Forecast Period
|
2026-2030
|
Market Size (2024)
|
USD 25.04 Billion
|
CAGR (2025-2030)
|
6.76%
|
Fastest Growing Segment
|
Online
|
Largest Market
|
North
|
Market Size (2030)
|
USD 32.56 Billion
|
Market Overview
India Dairy Products Market was valued at USD 25.04 Billion in 2024 and is expected to
reach USD 32.56 Billion by 2030 with a CAGR of 6.76% during the forecast period.
The India Dairy Products market is witnessing robust growth, owing to the increasing
consumer demand for nutritious and protein-rich products, as dairy is a key
component of the Indian diet. Rising health awareness has led to higher
consumption of milk, yogurt, paneer, and other dairy products for their health
benefits. Also, urbanization and changing lifestyles are contributing to a
shift towards packaged and processed dairy products for convenience. With the
growing middle class and increasing disposable incomes, consumers are opting
for premium dairy products, such as organic milk and low-fat options. These
trends, along with government support to improve dairy farming, continue to
fuel market growth.
Key Market Drivers
Rapid
Urbanization & Changing Retail Landscape
Rapid urbanization and the changing retail landscape
are major drivers of the India dairy products market. As a part of
this, according to a recent study, India's urban population is 461 million.
This number is increasing by 2.3% per year. By 2031, cities are expected to
generate 75% of India's national income. Providing the requisite urban
infrastructure is a significant challenge. 70 to 80 percent of the
infrastructure required by 2050 has not yet been developed, and the predicted
investment gap amounts to around 827 billion US dollars. As more people
migrate to urban areas for work and education, there is a significant increase
in the demand for convenient and ready-to-consume dairy products. Urban
consumers have a higher preference for packaged, processed, and branded dairy
items, such as milk, yogurt, cheese, and butter, due to their easy
availability, longer shelf life, and consistent quality. The growth of modern
retail formats, including supermarkets, hypermarkets, and online grocery
stores, has further facilitated access to a wide range of dairy products,
enabling consumers to make more informed choices.
Also, the rise of e-commerce platforms has allowed for
greater convenience in purchasing dairy products, especially in tier-2 and
tier-3 cities where traditional retail outlets may be limited. The increasing
number of convenience stores and local retailers in urban areas is also helping
expand the reach of dairy products. As a result, these retail advancements are
making dairy products more accessible and driving consumption across urban
India. Also, the changing lifestyle, with a focus on health-conscious eating
and convenience, is prompting consumers to opt for fortified dairy products,
plant-based alternatives, and premium dairy items, contributing to the market's
growth.
Growing
Innovation by Key Players
Growing innovation by key players is a significant
driver in the India dairy products market. As consumer preferences evolve,
dairy companies are increasingly focusing on product innovation to cater to a
diverse and health-conscious population. As a part of this, as of June 2023,
Aashirvaad Svasti, one of West Bengal's major dairy brands, has announced the
regional launch of its latest milk offering, 'Aashirvaad Svasti Daily'. The new
product is designed to provide women with access to high-quality milk that will
meet their family's daily milk requirement without breaking the bank.
Mothers are reducing their monthly budget for necessities, including milk, as
food prices have risen over the past year. While the trend appears to be
similar across India, according to an independent research firm, the monthly
average milk consumption per household in Kolkata has decreased by 9.6 percent
over the last year. Innovations such as fortified milk, probiotic yogurts,
low-fat and sugar-free dairy products, and plant-based dairy alternatives are
becoming more popular. These products are being developed to meet the rising
demand for healthier and more sustainable options, particularly among urban and
health-conscious consumers.
Leading dairy companies are also leveraging advanced
technologies in processing, packaging, and distribution to improve product
quality, shelf life, and convenience. For instance, innovations like vacuum
packaging, ultra-high-temperature (UHT) milk, and resealable packaging are
enhancing the convenience and freshness of dairy products, which is appealing
to busy consumers. Also, companies are experimenting with new flavors,
textures, and formulations, such as flavored milk, cheese varieties, and
ready-to-eat dairy snacks, catering to the growing demand for variety and
taste. These innovations not only help companies differentiate their offerings
but also expand their customer base. By responding to the evolving preferences
and needs of consumers, dairy brands are driving market growth and gaining a
competitive edge in an increasingly crowded market.
Expansion
of Foodservice Sectors
The expansion of the foodservice sector is a key
driver in the growth of the India dairy products market. As a part of this,
as of September 2024, Speciality locations, India's first publicly listed
restaurant firm, which owns and manages brands such as Mainland China, Asia
Kitchen by Mainland China, and Oh! Calcutta, expects to open 40-50 locations in
the next three years and will expand both in India and worldwide. As the
Indian foodservice industry continues to evolve, with an increasing number of
restaurants, cafes, and quick-service restaurants (QSRs), the demand for dairy
products has surged. Dairy ingredients such as milk, cream, butter, cheese,
yogurt, and paneer are integral to various food preparations across different
cuisines, driving their increased usage in the foodservice industry.
With the rise of dining out and the growing trend of
Western and fusion cuisine, there is a greater demand for a wide variety of
dairy products, particularly cheese, yogurt, and milk-based beverages like
lassi and smoothies. Also, the rise of fast-casual dining, delivery platforms,
and cloud kitchens has further contributed to this demand. As foodservice
providers focus on offering healthier options, there is also an increased
demand for low-fat, organic, and fortified dairy products. Also, the expansion
of the foodservice sector has led to innovations in product offerings, with
manufacturers developing dairy-based ingredients tailored for foodservice
needs, such as ready-to-use paneer, flavored dairy-based sauces, and
pre-packaged desserts. This trend not only supports the growth of the dairy
products market but also boosts the availability of these products in the
foodservice sector, helping meet the growing consumption of dairy-based dishes
in India.
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Key Market Challenges
Supply
Chain Issues
Supply chain issues present a significant challenge to
the India dairy products market. Dairy products are highly perishable,
requiring efficient and robust supply chains to ensure that products reach
consumers in a fresh and safe condition. However, India's supply chain
infrastructure faces several hurdles, including inconsistent cold storage
facilities, transportation delays, and limited rural infrastructure. These
issues can lead to spoilage, reduced product quality, and increased costs for
manufacturers and consumers alike.
Also, fluctuations in milk production due to factors
like weather conditions, seasonal variations, and feed shortages can disrupt
the supply of raw materials for dairy products. This variability can cause
price volatility and challenges in maintaining a steady supply of popular dairy
products like milk and cheese. Small and medium-sized dairy producers,
especially those operating in rural areas, often struggle with supply chain
inefficiencies, further exacerbating the problem. The logistical challenges are
compounded by the growing demand for packaged and processed dairy products,
which require timely and efficient distribution across urban and rural markets.
Inadequate cold storage and refrigerated transportation systems increase the
risk of product spoilage during transit, leading to waste and potential
financial losses. Addressing these supply chain inefficiencies is crucial for
sustaining growth in the dairy products market and ensuring product
availability at affordable prices.
Increased
Competition Among Players
Increased competition among players is a significant
challenge in the India dairy products market. With the rising demand for dairy
products, both established and new brands are entering the market, intensifying
competition. Large multinational companies, along with domestic players, are
fighting for market share, driving up marketing and promotional costs. This
competitive pressure often leads to price wars, which can erode profit margins,
especially for smaller players who may not have the resources to offer
significant discounts or invest in brand-building activities.
Also, the influx of private label brands and unbranded
local dairy producers is further intensifying the competition. These players
often provide lower-priced, unbranded products that appeal to budget-conscious
consumers, particularly in rural areas. While these low-cost options can
capture significant market share, they create difficulties for established
brands that rely on premium pricing strategies. The intense competition also forces
companies to continuously innovate and differentiate their products. Manufacturers
must stay ahead by offering new flavors, value-added products, and improving
quality to meet changing consumer preferences. The pressure to remain
competitive leads to increased research and development costs, as well as
investments in marketing, distribution networks, and packaging innovations.
This competitive environment can challenge profit stability, especially for
smaller players unable to compete at scale.
Key Market Trends
Rising
Dairy for Organic Dairy Products
The rising demand for organic dairy products is a
notable trend in the India dairy products market, driven by increasing consumer
awareness about health, sustainability, and the desire for natural,
chemical-free products. As consumers become more health-conscious, they are
opting for dairy products that are free from pesticides, hormones, and
antibiotics, which are commonly found in conventional dairy farming practices.
Organic milk, ghee, yogurt, paneer, and other dairy products are increasingly
sought after due to their perceived health benefits, including higher
nutritional content and fewer artificial additives. This trend is particularly
strong in urban areas, where consumers have greater disposable incomes and are
more exposed to global health trends. Also, as environmental sustainability
becomes a growing concern, organic dairy farming practices, which emphasize
animal welfare, sustainable farming, and eco-friendly production methods, are
gaining popularity among eco-conscious consumers.
Increased
Consumption of Fast-Food Across the Region
The increased consumption of fast food across India is
a significant trend influencing the dairy products market. As a part of
this, as of November 2023, according to a World Health Organization (WHO) report,
India's total consumption of ultra-processed foods has climbed by more than 90%
since 2011.As urbanization and changing lifestyles continue to shape consumer behaviour,
fast food consumption has risen dramatically, particularly among younger
demographics and working professionals. Dairy-based products such as cheese,
butter, milk, and cream are essential ingredients in a variety of fast-food
items, including burgers, pizzas, pastas, and milkshakes. The growing
popularity of quick-service restaurants (QSRs) and casual dining chains has led
to an increase in demand for these dairy products.
This trend is further supported by the rise of
delivery services and food aggregators like Zomato and Swiggy, making fast food
more accessible to a broader consumer base, including those in smaller towns
and cities. Fast food chains and restaurants are constantly innovating their
menu offerings, incorporating dairy products like flavored yogurts,
cheese-based snacks, and milk-based beverages to cater to changing tastes and
preferences. Also, there is a rising demand for indulgent, comfort food that
incorporates dairy, such as creamy sauces, desserts, and dairy-based beverages.
Rising
Demand for Clean-Labelled Products
Rising demand for clean-labeled products is a
prominent trend in the India dairy products market. As consumers become more
health-conscious and seek transparency about what they are consuming, there is
a growing preference for dairy products that feature clean and simple labels.
Clean labeling refers to products that contain natural, minimally processed
ingredients with no artificial additives, preservatives, or chemicals. This
trend is particularly strong among urban and younger consumers, who are more
informed about the potential health risks of consuming products with additives
and artificial ingredients.
The demand for clean-labeled dairy products spans a
variety of items, including milk, yogurt, cheese, butter, and ghee. Consumers
are increasingly looking for dairy products that are free from synthetic
hormones, antibiotics, and genetically modified organisms (GMOs). Brands that
offer organic, grass-fed, or hormone-free dairy options are seeing higher
sales, as these products align with consumers’ desires for healthier, more
natural food choices. This trend is also being driven by the increasing
awareness of food safety and quality, with consumers becoming more cautious
about the sourcing and production practices behind their food. As a result,
dairy companies are innovating by simplifying their ingredient lists, promoting
transparency in sourcing, and highlighting product quality to meet consumer
expectations for clean-label products. This shift is reshaping the dairy
market, as manufacturers adapt to the rising demand for purity and simplicity
in food labeling.
Segmental Insights
Sales
Channel Insights
Supermarket/Hypermarket dominated the India
Dairy Products market, due to their extensive reach and convenience. These
retail formats offer a wide range of dairy products under one roof, allowing
consumers to access everything from milk and yogurt to cheese, butter, and
premium dairy items. With an increasing number of urban consumers preferring
one-stop shopping experiences, supermarkets and hypermarkets have become the
go-to destinations for purchasing dairy products. Also, the availability of
various local and international dairy brands, along with promotional offers and
discounts, has made these retail outlets highly popular. The growing number of
organized retail stores in urban and semi-urban areas continues to drive the
dominance of supermarkets and hypermarkets in the market.
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Regional Insights
The North region dominated the India Dairy Products
market, driven by its large population, urbanization, and higher disposable
incomes. Major cities like Delhi, Chandigarh, and Jaipur have a high demand for
dairy products, with consumers increasingly opting for packaged milk, cheese,
yogurt, and other dairy-based items. The region’s established dairy
infrastructure, including large-scale milk production and processing plants,
further supports this dominance. Also, North India's growing middle class and
the rise of modern retail outlets like supermarkets and hypermarkets contribute
to the higher availability and accessibility of dairy products. As consumer
preferences shift towards convenience and premium dairy options, the North
region remains a key driver of market growth.
Recent Developments
- In January 2024, Mother Dairy announced
the addition of a buffalo milk variety to its species-based milk line. The milk
supplier anticipates business from the variety to reach Rs 500 crore during the
following year. The milk, produced from Uttar Pradesh and Gujarat, will be
accessible in Delhi-NCR starting this week for Rs 70 per litre. The variation
would eventually be released in Uttar Pradesh, Haryana, and Maharashtra. The
company anticipates this segment to expand by 10% year on year and reach total
volume sales of two lakh litres per day (LLPD) from the variety by March next
year.
- In November 2024, The Karnataka Milk
Federation (KMF), best known for its Nandini brand, plans to expand into North
India by launching fresh dairy goods, such as milk and curd, in the national
capital. With this initiative, KMF hopes to gain a foothold in the competitive North
Indian dairy sector, which is currently headed by brands such as Mother Dairy,
Amul, Madhusudan, and Namaste India. With this development, Nandini will
compete directly with Amul, the Gujarat Cooperative Milk Marketing Federation's
flagship brand.
- In November 2023, Nestlé launched a
milk product containing prebiotic fibers derived from milk's natural lactose.
Nestlé produced N3 milk. Made from cow's milk, it has all the necessary
components found in milk, including proteins, vitamins, and minerals. Also, it
contains prebiotic fibers, a low lactose content, and has about 15% fewer
calories.
- In April 2023, Mother Dairy Fruit and
Vegetable Pvt Ltd launched 15 new items for the summer season.
The product lineup includes a ready-to-eat custard, two cold coffees, and
over ten ice cream flavors. In addition, the company has expanded its Nutrifit
curd line to include Vitamins A and D, as well as mother dairy. The newly
announced line will be offered in the company's major markets via both
traditional and new-age distribution methods.
Key Market Players
- Britannia Industries Limited
- Dodla Dairy Limited
- Gujarat Co-operative Milk Marketing
Federation Limited
- Hatsun Agro Product Limited
- Karnataka Milk Federation
- Mother Dairy Fruit & Vegetable
Private Limited
- Nestlé India Limited
- Parag Milk Foods
- Ananda Dairy Ltd
- Alpha Milk Foods Pvt. Ltd.
By Product Type
|
By End User
|
By Sales Channel
|
By Region
|
- Butter
- Cheese
- Cream
- Dairy Desserts
- Milk
- Sour Milk Drinks
- Yogurt
|
|
- Supermarket/Hypermarket
- 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 End User:
o Residential
o Commercial
- India Dairy Products Market,
By Sales Channel:
o Supermarket/Hypermarket
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 presents
in the India Dairy Products Market.
Available Customizations:
India Dairy Products Market report with the given
market data, TechSci 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 sales@techsciresearch.com