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Dairy Industry in Karnataka to Reach INR 1,866.7 Billion by 2027, Supported by Increasing Demand for Innovative Dairy Products

Published on Aug 09, 2022

According to the latest report by IMARC Group, titled “Dairy Industry in Karnataka: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027," the dairy industry in Karnataka reached a value of INR 798.9 Billion in 2021. The dairy industry is the leading commercial enterprise that deals with the processing and harvesting of cow or buffalo milk for the large-scale production, distribution, and consumption of various dairy products. They extensively deploy two approaches, including pasteurization and dehydration, to extend the shelf-life, aroma, taste, content, and nutritional profile of the product. At present, the dairy industry in Karnataka primarily manufactures ghee, curd, spreadable fats, liquid and ultra-high-temperature (UHT) milk, frozen/flavored yogurt, cheese, and table butter as some of the common goods. These items are rich in proteins, calcium, potassium, probiotics, riboflavin, phosphorus, and vitamins A, D, and B12. These elements aid in maintaining blood pressure, promoting brain development, strengthening muscles, regulating body weight, and preventing the risk of type 2 diabetes.

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 Karnataka Market Trends:

The rapid expansion of the dairy industry in Karnataka and the increasing consumption of various dairy products to meet the daily nutritional requirements are some factors majorly driving the market growth. This is further influenced by inflating disposable incomes, rapid industrialization, and growing consumer awareness regarding the multiple benefits of consuming dairy products. In line with this, the increasing demand for various ready-to-eat (RTE) and ready-to-drink (RTD) consumer goods, such as frozen desserts, milk powder, and yogurt, has facilitated the widespread adoption of dairy products in the food and beverage (F&B) sector, which is acting as another growth-inducing factor. Besides this, the increasing inclination toward organic dairy products among health-conscious consumers and the rising establishment of fast-food chains serving dishes made from different varieties of cheese, condensed milk, and buttermilk are supporting the market growth. Moreover, favorable initiatives undertaken by the Government of India (GoI), such as the National Dairy Program (Phase-1), to promote dairy farming, improve cattle health through fodder and feed availability, expand the milk procurement network, and offer subsidies to manufacturers are contributing to the market growth. Additionally, significant technological advancements in pasteurization and fermentation methods to enhance production procedures are driving the market growth. Furthermore, the extensive reliability of dairy industry manufacturers on e-commerce platforms over brick-and-mortar mode to ensure easy product availability, especially during the COVID-19 pandemic, is impelling the market growth. Other factors, such as ongoing research and development (R&D) activities, extensive utilization of dairy products in traditional recipes, and strategic collaborations amongst key players to launch innovative product variants for diverse applications, are creating a positive outlook for the market in the state. On account of the aforementioned factors, the market is anticipated to reach a value of INR 1866.7 Billion by 2027, growing at a CAGR of 15.17% during 2022-2027.

Market Summary:

  • On the basis of the product type, the market has been segregated into liquid milk, ghee, curd, paneer, ice cream, table butter, skimmed milk powder, frozen/flavoured yoghurt, fresh cream, lassi, butter, UHT, sweet condensed and favored milk, cheese, dairy whitener, infant food, and malt-based beverages. Amongst these, liquid milk represents the biggest product segment in Karnataka.
  • The competitive landscape of the industry has also been examined, with some of the key players being Karnataka Milk Federation, Tirumala Dairy, Dodla Dairy, and Heritage Dairy.


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