|
Forecast
Period
|
2025-2029
|
|
Market
Size (2023)
|
USD24.5 Billion
|
|
CAGR
(2024-2029)
|
6.3%
|
|
Fastest
Growing Segment
|
Milk
|
|
Largest
Market
|
North
|
Market Overview
India
Dairy Products Market has valued at USD24.5 billion in 2023 and is anticipated
to project robust growth in the forecast period with a CAGR of 6.3% through 2029.
The India Dairy Products Market is a dynamic and integral part of the country's
food and agriculture sector. Dairy products have been an essential component of
Indian cuisine and nutrition for centuries, and the market has undergone
significant transformation over the years.
The
India Dairy Products Market is one of the largest in the world, owing to the
country's vast population and deep-rooted dairy culture. It encompasses a wide
range of products, including milk, butter, ghee, yogurt, cheese, paneer
(cottage cheese), and various traditional dairy items.
India's
massive population provides a consistent and substantial consumer base for
dairy products. The ever-increasing population drives demand for milk and dairy
items, making the market resilient and growing. As incomes rise, consumers tend
to seek more diverse and value-added dairy products. This has led to increased
demand for premium and specialty dairy items. Furthermore, the ongoing
urbanization trend in India has led to changes in dietary habits. Urban
consumers often opt for packaged and processed dairy products, contributing to
market growth.
There
is a growing awareness of the nutritional benefits of dairy products, including
their rich protein and calcium content. This awareness has boosted the
consumption of dairy items, especially among health-conscious consumers.
Additionally, the dairy industry has witnessed innovation in terms of product
development, packaging, and marketing. New product variants, flavored yogurts,
and functional dairy products have gained popularity.
Maintaining
the cold chain and ensuring proper storage for dairy products, especially in
remote areas, can be a logistical challenge. Ensuring the quality and safety of
dairy products, particularly milk, is crucial. Quality control and hygiene
standards need to be rigorously enforced. The prices of raw milk are subject to
fluctuations, impacting the profitability of dairy farmers and processors.
Price volatility can also affect consumer prices. The market is competitive,
with both domestic and international brands vying for market share. This
competition can lead to price wars and marketing expenses. In rural areas, the
lack of modern dairy processing facilities and infrastructure can hinder the
growth of the dairy industry.
In
conclusion, the India Dairy Products Market is a vast and growing industry,
deeply intertwined with the country's culinary traditions and nutrition.
Despite challenges related to supply chain, quality control, and competition,
the market's resilience and adaptability make it a crucial component of India's
food sector, offering a diverse range of dairy products to meet the varied
tastes and preferences of consumers.
Key Market Drivers
Rising
Health Consciousness and Nutritional Awareness
One
of the primary drivers propelling the growth of the India Dairy Products Market
is the escalating health consciousness and nutritional awareness among
consumers. As the country grapples with lifestyle-related health issues like
obesity, diabetes, and heart diseases, people are becoming more mindful of
their dietary choices. Dairy products, rich in essential nutrients like
calcium, protein, and vitamins, are being recognized as a crucial component of
a balanced diet.
Consumers
are increasingly turning to dairy products for their health benefits,
particularly in terms of bone health and overall well-being. Calcium, found
abundantly in dairy, is essential for strong bones and teeth, making dairy
products a preferred choice, especially among parents for their growing
children. Moreover, the protein content in dairy aids in muscle development and
repair, making it a sought-after dietary source for fitness enthusiasts.
The
growing popularity of dairy-based probiotics and fermented products like yogurt
and kefir is another manifestation of this health consciousness trend.
Probiotics are known to support digestive health and boost the immune system,
making them attractive to consumers seeking holistic well-being.
Evolving
Consumer Preferences and Dietary Shifts
The
second driver reshaping the India Dairy Products Market is the evolving
consumer preferences and dietary shifts. As incomes rise and urbanization
continues, consumers are looking for convenient and value-added dairy products
that align with their changing lifestyles.
One
notable shift is the rising demand for value-added dairy products like flavored
yogurt, dairy-based beverages, and fortified milk. These products cater to
consumers seeking variety and convenience in their diets. Flavored yogurt, for
instance, is gaining popularity as a tasty and nutritious snack, while
dairy-based beverages, such as milkshakes and lassi, offer refreshment and
nutrition on-the-go.
Furthermore,
dietary restrictions and preferences, including vegetarianism and lactose
intolerance, have led to the development of alternative dairy products.
Plant-based dairy substitutes like almond milk, soy milk, and coconut yogurt
are becoming increasingly common choices for those looking to avoid
animal-based products. This trend has encouraged traditional dairy companies to
diversify their product portfolios by offering plant-based alternatives, thus
expanding their market reach.
Rapid
Urbanization and Changing Retail Landscape
The
third key driver powering the India Dairy Products Market is rapid urbanization
and the changing retail landscape. As more Indians move to urban areas in
search of employment opportunities and improved living standards, there is a
growing demand for convenient, ready-to-consume dairy products.
The
proliferation of modern retail formats, including hypermarkets, supermarkets,
and convenience stores, has made it easier for consumers to access a wide range
of dairy products. The presence of these retail formats has also facilitated
product visibility and promotion, leading to increased consumer awareness and
product trial.
Additionally,
the growth of e-commerce platforms has played a pivotal role in expanding the
reach of dairy product manufacturers. Online grocery shopping has become
increasingly popular, especially in urban areas, allowing consumers to
conveniently purchase dairy products from the comfort of their homes. This
trend gained significant traction during the COVID-19 pandemic, further
boosting the online dairy sales channel.
Moreover,
urbanization has led to changes in lifestyles and eating patterns, resulting in
greater demand for packaged and processed dairy products. Dairy manufacturers
are capitalizing on this shift by offering products with longer shelf lives,
attractive packaging, and portion-controlled sizes, which appeal to the urban,
on-the-go consumer.
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Key Market Challenges
Supply
Chain and Infrastructure Challenges
One
of the foremost challenges in the India Dairy Products Market is the
inefficiency of the cold chain infrastructure. Maintaining the quality and
freshness of dairy products, particularly in a country with extreme climatic
variations, is paramount. However, the cold storage and distribution
infrastructure in many regions remains inadequate and poorly maintained. This
results in spoilage, wastage, and compromised product quality during
transportation and storage.
While
India is among the world's largest milk producers, the lack of modern dairy
processing facilities is a significant hurdle. Traditional and unorganized
dairy processing methods often lead to inefficiencies, inconsistent product
quality, and safety concerns. The need for investment in state-of-the-art
processing facilities and adherence to international quality standards is
evident.
The
dairy supply chain in India is highly fragmented, with millions of small-scale
dairy farmers and cooperatives involved. While this decentralization promotes
rural livelihoods, it also poses challenges in terms of milk collection,
quality control, and distribution. Coordinating these dispersed actors
efficiently can be a logistical challenge.
Quality
and Safety Concerns
Ensuring
the safety and quality of milk is a perpetual challenge in the India Dairy
Products Market. Contaminated milk, often due to poor animal husbandry
practices, inadequate veterinary care, and substandard milk collection methods,
remains a significant issue. This poses health risks to consumers and affects
the reputation of dairy products.
The
lack of standardized testing and quality control procedures across the dairy
supply chain leads to inconsistencies in product quality. Variations in fat
content, protein levels, and hygiene standards make it challenging to establish
trust among consumers and meet international export requirements.
The
regulatory framework for dairy products in India can be complex and varies from
state to state. The absence of a unified national regulatory authority for
dairy products can create confusion and hinder the enforcement of food safety
standards.
Market
Access and Competition
While
India has several organized dairy companies, a significant portion of the dairy
market remains in the hands of the unorganized sector, which includes
small-scale local vendors and informal dairy sellers. These unregulated players
often operate without adherence to quality and safety standards, creating an
uneven playing field for organized dairy companies.
The
rise of plant-based milk alternatives, such as almond milk, soy milk, and oat
milk, presents a new challenge to traditional dairy products. Changing consumer
preferences, especially among urban populations, are driving demand for these
alternatives, impacting the market share of dairy products.
Key Market Trends
Growing
Demand for Healthier and Value-Added Dairy Products
One
of the most notable trends in the India dairy products market is the increasing
consumer demand for healthier and value-added dairy products. As health
consciousness continues to rise, consumers are seeking dairy options that offer
nutritional benefits beyond traditional milk and basic dairy items.
This
trend is evident in the growing popularity of products like probiotic yogurts,
lactose-free milk, and functional dairy beverages enriched with vitamins,
minerals, and other health-promoting ingredients. These value-added dairy
products are marketed as aiding digestion, boosting immunity, or catering to
specific dietary requirements, such as lactose intolerance.
The
shift towards healthier dairy options is not only driven by consumer
preferences but also by the proactive efforts of dairy companies to diversify
their product portfolios. These companies are investing in research and
development to create innovative dairy products that align with current health
and wellness trends. As a result, the market is witnessing a proliferation of
dairy products that cater to specific health needs, appealing to a broader
customer base.
Rising
Demand for Organic and Sustainable Dairy Products
Another
notable trend in the India dairy products market is the surging demand for
organic and sustainable dairy products. Consumers are becoming increasingly
conscious of the environmental and ethical aspects of food production, leading
to a growing preference for products that are organic, ethically sourced, and
sustainably produced.
Organic
dairy products, which are free from synthetic pesticides, hormones, and
antibiotics, have gained popularity among health-conscious and environmentally
aware consumers. Many dairy companies are now focusing on organic farming
practices to meet this demand.
Additionally,
there is a rising interest in dairy products that are sourced from farms
practicing ethical and sustainable agriculture. Consumers are keen to support
brands that prioritize animal welfare, reduce their carbon footprint, and
promote fair trade practices in the dairy supply chain.
To
cater to this trend, dairy producers are adopting sustainable farming methods,
investing in eco-friendly packaging, and transparently communicating their
commitment to ethical and sustainable practices. These efforts not only
resonate with conscious consumers but also contribute to brand loyalty and
positive public perception.
E-Commerce
and Online Dairy Retailing
The
digital revolution has significantly impacted the India dairy products market,
leading to the rapid growth of e-commerce and online dairy retailing. The
convenience, wide product selection, and contactless shopping experience
offered by online platforms have made them a preferred choice for many
consumers, especially in urban areas.
Consumers
can now order a variety of dairy products, including milk, yogurt, cheese, and
butter, from the comfort of their homes and have them delivered to their
doorstep. The COVID-19 pandemic further accelerated this trend, as lockdowns
and safety concerns led to an upsurge in online grocery shopping, including
dairy products.
Online
dairy retailers have responded by enhancing their product offerings, improving
delivery logistics, and ensuring the freshness and quality of dairy items
during transit. They also frequently offer exclusive discounts and promotions
to attract and retain customers.
Segmental Insights
Product Type Insights
In
Milk, often referred to as the "white gold" of India, holds a
substantial and indispensable share in the country's Dairy Products Market.
India's rich tradition of dairy farming, coupled with the nutritional
importance of milk, has cemented its position as a staple in the daily lives of
millions of Indians. Several key factors contribute to milk's significant share
and enduring prominence in the Indian dairy industry.
Milk
is widely recognized as a highly nutritious and wholesome food item. It is a
primary source of essential nutrients such as calcium, protein, vitamins
(especially Vitamin D and Vitamin B12), and minerals. In a country where
malnutrition remains a concern, milk serves as an accessible and affordable
source of vital nutrients, especially for children.
Milk
occupies a central place in Indian cuisine and cultural traditions. It is used
in a variety of preparations, from traditional sweets like "gulab
jamun" and "rasgulla" to savory dishes like "paneer"
(cottage cheese) and "curd" (yogurt). Milk is also a fundamental
ingredient in the daily ritual of making "chai" (tea) enjoyed by
millions of Indians.
The
dairy industry in India has leveraged milk's versatility to create a wide range
of value-added products. This includes various types of milk like cow's milk,
buffalo milk, and camel milk, as well as products such as ghee (clarified
butter), butter, cheese, and flavored milk. These diverse offerings cater to
different tastes and preferences across the country.
Dairy
farming provides a source of livelihood for millions of rural households in
India. It empowers farmers, especially women, by offering a consistent income
stream from the sale of milk and dairy products. As a result, milk production
plays a crucial role in supporting rural economies.
The
supply chain for milk in India is extensive, reaching even remote areas. The
presence of dairy cooperatives, like Amul, Mother Dairy, and various state milk
federations, has helped in the efficient collection and distribution of milk.
This ensures that milk remains accessible to both urban and rural populations.
As
health and wellness consciousness grows, milk's role as a source of protein and
essential nutrients becomes even more significant. This trend has led to the
promotion of milk and dairy products as an essential part of a balanced diet,
further boosting its demand.
Sales Channel Insights
In
recent years, the Online Sales Channel has emerged as a game-changer in the
India Dairy Products Market, carving out a substantial share and
revolutionizing the way consumers access and purchase dairy items. This
segment's rapid growth can be attributed to several key factors that highlight
its prominence within the market.
The
primary driver behind the success of the Online Sales Channel in the dairy
products market is the unparalleled convenience it offers to consumers. With a
few clicks or taps, shoppers can access a vast array of dairy products, from
milk and yogurt to cheese and butter, without leaving their homes. This level
of accessibility is particularly appealing to busy urban consumers seeking a
hassle-free shopping experience.
Online
platforms have strategically expanded their product offerings within the dairy
segment. Consumers can now choose from a wide variety of dairy products,
including organic and specialty items, catering to various dietary preferences
and requirements. The convenience of finding niche or unique dairy products
online is a significant draw for consumers seeking variety.
Concerns
about the freshness and quality of dairy products are addressed through
stringent quality control measures and supply chain practices employed by
online retailers. This reassures consumers about the safety and quality of the
dairy items they purchase online, contributing to the channel's popularity.
The
rapid urbanization of Indian cities, coupled with changing lifestyles, has led
to an increased demand for convenient shopping options. Urban consumers, often
leading fast-paced lives, appreciate the convenience of having dairy products
delivered to their doorsteps, saving them time and effort.
India's
expanding internet penetration, fueled by the growing adoption of smartphones
and affordable data plans, has created a massive customer base for online dairy
product sales. Consumers in urban and semi-urban areas can easily access and
use online grocery and dairy platforms.
The
COVID-19 pandemic acted as a significant catalyst for the Online Sales Channel
within the dairy market. Lockdowns, social distancing measures, and safety
concerns led to a surge in demand for contactless grocery shopping, including
dairy products, thereby accelerating the growth of online platforms.
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Regional Insights
The
North region of India has emerged as a powerhouse in the India Dairy Products
Market, playing a pivotal role in shaping the dynamics of this vital industry.
This region, comprising states like Punjab, Haryana, Uttar Pradesh, and
Rajasthan, boasts a significant share in the dairy market for several
compelling reasons.
The
North region of India is known for its robust dairy farming practices and high
milk production. States like Punjab and Haryana are major contributors to the
country's milk output. The availability of abundant milk forms a strong
foundation for the dairy products market, ensuring a steady supply of raw
materials.
The
North region has a rich tradition of dairy consumption. Milk and dairy products
are integral to the local culinary culture, and dairy-based sweets like paneer,
ghee, and various milk-based desserts are popular staples in the region. This
cultural affinity towards dairy consumption drives demand for dairy products.
With
a steadily growing population, especially in urban areas like Delhi-NCR
(National Capital Region), there is an expanding consumer base for dairy
products. Urbanization leads to changing dietary habits, with increased
consumption of dairy products like milk, yogurt, cheese, and butter.
There
is a growing awareness of the nutritional benefits of dairy products. Dairy is
considered a rich source of calcium, protein, and essential vitamins, making it
an essential component of a balanced diet. This awareness fuels the demand for
dairy products, especially among health-conscious consumers.
The
North region boasts a diverse range of dairy products, catering to various
tastes and preferences. From traditional items like paneer (Indian cottage
cheese) and dahi (yogurt) to modern offerings like flavored milk, the region
offers a wide variety of dairy choices to consumers.
The
presence of prominent dairy cooperatives, such as Amul, in the North region has
played a pivotal role in organizing dairy farming practices, ensuring fair
prices for farmers, and maintaining the quality of dairy products. These cooperatives
have a significant market presence.
Recent Developments
- In
November 2022, Nestlé SA inaugurated a new R&D center for Latin America,
leveraging the company's global scientific and technological expertise, with
the aim of driving consumer-focused innovation in the region.
- In
July 2022, Amul disclosed an investment of USD60.57 million towards the
establishment of a state-of-the-art dairy plant in Rajkot, bolstering its
production capabilities across an array of milk-based, yogurt, and buttermilk products.
- In
May 2022, Amul introduced Isabcool flavored ice cream, enriched with psyllium
husk for promoting healthy digestion.
Key Market Players
- 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
|
By Product Type
|
By Sales
Channel
|
By Region
|
- Butter
- Cheese
- Cream
- Dairy Desserts
- Milk
- Sour Milk Drinks
- Yogurt
|
- Supermarkets/Hypermarkets
- Convenience Stores
- Online
- Others
|
|
Report
Scope:
In
this report, the India Dairy Products market has been segmented into the
following categories, in addition to the industry trends which have also been
detailed below:
- India Dairy Products Market, By Product Type:
o Butter
o Cheese
o Cream
o Dairy Desserts
o Milk
o Sour Milk Drinks
o Yogurt
- India Dairy Products Market, By Sales Channel:
o Supermarkets/Hypermarkets
o Convenience Stores
o Online
o Others
- India Dairy Products Market, By
Region:
o North
o South
o East
o West
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in the India dairy products market.
Available
Customizations:
India
Dairy Products Market report with the given market data, Tech Sci
Research offers customizations according to a company's specific needs. The
following customization options are available for the report:
Company
Information
- Detailed analysis and profiling of
additional market players (up to five).
India
Dairy Products Market is an upcoming report to be released soon. If you wish an
early delivery of this report or want to confirm the date of release, please
contact us at [email protected]