As per MRFR analysis, the India Dairy Market Size was estimated at 48.88 (USD Billion) in 2023.
The India Dairy Market Industry is expected to grow from 51.16(USD Billion) in 2024 to 72 (USD Billion) by 2035. The India Dairy Market CAGR (growth rate) is expected to be around 3.155% during the forecast period (2025 - 2035).
Key India Dairy Market Trends Highlighted
The India Dairy Market is observing significant changes with the increasing consumption of dairy products, changes in technology, and shifting consumer preferences. One of the main market drivers affecting the growth of the dairy industry is the population surge along with higher purchasing power, which has resulted in increased consumption of milk and dairy food products in both rural and urban regions. With regard to nutrition, Indian dairy consumers are moving towards more fortified functional dairy products, which is enabling growth in flavored milk, yogurt, and cheese. Natural and organic dairy foods is also gaining more attention embodying the shift towards a healthy diet. Value added products and advanced dairy processing techniques present great opportunities in The Dairy Market in India.
With the rising demand for convenience and healthy diets, there is increased consumer interest in packaged and ready-to-eat dairy products. This presents an opportunity for innovation and expansion for local dairy farmers and cooperatives. In addition, government efforts to promote rural employment and provide aid to small-scale dairy farming strengthens producers’ capabilities and enhances product quality. Recently, there is a move towards the application of digital technology in the dairy supply chain with the use of blockchain and mobile apps to aid with transparency and streamlining processes. The development of e-commerce is changing the retail environment by increasing the availability of dairy products.
Sustainable development is gaining more attention for accomplishing green and eco-friendly work processes and operations. As the Indian Dairy Market advances, these changes represent new opportunities and difficulties for stakeholders to face.
India Dairy Market Drivers
Rising Population and Changing Dietary Habits
India's population is projected to reach approximately 1.48 billion by 2025, according to the United Nations. With a steadily increasing populace, there is a corresponding rise in demand for dairy products as part of the daily diet. The consumption of dairy products in India is traditionally high, and with changing dietary preferences, especially among younger generations, there is a significant shift towards cheese, yogurt, and other value-added dairy products.
Established organizations like the National Dairy Development Board in India highlight that per capita milk consumption has nearly doubled, from about 22 kg in 1995-96 to over 40 kg in recent years. This boom in consumer preference for nutritious food that includes dairy is expected to boost the India Dairy Market Industry significantly. The high demand for dairy can also be reflected in the Ministry of Agriculture's report, which indicates an increase in milk production from 140.08 million tonnes in 2018-2019 to an estimated 209.96 million tonnes in 2021-2022.
This projected surge in the need for diverse dairy options is a key driver for the growth of the India Dairy Market.
Government Initiatives and Policies
The Indian government recognizes the significance of the dairy sector in agricultural development and rural economy. Initiatives such as the National Dairy Plan aim to increase milk production and expand the infrastructure needed for an efficient dairy supply chain. According to the Department of Animal Husbandry and Dairying, the value of dairy output constitutes around 15 percent of the agricultural GDP in India. The government's investment in schemes like 'Operation Flood' has proved effective in boosting milk cooperative movements, making dairy access both affordable and available to millions.
These strategic government policies not only enhance dairy productivity but also provide an assured market for dairy farmers, thereby fostering the overall growth of the India Dairy Market Industry.
Technological Advancements in Dairy Farming
The increasing adoption of technology in dairy farming is significantly reshaping the landscape of the India Dairy Market Industry. The use of automated milking systems, dairy herd management software, and precision feeding are escalating productivity and efficiency. According to the Indian Council of Agricultural Research, the use of technologies such as artificial intelligence in dairy farming has been shown to increase milk yield by 15 to 20 percent while also reducing operational costs.
Furthermore, the emergence of applications for real-time veterinary support and health monitoring is helping farmers maintain high standards in dairy production. Companies like Amul are leveraging these advancements to improve quality and safety, thus propelling the market forward.
Increasing Health Awareness and Nutritional Value of Dairy
With a growing trend of health consciousness among consumers in India, dairy products are increasingly viewed as essential components of a healthy diet. The perception of dairy foods as excellent sources of calcium, vitamins, and protein drives consumer interest. The Food Safety and Standards Authority of India has outlined that dairy products can help combat malnutrition, which is prevalent in rural areas. Studies reveal that milk consumption is associated with improved health outcomes, and the market for fortified dairy products is also gaining traction.
This heightened health awareness has led more consumers to incorporate yogurt, cheese, and fortified dairy beverages into their diets, significantly impacting the overall growth of the India Dairy Market Industry.
India Dairy Market Segment Insights
Dairy Market Product Type Insights
The India Dairy Market showcases a diverse array of products categorized under the Product Type segment, which includes Milk, Cheese, Butter, Yogurt, Dairy Cream, Ice Cream, and others. With the expanding dairy consumption in India, particularly in urban areas, Milk remains the predominant product type, being a staple in the Indian diet and a primary source of nutrition for many households. The consumption of Milk has also spurred growth in ancillary products like Cheese, which is gaining popularity due to the growing trend of continental cuisine and international fast-food culture among Indian consumers. Butter maintains a significant presence, often used in traditional cooking as well as in the preparation of various Indian sweets and snacks.
Yogurt, another vital offering, caters to the increasing health consciousness among the population, with its probiotic qualities appealing to a wide range of consumers seeking to enhance their gut health. Dairy Cream has shown traction as it finds uses in desserts and cooking, while Ice Cream enjoys considerable demand, especially during the Indian summer, making it a favorite indulgence among consumers of all ages. The 'Others' category encapsulates various traditional offerings like paneer and buttermilk, which are deeply embedded in Indian culinary traditions and contribute to the cultural heritage of food consumption in the country.
Factors such as urbanization, a rising young population, and increasing disposable incomes play a crucial role in driving the growth of the India Dairy Market segmentation, as consumers are willing to explore and experiment with a variety of dairy products. Meanwhile, challenges such as fluctuating milk prices and the need for stringent quality control persist, prompting industry stakeholders to innovate and adapt to meet changing consumer preferences, all while reinforcing the significance of the India Dairy Market industry in the nation’s economy, along with its pivotal role in nutrition and lifestyle.
The market continues to evolve, presenting opportunities for new entrants and established players to capture a more significant share within this expanding landscape. Overall, the Product Type segment represents a vital component of the India Dairy Market revenue, reflecting both tradition and modernity in the ever-growing demand for dairy products.
Dairy Market Category Insights
The India Dairy Market is a diverse and growing sector, showing significant demand for various dairy products. The market encompasses two primary categories: organic and conventional dairy. The conventional dairy segment has traditionally dominated the landscape due to its established supply chains and wide accessibility to consumers across urban and rural settings. On the other hand, the organic dairy segment is witnessing a robust growth trajectory, fueled by increasing health consciousness among consumers and a rising preference for naturally produced products.
The organic segment appeals to a niche market segment that prioritizes sustainability and health benefits, leading to consistently enhanced consumer loyalty. Moreover, the government's initiatives to promote organic farming through subsidies and awareness campaigns have further contributed to its prominence in India. The dairy industry in India is characterized by a vast network of dairy cooperatives and small farmers, enabling a substantial contribution to the overall agriculture economy. As the India Dairy Market evolves, the diversification into organic dairy offers promising opportunities for growth and innovation, catering to the changing tastes of consumers desiring quality and sustainability in their products.
The segmentation within the India Dairy Market enhances its resilience and adaptability, ensuring robust performance even amid shifting market dynamics.
Dairy Market Distribution Channel Insights
The Distribution Channel segment of the India Dairy Market plays a crucial role in shaping the overall industry dynamics. The market encompasses two primary categories: Store-Based and Non-Store-Based channels. Store-Based channels have been essential in providing consumers easy access to a wide range of dairy products, including milk, cheese, and yogurt, contributing significantly to daily consumption patterns. These channels benefit from consumer trust in established retail outlets and the sensory experience of selecting fresh products. On the other hand, Non-Store-Based channels, including e-commerce platforms, have gained traction as convenience becomes a key purchasing driver, particularly among urban consumers.
This segment is expected to grow as internet penetration and online shopping preferences rise in India, reflecting changing consumer behaviors. Insights from the India Dairy Market data suggest a strong inclination towards omnichannel retailing, where consumers engage with both traditional and modern distribution methods. This interplay between Store-Based and Non-Store-Based channels points towards a highly competitive landscape, where flexibility and adaptability will be essential for dairy businesses to thrive in this evolving market scenario.
The growing demand for organic and health-oriented dairy products also reinforces the significance of these distribution channels to cater to the sophisticated tastes of consumers in India.
Dairy Market Store-Based Insights
The Store-Based segment of the India Dairy Market is a vital component of the overall industry, playing a crucial role in shaping consumer buying behavior. With a growing middle-class population and changing lifestyle patterns in India, Supermarkets and Hypermarkets have emerged as dominant players, offering a wide variety of dairy products under one roof, which appeals to the convenience-seeking consumer. These establishments typically provide a diverse range of dairy offerings, including milk, yogurt, and cheese, leading to increased competition among local producers and international brands.
Convenience Stores have also gained traction in urban areas, catering to consumers looking for quick access to essential dairy products, thus promoting impulse purchases. Furthermore, the Others category, which includes local dairies and specialty stores, continues to capture a loyal customer base by emphasizing quality and freshness of products, often sourced from nearby farms. These trends indicate ongoing growth in the Store-Based segment, driven by the need for convenience, product variety, and a strong distribution network, reflecting dynamic shifts in consumer preferences within the India Dairy Market.
India Dairy Market Key Players and Competitive Insights
The India Dairy Market has witnessed significant growth and competition over recent years, driven by increasing consumer demand for dairy products, health awareness, and a rising middle class with changing dietary habits. This sector is characterized by a mix of traditional practices and modernized production, distribution, and marketing strategies. Players in this market face unique challenges including fluctuations in raw milk prices, varying regulatory frameworks across states, and evolving consumer preferences that demand quality and sustainability. Companies leverage technology and innovation to improve efficiency and product quality, thereby establishing stronger brands that appeal to the health-conscious consumer.
Nandini, a prominent player in the Indian dairy market, stands out due to its strong regional presence, particularly in the southern states. The brand is widely recognized for its high-quality products, including milk, curd, and a variety of value-added dairy products. Nandini's strengths lie in its robust cooperative model, which fosters direct relationships with local dairy farmers, ensuring a steady supply of fresh milk and promoting rural development. This cooperative structure helps in creating a loyal customer base and enhances brand trust among consumers. The company invests in quality assurance and sustainable practices, contributing to its reputation as a reliable source of dairy products in India. Furthermore, Nandini has effectively utilized regional branding and local flavor differentiation, which resonate with consumers, thereby solidifying its competitive edge in a diverse market.
Amul, another giant in the Indian dairy landscape, is well-known for its extensive range of products including milk, butter, cheese, and ice cream, catering to a diverse consumer base. The brand has established a formidable market presence with a significant outreach across the country. Amul's strengths include its innovative marketing strategies, such as the iconic "Amul Girl" campaign, which has made a lasting impression on consumers. The company's cooperative structure empowers over a million dairy farmers, enhancing their income and fostering community development. Amul has also engaged in strategic mergers and acquisitions, which have allowed it to expand its portfolio and enhance distribution channels across various regions in India. This approach not only strengthens its market position but also diversifies its product offerings to meet the changing preferences of consumers. With ongoing efforts in product innovation and sustainability, Amul maintains its reputation as a leader in the Indian dairy market, continuously adapting to meet consumer demands and expanding its reach.
Key Companies in the India Dairy Market Include:
India Dairy Market Industry Developments
The India Dairy Market has seen significant movements recently. In October 2023, the National Dairy Development Board reported that the sector is experiencing a compound annual growth rate of approximately 15%, driven by rising demand for milk and dairy products. Companies like Amul and Mother Dairy are expanding their product lines to include fortified milk and organic options, reflecting consumer preferences for health-conscious choices. Notably, in September 2023, Hatsun Agro Product announced the launch of new flavored milk variants to capture a younger demographic, showcasing the industry's innovation trends.
In terms of mergers and acquisitions, no major transactions involving the specified companies have been publicly reported recently. However, the competitive landscape remains active as smaller players such as Shreeja Milk and Creamline Foods seek partnerships to enhance distribution networks.
The market valuation for companies like Parag Milk Foods and Britannia Industries is on an upward trajectory, fueled by increasing household disposable income and a shift towards premium dairy products. Recent data indicates a growing interest in plant-based dairy alternatives, positioning traditional dairy firms to adapt and innovate in this evolving landscape.
Dairy Market Segmentation Insights
Dairy Market Product Type Outlook
Dairy Market Category Outlook
Dairy Market Distribution Channel Outlook
Dairy Market Store-Based Outlook
| Report Attribute/Metric | Details |
| Market Size 2023 | 48.88(USD Billion) |
| Market Size 2024 | 51.16(USD Billion) |
| Market Size 2035 | 72.0(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 3.155% (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 | Nandini, Amul, Mother Dairy, Vallombrosa Benedictine Congregation, Creamline Foods, Shreeja Milk, Hatsun Agro Product, Kwality Dairy, Gowardhan, Dairy Craft, Parag Milk Foods, Mohan Meakin, Saras Dairy, Sundrop Foods, Britannia Industries |
| Segments Covered | Product Type, Category, Distribution Channel, Store-Based |
| Key Market Opportunities | Growing demand for value-added products, Expansion of organic dairy segment, Increasing urbanization and convenience products, Rise in health-conscious consumer preferences, Investment in dairy technology and automation |
| Key Market Dynamics | increasing urbanization, rising health consciousness, rising disposable income, demand for value-added products, government support and initiatives |
| Countries Covered | India |
Frequently Asked Questions (FAQ) :
The India Dairy Market was valued at 51.16 USD Billion in 2024.
By 2035, the India Dairy Market is anticipated to reach a valuation of 72.0 USD Billion.
The projected CAGR for the India Dairy Market from 2025 to 2035 is 3.155%.
In 2024, Milk holds the largest value in the market at 21.0 USD Billion.
The market value for Butter in the India Dairy Market is expected to reach 10.71 USD Billion by 2035.
Major players in the market include Nandini, Amul, Mother Dairy, and Hatsun Agro Product among others.
The market value of Cheese was 10.0 USD Billion in 2024.
Yogurt's market is anticipated to grow, reaching a value of 9.66 USD Billion by 2035.
The market faces challenges like supply chain inefficiencies and fluctuating dairy prices.
Opportunities for growth include increasing consumer demand for organic and health-focused dairy products.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Research Analyst Harshita post graduate mba in business administration from welingkar institute, mumbai and 5 years of experience in the field of product market research. as a research analyst, i have cross-domain experience in packaging, and industrial automation & equipment. i am currently looking after the research process of packaging, logistics & transportation, and industrial automation & equipment at market research future reports. my responsibilities at the organization involve handling syndicate and custom reports as well as responding to client inquiries, and organize, co-ordinate with a group of 5 to 6 persons to manage all workflows.
Get in Touch
© 2025 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
