India Dairy Market Size and Share
Market Overview
| Study Period | 2020 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 29.90 Billion |
| Market Size (2030) | USD 41.82 Billion |
| Growth Rate (2025 - 2030) | 6.94% CAGR |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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India Dairy Market Analysis by Mordor Intelligence
The India Dairy Market size is estimated at 29.90 billion USD in 2025, and is expected to reach 41.82 billion USD by 2030, growing at a CAGR of 6.94% during the forecast period (2025-2030). This growth trajectory reflects the nation's position as the world's largest milk producer, with 239.3 million tonnes produced in 2023-24, supported by 80 million dairy farmers and a cooperative structure that processes over 60% of marketed milk [1]Source: Department of Animal Husbandry and Dairying, "India's Dairy Sector", dahd.nic.in. The market's resilience stems from India's unique dual structure combining traditional cooperatives with modern private enterprises, creating a competitive ecosystem that drives innovation while maintaining affordability. The market's resilience stems from India's unique dual structure combining traditional cooperatives with modern private enterprises, creating a competitive ecosystem that drives innovation while maintaining affordability. Rising urban incomes, expanding cold-chain corridors, and supportive digital payments spur organized retail penetration, while premium functional products widen profit pools for processors willing to invest in R&D. Private labels leverage subscription-based direct-to-consumer apps to bypass traditional intermediaries and defend margins against commodity-price swings. Meanwhile, government fiscal incentives for chilling centers and breed improvement anchor long-term supply stability, underpinning the India dairy products market’s resilient growth story.
Key Report Takeaways
- By product type, milk products led with 61.53% of the India dairy products market share in 2024, while yogurt is forecast to expand at an 8.33% CAGR through 2030.
- By distribution channel, off-trade outlets held 91.23% of 2024 value, whereas on-trade sales are expected to grow at 7.64% CAGR to 2030.
India Dairy Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Increasing health consciousness and protein-rich diets | +1.2% | National, with early gains in metros and Tier-1 cities | Medium term (2-4 years) |
| Product innovation in flavors, packaging, and formats | +0.8% | Urban centers, expanding to Tier-2 cities | Short term (≤ 2 years) |
| Government initiatives supporting dairy cooperatives and milk production | +1.1% | National, concentrated in traditional dairy states | Long term (≥ 4 years) |
| Rising awareness of hygiene and quality standards in dairy | +0.9% | Pan-India, accelerated in post-COVID environment | Medium term (2-4 years) |
| Growth of ready-to-eat and convenience dairy products | +0.7% | Urban markets, metro spillover to smaller cities | Short term (≤ 2 years) |
| Rising demand for functional and fortified dairy products | +1.0% | Health-conscious demographics across major cities | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Increasing Health Consciousness Drives Premium Dairy Adoption
Consumer behavior transformation positions protein-rich dairy products as essential nutrition sources, with 34% of Indian consumers actively seeking high-protein options according to recent surveys. This shift transcends traditional milk consumption patterns, driving demand for Greek yogurt, protein-enriched milk variants, and functional dairy products that address specific health concerns. Urban millennials and Gen-Z consumers increasingly view dairy as preventive healthcare, creating market opportunities for brands that communicate nutritional benefits effectively. The trend accelerates post-pandemic awareness about immunity and wellness, with dairy proteins positioned as accessible alternatives to expensive supplements. Premium pricing acceptance for health-focused products suggests sustainable margin expansion potential for manufacturers who invest in nutritional innovation and scientific validation.
Government Policy Framework Strengthens Cooperative Infrastructure
The National Programme for Dairy Development allocates INR 2,242 crore for 2024-25, focusing on productivity enhancement and infrastructure modernization across cooperative networks. This policy commitment extends beyond traditional subsidies to include technology adoption, breed improvement programs, and cold-chain development that directly impacts market growth potential. The Rashtriya Gokul Mission's genetic improvement initiatives target 40% productivity increases through artificial insemination and superior breeding practices. Cooperative societies benefit from preferential lending rates and tax advantages that enable competitive pricing while maintaining farmer welfare objectives. The policy framework creates structural advantages for organized dairy processing, potentially consolidating market share away from informal sector participants who lack similar governmental support.
Product Innovation Accelerates Market Premiumization
Packaging technology advances enable extended shelf-life products that penetrate deeper into rural markets, with UHT processing and tetra-pack adoption expanding distribution reach significantly[2]Source: Food and Agriculture Organization, "Packaging technology advances", fao.org. Flavor innovation responds to regional taste preferences, with companies launching turmeric milk, cardamom-infused variants, and traditional recipe adaptations that blend heritage with modern convenience. Smart packaging incorporating QR codes and blockchain technology addresses traceability concerns while building consumer trust in product authenticity. The innovation cycle shortens as companies compete for shelf space in organized retail, driving continuous product launches and format experimentation. Digital-first brands leverage e-commerce platforms to test niche products before scaling to traditional retail, creating agile innovation models that respond rapidly to consumer feedback.
Ready-to-Consume Formats Capture Urban Convenience Demand
Busy urban lifestyles drive adoption of portion-controlled dairy products, single-serve packaging, and grab-and-go formats that align with commuting patterns and office consumption habits [3]Source: National Sample Survey Office, "urban lifestyles drive adoption of dairy products", mospi.gov.in. This convenience trend extends beyond traditional categories to include dairy-based breakfast solutions, protein bars, and meal replacement products that compete with international brands. Food service integration accelerates as cafes and restaurants incorporate premium dairy ingredients, creating B2B growth channels that complement retail expansion. The convenience positioning commands price premiums that improve unit economics while reducing volume dependency for profitability. Supply chain optimization becomes critical as convenience products require consistent availability and temperature control across diverse retail touchpoints.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High perishability of dairy products limiting shelf life | -0.6% | Rural and semi-urban areas with limited cold-chain | Short term (≤ 2 years) |
| Quality adulteration and safety concerns among consumers | -0.4% | National, particularly in unorganized retail segments | Medium term (2-4 years) |
| Seasonal fluctuations affecting milk supply and quality | -0.5% | Agricultural regions dependent on monsoon patterns | Long term (≥ 4 years) |
| Lack of cold-chain in rural and remote areas | -0.3% | Rural markets and Tier-3 cities | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Perishability Constraints Limit Market Expansion Velocity
Cold-chain infrastructure gaps restrict dairy product distribution to within 200-300 kilometers of processing facilities, constraining national brand expansion and limiting rural market penetration. Product losses during transportation and storage average 15-20% for liquid milk products, creating cost structures that necessitate premium pricing in distant markets. Temperature-sensitive products like fresh cream and soft cheeses face even greater distribution challenges, limiting category growth potential in smaller cities. The constraint becomes more acute during summer months when ambient temperatures exceed 40°C across major dairy-producing regions. Investment requirements for cold-chain development often exceed small and medium processors' financial capabilities, creating competitive advantages for larger organizations with infrastructure resources.
Quality Standardization Challenges Undermine Consumer Confidence
Adulteration incidents involving synthetic milk, water dilution, and harmful additives periodically disrupt consumer trust, particularly affecting unbranded and local dairy products. Testing infrastructure limitations mean quality verification occurs primarily at large processing facilities, leaving smaller producers and informal sector participants with limited oversight capabilities. Consumer awareness of quality issues drives preference toward branded products, but price sensitivity often forces compromises that perpetuate quality concerns. The regulatory framework requires significant enforcement improvements to address systematic quality issues that constrain premium segment development. Brand reputation risks associated with quality failures create conservative product development approaches that may limit innovation velocity in emerging categories.
Segment Analysis
By Product Type: Milk Products Dominate Despite Yogurt Acceleration
Milk products command 61.53% market share in 2024, reflecting India's fundamental consumption patterns where liquid milk serves as the primary dairy staple across all economic segments. Fresh milk maintains the largest individual segment share, driven by daily consumption habits and cultural preferences for home-prepared dairy products like tea, coffee, and traditional sweets. UHT milk gains traction in urban markets where convenience and extended shelf-life justify premium pricing, while flavored milk variants capture younger demographics through innovative packaging and taste profiles according to the National Dairy Development Board. Condensed milk and powdered milk segments serve both retail and industrial applications, with powdered variants particularly strong in rural areas where refrigeration limitations favor shelf-stable alternatives.
Yogurt emerges as the fastest-growing segment at 8.33% CAGR through 2030, driven by probiotic health benefits and premium positioning that attracts health-conscious consumers. Spoonable yogurt dominates this category, while drinkable variants gain momentum through convenience positioning and on-the-go consumption patterns. Cheese products experience robust growth despite lower absolute volumes, with processed cheese leading adoption through pizza and fast-food integration, while natural cheese varieties like cottage and ricotta cater to cooking applications. Dairy desserts including ice cream maintain steady growth, supported by premiumization trends and artisanal product launches. Cream products serve both retail and food service segments, with cooking cream and whipping cream benefiting from expanding bakery and confectionery industries.
Note: Segment shares of all individual segments available upon report purchase
By Distribution Channel: Off-Trade Dominance Faces Digital Disruption
Off-trade channels control 91.23% market share in 2024, reflecting India's retail structure where traditional grocery stores, supermarkets, and neighborhood shops serve as primary dairy purchase points. Supermarkets and hypermarkets lead organized off-trade with comprehensive cold-chain infrastructure and premium product positioning, while convenience stores capture impulse purchases and emergency needs through extended operating hours. Specialist retailers including dairy-focused stores maintain relevance in specific regions where fresh product quality and personal relationships drive consumer loyalty. Online retail accelerates rapidly from a small base, driven by subscription models for regular dairy deliveries and premium product access in smaller cities where physical retail options remain limited.
On-trade channels achieve 7.64% CAGR growth through 2030, propelled by food service expansion and cafe culture adoption across urban markets. Restaurants increasingly emphasize dairy ingredient quality in menu positioning, creating opportunities for premium suppliers who can ensure consistent supply and traceability. Coffee chains and quick-service restaurants drive bulk dairy consumption, while hotels and catering services require specialized products like cooking cream and processed cheese varieties. The on-trade segment commands higher margins but demands stringent quality standards and reliable supply chains that favor organized processors. Digital ordering platforms facilitate on-trade growth by connecting dairy suppliers directly with food service establishments, reducing intermediary costs while improving supply chain transparency.
Competitive Landscape
The India dairy products market exhibits moderate concentration, creating space for both cooperative giants and private innovators to pursue differentiated strategies. Cooperative dominance through GCMMF (Amul), Karnataka Milk Federation, and Tamil Nadu's Aavin provides structural advantages in milk procurement and rural distribution, while private players focus on premium segments, urban markets, and value-added products where brand positioning commands higher margins. This dual structure prevents monopolistic control while ensuring competitive pricing that benefits consumers across economic segments.
Technology adoption emerges as a key differentiator, with leading players implementing blockchain for traceability, IoT sensors for cold-chain monitoring, and AI-driven demand forecasting that optimizes inventory management according to the Ministry of Electronics and Information Technology. Digital transformation extends to farmer engagement through mobile apps that provide real-time milk pricing, veterinary services, and feed recommendations, creating ecosystem lock-in effects that strengthen supply chain relationships.
White-space opportunities exist in direct-to-consumer channels, organic certification, and functional dairy products where established players face agility constraints. Emerging disruptors leverage e-commerce platforms and subscription models to capture urban millennials who prioritize convenience and product transparency over traditional brand loyalty.
India Dairy Industry Leaders
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KMF-MIS
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TCMPF Ltd.
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TCMPF Ltd.
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Danone
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Nestlé
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2025: In a strategic partnership with FranGlobal, the international business arm of Franchise India, Yogurt Factory, France's leading frozen yogurt brand, has made its official debut in the Indian market. With its gourmet frozen yogurt boasting 0% fat and a delectable assortment of smoothies, milkshakes, waffles, and bubble teas, Yogurt Factory aims to transform the dessert scene in India.
- April 2025: Locally made at Britannia Bel Foods' new state-of-the-art facility in Ranjangaon, Maharashtra, the improved cheese range blends French cheese-making expertise with recipes customized for Indian palates. The brand's relaunch, conceptualized by Schbang, features updated packaging, five essential nutrients, and a novel engagement through a Gen-AI recipe bot on WhatsApp.
- March 2025: At Ahaar 2025, held at Pragati Maidan, Galacia Cheese made its debut, marking the entry of Paras Dairy—a prominent name in India's dairy sector and a brand under VRS Foods Limited—into the cheese market. This premium cheese range, made from the finest cow milk, highlights Paras Dairy's dedication to providing top-tier dairy products to consumers nationwide.
India Dairy Market Report Scope
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.| Butter | ||
| Cheese | Natural Cheese | Cheddar |
| Cottage | ||
| Ricotta | ||
| Parmesan | ||
| Others | ||
| Processed Cheese | ||
| Cream | Fresh Cream | |
| Cooking Cream | ||
| Whippng Cream | ||
| Others | ||
| Dairy Desserts | Ice Cream | |
| Cheesecakes | ||
| Frozen Desserts | ||
| Others | ||
| Milk | Condensed milk | |
| Flavored Milk | ||
| Fresh Milk | ||
| UHT Milk (Ultra-high temperature milk) | ||
| Powdered Milk | ||
| Yogurt | Drinkable | |
| Spoonable | ||
| Sour Milk Drinks | ||
| On-trade | |
| Off-trade | Convenience Stores |
| Specialist Retailers | |
| Supermarkets and Hypermarkets | |
| Online Retail | |
| Others |
| Product Type | Butter | ||
| Cheese | Natural Cheese | Cheddar | |
| Cottage | |||
| Ricotta | |||
| Parmesan | |||
| Others | |||
| Processed Cheese | |||
| Cream | Fresh Cream | ||
| Cooking Cream | |||
| Whippng Cream | |||
| Others | |||
| Dairy Desserts | Ice Cream | ||
| Cheesecakes | |||
| Frozen Desserts | |||
| Others | |||
| Milk | Condensed milk | ||
| Flavored Milk | |||
| Fresh Milk | |||
| UHT Milk (Ultra-high temperature milk) | |||
| Powdered Milk | |||
| Yogurt | Drinkable | ||
| Spoonable | |||
| Sour Milk Drinks | |||
| Distribution Channel | On-trade | ||
| Off-trade | Convenience Stores | ||
| Specialist Retailers | |||
| Supermarkets and Hypermarkets | |||
| Online Retail | |||
| Others | |||
Market Definition
- Butter - Butter is a yellow-to-white solid emulsion of fat globules, water, and inorganic salts produced by churning the cream from cows’ milk
- Dairy - Dairy product include milk and any of the foods made from milk, including butter, cheese, ice cream, yogurt, and condensed and dried milk.
- Frozen Desserts - Frozen dairy dessert means and includes products containing milk or cream and other ingredients which are frozen or semi-frozen prior to consumption, such as ice milk or sherbet, including frozen dairy desserts for special dietary purposes, and sorbet
- Sour Milk Drinks - Sour milk is thick, curdled milk, with a sour taste, obtained from the fermentation of milk. Sour milk drinks such as kefir, laban, buttermilk have been considered in the study
| Keyword | Definition |
|---|---|
| Cultured Butter | Cultured butter is prepared by having the raw butter go through chemical processing and has been added with certain emulsifiers and foreign ingredients. |
| Uncultured Butter | This type of butter is one which has not been processed in any way |
| Natural Cheese | The type of cheese in its most natural form. It is made from natural and simple products and ingredients, including fresh and natural salts, natural colors, enzymes, and high-quality milk. |
| Processed Cheese | Processed cheese undergoes the same processes as natural cheese; however, it requires more steps and many different forms of ingredients. Making processed cheese involves melting natural cheese, emulsifying it, and adding preservatives and other artificial ingredients or colorings. |
| Single Cream | Single cream contains around 18% fat. It’s a single layer of cream that appears over boiled milk. |
| Double Cream | Double cream contains 48% fat, more than double the amount of fat of single cream. It’s heavier and thicker than single cream |
| Whipping Cream | This has a much higher fat percentage than single cream (36%). Used to top cakes, pies, and puddings and as a thickener for sauces, soups, and fillings. |
| Frozen Desserts | Desserts that are meant to be eaten in frozen condition. E.g., sherbets, sorbets, frozen yogurts |
| UHT Milk (Ultra-high temperature milk) | Milk heated at a very high temperature. Ultra-high-temperature processing (UHT) of milk involves heating for 1–8 sec at 135–154°C. which kills the spore-forming pathogenic microorganism, resulting in a product with a shelf-life of several months. |
| Non-dairy butter/Plant-based butter | Butter made from plant-derived oil such as coconut, palm, etc. |
| Non-dairy Yogurt | Yogurt made from typically made from nuts, like almonds, cashews, coconuts, and even other foods like soybeans, plantains, oats, and peas |
| On-trade | It refers to restaurants, QSRs, and bars. |
| Off-trade | It refers to supermarkets, hypermarkets, on-line channels, etc. |
| Neufchatel cheese | One of the oldest kinds of cheese in France. It is a soft, slightly crumbly, mold-ripened, bloomy-rind cheese made in the Neufchâtel-en-Bray region of Normandy. |
| Flexitarian | It refers to a consumer preferring a semi-vegetarian diet, that is centered on plant foods with limited or occasional inclusion of meat. |
| Lactose Intolerance | Lactose intolerance is a reaction in digestive system to lactose, the sugar in milk. It causes uncomfortable symptoms in response to the consumption of dairy products. |
| Cream Cheese | Cream cheese is a soft and creamy fresh cheese with a tangy taste made from milk and cream. |
| Sorbets | Sorbet is a frozen dessert made using ice combined with fruit juice, fruit purée, or other ingredients, such as wine, liqueur, or honey. |
| Sherbet | Sherbet is a sweetened frozen dessert made with fruit and some sort of dairy product such as milk or cream. |
| Shelf stable | Foods that can be safely stored at room temperature, or "on the shelf," for at least one year and do not have to be cooked or refrigerated to eat safely. |
| DSD | Direct Store Delivery is the process in supply chain management wherein the product is delivered from manufacturing plant directly to the retailer. |
| OU Kosher | Orthodox Union Kosher is a kosher certification agency based in New York City. |
| Gelato | Gelato is a frozen creamy dessert made with milk, heavy cream and sugar. |
| Grass-fed Cows | Grass-fed cows are allowed to graze in pastures, where they eat a variety of grasses and clover. |
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step 1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set, and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables, and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
