India Dairy Industry Report 2024: Market Size, Growth, Prices, Segments, Cooperatives, Private Dairies, Procurement and Distribution 2023-2032 - ResearchAndMarkets.com

The "Dairy Industry in India 2024 Edition: Market Size, Growth, Prices, Segments, Cooperatives, Private Dairies, Procurement and Distribution" report has been added to ResearchAndMarkets.com's offering.

The dairy industry in India size reached INR 16,792.1 billion in 2023. The market is projected to reach INR 49,953.5 billion by 2032, exhibiting a growth rate (CAGR) of 12.88% during 2023-2032, propelled by technological innovation, enhanced retail and e-commerce platforms, and improved cold chain infrastructure, meeting rising consumer demand with a diversified and quality-focused product range.

One of the primary factors propelling the Indian dairy industry is the increasing consumption due to population growth and rising income levels. With the continual expansion of the population, the demand for dairy products is surging, providing a substantial consumer base for the industry. Increased affluence has enabled a larger segment of the population to spend more on nutritious food items, with dairy products being a traditional staple in Indian diets. This combination of demographic expansion and enhanced purchasing power has compelled dairy producers to scale up operations and innovate, ensuring steady market growth.

As the most populous state with a robust agrarian economy, Uttar Pradesh is home to the largest number of dairy animals in the country, significantly contributing to India's overall milk production. The dairy sector in the state thrives due to government initiatives, a strong network of milk cooperatives, and effective procurement and distribution systems.

The high demand for dairy products in the state is met by the rising investments in milk processing plants. A large part of this industry is sustained by small and marginal dairy farmers. Additionally, the growing population and increasing disposable incomes in the state have led to a higher expenditure on milk and milk products.

Growing Health Awareness Among Indian Consumers

The Indian dairy industry is also driven by growing health consciousness among consumers. There is an escalating preference for dairy products as a source of essential nutrients like proteins, vitamins, and minerals. This demand extends beyond conventional dairy items to value-added products such as flavored yogurts, fortified milk, and probiotic drinks. Dairy companies are capitalizing on this trend by launching a range of health-centric products, effectively tapping into consumers' desire for wellness through diet.

Impact of Pandemic on Consumer Behavior and Dairy Industry

The pandemic has led to a significant shift in consumer behavior, with a growing preference for milk and dairy products as nutritional supplements. This change from procurement centers to retail outlets initially overwhelmed distribution logistics. However, the Indian dairy industry adapted by implementing operational flexibility in business models and supply chain simplification. This resilience and adaptability have been crucial in maintaining the industry's integrity during challenging times.

A significant trend reshaping the Indian dairy industry is the evolution of distribution channels, particularly with the emergence of Business-to-Consumer (B2C) startups. These startups often leverage digital platforms for direct delivery. With the rise of e-commerce and online grocery shopping, many new-age dairy startups are offering subscription-based models, home delivery services, and digitally enabled supply chains. This approach not only ensures freshness and quality but also caters to the convenience sought by modern consumers.

These startups often focus on premium, organic, or specialized dairy products, differentiating themselves from traditional retail channels. By using data analytics and consumer insights, these B2C startups are able to understand consumer preferences and offer personalized services. This shift is not only changing consumer buying habits but also forcing traditional players to rethink their distribution strategies, leading to a more consumer-centric dairy market in India.

Technological Advancements in Dairy Processing

Technological innovations are playing a crucial role in transforming the dairy industry. This includes advancements in dairy farm management, milk processing, packaging, and supply chain logistics. Technologies like automation, Internet of Things (IoT), and artificial intelligence (AI) are being employed to enhance efficiency, improve product quality, and ensure safety. These technologies also aid in better farm management practices, allowing for higher productivity and sustainability. Additionally, the adoption of cold chain technologies ensures that dairy products retain their freshness and nutritional value during transportation and storage.

Shift Towards Value-Added Dairy Products

There is a significant shift towards value-added dairy products like cheese, yogurt, flavored milk, and probiotic drinks. These products offer greater margins and cater to the evolving consumer preferences for health, convenience, and variety. The demand for these products is being driven by increasing health awareness, the rising middle class, and changing dietary habits. Dairy companies are investing in new product development and marketing strategies to capture this growing segment, diversifying beyond traditional milk products.

Competitive Landscape

The key players are actively implementing strategic initiatives to solidify and enhance their market presence. They are concentrating on diversifying their product ranges to incorporate options that are both health-centric and convenience-oriented, such as probiotic drinks, high-protein yogurts, and lactose-free products.

These players are utilizing advanced technologies to boost production efficiency and optimize supply chains, thereby not only elevating product quality but also aligning their offerings with changing consumer preferences and international food safety norms. These efforts are part of a broader strategy to expand their market reach through strategic partnerships, appointments, and collaborations, underpinning the growth and dynamism of the dairy industry in India.

Dairy Industry in India Snapshot:

• Liquid milk dominates the market as the primary product segment. This is attributed to its essential role in everyday consumption, nutritional importance as a staple food, and its universal cultural acceptance.
• A2 milk represents the fastest-growing segment in the dairy market. Its growth is driven by increasing consumer beliefs regarding its enhanced digestibility and potential health benefits compared to standard milk.
• In terms of regional markets, Uttar Pradesh is the largest. This prominence is due to its position as the most populous state and a strong agricultural economy where dairy farming is a major livelihood source.
• Delhi is identified as the most rapidly expanding regional market. This growth is linked to its growing population, higher income levels, and a cosmopolitan culture that increases the demand for diverse dairy products.

Key Attributes:

Some of the key players include:

Dairy Cooperatives:

• Gujarat Co-operative Milk Marketing Federation Ltd
• Mother Dairy Fruits & Vegetables Pvt Limited
• Karnataka Co-operative Milk Producers Federation Limited
• Rajasthan Cooperative Dairy Federation Ltd (RCDF)
• TamilNadu Cooperative Milk Producers Federation Ltd (TCMPF)
• Punjab State Cooperative Milk Producers Federation Ltd (MILKFED)
• Orissa State Cooperative Milk Producers Federation Ltd (OMFED)
• Maharashtra Rajya Sahakari Dudh Mahasangh Maraydit (Mahasangh)
• Bihar State Co-operative Milk Producers Federation Ltd. (COMFED)
• Haryana Dairy Development Cooperative Federation Ltd. (HDDCF)
• Madhya Pradesh State Cooperative Dairy Federation Ltd. (MPCDF)
• Pradeshik Cooperative Dairy Federation Ltd (PCDF)

Private Dairies:

• Nestle India Limited
• Hatsun Agro Product Limited
• Tirumala Milk Products Pvt Ltd.
• Milk Food Limited
• Heritage Foods India Limited
• VRS Foods Limited
• Bhole Baba Dairy Industries Ltd.
• Kwality Ltd.
• Sterling Agro Industries Limited
• Parag Milk Foods Limited
• SMC Foods Limited

Dairy Industry in India Segmentation:

Breakup by Segment:

• Liquid Milk
• UHT Milk
• A2 Milk
• Organic Milk
• Flavored Milk
• Curd
• Lassi
• Butter Milk (Chach)
• Flavored and Frozen Yoghurts
• Cheese
• Probiotic Dairy Products
• Table Butter
• Ghee
• Paneer
• Khoya
• Dairy Whitener
• Skimmed Milk Powder
• Ice Cream
• Dairy Sweets
• Cream
• Whey
• Milk Shake
• Sweet Condensed Milk

Breakup by Region:

• Karnataka
• Maharashtra
• Tamil Nadu
• Delhi
• Gujarat
• Andhra Pradesh and Telangana
• Uttar Pradesh
• West Bengal
• Kerala
• Haryana
• Punjab
• Rajasthan
• Madhya Pradesh
• Bihar
• Orissa

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