Market Overview

The dairy industry in India was valued at INR 18,975 Billion in 2024 and is projected to reach INR 57,001.81 Billion by 2033. The market is expected to grow at a CAGR of 12.35% during the forecast period of 2025 to 2033. Growth is driven by advancements in technology, supportive government initiatives, expansion of retail and e-commerce channels, and rising consumer demand for diverse and quality dairy products. Uttar Pradesh was the leading regional market in 2024 with a share of over 18.7%. The report presents a thorough review featuring the dairy industry in India share, growth, trends, and research of the industry.

How AI is Reshaping the Future of Dairy Industry In India:

• AI-powered automated milking systems and farm management tools have increased productivity and milk quality, supporting the vast network of millions of small-scale dairy farmers.
• AI-enabled supply chain optimization enhances cold chain logistics, ensuring freshness and reducing wastage as seen in large cooperatives like Amul’s cold chain infrastructure.
• Digital platforms driven by AI improve direct-to-consumer B2C models, offering home delivery, subscription services, and personalized dairy product options, following the trend of e-commerce growth with a GMV of USD 60 Billion in fiscal 2023.
• AI analytics help companies understand consumer preferences for health-conscious products such as A2 milk, low-fat, and organic dairy, boosting market segments with premium and specialized offerings.
• AI-assisted quality control and traceability technologies adopted by key players like Mother Dairy and Britannia improve food safety and product standards across processing plants.
• Government-supported AI projects in dairy farm genetic improvements and veterinary care augment production efficiency and animal health, bolstering the country’s status as the largest milk producer.

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Market Growth Factors

The dairy industry's growth in India is strongly supported by its vital role in the rural economy, where millions of small-scale dairy farmers contribute extensively to production and supply chains. Government initiatives provide subsidies and incentives for dairy farming, promoting modern dairy technologies such as automatic milking systems which enhance productivity and product quality. Organized retail channels and the expansion of e-commerce platforms have made dairy products more accessible across diverse regions. Consumer demand is also bolstered by rising health consciousness, with increased interest in specialized products like low-fat and organic milk, reflecting a shift towards healthier lifestyles and quality assurance.

Another significant driver is India’s robust milk production capability, with the country recognized as the world's largest milk producer. Leading states including Uttar Pradesh, Rajasthan, and Gujarat push this growth through enhanced genetic quality in animals and better veterinary care, resulting in improved milk quantity and quality. This backbone supports changing consumer preferences that lean towards packaged, branded, and convenience dairy products. Diversification into niche segments such as flavored milk, cheese, and ready-to-drink beverages further sustains market expansion by catering to urbanized demands and nutritional needs.

The evolving distribution and supply chain landscape also plays a crucial role. The rise of Business-to-Consumer (B2C) startups leveraging digital platforms enables direct home delivery and subscription-based dairy services, ensuring product freshness and consumer convenience. These startups focus on premium and organic products, using data analytics to personalize offerings, disrupting traditional channels to capture market share. Additionally, technological advancements in automation, IoT, AI, and cold chain infrastructure improve operational efficiency, product safety, and shelf life, supporting sustained dairy sector growth in a competitive market environment.

For detailed insights, visit the full report: Dairy Industry in India: https://www.imarcgroup.com/dairy-industry-in-india

Market Segmentation

Analysis by Product Type:

• 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

Regions Covered:

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

Key Players

• Bihar State Milk Co-operative Federation Ltd. (COMFED)
• Gujarat Co-operative Milk Marketing Federation Ltd.
• Haryana Dairy Development Cooperative Federation Limited
• Karnataka Co-operative Milk Producers Federation Ltd.
• Madhya Pradesh State Cooperative Dairy Federation Ltd.
• Maharashtra Rajya Sahakari Dudh Mahasangh Maryadit (MRSDMM)
• Mother Dairy Fruits & Vegetables Pvt. Limited
• Rajasthan Cooperative Dairy Federation (RCDF)
• Tamilnadu Co-operative Milk Producers’ Federation Limited
• The Odisha State Cooperative Milk Producers' Federation Limited (OMFED)
• Godrej Creamline Jersey Products Limited
• HAP
• Bhole Baba Milk Food Industries Ltd.
• Creamy Foods Limited
• Heritage Foods Ltd.
• Kwality Limited
• Milkfood Limited
• Nestlé S.A.
• Parag Milk Foods
• Prabhat Dairy (Sunfresh Agro Industries Pvt. Ltd.)
• Sterling Agro Industries Ltd.
• Tirumala Milk Products Pvt. Ltd.
• VRS Foods Limited

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Recent Developement & News

• January 2025: Hatsun Agro Product Ltd (HAP) acquired Milk Mantra Dairy Pvt. Ltd. for ₹233 crore (USD 26 Million), expanding its eastern India footprint with plans for West Bengal and northern Andhra Pradesh. This move enhances HAP’s portfolio and strengthens access to premium dairy products in new regions.
• November 2024: Nandini Dairy, Karnataka’s cooperative brand, launched competitively priced cow milk variants and other products in the Delhi-NCR market to expand its presence. Prices start at Rs 55 per litre for toned milk, intensifying competition against established brands like Mother Dairy and Amul.
• October 2024: Britannia Bel Foods inaugurated a ₹220 crore cheese plant near Pune with a production capacity of 10,000 tonnes for The Laughing Cow cheese. The plant involves sourcing milk from over 3,000 local farmers, reinforcing the dairy sector’s premium product base and supporting farmer incomes.

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