India Dairy Market Share, Size, Growth, and Forecast (2025-2034)
India dairy industry is well-established and continues to thrive as one of the largest producers and consumers of milk globally.
Last updated
India dairy industry is well-established and continues to thrive as one of the largest producers and consumers of milk globally.
Last updated
The reached a value of nearly INR 9918.00 Billion in 2024. The market is projected to grow at a CAGR of 14.00% between 2025 and 2034, reaching around INR 36768.22 Billion by 2034. This growth is driven by the rising population, increased per capita consumption of dairy products, and the growing preference for health-conscious and organic dairy options. Indian dairy sector is heavily influenced by both traditional consumption habits and modern shifts toward processed and packaged dairy goods. A robust supply chain and strong government support for dairy farming have also contributed to the expansion of the sector.
India dairy industry is well-established and continues to thrive as one of the largest producers and consumers of milk globally. The country has seen significant demand across various segments of dairy products, with consumption patterns changing to include a growing preference for value-added products like cheese, yogurt, and UHT milk. As consumers' tastes evolve, they increasingly demand products that are not only nutritious but also convenient and aligned with their lifestyle choices.
The dairy market in India is evolving rapidly with trends driven by consumer preferences for healthier, sustainable, and more convenient products. There is a rising demand for functional dairy products like probiotic dairy, organic milk, and low-fat options. Additionally, products such as plant-based dairy alternatives are gaining traction due to increasing awareness of health and environmental concerns.
The trend of organic dairy production is becoming more popular as consumers are looking for clean and chemical-free options. Probiotic dairy products, such as yogurt and kefir, are becoming essential due to their health benefits. Moreover, innovative packaging solutions, including environmentally-friendly materials and single-serve packages, are being developed to cater to the busy urban population. These shifts point toward a more health-conscious and environmentally aware consumer base driving the dairy market’s expansion.
The dairy market in India is experiencing consistent growth driven by several factors, including a growing middle class, urbanization, and the changing dietary habits of consumers. With increased disposable income and evolving lifestyles, the demand for premium dairy products, including organic milk, flavored milk, and cheese, is on the rise. Urban regions are increasingly shifting toward packaged dairy products for convenience, while rural areas continue to rely on traditional milk products like curd and buttermilk.
Additionally, dairy cooperatives and private companies are expanding their reach across rural and urban India to cater to the growing demand. Government initiatives, such as the National Dairy Development Board (NDDB), further contribute to market growth by providing support for dairy farmers and enhancing the supply chain infrastructure. As more companies enter the market with innovative products and sustainable practices, the market is set to witness substantial growth.
The India dairy market is highly diversified, with numerous product types catering to various consumer needs.
Liquid Milk: The backbone of the dairy industry, with various types like full-fat, toned, and double-toned milk.
UHT Milk: Ultra-high-temperature milk, processed for a longer shelf life, popular in urban markets.
A2 Milk: Gaining popularity due to perceived health benefits, especially among health-conscious consumers.
Organic Milk: Sourced from cows fed organic feed, appealing to the growing demand for chemical-free products.
Flavoured Milk: Ready-to-drink milk available in flavors such as chocolate, vanilla, and strawberry.
Curd: A staple in many Indian households, often consumed daily.
Lassi: A traditional, refreshing yogurt drink, available in sweet and salty variants.
Butter Milk (Chach): A traditional drink popular across India, especially in hot climates.
Flavoured and Frozen Yoghurts: A growing segment in urban centers, favored for its health benefits and taste.
Cheese: The demand for cheese, including paneer and processed varieties, is increasing across India.
Probiotic Dairy Products: Yogurt and other fermented dairy items gaining popularity for their digestive health benefits.
Butter: Common in Indian cooking, with both salted and unsalted varieties available.
Ghee: Essential in Indian cuisine, with a growing preference for pure and organic ghee.
Paneer: A popular source of protein, especially in vegetarian diets.
Khoya: A dairy product used in Indian sweets.
Dairy Whitener: A substitute for milk used in beverages and cooking.
Skimmed Milk Powder: Used widely in making dairy-based products.
Ice-Cream: The ice-cream segment is expanding with innovations in flavors and types.
Dairy Sweets: Includes products like rasgulla, gulab jamun, and peda, which are integral to Indian desserts.
Cream: Used for cooking and as a topping for desserts.
Milk Shake: A growing trend among the youth, particularly in urban areas.
Sweet Condensed Milk: Used in a variety of sweets and desserts.
Others: Includes niche products like dairy-based nutritional supplements.
The sales channels for dairy products in India are evolving, with both traditional and modern channels playing important roles.
Direct Selling: In rural areas, direct selling remains a common practice, with local vendors delivering fresh milk.
Convenience Stores: A popular choice for urban consumers who seek quick access to dairy products.
Supermarkets and Hypermarkets: A significant portion of packaged dairy products are sold through these retail channels, especially in metropolitan cities.
Online: The growing trend of online grocery shopping has extended to dairy products, with companies offering doorstep delivery services for convenience.
Indian dairy consumption patterns vary significantly by region, with different preferences and market dynamics.
North India: This region has a high consumption of curd, lassi, and milk-based products like butter and ghee.
East and Central India: Popularity of curd and buttermilk, along with a growing demand for flavored milk and cheese.
West India: Major production hub for dairy products like milk, ghee, and paneer. Increasing demand for packaged dairy in urban areas.
South India: Known for its consumption of yogurt, buttermilk, and traditional dairy products, with urban areas seeing higher demand for flavored and probiotic products.
Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF)
Karnataka Co-operative Milk Producers Federation Limited (KMF)
Orissa State Cooperative Milk Producers Federation Ltd (OMFED)
Mother Dairy Fruits & Vegetables Pvt Limited
Britannia Industries Ltd.
Nestle India Limited
VRS Foods Limited
These companies dominate the Indian dairy market, each with distinct strategies ranging from regional expansion and product diversification to innovations in packaging and sustainability practices. With a significant portion of Indian dairy consumption coming from both cooperative and private sectors, the competition is robust, with players focusing on brand loyalty, product differentiation, and expanding their presence across rural and urban markets.
