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Buttermilk Market in India Driven by Continuous Product Development

Published on May 24, 2018

Buttermilk, also known as chaas or chaach, refers to the liquid left behind when the cream is churned into butter. The lactic acid present in buttermilk gives it a slightly acidic or sour taste and makes it easier to digest for lactose-intolerant consumers. It also helps the human body to fight against diseases and bacterial infections, and acts as a natural treatment against swelling, irritation and lack of appetite. Earlier, it was only consumed as a beverage, but nowadays it is also used in bakery products and frozen desserts in dried or condensed form. The recently published research report by IMARC Group, titled “Buttermilk Market in India: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024”, estimates the buttermilk market in India grew at a CAGR of more than 21% during 2011-2018. The report further anticipates the market to reach a value of INR 237.5 Billion by 2024, exhibiting a double digit growth over the forecast period.

Buttermilk Market in India Drivers/Constraints:

  • The numerous health benefits of buttermilk, such as improving digestion, alleviating the feeling of puffiness, strengthening the immune system, etc. along with rising health consciousness among the consumers have spurred the growth of the buttermilk market in India.
  • Buttermilk is further used in the food industry to manufacture ice creams, dairy-based sauces and a number of confectionery products. This has heightened the demand for buttermilk, in turn, boosting the market growth.
  • The introduction of new variants of buttermilk, such as products with longer shelf-life and traditional flavours and spices, like curry leaves, ginger, green chilli, cumin seeds, coriander and black pepper, is anticipated to accelerate the demand for buttermilk.
  • A large section of the Indian population still prefers homemade buttermilk due to the negative impressions regarding health effects of the packaged variants. This represents one of the major factors restraining the growth of the buttermilk market in India.

Regional Insights:

On the basis of region, Tamil Nadu enjoys the leading position in the Indian buttermilk market, holding the largest market share. This can be attributed to the important role of buttermilk in the daily diet of the consumers in the state. Other major regional markets include Andhra Pradesh, Karnataka, Maharashtra and Gujarat.

Competitive Landscape:

The market is fragmented in nature with the presence of numerous small and large manufacturers who compete in terms of quality and price. These manufacturers continually invest in expanding their product portfolio so as to increase their consumer-base. Some of the key players operative in the market are:

  • KMF
  • Mother Dairy
  • RCDF
  • Hatsun

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