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Dairy Industry in India to Grow at 14.98% During 2022-2027, Fostered by Rising Demand for RTE Products

Published on Dec 20, 2021

According to the latest report by IMARC Group, titled “Dairy Industry in India: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027,” the dairy industry in India reached a value of INR 13,174 Billion in 2021. The dairy industry encompasses the processing and harvesting of milk for the manufacturing of various dairy products, such as cheese, ice cream, butter, and yogurt. These goods are rich in carbohydrates, protein, calcium, potassium, phosphorus, riboflavin, and vitamins A, D, and B12, which aids in supporting body growth, building and repairing muscle tissues, maintaining strong bones, and regulating blood pressure. Apart from this, dairy production plants employ two types of processing, namely heat treatment and dehydration. These approaches help in extending the shelf life, retaining the nutritional contents, and ensuring the safety of the end-product for human consumption.

We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.

Dairy Industry in India Market Trends:

The growth of the dairy industry in India can be primarily attributed to rapid urbanization and industrialization, along with inflating disposable incomes, which, in turn, is facilitating the demand for ready-to-eat (RTE) products, such as frozen desserts, butter, milk powder, and yogurt. In line with this, rising health consciousness and evolving food habits have further led to a shift toward organic dairy products and the establishment of fast-food chains, wherein different varieties of cheese, buttermilk, and condensed milk are employed as key ingredients. Additionally, the extensive utilization of dairy products, including milk, ghee, and paneer in diverse traditional recipes is acting as another major growth-inducing factor. Apart from this, numerous initiatives are being undertaken by the Government of India (GoI), such as the National Dairy Program (Phase-1), to improve fodder and feed availability, milk procurement network, and promote dairy farming practices, which is creating a positive outlook for the market. A significant increase in research and development (R&D) activities in the dairy industry to incorporate innovative technologies in the production and distribution process, along with the advent of modern and improving retail facilities and cold chain logistics are projected to drive the market growth further. Looking forward, the market is expected to grow at a CAGR of 14.98% during 2022-2027.

Market Summary:

  • Based on the product type, liquid milk dominates the dairy industry in India. Liquid milk is followed by flavored and frozen yogurt and cheese, UHT milk, flavored milk, curd, lassi, butter milk, probiotic dairy products, table butter, ghee, paneer, khoya, skimmed milk powder, dairy whiteners, ice cream, dairy sweets, cream, whey, A2 milk, organic milk, milk shake and sweet condensed milk.
  • On a geographical front, Uttar Pradesh enjoys a leading position in the dairy industry, followed by Rajasthan, Gujarat, Madhya Pradesh, Andhra Pradesh and Telangana and Punjab.
  • The competitive landscape of the market has also been examined and bifurcated into private and dairy co-operatives, with some of the key profiles being Nestlé India Limited, Hatsun Agro Product Limited, Tirumala Milk Products Pvt Ltd., Milk Food Limited, Heritage Foods India Limited, VRS Foods Limited, Bhole Baba Dairy Industries Ltd., Kwality Ltd., Sterling Agro Industries Limited, Parag Milk Foods Limited, SMC Foods Limited, Gujarat Co-operative Milk Marketing Federation Ltd, Mother Dairy Fruits & Vegetables Pvt Limited, Karnataka Co-operative Milk Producers Federation Limited, Rajasthan Cooperative Dairy Federation Ltd (RCDF), Tamilnadu Cooperative Milk Producers Federation Ltd (TCMPF), Punjab State Cooperative Milk Producers Federation Ltd (MILKFED), Orissa State Cooperative Milk Producers Federation Ltd (OMFED), Maharashtra Rajya Sahakari Dudh Mahasangh Maraydit (Mahasangh), Bihar State Co-operative Milk Producers Federation Ltd. (COMFED), Haryana Dairy Development Cooperative Federation Ltd. (HDDCF), Madhya Pradesh State Cooperative Dairy Federation Ltd. (MPCDF) and Pradeshik Cooperative Dairy Federation Ltd (PCDF).

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