India Dairy Products Market Size Booming to Surpass USD 197 Billion by 2031

Published | 24 July 2025

India Dairy Products Market is flourishing primarily due to a rising demand for dairy-based proteins driven by growing health awareness, government support, rapid urbanization, and cold chain expansion.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated India Dairy Products Market size by value at USD 97.64 billion in 2024. During the forecast period between 2025 and 2031, BlueWeave expects India Dairy Products Market size to boom at a robust CAGR of 10.57%, reaching a value of USD 197.25 billion by 2031. The growth of India Dairy Products Market is propelled by rising health awareness, increasing disposable incomes, and strong cultural reliance on milk-based nutrition. The government’s supportive initiatives like the Rashtriya Gokul Mission and National Programme for Dairy Development enhance infrastructure and farmer support. Urbanization and changing dietary habits boost demand for value-added products such as yogurt, cheese, and probiotic drinks. Expansion of cold chain logistics and e-commerce platforms improves accessibility and freshness. Technological advancements in dairy farming and processing increase productivity and quality. Additionally, growing export potential and clean-label trends contribute to sustained growth across both rural and urban consumer segments.

Opportunity – Surging Demand for Value-added Dairy Products

The Indian dairy sector is witnessing a robust shift toward value-added dairy products, such as cheese, yogurt, flavored milk, and probiotic drinks. This surge is fueled by changing consumer lifestyles, rising health awareness, and demand for convenience and premium nutrition. Urbanization and increasing disposable incomes support the growth of artisanal and fortified dairy offerings. Organized retail and e-commerce platforms enhance accessibility, while innovations in packaging and processing improve shelf life and quality. As traditional milk consumption plateaus, value-added segments offer higher margins and growth potential, making them a strategic focus for both cooperatives and private dairy enterprises. The spurring demand for value-added dairy products is expected to boost the growth of India Dairy Products Market in the coming years.

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Curd Segment Leads India Dairy Products Market ​

The curd segment holds the largest market share of India Dairy Products Market. Curd’s deep-rooted cultural relevance, daily consumption across households, and digestive benefits make it a staple in Indian diets. In 2024, curd captured over 40% of segmental revenue, supported by affordability, minimal processing, and widespread rural production. Unlike yogurt and lassi, curd is consumed in both savory and sweet forms, enhancing its versatility. Its dominance is further reinforced by traditional culinary practices and rising health awareness, positioning curd as the most preferred fermented dairy product across urban and rural India.

Impact of Escalating Geopolitical Tensions on India Dairy Products Market

Escalating geopolitical tensions, particularly in trade negotiations and regional conflicts, pose challenges to India’s dairy sector. Rising freight costs, disrupted export routes, and tariff uncertainties, especially with the US, threaten market access and profitability. Concerns over subsidized foreign imports could impact domestic pricing and farmer incomes. However, India Dairy Products Market remains resilient, focusing on domestic modernization, value-added innovation, and export diversification to stable regions like Southeast Asia and Africa. Strategic partnerships and government support help mitigate risks, while long-term peace and stability remain crucial for uninterrupted growth and global competitiveness.

Competitive Landscape

India Dairy Products Market is highly fragmented, with numerous players serving the market. Major companies dominating the market are Amul (Gujarat Cooperative Milk Marketing Federation Ltd), Mother Dairy Fruit & Vegetable Pvt Ltd, Nestlé India Ltd, Britannia Industries Ltd, Parag Milk Foods Ltd, Hatsun Agro Products Ltd, Kwality Ltd, VRS Foods Ltd (Dairy Fresh), Karnataka Cooperative Milk Producers Federation Ltd (Nandini), Sterling Agro Industries Ltd (Nova Dairy), and Orissa State Cooperative Milk Producers Federation Ltd (OMFED). The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge over their competitors in India Dairy Products Market.

Don’t miss the business opportunity in India Dairy Products Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The report's in-depth analysis provides information about growth potential, upcoming trends, and India Dairy Products Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in India Dairy Products Market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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