Milk market in GCC

Earlier Report Observations

The GCC milk market volume increased from 3 468 thousand tons in 2018 to 4 250 thousand tons in 2021, showing consistent growth over these years.

In 2022, market volume fell to 3 387 thousand tons. This contraction was driven by declining fluid milk consumption as consumers opted for a wider range of beverages, including plant-based alternatives. At the same time, dairy producers shifted focus towards export-oriented products like cheese and nonfat dry milk, reducing fluid milk supply for the domestic market.

The market recovered to 4 524 thousand tons in 2023, aided by technological advancements in dairy farming that improved production efficiency. Rising consumer awareness of health and nutrition also supported demand. In 2024, industry developments included the introduction of fiber-based packaging and new dairy-plant blend formulas, indicating continued innovation.

Production milk in GCC

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Milk production in the GCC has grown for the second year in a row. In 2020, the region produced 3,630 thousand tons of milk, marking a 10.6% increase compared to the previous year. Over the period from 2017 to 2020, production rose by 20.1%, with an average annual growth rate of 6.3%. The lowest production level was recorded in 2018 at 2,971 thousand tons, which also saw the largest decline of 1.7% during this timeframe.

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 milk production in the GCC declined. In 2020, milk output was valued at 7,211 million US dollars, down 8.5% from the year before. However, over the broader period from 2017 to 2020, production value increased by 25.3%, with an average annual growth rate of 7.8%. The peak value was reached in 2019 at 7,877 million US dollars, while the largest increase occurred in 2018 with a 23.4% rise.

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

Exports milk from GCC

Exports in kind, K t

After two years of decline, milk exports from the GCC rebounded. In 2020, exports totaled 826 thousand tons, a 27.2% increase compared to 2019. Over the period from 2017 to 2020, exports grew by 18.7%, with an average annual growth rate of 5.9%. The lowest export volume was recorded in 2019 at 649 thousand tons, which also experienced the largest decline of 4.7% during this period.

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

From 2017 to 2020, milk exports from the GCC were distributed across a wide range of partner countries. The top destinations—Iraq (11.7% of exports in kind), Yemen (6.1%), and Jordan (5.5%)—together accounted for just 23.4% of total export flows, highlighting the diversity of trade partners.

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, cross-border shipments of milk from the GCC reached 1,641 million US dollars, up 5.3% from the previous year. Over the period from 2017 to 2020, export value increased by 23.9%, with an average annual growth rate of 7.4%. The largest decline occurred in 2019 at 4.3%, while the largest increase was recorded in 2018 with a 23.0% rise.

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

Between 2017 and 2020, milk from the GCC was traded with numerous countries. Even the largest destinations—Iraq, Somalia, and Jordan—together represented only 28.5% of total export value, underscoring the broad diversification of export 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 milk to GCC

Imports in kind, K t

Milk imports into the GCC declined for the second consecutive year. In 2020, the region imported 1,015 thousand tons of milk, a 9.7% decrease from the year before. Between 2017 and 2020, imports fell by 9.2%, equating to an average annual decline of 3.2%. The highest import volume was recorded in 2018 at 1,179 thousand tons, which also saw the largest increase of 5.5% during this period.

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

From 2017 to 2020, key suppliers of milk to the GCC included New Zealand (15.2% of imports in kind), the Netherlands (13.6%), and Germany (5.3%). However, their combined share reached only 34.1% of total imports in kind, with the remaining 65.9% spread across many other partners, reflecting a highly diversified import structure.

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

Following two years of decline, milk imports into the GCC increased. In 2020, imports amounted to 2,863 million US dollars, up 11.6% from the previous year. Over the period from 2017 to 2020, import value rose by 4.8%, with an average annual growth rate of 1.6%. The lowest value was recorded in 2019 at 2,564 million US dollars, which also experienced the largest decline of 5.3% during this timeframe.

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

Between 2017 and 2020, major suppliers of milk to the GCC in value terms were New Zealand (22.3% of imports), the Netherlands (16.5%), and Germany (5.2%). Yet, even together, they represented just 44.0% of total import value, indicating a broadly diversified partner base for imports.

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

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