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    India Dairy Ingredients Market

    ID: MRFR/F-B & N/56560-HCR
    128 Pages
    Snehal Singh
    September 2025

    India Dairy Ingredients Market Research Report By Application (Food and Beverages, Nutritional Products, Confectionery, Bakery, Dairy Products), By Type (Milk Powder, Whey Protein, Cheese Powder, Casein, Cream), By Form (Liquid, Powder, Granular, Frozen) and By End Use (Industrial, Retail, Food Service) - Forecast to 2035

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    India Dairy Ingredients Market Research Report - Forecast to 2035 Infographic
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    Table of Contents

    India Dairy Ingredients Market Summary

    The India Dairy Ingredients market is projected to grow from 4.5 USD Billion in 2024 to 8.2 USD Billion by 2035.

    Key Market Trends & Highlights

    India Dairy Ingredients Key Trends and Highlights

    • The market is expected to witness a compound annual growth rate (CAGR) of 5.61% from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 8.2 USD Billion, indicating robust growth potential.
    • In 2024, the market is valued at 4.5 USD Billion, reflecting a strong foundation for future expansion.
    • Growing adoption of dairy processing technologies due to increasing consumer demand for high-quality products is a major market driver.

    Market Size & Forecast

    2024 Market Size 4.5 (USD Billion)
    2035 Market Size 8.2 (USD Billion)
    CAGR (2025-2035) 5.61%

    Major Players

    Parag Milk Foods, Gowardhan, Vivekananda Dairy, Vallombrosa Benedictine Congregation Dairy, Creamline Dairy Products, Aavin, Dairy Land, Nandini, Britannia Industries, Dairy Craft, SRS Dairy, Sri Ramakrishna Milk Products, Amul, Nestle India, Mother Dairy

    India Dairy Ingredients Market Trends

    The India Dairy Ingredients Market is witnessing significant trends driven by various factors. One of the main market drivers is the increasing demand for health-conscious products among consumers. With a growing awareness about nutrition and wellness, Indian consumers are increasingly opting for dairy ingredients like whey protein, which is known for its health benefits. The rise of e-commerce platforms is also playing a crucial role in this market, making it easier for consumers to access a range of dairy ingredients. 

    There are numerous opportunities to be explored in the market, particularly in the development of specialized dairy products tailored to meet specific consumer needs.For instance, the growing popularity of plant-based diets creates room for innovation in dairy alternatives or fortified dairy products. The government’s emphasis on doubling farmers' incomes and the expansion of the cooperative sector can also lead to better sourcing of quality dairy ingredients, enhancing overall market growth.

    Recent times have shown an upward trend in the use of dairy ingredients in various sectors, including food processing and nutraceuticals, driven by endorsement from health experts and the increase in consumer interest in functional foods. 

    Moreover, the impact of urbanization and shifting lifestyles in India is pushing the dairy sector to innovate and adapt to changing dietary patterns.This trend is coupled with the rise of value-added products, where traditional dairy products are being reimagined into newer, convenient formats that cater to the busy lifestyles of urban consumers. As a result, the India Dairy Ingredients Market is evolving to meet the dynamic needs of the population, paving the way for sustained growth and development in the industry.

    India Dairy Ingredients Market Drivers

    Market Segment Insights

    Dairy Ingredients Market Application Insights

    The Application segment of the India Dairy Ingredients Market showcases a diverse and robust landscape that plays a crucial role in the overall industry's growth and development. In India, the growing population, rising disposable income, and changing consumer preferences towards healthy and nutritious food choices have notably influenced the dairy ingredients market. The Food and Beverages category stands out as a significant domain, given the increasing inclination towards fortified foods and the rising demand for dairy-based products such as cheese, yogurt, and milk powders, which are gaining popularity among health-conscious consumers.

    Nutritional Products have also seen notable growth, driven primarily by the surge in health and wellness trends, where products enriched with dairy ingredients cater to various health requirements, notably in fitness, elderly care, and infant nutrition. In the Confectionery sector, the inclusion of dairy ingredients enhances flavors and textures, presenting opportunities for product innovation and healthier formulations. Meanwhile, the Bakery sector continues to leverage dairy ingredients for quality enhancement, where items like cakes, pastries, and breads benefit from the emulsifying and binding properties of dairy components.

    Lastly, the Dairy Products sub-segment remains pivotal as the demand for traditional and value-added dairy products grows across urban and rural markets alike, supported by India's strong dairy farming culture and production capabilities. Each application plays a distinctive role in shaping the market dynamics, with continuing innovations and trends that foster growth opportunities, particularly in regions experiencing rapid urbanization and economic development. The environment fostered by government incentives and policies aimed at boosting dairy farming and production further fortifies the India Dairy Ingredients Market's trajectory, making the Application segment a significant player in this evolving industry landscape.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Dairy Ingredients Market Type Insights

    The India Dairy Ingredients Market is a diverse and growing sector characterized by several key types that cater to various consumer needs. Among these, Milk Powder holds a prominent position, widely used in food processing and as a nutritional supplement. Its demand is bolstered by the increasing need for affordable and convenient dairy alternatives amidst rising urbanization. Whey Protein is another significant type, primarily favored in the health and fitness industry due to its high protein content and nutritional benefits, leading to its growing popularity among athletes and health-conscious consumers.

    Cheese Powder is also gaining traction, particularly in the snack food segment, enhancing flavor and providing a convenient cheese alternative for various culinary applications. Additionally, Casein, known for its slow-digesting properties, is commonly utilized in functional food products and fortified supplements, appealing to a health-oriented market. Lastly, Cream is essential in both culinary and industrial applications, contributing to the rich taste and texture of numerous food products.

    The trends in the India Dairy Ingredients Market reflect a shift towards healthier options and convenience, positioning these types as pivotal to the market's evolution and growth trajectory.The emphasis on quality, nutritional value, and versatility among these dairy ingredients further underscores their significance and potential for market expansion.

    Dairy Ingredients Market Form Insights

    The India Dairy Ingredients Market, particularly within the Form segment, is rapidly evolving, driven by changing consumer preferences and increasing demand for dairy products. This segment encompasses various forms such as Liquid, Powder, Granular, and Frozen, each holding distinct advantages and applications in the food industry. Liquid dairy ingredients are often favored for their ease of use and versatility, contributing significantly to both the beverage and culinary sectors. Powdered dairy ingredients have become critical in the health and nutrition domain, widely used in meal replacements and baby foods, thus reflecting a noteworthy trend towards convenience and nutritional value.

    Granular forms are gaining traction in the bakery and confectionery industries, where they enhance texture and flavor. Frozen dairy products are experiencing growth as they offer extended shelf life while retaining quality, appealing to both consumers and manufacturers seeking preservation solutions. The combined dynamics of these forms illustrate the comprehensive expansion within the India Dairy Ingredients Market, fostering opportunities for innovation and adaptation amidst evolving consumer demands and preferences.

    Dairy Ingredients Market End Use Insights

    The End Use segment of the India Dairy Ingredients Market showcases a diverse landscape, reflecting varying consumer needs and industry demands across multiple channels. The industrial sector plays a crucial role, focusing on large-scale applications that leverage dairy ingredients for processing and food production, thereby enhancing the overall quality and nutritional profile of products.

    The retail segment is increasingly significant as consumer preferences shift towards packaged and convenience foods enriched with dairy ingredients, catering to the growing health-conscious demographic in India.Meanwhile, the food service sector demonstrates robust growth, driven by the rising dining-out culture and the need for innovative dairy-infused recipes in restaurants and cafés. 

    This market segmentation is influenced by several factors, including urbanization and changing lifestyles, leading to an uptick in demand for versatile dairy products across various applications. Additionally, the increasing popularity of fortified foods alongside evolving culinary trends enables opportunities for the dairy ingredients industry to innovate and cater effectively to consumer expectations within the India Dairy Ingredients Market.As these segments continue to expand, they present significant growth drivers that can shape market dynamics in the future.

    Get more detailed insights about India Dairy Ingredients Market Research Report - Forecast to 2035

    Regional Insights

    Key Players and Competitive Insights

    The India Dairy Ingredients Market is characterized by a dynamic landscape where numerous players compete to capture a growing consumer base. As the demand for dairy products rises due to increasing health consciousness and a shift towards natural foods, companies are innovating rapidly to stay ahead of the curve. The market is influenced by factors such as urbanization, changing dietary preferences, and the rising popularity of functional dairy ingredients. With a substantial increase in milk production and higher investment in food processing technology, the competitive environment is evolving to adapt to these changes. 

    Players in this market are constantly focusing on product development, quality enhancement, and expanding their distribution channels to achieve a stronger market foothold. Parag Milk Foods has positioned itself as a significant player within the India Dairy Ingredients Market, showcasing noteworthy strengths and a robust market presence. The company is known for its diverse range of dairy products include cheese, yogurt, paneer, and milk powders, which cater to various consumer segments. Parag Milk Foods has established a reputation for quality and innovation, which has led to a loyal customer base.

    Their strong supply chain capabilities ensure the efficient distribution of products across the country, further enhancing their competitive edge. 

    The brand leverages both traditional and modern marketing strategies, including digital platforms, to reach out to consumers effectively. With a focus on expanding its product portfolio and enhancing production capacities, Parag Milk Foods continues to thrive in this competitive market.Gowardhan is also a key player in the India Dairy Ingredients Market, known for its quality dairy offerings, including milk, butter, paneer, and ghee. The company has made significant strides in enhancing its market presence through strategic marketing initiatives and a wide distribution network that spans both urban and rural areas.

    The strength of Gowardhan lies in its emphasis on quality and sustainability, which resonates well with health-conscious consumers. 

    Additionally, the company has pursued various partnerships and collaborations to enhance its manufacturing capabilities and expand its product offerings. With an ongoing commitment to innovation and customer satisfaction, Gowardhan aims to solidify its position as a trusted dairy brand in India. The company’s ability to adapt to market trends and consumer preferences reinforces its competitive advantage in the dairy ingredients sector.

    Key Companies in the India Dairy Ingredients Market market include

    Industry Developments

    The India Dairy Ingredients Market has seen significant developments, with notable growth from key players such as Parag Milk Foods, Amul, and Mother Dairy. As of October 2023, increased consumer demand for fortified dairy products has driven companies to innovate, focusing on nutritional value. Notably, in September 2023, Amul expanded its product line with a new range of premium dairy ingredients, capturing a larger market share. Similarly, Parag Milk Foods reported in August 2023 a revenue growth of 15% year-on-year, indicating a robust market demand driven by health-conscious consumers. 

    Recent collaborations, like that of Nestle India and Vallombrosa Benedictine Congregation Dairy in July 2023, focus on sustainable dairy farming practices. There have been no major mergers or acquisitions reported among the specified companies in the last few months, suggesting stability in the market. Looking back, the pandemic-induced recession in 2020 prompted significant shifts in consumer purchasing behavior, which has continued to impact product offerings. With the increasing popularity of plant-based alternatives, companies are investing in Research and Development to diversify their portfolios and cater to evolving consumer preferences.

    Market Segmentation

    Outlook

    • Industrial
    • Retail
    • Food Service

    Dairy Ingredients Market Form Outlook

    • Industrial
    • Retail
    • Food Service

    Dairy Ingredients Market Type Outlook

    • Liquid
    • Powder
    • Granular
    • Frozen

    Dairy Ingredients Market End Use Outlook

    • Industrial
    • Retail
    • Food Service

    Dairy Ingredients Market Application Outlook

    • Milk Powder
    • Whey Protein
    • Cheese Powder
    • Casein
    • Cream

    Report Scope

     
    Report Attribute/Metric Source: Details
    MARKET SIZE 2023 3.88(USD Billion)
    MARKET SIZE 2024 4.5(USD Billion)
    MARKET SIZE 2035 8.2(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 5.607% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED Parag Milk Foods, Gowardhan, Vivekananda Dairy, Vallombrosa Benedictine Congregation Dairy, Creamline Dairy Products, Aavin, Dairy Land, Nandini, Britannia Industries, Dairy Craft, SRS Dairy, Sri Ramakrishna Milk Products, Amul, Nestle India, Mother Dairy
    SEGMENTS COVERED Application, Type, Form, End Use
    KEY MARKET OPPORTUNITIES Growing demand for healthy snacks, Increasing use in functional foods, Rising popularity of plant-based alternatives, Expansion in cheese and yogurt segments, Export potential for value-added products
    KEY MARKET DYNAMICS increasing health awareness, rising consumer preference, growing food processing industry, expanding export opportunities, technological advancements in production
    COUNTRIES COVERED India

    Market Highlights

    Author
    Snehal Singh
    Assistant Manager - Research

    High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. By implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in Packaging, Construction, and Equipment domains. She handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.

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    FAQs

    What is the expected market size of the India Dairy Ingredients Market in 2024?

    The India Dairy Ingredients Market is expected to be valued at USD 4.5 billion in 2024.

    What is the anticipated market size of the India Dairy Ingredients Market by 2035?

    By 2035, the India Dairy Ingredients Market is expected to reach a valuation of USD 8.2 billion.

    What is the expected compound annual growth rate (CAGR) for the India Dairy Ingredients Market from 2025 to 2035?

    The India Dairy Ingredients Market is projected to grow at a CAGR of 5.607% from 2025 to 2035.

    Which application segment is expected to hold the largest market share in 2024?

    The Food and Beverages segment is anticipated to be valued at USD 1.5 billion in 2024, holding the largest market share.

    What will be the market value of the Nutritional Products segment in 2035?

    The Nutritional Products segment is expected to be valued at USD 1.769 billion by 2035.

    Who are the key players in the India Dairy Ingredients Market?

    Key players in the market include Parag Milk Foods, Amul, Britannia Industries, and Nestle India among others.

    What is the expected market value for the Dairy Products segment in 2024?

    The Dairy Products segment is anticipated to be valued at USD 0.75 billion in 2024.

    What is the forecasted market growth for the Bakery application from 2024 to 2035?

    The Bakery application segment is projected to grow from USD 0.75 billion in 2024 to USD 1.367 billion in 2035.

    What challenges might the India Dairy Ingredients Market face in the coming years?

    Challenges may include fluctuating raw material prices and changing consumer preferences.

    What opportunities exist for growth within the India Dairy Ingredients Market?

    Growing health consciousness and demand for dairy-based nutritional products present significant growth opportunities.

    1. EXECUTIVE
    2. SUMMARY
    3. Market Overview
    4. Key Findings
    5. Market Segmentation
    6. Competitive Landscape
    7. Challenges and Opportunities
    8. Future Outlook
    9. MARKET INTRODUCTION
    10. Definition
    11. Scope of the study
    12. Research Objective
    13. Assumption
    14. Limitations
    15. RESEARCH
    16. METHODOLOGY
    17. Overview
    18. Data
    19. Mining
    20. Secondary Research
    21. Primary
    22. Research
    23. Primary Interviews and Information Gathering
    24. Process
    25. Breakdown of Primary Respondents
    26. Forecasting
    27. Model
    28. Market Size Estimation
    29. Bottom-Up
    30. Approach
    31. Top-Down Approach
    32. Data
    33. Triangulation
    34. Validation
    35. MARKET
    36. DYNAMICS
    37. Overview
    38. Drivers
    39. Restraints
    40. Opportunities
    41. MARKET FACTOR ANALYSIS
    42. Value chain Analysis
    43. Porter's
    44. Five Forces Analysis
    45. Bargaining Power of Suppliers
    46. Bargaining
    47. Power of Buyers
    48. Threat of New Entrants
    49. Threat
    50. of Substitutes
    51. Intensity of Rivalry
    52. COVID-19
    53. Impact Analysis
    54. Market Impact Analysis
    55. Regional
    56. Impact
    57. Opportunity and Threat Analysis
    58. India
    59. Dairy Ingredients Market, BY Application (USD Billion)
    60. Food
    61. and Beverages
    62. Nutritional Products
    63. Confectionery
    64. Bakery
    65. Dairy
    66. Products
    67. India Dairy Ingredients
    68. Market, BY Type (USD Billion)
    69. Milk Powder
    70. Whey
    71. Protein
    72. Cheese Powder
    73. Casein
    74. Cream
    75. India
    76. Dairy Ingredients Market, BY Form (USD Billion)
    77. Liquid
    78. Powder
    79. Granular
    80. Frozen
    81. India
    82. Dairy Ingredients Market, BY End Use (USD Billion)
    83. Industrial
    84. Retail
    85. Food
    86. Service
    87. Competitive Landscape
    88. Overview
    89. Competitive
    90. Analysis
    91. Market share Analysis
    92. Major
    93. Growth Strategy in the Dairy Ingredients Market
    94. Competitive
    95. Benchmarking
    96. Leading Players in Terms of Number of Developments
    97. in the Dairy Ingredients Market
    98. Key developments and
    99. growth strategies
    100. New Product Launch/Service Deployment
    101. Merger
    102. & Acquisitions
    103. Joint Ventures
    104. Major
    105. Players Financial Matrix
    106. Sales and Operating Income
    107. Major
    108. Players R&D Expenditure. 2023
    109. Company
    110. Profiles
    111. Parag Milk Foods
    112. Financial
    113. Overview
    114. Products Offered
    115. Key
    116. Developments
    117. SWOT Analysis
    118. Key
    119. Strategies
    120. Gowardhan
    121. Financial
    122. Overview
    123. Products Offered
    124. Key
    125. Developments
    126. SWOT Analysis
    127. Key
    128. Strategies
    129. Vivekananda Dairy
    130. Financial
    131. Overview
    132. Products Offered
    133. Key
    134. Developments
    135. SWOT Analysis
    136. Key
    137. Strategies
    138. Vallombrosa Benedictine
    139. Congregation Dairy
    140. Financial Overview
    141. Products
    142. Offered
    143. Key Developments
    144. SWOT
    145. Analysis
    146. Key Strategies
    147. Creamline
    148. Dairy Products
    149. Financial Overview
    150. Products
    151. Offered
    152. Key Developments
    153. SWOT
    154. Analysis
    155. Key Strategies
    156. Aavin
    157. Financial
    158. Overview
    159. Products Offered
    160. Key
    161. Developments
    162. SWOT Analysis
    163. Key
    164. Strategies
    165. Dairy Land
    166. Financial
    167. Overview
    168. Products Offered
    169. Key
    170. Developments
    171. SWOT Analysis
    172. Key
    173. Strategies
    174. Nandini
    175. Financial
    176. Overview
    177. Products Offered
    178. Key
    179. Developments
    180. SWOT Analysis
    181. Key
    182. Strategies
    183. Britannia Industries
    184. Financial
    185. Overview
    186. Products Offered
    187. Key
    188. Developments
    189. SWOT Analysis
    190. Key
    191. Strategies
    192. Dairy Craft
    193. Financial
    194. Overview
    195. Products Offered
    196. Key
    197. Developments
    198. SWOT Analysis
    199. Key
    200. Strategies
    201. SRS Dairy
    202. Financial
    203. Overview
    204. Products Offered
    205. Key
    206. Developments
    207. SWOT Analysis
    208. Key
    209. Strategies
    210. Sri Ramakrishna Milk Products
    211. Financial
    212. Overview
    213. Products Offered
    214. Key
    215. Developments
    216. SWOT Analysis
    217. Key
    218. Strategies
    219. Amul
    220. Financial
    221. Overview
    222. Products Offered
    223. Key
    224. Developments
    225. SWOT Analysis
    226. Key
    227. Strategies
    228. Nestle India
    229. Financial
    230. Overview
    231. Products Offered
    232. Key
    233. Developments
    234. SWOT Analysis
    235. Key
    236. Strategies
    237. Mother Dairy
    238. Financial
    239. Overview
    240. Products Offered
    241. Key
    242. Developments
    243. SWOT Analysis
    244. Key
    245. Strategies
    246. References
    247. Related
    248. Reports
    249. LIST
    250. OF ASSUMPTIONS
    251. India Dairy Ingredients Market SIZE ESTIMATES
    252. & FORECAST, BY APPLICATION, 2019-2035 (USD Billions)
    253. India
    254. Dairy Ingredients Market SIZE ESTIMATES & FORECAST, BY TYPE, 2019-2035 (USD
    255. Billions)
    256. India Dairy Ingredients Market SIZE ESTIMATES
    257. & FORECAST, BY FORM, 2019-2035 (USD Billions)
    258. India
    259. Dairy Ingredients Market SIZE ESTIMATES & FORECAST, BY END USE, 2019-2035 (USD
    260. Billions)
    261. PRODUCT LAUNCH/PRODUCT DEVELOPMENT/APPROVAL
    262. ACQUISITION/PARTNERSHIP
    263. LIST
    264. Of figures
    265. MARKET SYNOPSIS
    266. INDIA
    267. DAIRY INGREDIENTS MARKET ANALYSIS BY APPLICATION
    268. INDIA
    269. DAIRY INGREDIENTS MARKET ANALYSIS BY TYPE
    270. INDIA DAIRY
    271. INGREDIENTS MARKET ANALYSIS BY FORM
    272. INDIA DAIRY INGREDIENTS
    273. MARKET ANALYSIS BY END USE
    274. KEY BUYING CRITERIA OF DAIRY
    275. INGREDIENTS MARKET
    276. RESEARCH PROCESS OF MRFR
    277. DRO
    278. ANALYSIS OF DAIRY INGREDIENTS MARKET
    279. DRIVERS IMPACT ANALYSIS:
    280. DAIRY INGREDIENTS MARKET
    281. RESTRAINTS IMPACT ANALYSIS:
    282. DAIRY INGREDIENTS MARKET
    283. SUPPLY / VALUE CHAIN: DAIRY
    284. INGREDIENTS MARKET
    285. DAIRY INGREDIENTS MARKET, BY APPLICATION,
    286. (% SHARE)
    287. DAIRY INGREDIENTS MARKET, BY APPLICATION,
    288. TO 2035 (USD Billions)
    289. DAIRY INGREDIENTS MARKET,
    290. BY TYPE, 2025 (% SHARE)
    291. DAIRY INGREDIENTS MARKET, BY
    292. TYPE, 2019 TO 2035 (USD Billions)
    293. DAIRY INGREDIENTS MARKET,
    294. BY FORM, 2025 (% SHARE)
    295. DAIRY INGREDIENTS MARKET, BY
    296. FORM, 2019 TO 2035 (USD Billions)
    297. DAIRY INGREDIENTS MARKET,
    298. BY END USE, 2025 (% SHARE)
    299. DAIRY INGREDIENTS MARKET,
    300. BY END USE, 2019 TO 2035 (USD Billions)
    301. BENCHMARKING
    302. OF MAJOR COMPETITORS

    India Dairy Ingredients Market Segmentation

    • Dairy Ingredients Market By Application (USD Billion, 2019-2035)

      • Food and Beverages
      • Nutritional Products
      • Confectionery
      • Bakery
      • Dairy Products

     

    • Dairy Ingredients Market By Type (USD Billion, 2019-2035)

      • Milk Powder
      • Whey Protein
      • Cheese Powder
      • Casein
      • Cream

     

    • Dairy Ingredients Market By Form (USD Billion, 2019-2035)

      • Liquid
      • Powder
      • Granular
      • Frozen

     

    • Dairy Ingredients Market By End Use (USD Billion, 2019-2035)

      • Industrial
      • Retail
      • Food Service

     

     

     

     

     

     

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