India Dairy Market Size

The India Dairy Market is projected to experience significant growth over the forecast period, with the market size expanding considerably. The off-trade distribution channel, particularly supermarkets and hypermarkets, plays a crucial role in the consumption of dairy products, catering to the diverse preferences of Indian consumers. Convenience stores also contribute significantly to the market, attracting urban shoppers with a wide range of dairy options. The increasing demand for dairy-based recipes from foodservice channels is further driving market expansion, as more consumers opt for dining out and ordering takeout. Milk remains the dominant product in the market, followed by yogurt, reflecting the preferences within the retail channels.

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Market Size of india dairy Industry

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India Dairy Market Summary
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https://s3.mordorintelligence.com/study%20period/1629296433432_test~study_period_study_period.svg Study Period 2017 - 2029
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Size (2024) USD 28.27 Billion
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Size (2029) USD 38.81 Billion
https://s3.mordorintelligence.com/hydraulic_fluids/1629285650767_test~hydraulic_fluids_hydraulic_fluids.svg Largest Share by Distribution Channel Off-Trade
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg CAGR (2024 - 2029) 6.55 %
https://s3.mordorintelligence.com/hydraulic_fluids/1629285650767_test~hydraulic_fluids_hydraulic_fluids.svg Fastest Growing by Distribution Channel Off-Trade

Major Players

India Dairy Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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India Dairy Market Analysis

The India Dairy Market size is estimated at 28.27 billion USD in 2024, and is expected to reach 38.81 billion USD by 2029, growing at a CAGR of 6.55% during the forecast period (2024-2029).

28.27 Billion

Market Size in 2024 (USD)

38.81 Billion

Market Size in 2029 (USD)

3.74 %

CAGR (2017-2023)

6.55 %

CAGR (2024-2029)

Largest Market by Category

61.23 %

value share, Milk, 2023

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The support from the Indian government with the set up of National Dairy Programme to increase milk production has made it easier for farmers to get milk, which aided the segmental growth.

Largest Market by Distribution Channel

91.15 %

value share, Off-Trade, 2023

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The product assortment with reliable shelf space for different kind of products in the market with increasing visibility has evolved to be one of the major factor in the segment.

Fastest-growing Market by Category

12.24 %

Projected CAGR, Yogurt, 2024-2029

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With the advent of functional products, and the emphasis on low calorie, low sugar, digestive products, the yogurt segment is anticipated to be fastest segment in the forecasted period.

Fastest-growing Market by Distribution Channel

6.73 %

Projected CAGR, Off-Trade, 2024-2029

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The ease of grabbing food with an array of display pertaining to the likes & dislikes of the consumers is considered to be the most preferable one for off-trade retail channels.

Leading Market Player

22.11 %

market share, Gujarat Cooperative Milk Marketing Federation Ltd, 2022

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The availability of various products by Gujarat Co-operative Milk Marketing Federation Ltd along with differentiated certifications for the manufacturer is propelling the consumer choice in the market.

Availability of clean label products is enhancing the growth of retailing unit in India

  • The off-trade distribution channel is the primary channel through which dairy products are consumed more in the country. Among the off-trade channels, supermarkets and hypermarkets are the largest distribution channels in the Indian dairy market. Dairy products are an essential part of the Indian diet, and supermarkets in India stock a wide range of options to cater to the diverse needs and tastes of consumers. In 2022, supermarkets and hypermarkets accounted for more than 47.4% of the value share compared to other retail channels.
  • In India, convenience stores stand in second place in the sales of dairy products, behind supermarkets and hypermarkets. In 2022, the sales value of dairy products through convenience stores increased by 6.2% from 2021. The wider range of dairy products provided by convenience stores entices urban consumers to purchase their products from convenience stores.
  • There is an increasing demand for dairy-based recipes from foodservice channels, which is further boosting the market growth. Dairy sales in the on-trade channel are anticipated to grow by USD 2206 million in 2025, up from USD 1967 million in 2022. The growth in the segment is attributed to consuming food prepared away from home, whether while eating out at a restaurant or ordering takeout. As of 2021, Indian consumers are eating out nearly seven times a month, and over 80% of the people stated that they would prefer affordable casual dining options and fast-service restaurants to eat out, while cafes, desserts, and ice-cream parlors are the most frequented.
  • Compared to other dairy products, milk accounted for the majority of share in overall retail channels. In 2022, milk accounted for 67.4% of the total category, and yogurt stood in second place with 18.2% of the value share.
India Dairy Market

India Dairy Industry Segmentation

Butter, Cheese, Cream, Dairy Desserts, Milk, Sour Milk Drinks, Yogurt are covered as segments by Category. Off-Trade, On-Trade are covered as segments by Distribution Channel.

  • The off-trade distribution channel is the primary channel through which dairy products are consumed more in the country. Among the off-trade channels, supermarkets and hypermarkets are the largest distribution channels in the Indian dairy market. Dairy products are an essential part of the Indian diet, and supermarkets in India stock a wide range of options to cater to the diverse needs and tastes of consumers. In 2022, supermarkets and hypermarkets accounted for more than 47.4% of the value share compared to other retail channels.
  • In India, convenience stores stand in second place in the sales of dairy products, behind supermarkets and hypermarkets. In 2022, the sales value of dairy products through convenience stores increased by 6.2% from 2021. The wider range of dairy products provided by convenience stores entices urban consumers to purchase their products from convenience stores.
  • There is an increasing demand for dairy-based recipes from foodservice channels, which is further boosting the market growth. Dairy sales in the on-trade channel are anticipated to grow by USD 2206 million in 2025, up from USD 1967 million in 2022. The growth in the segment is attributed to consuming food prepared away from home, whether while eating out at a restaurant or ordering takeout. As of 2021, Indian consumers are eating out nearly seven times a month, and over 80% of the people stated that they would prefer affordable casual dining options and fast-service restaurants to eat out, while cafes, desserts, and ice-cream parlors are the most frequented.
  • Compared to other dairy products, milk accounted for the majority of share in overall retail channels. In 2022, milk accounted for 67.4% of the total category, and yogurt stood in second place with 18.2% of the value share.
Category
Butter
By Product Type
Cultured Butter
Uncultured Butter
Cheese
By Product Type
Natural Cheese
Processed Cheese
Cream
By Product Type
Double Cream
Single Cream
Whipping Cream
Others
Dairy Desserts
By Product Type
Cheesecakes
Frozen Desserts
Ice Cream
Mousses
Others
Milk
By Product Type
Condensed milk
Flavored Milk
Fresh Milk
Powdered Milk
UHT Milk
Sour Milk Drinks
Yogurt
By Product Type
Flavored Yogurt
Unflavored Yogurt
Distribution Channel
Off-Trade
Convenience Stores
Online Retail
Specialist Retailers
Supermarkets and Hypermarkets
Others (Warehouse clubs, gas stations, etc.)
On-Trade
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India Dairy Market Size Summary

The India Dairy Market is experiencing significant growth, driven by the increasing demand for dairy products as a staple in the Indian diet. Supermarkets and hypermarkets dominate the off-trade distribution channels, accounting for a substantial portion of dairy sales, followed by convenience stores. The market is further bolstered by the rising popularity of dairy-based recipes in foodservice channels, as more consumers opt for dining out or ordering takeout. Milk remains the most consumed dairy product, with yogurt and ice cream also seeing rising demand. The shift towards Western food habits has spurred interest in cheese, particularly within the fast-food sector, which is expanding its presence in India.

The market is moderately consolidated, with major players like Gujarat Cooperative Milk Marketing Federation Ltd and Mother Dairy Fruit & Vegetable Pvt. Ltd leading the industry. These companies are actively investing in expanding their production capabilities to meet the growing consumer demand. The market's growth is also supported by the increasing health consciousness among consumers, who are turning to milk and related products for nutritional supplementation. The young population in India, particularly those under 14, contributes significantly to milk consumption. Additionally, the rise in temperatures and the availability of diverse ice cream flavors have led to a yearly increase in ice cream consumption, further driving market expansion.

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India Dairy Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Category

      1. 1.1.1 Butter

        1. 1.1.1.1 By Product Type

          1. 1.1.1.1.1 Cultured Butter

          2. 1.1.1.1.2 Uncultured Butter

      2. 1.1.2 Cheese

        1. 1.1.2.1 By Product Type

          1. 1.1.2.1.1 Natural Cheese

          2. 1.1.2.1.2 Processed Cheese

      3. 1.1.3 Cream

        1. 1.1.3.1 By Product Type

          1. 1.1.3.1.1 Double Cream

          2. 1.1.3.1.2 Single Cream

          3. 1.1.3.1.3 Whipping Cream

          4. 1.1.3.1.4 Others

      4. 1.1.4 Dairy Desserts

        1. 1.1.4.1 By Product Type

          1. 1.1.4.1.1 Cheesecakes

          2. 1.1.4.1.2 Frozen Desserts

          3. 1.1.4.1.3 Ice Cream

          4. 1.1.4.1.4 Mousses

          5. 1.1.4.1.5 Others

      5. 1.1.5 Milk

        1. 1.1.5.1 By Product Type

          1. 1.1.5.1.1 Condensed milk

          2. 1.1.5.1.2 Flavored Milk

          3. 1.1.5.1.3 Fresh Milk

          4. 1.1.5.1.4 Powdered Milk

          5. 1.1.5.1.5 UHT Milk

      6. 1.1.6 Sour Milk Drinks

      7. 1.1.7 Yogurt

        1. 1.1.7.1 By Product Type

          1. 1.1.7.1.1 Flavored Yogurt

          2. 1.1.7.1.2 Unflavored Yogurt

    2. 1.2 Distribution Channel

      1. 1.2.1 Off-Trade

        1. 1.2.1.1 Convenience Stores

        2. 1.2.1.2 Online Retail

        3. 1.2.1.3 Specialist Retailers

        4. 1.2.1.4 Supermarkets and Hypermarkets

        5. 1.2.1.5 Others (Warehouse clubs, gas stations, etc.)

      2. 1.2.2 On-Trade

India Dairy Market Size FAQs

The India Dairy Market size is expected to reach USD 28.27 billion in 2024 and grow at a CAGR of 6.55% to reach USD 38.81 billion by 2029.

In 2024, the India Dairy Market size is expected to reach USD 28.27 billion.

India Dairy Market Report Snapshots

India Dairy Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029