India Dairy Market size was valued at USD 131.5 Billion in 2024 and is expected to reach USD 290.8 Billion by 2033, at a CAGR of 8.01% during the forecast period 2024 – 203.
India Dairy Market: Overview
Dairy products, derived from various mammals including cows, goats, and buffalo, constitute a significant part of the Indian diet, providing essential nutrients such as calcium, protein, and vitamins. This market encompasses the entire economic system involved in the production, distribution, and consumption of dairy products.
A key driver of the Indian dairy market is the country’s rising population coupled with increasing urbanization. With a population exceeding 1.3 billion and projections indicating urban population growth to around 600 million by 2030, there’s a substantial consumer base driving demand for dairy products. Urbanization leads to shifting lifestyles and dietary patterns, fostering a higher demand for items like milk, yogurt, and cheese.
Government initiatives play a crucial role in bolstering the dairy sector. Programs like the National Dairy Plan (NDP) and Operation Flood aim to enhance dairy farming, increase milk production, and improve infrastructure.
Despite these efforts, challenges persist, notably the lack of adequate cold chain infrastructure, particularly in rural areas where a significant portion of milk production occurs. Inadequate storage and transportation facilities result in substantial post-harvest losses, compromising product quality.
Quality and safety concerns also pose challenges. Instances of adulteration and contamination raise consumer apprehensions, impacting confidence and consumption rates. Addressing these issues through stringent regulations, enforcement mechanisms, and awareness campaigns is imperative to foster market growth.
However, the market presents several opportunities. There’s a growing demand for value-added dairy products driven by urbanization, rising incomes, and health consciousness. Flavored yogurts, cheese, and probiotic drinks are witnessing increasing popularity.
Additionally, the penetration of organized retail and e-commerce channels offers avenues for market expansion. Supermarkets, hypermarkets, and online platforms provide consumers with convenient access to a wide range of dairy products, driving consumption.
Understanding regional nuances is essential in navigating the diverse Indian dairy market. Different states exhibit varying consumption patterns and preferences. For instance, traditional dairy products like paneer and ghee hold cultural significance in northern regions, while flavored milk and yogurt-based drinks are popular in the south. Regional insights facilitate targeted marketing and product development strategies.
Report Scope
| Feature of the Report | Details |
| Market Size in 2024 | USD 131.5 Billion |
| Projected Market Size in 2033 | USD 290.8 Billion |
| Market Size in 2023 | USD 122.2 Billion |
| CAGR Growth Rate | 8.01% CAGR |
| Base Year | 2023 |
| Forecast Period | 2024-2033 |
| Key Segment | By Product Type, Distribution Channels and Region |
| Report Coverage | Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends |
| Country Scope | India |
| Buying Options | Request tailored purchasing options to fulfil your requirements for research. |
Custom Market Insights has comprehensively analyzed India Dairy market. The driving forces, restraints, challenges, opportunities, and key trends have been explained in depth to depict the in-depth scenario of the market. Segment wise market size and market share during the forecast period are duly addressed to portray the probable picture of the India Dairy industry.
The competitive landscape includes key innovators, after market service providers, market giants as well as niche players ate studied and analyzed extensively concerning their strengths, weaknesses as well as value addition prospects. In addition, the Report covers key players profiling, market shares, mergers and acquisitions, consequent market fragmentation, new trends and dynamics in partnerships, and emerging business models.
List of the prominent players in the India Dairy Market:
- Britannia Industries
- Dodla Dairy Ltd
- Gujarat Cooperative Milk Marketing Federation Ltd
- Hatsun Agro Product Ltd
- Heritage Foods Limited (India)
- Karnataka Cooperative Milk Producers Federation Ltd
- Kwality Milk Foods Ltd (India)
- Milk food Limited (India)
- National Dairy Development Board (India) (Mother Dairy)
- Nestlé SA
- Parag Milk Foods Ltd
- Punjab State Cooperative Milk Producers Federation Ltd (MILKFED) (India)
- Rajasthan Co-operative Dairy Federation Ltd
- Tamil Nadu Cooperative Milk Producers Federation Ltd (TCMPF) (India)
- Others
These key players are adopting various organic and inorganic growth strategies such as M&A, joint ventures, collaborations, strategic alliances, expansion, and new product launches among others to increase their revenues and business operations.
For instance, Recent developments in the market include innovations like camel milk ice cream by Amul, investments in whey processing by Parag Milk Foods, and Nestlé India’s focus on sourcing milk directly from farmers. Additionally, dairy tech startups are attracting significant funding, indicating a shift towards technology-driven advancements in the sector.
The India Dairy Market is segmented as follows:
By Product Type
- Liquid Milk
- Packaged Milk (Pasteurized, UHT, Flavored)
- Unpackaged/Loose Milk
- Milk Products
- Butter
- Ghee (Clarified Butter)
- Cheese
- Yogurt
- Paneer (Indian Cottage Cheese)
- Ice Cream
- Milk Powder
- Condensed Milk
- Others (e.g., buttermilk, cream)
By Distribution Channels
- Organized Retail
- Supermarkets/Hypermarkets
- Convenience Stores
- Specialty Dairy Stores
- Unorganized Retail
- Local Grocery Stores
- Mom-and-pop Stores
- Street Vendors
- Online Retail
- E-commerce Platforms
- Dairy-specific Apps
- Home Delivery Services