Milk market in Saudi Arabia

Earlier Report Observations

The Saudi milk market volume expanded from 2.3 million tons in 2018 to 3.2 million tons in 2021, driven by a steady increase in domestic production from 2.4 million tons to 3.5 million tons over this period.

Market volume contracted sharply to 2.3 million tons in 2022 after dairy companies, including the dominant player Almarai, raised prices by up to 33% due to surging production costs, which was compounded by a widespread consumer boycott campaign against Almarai that reduced overall consumption.

A strong recovery followed in 2023, with the market reaching 3.3 million tons, supported by Sadafco's launch of a new 50,000-ton annual capacity distribution warehouse in Mecca that improved supply efficiency and a seasonal spike in demand during Ramadan when milk consumption traditionally rises.

Production milk in Saudi Arabia

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Saudi Arabia's milk production volume increased for the second consecutive year. In 2020, the country produced 2,906 thousand tons of milk, marking an 8.5% rise from the previous year. Over the 2017-2020 period, production grew by 19.9%, with a compound annual growth rate of 6.2%. The lowest production level was recorded in 2018 at 2,379 thousand tons, which also saw the largest decline of 1.8%. In contrast, 2019 experienced the most significant increase at 12.6%.

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

In value, 2017-2020, M $ US

Following a two-year advance, Saudi Arabia's milk production value declined. In 2020, milk output was valued at 2,683 million US dollars, representing a 4.1% contraction compared to 2019. Over the 2017-2020 period, production value increased by 6.6%, with a compound annual growth rate of 2.2%. The peak value was recorded in 2019 at 2,798 million US dollars, while the largest increase occurred in 2018 at 10.7%.

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

Exports milk from Saudi Arabia

Exports in kind, K t

Milk exports from Saudi Arabia increased for the second consecutive year. In 2020, exports reached 586.0 thousand tons, representing a 19.6% increase compared to 2019. Between 2017 and 2020, exports grew by 21.5%, equating to an annualized rate of 6.7%. The lowest export volume was recorded in 2018 at 420.6 thousand tons, which also saw the largest decline of 12.8%.

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

Throughout the 2017–2020 period, the three largest markets for Saudi Arabia's milk exports in kind were the United Arab Emirates, Kuwait, and Oman. Together, they accounted for 66.0% 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

Saudi Arabia's milk export value increased for the second consecutive year. In 2020, exports reached 541.2 million US dollars, showing a modest gain of 5.7% from 2019. Over the 2017-2020 period, export value increased by 8%, with a compound annual growth rate of 2.6%. The lowest value was recorded in 2018 at 492.7 million US dollars, which also experienced the largest decline of 1.7%.

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

In the 2017–2020 period, the main destinations for Saudi Arabia's milk exports in value terms were the United Arab Emirates (34.2% of exports), Kuwait (16.0% of exports), and Bahrain (10.7% of exports). Together, these three countries accounted for 61.0% of total export flows.

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 to Saudi Arabia

Imports in kind, K t

After a two-year improvement, foreign milk supplies to Saudi Arabia declined. In 2020, the country imported 325.8 thousand tons of milk, which is 13.9% lower than in 2019. Between 2017 and 2020, imports increased by 11%, equating to an annualized rate of 3.6%. The highest import volume was recorded in 2019 at 378.3 thousand tons, while the largest increase occurred in 2018 at 19.6%.

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

Over the 2017–2020 period, the top suppliers of milk to Saudi Arabia in kind were the United Arab Emirates (19.8% of imports), New Zealand (18.8% of imports), and the Netherlands (17.6% of imports). Their combined share reached 56.3% of total imports in kind.

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

Saudi Arabia's milk import value increased for the second consecutive year. In 2020, imports registered 905.5 million US dollars, indicating a strong advance of 12.7% compared with 2019. Over the 2017-2020 period, import value increased by 14.1%, with a compound annual growth rate of 4.5%. The lowest value was recorded in 2018 at 739.1 million US dollars, which also saw the largest decline of 6.8%.

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

In the 2017–2020 period, the principal sources for Saudi Arabia's milk imports in value terms were the United Arab Emirates (24.8% of imports), New Zealand (20.9% of imports), and the Netherlands (15.5% of imports). Jointly, they accounted for 61.2% 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