India Dairy Market Size, Share, Growth, Analysis, Trends, Forecasts, 2032

India Dairy Industry Prospective:

The India dairy market size was evaluated at $132 billion in 2023 and is set to hit $289 billion by the end of 2032 with a CAGR of nearly 7.59% between 2024 and 2032.

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India Dairy Market: Overview

Dairy products in India are extracted from buffalo, cows, and goats and form a key part of the regular diet of the country. Moreover, dairy products offer individuals with key nutrients including vitamins, calcium, and proteins.

Key Insights

• As per the analysis shared by our research analyst, the India dairy market is projected to expand annually at the annual growth rate of around 7.59% over the forecast timespan (2024-2032)
• In terms of revenue, the India dairy market size was evaluated at nearly $132 billion in 2023 and is expected to reach $289 billion by 2032.
•  India dairy market is anticipated to grow rapidly over the forecast timeline owing to the surging population that has resulted in demand for more milk and buttermilk.
• In terms of type, the milk segment is slated to register the highest CAGR over the forecast period.
• On the basis of end-users, the online retail stores segment is predicted to contribute notably towards the industry growth in the upcoming years.

India Dairy Market: Growth Factors

Population explosion in the country and cases of malnutrition boost the market trends in India

Surging population has resulted in demand for more milk and buttermilk, thereby steering the growth of the India dairy market. Moreover, dairy activities form the livelihoods of farmers and individuals in India and this will prop up the expansion of the market in the country. An increase in the per capita income along with the growing need for improving health awareness among the population of the country will push the growth of the market in India. A rapid expansion of the retail sector in India will account majorly for the market growth in the country. Supportive government schemes such as Operation Flood & National Dairy Plan will prop up demand for dairy products in the country. Flourishing e-commerce sector in India is predicted to boost the market trends in the country.

India Dairy Market: Restraints

High prices of animal feed for cattle along with rising costs of cattle rearing can pose a huge obstruction to the dairy industry in India

Less milk output by cattle owing to mass nutrition and low quality of animal feed can restrict the expansion of the India Dairy Industry. Fragmentation in the supply chain activities can further retard the growth of the industry in India. Lack of availability of cold chain infrastructure facilities in India along with growing concerns about the quality of milk products can further obstruct the industry expansion in the country.

India Dairy Market: Opportunities

A surge in the availability of high-quality milk in various Indian states will open new dimensions of growth for the dairy market in India

An increase in the production of milk along with the prediction of NITI Aayog that the milk production in India will hit nearly 300 million tons by 2030 is likely to open new avenues of growth for the India dairy market. Escalating need for value-added dairy items along with surging health awareness as well as demand for probiotic beverages will boost the growth of the industry in India.

India Dairy Market: Challenges

An increase in milk costs can shrink the industry surge in India over the forecast period

Oscillating dairy product costs due to a rise in the prices of animal feed can challenge the expansion of the India dairy industry in the upcoming years. An increase in dairy product exports can further deter the industry surge in the country. Apart from this, easy access to milk powder in India satisfying the need of milk for customers can prove to be detrimental to the growth of the industry in India.

India Dairy Market: Segmentation

The India dairy market is divided into type, distribution channel, and region.                                          

In terms of type, the India dairy market is bifurcated into milk, curd & yogurt, butter, cheese, milk powder, dairy desserts, and cream segments. Additionally, the milk segment, which accrued nearly three-fourths of the market revenue in 2023, is projected to record the highest rate of growth yearly in the coming few years. The progress of the segment in the forthcoming years can be owing to a rise in the milk intake by the people in India. An increase in the consumption of farm-sourced and naturally-sourced milk along with a surge in the awareness about health benefits offered by milk consumption will drive the segmental growth in the country.

Based on the distribution channel, the India dairy industry is divided into online retail stores, supermarkets/hypermarkets, and specialty retailers segments. Furthermore, the online retail stores segment, which garnered approximately 53% of the industry earnings in 2023, is expected to make major contributions towards the industry growth in the country in the years ahead. The progress of the segment in the analysis timespan can be due to a surge in the number of convenience stores in India. Moreover, easy access to dairy items such as curd, paneer, and milk will further drive the segmental surge.

India Dairy Market: Report Scope

Key Developments

• In the last quarter of 2022, Punjab State Co-operative Milk Producers Federation Limited launched Verla milk and various dairy items made from milk in Delhi. Such initiatives are likely to drive the growth of the dairy business in India.  
• In the first half of 2022, Provilac declared the introduction of cow milk free from lactose for lactose-intolerant customers. The move is aimed at increasing the offerings of differentiated products in the dairy sector.

India Dairy Market: Competitive Space

The India dairy market profiles key players such as:

• Rajasthan Cooperative Dairy Federation Ltd (RCDF)
• Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF)
• Parag Milk Foods
• Kwality Milk Foods Ltd
• Milk Food Limited
• Karnataka Cooperative Milk Producers Federation Limited
• Heritage Foods Limited
• National Dairy Development Board
• Punjab State Cooperative Milk Producers Federation Ltd (MILKFED)
• Tamil Nadu Cooperative Milk Producers Federation Ltd (TCMPF)

The India dairy market is segmented as follows:

By Type

• Milk
• Curd & Yogurt
• Butter
• Cheese
• Milk Powder
• Dairy Desserts
• Cream

By Distribution Channel

• Online Retail Stores
• Supermarkets/Hypermarkets
•  Specialty Retailers

By Region

• North India
• West and Central India
• South India
• East India