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    India Dairy Market

    ID: MRFR/F-B & N/44962-HCR
    200 Pages
    Harshita Gorade
    September 2025

    India Dairy Market Research Report By Product Type (Milk, Cheese, Butter, Yogurt, Dairy Cream, Ice Cream, Others), By Category (Organic, Conventional), By Distribution Channel (Store-Based, Non-Store-Based) and By Store-Based (Supermarkets Hypermarkets, Convenience Stores, Others) - Forecast to 2035

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    India Dairy Market Infographic
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    India Dairy Market Summary

    The India Dairy market is projected to grow from 51.2 USD Billion in 2024 to 72 USD Billion by 2035, indicating a robust growth trajectory.

    Key Market Trends & Highlights

    India Dairy Key Trends and Highlights

    • The market valuation is expected to reach 72 USD Billion by 2035, reflecting a substantial increase from 51.2 USD Billion in 2024.
    • The compound annual growth rate (CAGR) for the India Dairy market is estimated at 3.16% from 2025 to 2035.
    • This growth trajectory suggests a steady demand for dairy products across various consumer segments in India.
    • Growing adoption of innovative dairy processing technologies due to increasing consumer health awareness is a major market driver.

    Market Size & Forecast

    2024 Market Size 51.2 (USD Billion)
    2035 Market Size 72 (USD Billion)
    CAGR (2025-2035) 3.16%

    Major Players

    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

    India Dairy Market Trends

    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.

    Market Segment Insights

    India Dairy Market Segment Insights

    India Dairy Market Segment Insights

    Dairy Market Product Type 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. 

    Dairy Market Category Insights

    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

    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

    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.

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

    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 market include

    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.

    Market Segmentation

    Dairy Market Category Outlook

    • Organic
    • Conventional

    Dairy Market Store-Based Outlook

    • Supermarkets Hypermarkets
    • Convenience Stores
    • Others

    Dairy Market Product Type Outlook

    • Milk
    • Cheese
    • Butter
    • Yogurt
    • Dairy Cream
    • Ice Cream
    • Others

    Dairy Market Distribution Channel Outlook

    • Store-Based
    • Non-Store-Based

    Report Scope

    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

    FAQs

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

    The India Dairy Market was valued at 51.16 USD Billion in 2024.

    What will be the market size of the India Dairy Market by 2035?

    By 2035, the India Dairy Market is anticipated to reach a valuation of 72.0 USD Billion.

    What is the expected CAGR for the India Dairy Market from 2025 to 2035?

    The projected CAGR for the India Dairy Market from 2025 to 2035 is 3.155%.

    Which product type holds the largest value in the India Dairy Market in 2024?

    In 2024, Milk holds the largest value in the market at 21.0 USD Billion.

    What is the projected market value for Butter in the India Dairy Market by 2035?

    The market value for Butter in the India Dairy Market is expected to reach 10.71 USD Billion by 2035.

    Who are the key players in the India Dairy Market?

    Major players in the market include Nandini, Amul, Mother Dairy, and Hatsun Agro Product among others.

    What was the market value of Cheese in the India Dairy Market in 2024?

    The market value of Cheese was 10.0 USD Billion in 2024.

    What is the forecasted market growth rate for Yogurt in the India Dairy Market from 2025 to 2035?

    Yogurt's market is anticipated to grow, reaching a value of 9.66 USD Billion by 2035.

    What challenges are present in the India Dairy Market currently?

    The market faces challenges like supply chain inefficiencies and fluctuating dairy prices.

    What opportunities exist for growth in the India Dairy Market?

    Opportunities for growth include increasing consumer demand for organic and health-focused dairy products.

    India Dairy Market Research Report- Forecast to 2035 Infographic
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