GCC: Ghee Market 2024

Ghee Market Size in GCC

In 2022, the GCC ghee market decreased by -12.4% to $X, falling for the fourth year in a row after two years of growth. In general, consumption showed a relatively flat trend pattern. Over the period under review, the market hit record highs at $X in 2018; however, from 2019 to 2022, consumption stood at a somewhat lower figure.

Ghee Production in GCC

In value terms, ghee production soared to $X in 2022 estimated in export price. Overall, production continues to indicate significant growth. As a result, production attained the peak level and is likely to continue growth in the immediate term.

The country with the largest volume of ghee production was Saudi Arabia (X tons), accounting for 91% of total volume. Moreover, ghee production in Saudi Arabia exceeded the figures recorded by the second-largest producer, Oman (X tons), tenfold.

In Saudi Arabia, ghee production remained relatively stable over the period from 2012-2022.

Ghee Exports

Exports in GCC

In 2022, exports of ghee in GCC surged to X tons, rising by 114% compared with 2021. Over the period under review, exports showed strong growth. The most prominent rate of growth was recorded in 2014 with an increase of 116% against the previous year. Over the period under review, the exports attained the peak figure at X tons in 2020; however, from 2021 to 2022, the exports stood at a somewhat lower figure.

In value terms, ghee exports skyrocketed to $X in 2022. In general, exports saw a remarkable increase. The pace of growth was the most pronounced in 2014 when exports increased by 142% against the previous year. Over the period under review, the exports attained the maximum at $X in 2020; however, from 2021 to 2022, the exports failed to regain momentum.

Exports by Country

The United Arab Emirates represented the major exporter of ghee in GCC, with the volume of exports finishing at X tons, which was approx. 68% of total exports in 2022. It was distantly followed by Saudi Arabia (X tons), achieving a 30% share of total exports.

Exports from the United Arab Emirates increased at an average annual rate of +4.7% from 2012 to 2022. At the same time, Saudi Arabia (+12.4%) displayed positive paces of growth. Moreover, Saudi Arabia emerged as the fastest-growing exporter exported in GCC, with a CAGR of +12.4% from 2012-2022. Saudi Arabia (+13 p.p.) significantly strengthened its position in terms of the total exports, while the United Arab Emirates saw its share reduced by -11% from 2012 to 2022, respectively.

In value terms, the United Arab Emirates ($X) and Saudi Arabia ($X) were the countries with the highest levels of exports in 2022.

Among the main exporting countries, Saudi Arabia, with a CAGR of +25.1%, recorded the highest rates of growth with regard to the value of exports, over the period under review.

Export Prices by Country

In 2022, the export price in GCC amounted to $X per ton, approximately mirroring the previous year. Export price indicated resilient growth from 2012 to 2022: its price increased at an average annual rate of +6.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, ghee export price increased by +36.3% against 2019 indices. The pace of growth was the most pronounced in 2017 when the export price increased by 81% against the previous year. The level of export peaked at $X per ton in 2015; however, from 2016 to 2022, the export prices remained at a lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Saudi Arabia ($X per ton), while the United Arab Emirates stood at $X per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Saudi Arabia (+11.3%).

Ghee Imports

Imports in GCC

Ghee imports fell to X tons in 2022, shrinking by -14% against 2021. In general, imports recorded a pronounced decline. The pace of growth was the most pronounced in 2017 with an increase of 31% against the previous year. Over the period under review, imports reached the maximum at X tons in 2020; however, from 2021 to 2022, imports failed to regain momentum.

In value terms, ghee imports shrank slightly to $X in 2022. Total imports indicated mild growth from 2012 to 2022: its value increased at an average annual rate of +1.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports decreased by -37.9% against 2018 indices. The most prominent rate of growth was recorded in 2017 with an increase of 84% against the previous year. The level of import peaked at $X in 2018; however, from 2019 to 2022, imports stood at a somewhat lower figure.

Imports by Country

In 2022, the United Arab Emirates (X tons) represented the key importer of ghee, making up 54% of total imports. Kuwait (X tons) held a 17% share (based on physical terms) of total imports, which put it in second place, followed by Qatar (17%) and Oman (10%). Bahrain (X tons) took a relatively small share of total imports.

The United Arab Emirates experienced a relatively flat trend pattern with regard to volume of imports of ghee. At the same time, Qatar (+38.5%) displayed positive paces of growth. Moreover, Qatar emerged as the fastest-growing importer imported in GCC, with a CAGR of +38.5% from 2012-2022. Oman experienced a relatively flat trend pattern. By contrast, Bahrain (-3.5%) and Kuwait (-4.7%) illustrated a downward trend over the same period. From 2012 to 2022, the share of Qatar, the United Arab Emirates and Oman increased by +16, +16 and +3 percentage points, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the United Arab Emirates ($X) constitutes the largest market for imported ghee in GCC, comprising 56% of total imports. The second position in the ranking was held by Qatar ($X), with an 18% share of total imports. It was followed by Kuwait, with a 14% share.

From 2012 to 2022, the average annual rate of growth in terms of value in the United Arab Emirates stood at +5.6%. The remaining importing countries recorded the following average annual rates of imports growth: Qatar (+40.4% per year) and Kuwait (-1.2% per year).

Import Prices by Country

In 2022, the import price in GCC amounted to $X per ton, increasing by 14% against the previous year. Import price indicated a temperate increase from 2012 to 2022: its price increased at an average annual rate of +4.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, ghee import price increased by +18.9% against 2020 indices. The pace of growth was the most pronounced in 2017 an increase of 41% against the previous year. The level of import peaked in 2022 and is expected to retain growth in the near future.

Average prices varied somewhat amongst the major importing countries. In 2022, major importing countries recorded the following prices: in Bahrain ($X per ton) and Qatar ($X per ton), while Kuwait ($X per ton) and Oman ($X per ton) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the United Arab Emirates (+4.7%), while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform