers of milk and cream, 2017-2020

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

Saudi Arabia's milk and cream production volume increased for the second consecutive year. In 2020, the country produced 3 632 K t of milk and cream, marking a controlled uptick of 8.1% compared to the previous year. Between 2017 and 2020, production grew by 18.4%, equating to an annualized rate of 5.8%. The lowest production volume was recorded in 2018 at 2 966 K t, which also saw the largest decline of 3.3%. In contrast, 2019 experienced the largest increase of 13.3%.

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

Exports milk and cream from Saudi Arabia

Exports in kind, K t

After a two-year uptick, Saudi Arabia's milk and cream export volume declined. In 2020, the country exported 220.0 K t of milk and cream, down by 32.7% from the previous year. Between 2017 and 2020, exports increased by 22%, equating to an annualized rate of 6.9%. The highest export volume was recorded in 2019 at 327.1 K t, with the largest increase occurring in 2018 at 46.4%.

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

From 2017 to 2020, the United Arab Emirates accounted for 35.5% of Saudi Arabia's milk and cream exports in kind, followed by Kuwait at 15.0% and Jordan at 11.2%. Together, these three countries comprised 61.7% of total export flows.

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

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

Exports in value, M $ US

In 2020, Saudi Arabia exported 193.8 M $ US worth of milk and cream, down by 8.3% compared to the previous year. Over the period from 2017 to 2020, exports increased by 5.3%, with a compound annual growth rate of 1.7%. The lowest value was recorded in 2018 at 167.6 M $ US, which also saw the largest decline of 9.0%. In contrast, 2019 had the highest value at 211.4 M $ US, with the largest increase of 26.1%.

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

From 2017 to 2020, the United Arab Emirates was the main buyer of Saudi Arabian milk and cream in value terms, accounting for 34.2% of exports, followed by Kuwait at 15.9% and Jordan at 10.6%. Together, these three countries represented 60.7% of total export value.

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

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

Imports milk and cream to Saudi Arabia

Imports in kind, K t

The data reveals irregular changes, indicating a volatile market environment. In 2019, imports reached their highest volume at 52.4 K t, while 2020 saw the lowest at 7.6 K t, reflecting a 6.9-fold gap. In 2020, Saudi Arabia imported 7.6 K t of milk and cream, corresponding to a drop of 85.5% from 2019. The largest increase was recorded in 2018 at 347.3%.

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

From 2017 to 2020, Germany was the main source of Saudi Arabia's milk and cream imports in kind, accounting for 47.7%, followed by the Netherlands at 15.8% and France at 8.3%. Together, these three countries comprised 71.8% of total import flows.

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

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

Imports in value, M $ US

In 2020, Saudi Arabia's milk and cream imports amounted to 18.0 M $ US, marking an abrupt decrease of 43.5% compared to the previous year. Over the period from 2017 to 2020, imports decreased by 32.8%, with a compound annual growth rate of -12.4%. The highest value was recorded in 2019 at 31.8 M $ US, which also saw the largest increase of 24.9%.

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

Throughout 2017 to 2020, Germany was the leading market for Saudi Arabia's milk and cream imports in value terms, accounting for 35.7%, followed by the Netherlands at 24.3% and France at 16.2%. Together, these three countries represented 76.3% of total import flows.

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

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