Dairy Industry in India to Reach INR 57,001.8 Billion by 2033, Propelled by Large-Scale Dairy Consumption Among The Masses

According to the latest report by IMARC Group, titled “Dairy Industry in India 2025 Edition: Market Size, Growth, Prices, Segments, Cooperatives, Private Dairies, Procurement and Distribution”, the dairy industry in India size reached INR 18,975 Billion in 2024. The dairy industry is a vital segment of the food and beverage (F&B) industry that is involved in the production, processing, and distribution of milk and milk-based products. Dairy industry sources milk as a raw material and processes and harvests the milk for the manufacturing of various dairy products, such as butter, yogurt, cheese, and ice cream. The dairy production plants utilize heat treatment and dehydration to extend shelf life, preserve nutritional content, and enhance the quality of the end-product for human consumption. Dairy products are nutrient-rich and support body growth, muscle tissue repair, bone strength, and blood pressure regulation. The industry is regulated by strict government regulations regarding health and safety concerns related to milk and milk-based products, which are primarily controlled by large corporations. The industry provides a diverse range of food products, thereby allowing consumers to choose from a variety of options based on their preferences and dietary needs. Additionally, the dairy industry serves as an important source of income for farmers and rural communities. 

Dairy Industry in India Trends:

The market in India is majorly driven by the escalating demand for dairy products due to large-scale dairy consumption among the masses. In line with this, favorable initiatives undertaken by the government of India for supporting the dairy industry to increase milk productivity and enhance the income of dairy farmers are providing an impetus to the market. Moreover, rapid urbanization in the country is resulting in a higher demand for various processed dairy products, such as ice cream, cheese, and flavored yogurt, which, in turn, is propelling the market. In addition to this, major manufacturers are focusing on strategic marketing and advertising strategies, such as the introduction of new flavors and value-adding product variants, thereby contributing to the market. In addition to this, the advent of lactose-free dairy products due to the rising prevalence of lactose intolerance among the masses is creating a positive market outlook. The market is further driven by the considerable rise in dairy exports globally, particularly in neighboring countries. Apart from this, continual technological advancements in dairy processing technologies, such as automated milking systems, artificial insemination and embryo transfer, are further impacting the market positively. Some of the other factors contributing to the market include the growing demand for organic and natural dairy products, widespread popularity of animal welfare programs, growing investments by the government and private agencies, and extensive research and development (R&D) activities. On account of the aforementioned factors, the market is anticipated to reach a value of INR 57,001.8 Billion by 2033, exhibiting a CAGR of 12.35% during 2025-2033. 

Market Summary:

• Based on the product type, the market has been segmented into liquid milk (cow milk, goat milk, and camel milk), UHT milk, A2 milk, organic milk, flavoured milk, curd (cup and pouch curd), lassi, butter milk (chach), flavoured and frozen yoghurts, cheese (retail market and institutional market), probiotic dairy products, table butter, ghee (cow ghee market and desi ghee market), paneer, khoya, dairy whitener, skimmed milk powder, ice cream, dairy sweets, cream, whey, milk shake, and sweet condensed milk. Among these, liquid milk represent the largest market segment. 
• On the geographical front, the market has been segregated into Karnataka, Maharashtra, Tamil Nadu, Delhi, Gujarat, Andhra Pradesh and Telangana, Uttar Pradesh, West Bengal, Kerala, Haryana, Punjab, Rajasthan, Madhya Pradesh, Bihar, and Orissa. At present, Uttar Pradesh holds the leading position in the market. 
• The competitive landscape of the market has been studied in the report with the detailed profiles of the key players. Some of these players include Dairy Cooperatives (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), Pradeshik Cooperative Dairy Federation Ltd (PCDF)) and Private Dairies (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, and SMC Foods Limited)

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