The India dairy market size was valued at USD 115.57 billion in 2022. The market is projected to grow from USD 124.93 billion in 2023 to USD 227.53 billion by 2030, exhibiting a CAGR of 8.94% during the forecast period. India is one of the largest exporters of dairy products. Major producers in India are Uttar Pradesh, Maharashtra, Himachal Pradesh, Madhya Pradesh, Rajasthan, Punjab, and Tamil Nadu. Growing demand for functional dairy products is set to propel the India dairy market share. Fortune Business Insights™ shares this information in its report titled “India Dairy Market, 2019-2030.”

COVID-19 Impact:

Increased Consumption of Dairy Products in Households During Pandemic Affected Market Growth

The COVID-19 pandemic led to the closure of feed facilities and the operation flood made it difficult for animal farms to provide food to their cattle. In the early stages of the pandemic, consumers were not able to visit restaurants and cafes with the travel restrictions and lockdowns, which led to increased consumption of dairy products in households and a rise in demand for paneer, ghee, khoya, and other products. In addition, the demand for curd, lassi, buttermilk, and other products was increased which increased the sale of desserts.

Segments:

Owing to Milk Being a Part of Diet of Millions of People, Milk Segment is Set to Lead

According to type, the market is segmented into milk, cheese, butter, dairy desserts, milk powder, curd & yogurt, cream, and others. Milk held the largest part in the segment as it is an essential part of the diet of billions of people. Rising popularity for natural and farm-sourced milk is likely to increase the demand for milk at a higher pace in India. Thus, due to the popularity of dairy in India, there has been constant efforts taken by dairy entrepreneurs/startups to develop attractive and indulgent flavors to entice consumers.

With Increasing Number of Convenience Stores, Others Segment to Lead

According to distribution channel, the market is divided into supermarkets/hypermarkets, specialty retailers, online retail stores, and others. The others segment includes local milk vendors and convenience stores. It is set to dominate due to increasing number of convenience stores across the country and easy availability of dairy products, such as milk, curd, and paneer, at such stores. Specialty retailers are also growing in developing and developed countries due to advantages such as product expertise, customer experience, and wide variety of higher-quality products.

Report Coverage

The report provides a detailed analysis of the top segments and the latest trends in the market. It comprehensively discusses the driving and restraining factors and the impact of COVID-19 on the market. Additionally, it examines the regional developments and the strategies undertaken by the market's key players.

Drivers and Restraints

Significant Production of Milk in India to Propel Market Growth

Significant production of milk in the country is projected to drive the India dairy market growth. The dairy industry has been one of the dynamic sectors in the Indian agricultural industry and has witnessed phenomenal growth in its production and consumption. High availability of milk in the country boosts the production of value-added or processed products such as cheese, butter, curd, yogurt, ghee, and paneer. In addition, milk has a strong demand in Indian households, which drives market growth. The industry in India helps the country in its socioeconomic development.

However, lack of supply of fodder and emergence of various diseases in cattle are expected to hamper the market expansion.

Competitive Landscape

Prospects of New Key Players to Create Competitive Advantage

With expanding consumption of liquid milk and milk products, the demand for milk has been increasing in the country. Prominent players are expanding their businesses by establishing numerous manufacturing facilities, opening their outlets in different markets, and launching new products. In September 2020, Tata entered into the milk category under its brand Tata NQ and launched skimmed milk powder in a pack of 25kg for institutional customers.

Key Industry Development

  • October 2022: Punjab State Cooperative Milk Producers Federation Ltd (MILKFED) launched the Verka milk and milk products brand in Delhi. The aim of this launch was to offer dairy farmers with maximum support and good prices to these farmers.

List of Key Players Profiled in the Report

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

Browse In-depth Summary of This Research Insight:

https://www.fortunebusinessinsights.com/india-dairy-market-107416