According to TechSci Research report, “India Dairy Products Market – Industry Size, Share, Trends, Competition Forecast & Opportunities, 2029”, the India Dairy Products Market stood at USD24.5 billion in 2023 and is anticipated to grow with a CAGR of 6.3% in the forecast period, 2025-2029. The India dairy products market stands as a significant and complex sector within the country’s vast and diverse agricultural landscape. With a population of over 1.3 billion people, India ranks as the world’s largest milk-producing nation and a global dairy powerhouse. The market encompasses a wide array of products, including milk, yogurt, butter, ghee, cheese, and more, and plays a crucial role in the nation’s economy and nutritional sustenance.
The India dairy products market is characterized by its sheer size and diversity. It caters to the varied dietary preferences of a multi-ethnic population, from traditional milk-based sweets and beverages to contemporary dairy items like cheese and yogurt. The market encompasses a broad spectrum, ranging from unorganized small-scale producers to large, modern dairy processing companies.
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Increasing health consciousness and awareness of the nutritional benefits of dairy products have led to a shift in consumer preferences. Dairy products are regarded as important sources of essential nutrients such as calcium, protein, and vitamins, promoting their inclusion in everyday diets. Additionally, the market has seen a surge in the demand for value-added dairy products, such as flavored yogurt, probiotic drinks, and fortified milk. These products cater to the evolving tastes and preferences of consumers, especially in urban areas. Furthermore, the preference for packaged dairy products, including UHT (ultra-high temperature) milk and processed cheese, has grown due to factors like convenience, longer shelf life, and hygiene considerations.
The expansion of organized retail chains and supermarkets has facilitated consumer access to a wider variety of dairy products. These retail formats offer a platform for both national and international dairy brands to showcase their products. Additionally, India boasts a robust network of dairy cooperatives, such as Amul and Mother Dairy, which have played a pivotal role in organizing milk procurement, ensuring fair prices for farmers, and maintaining product quality. These cooperatives continue to influence the market significantly. Furthermore, dairy processing units have embraced modern technologies to enhance product quality, safety, and efficiency. These innovations have led to the production of high-quality dairy products meeting international standards.
India is the largest milk producer globally, with a vast network of dairy farmers contributing to this volume. This consistent supply of raw milk forms the foundation for the dairy industry. Additionally, dairy products hold immense cultural and culinary significance in India. They are integral to various festivals, rituals, and everyday meals. This cultural attachment drives consistent demand. Furthermore, with a steadily increasing population, especially in urban areas, there is a growing consumer base for dairy products. Urbanization often leads to dietary changes and increased dairy consumption.
India’s diverse cultural landscape results in a wide range of dietary preferences. This diversity has spurred the creation and consumption of an extensive variety of dairy products, both regionally and nationally. Additionally, the increasing focus on health and wellness has led consumers to seek natural and nutrient-rich food options, further boosting the demand for dairy products. Furthermore, India has made inroads into the international dairy market, exporting products like buffalo milk, skimmed milk powder, and ghee. This has opened up opportunities for growth and global recognition.
Ensuring consistent product quality and safety remains a challenge, particularly in the unorganized sector. Adherence to quality standards and hygiene practices is crucial. Additionally, managing the supply chain for perishable dairy products can be complex. Maintaining the freshness of products during transportation and distribution is a constant challenge. Furthermore, the dairy supply chain is vulnerable to price fluctuations due to factors like feed costs, weather conditions, and market dynamics. These fluctuations can impact both farmers and consumers.
The dairy industry is subject to stringent regulatory requirements related to product standards and quality. Compliance can be challenging for smaller producers. Additionally, the dairy sector’s environmental footprint, including issues related to methane emissions and water usage, has raised concerns about sustainability and environmental impact.
Adopting sustainable dairy farming practices, such as organic and eco-friendly methods, presents an opportunity to cater to environmentally conscious consumers and access premium markets. Additionally, developing innovative dairy products, including lactose-free options, dairy alternatives, and fortified products, can tap into evolving consumer preferences. Furthermore, expanding exports of dairy products to international markets offers the opportunity for growth and economic development.
India dairy products market is segmented into product type, sales channel, and region.
Based on product type, the market is segmented into butter, cheese, cream, dairy desserts, milk, sour milk drinks, yogurt. Among these, milk segment has a significant share in the India dairy products market. Milk, often referred to as “white gold” in India, serves as a primary source of nutrition and forms the basis for a multitude of dairy products consumed across the country.
Based on region, the market is segmented into East, West, North, and South. Among these, the North region has a significant share of the India dairy products market. The North region features a mix of urban and rural populations, each with its distinct dairy consumption patterns. Urbanization has led to increased demand for packaged dairy products, while rural areas continue to rely on traditional dairy items. This diversity allows dairy producers to cater to a wide range of preferences.
Major companies operating in India dairy products market are:
- Britannia Industries
- Dodla Dairy Ltd
- Gujarat Cooperative Milk Marketing Federation Ltd
- Hatsun Agro Product Ltd
- Karnataka Cooperative Milk Producers Federation Ltd
- Mother Dairy Fruit & Vegetable Pvt. Ltd
- Nestlé SA
- Parag Milk Foods Ltd
- Rajasthan Co-operative Dairy Federation Ltd
- Tamil Nadu Cooperative Milk Producers Federation Ltd
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“The India dairy products market is poised for continued growth and evolution. As the country’s population continues to rise and consumer preferences change, dairy products will remain a vital part of the Indian diet. Meeting the challenges and embracing the opportunities presented by this dynamic market will be essential for stakeholders across the dairy supply chain. In conclusion, the India dairy products market is a multifaceted and crucial sector, deeply ingrained in the nation’s cultural and culinary heritage. It has experienced impressive growth and transformation, driven by changing consumer preferences, health awareness, technological advancements, and the country’s position as a dairy production powerhouse.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.
“India Dairy Products Market Size By Product Type (Butter, Cheese, Cream, Dairy Desserts, Milk, Sour Milk Drinks, Yogurt), By Sales Channel (Supermarkets/Hypermarkets, Convenience Stores, Online, and Others), By Region, By Competition Forecast & Opportunities, 2019-2029F, has evaluated the future growth potential of India dairy products market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision-makers make sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in India dairy products market.
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