Report Overview

Rising health awareness, the government’s increasing support, rapid urbanization, cold chain expansion, e-commerce growth, and a surging demand for value-added dairy products are expected to boost the growth of India Dairy Products Market during the forecast period between 2025 and 2031.

India Dairy Products Market – Industry Trends & Forecast Report, 2031

India Dairy Products Market size was estimated at USD 97.64 billion in 2024. During the forecast period from 2025 to 2031, India Dairy Products Market size is projected to grow at a CAGR of 10.57%, reaching a value of USD 197.25 billion by 2031. The growth of India Dairy Products Market is driven by rising health consciousness, growing middle-class income, and strong cultural reliance on milk. Government initiatives like the Rashtriya Gokul Mission and NPDD support dairy infrastructure and farmer welfare. Expansion of cold chain logistics and e-commerce platforms improves product accessibility. Demand for value-added products such as cheese, yogurt, and probiotic drinks is surging. Technological advancements in dairy farming and processing enhance productivity, while urbanization and changing dietary habits fuel consistent market growth.

Dairy Products – Overview

Dairy products are foods derived from the milk of mammals, primarily cows, goats, and buffalo. They include milk, cheese, yogurt, butter, cream, and ice cream, offering essential nutrients like calcium, protein, and vitamins. Widely consumed across cultures, dairy supports bone health, growth, and energy needs. Products range from fresh to fermented and frozen varieties. Technological advancements and dietary trends have expanded options, including lactose-free and probiotic-rich items, making dairy a versatile and vital component of global nutrition.

India Dairy Products Market 

Growth Drivers

Rising Health Awareness and Nutritional Demand

Growing health consciousness among Indian consumers is fueling demand for dairy products rich in protein, calcium, and essential nutrients. Milk, yogurt, paneer, and probiotic drinks are increasingly favored for their wellness benefits. Urbanization, lifestyle changes, and rising disposable incomes support this shift toward nutritious food choices. Government campaigns and fitness trends further promote dairy consumption. The surge in organic, low-fat, and fortified dairy offerings reflects evolving dietary preferences and strengthens market growth across urban and rural segments.

Challenges

High Production and Feed Costs

Players in the India Dairy Products Market faces significant cost pressures due to rising feed prices, labor expenses, and energy costs. Feed alone accounts for nearly 60% of total production costs, impacting farmer profitability and product pricing. Fluctuations in raw material availability and inflation further strain operations. Small-scale producers struggle to maintain margins, limiting investment in quality and innovation. These high input costs hinder scalability, reduce competitiveness, and pose a major restraint to sustainable growth in the dairy products market.

Impact of Escalating Geopolitical Tensions on India Dairy Products Market 

Intensifying geopolitical tensions among countries, especially around trade negotiations and regional instability, pose risks to the growth of India Dairy Products Market. Rising freight costs, disrupted export routes, and tariff uncertainties—particularly with the US—threaten market access and profitability. Concerns over opening domestic markets to subsidized foreign dairy imports could impact farmer incomes and pricing stability. However, India’s focus on domestic modernization, export diversification, and strategic partnerships with stable regions helps mitigate long-term risks, fostering resilience amid global uncertainties.

India Dairy Products Market 

Segmental Coverage

India Dairy Products Market – By Milk & Milk-based Products

By milk & milk-based products, India Dairy Products Market is divided into Liquid Milk, Flavored Milk, and UHT Milk segments. The liquid milk segment is the largest segment of India Dairy Products Market by milk & milk-based products. Its nutritional value, cultural significance, and integration into traditional diets drive consistent demand. Supported by cooperative networks and government subsidies, liquid milk maintains widespread accessibility. Its dominance is further reinforced by minimal processing needs and strong rural production capacity.

India Dairy Products Market – By Fermented & Cultured Dairy Products

Based on fermented & cultured dairy products, India Dairy Products Market is divided into Yogurt, Curd, and Lassi segments. The curd segment stands as the largest segment in India’s Dairy Products Market by fermented & cultured dairy products. Its widespread consumption across households, integration into daily meals, and cultural significance drive consistent demand. Curd is preferred for its digestive benefits and versatility in both traditional and modern cuisines. In 2024, curd accounted for over 40% of segmental revenue, supported by rising health awareness and affordability. Its dominance is further reinforced by strong rural production and minimal processing requirements, making it a staple across urban and rural India.

India Dairy Products Market – By Valued Added Dairy Products

On the basis of value-added dairy products, India Dairy Products Market is divided into Cheese, Butter, and Ice Cream segments. The ice cream segment emerges as the largest value-added dairy product in India Dairy Products Market. Its popularity spans all age groups, driven by rising disposable incomes, urbanization, and expanding retail presence. In 2024, ice cream accounted for over 42% of segmental revenue, fueled by early summers, diverse flavor innovations, and growing demand for premium and artisanal varieties. The proliferation of ice cream parlors and strong seasonal consumption patterns reinforce its dominant market position.

India Dairy Products Market – By Region

Geographically, India Dairy Products Market is divided into North India, West India, South India, and East India. North India holds the largest share of India Dairy Products Market. Its dominance stems from high milk production in states like Uttar Pradesh, Punjab, and Haryana, supported by strong cooperative networks and rural dairy farming. In 2024, North India contributed over 38% of regional revenue, driven by traditional dairy consumption, government support, and robust infrastructure for processing and distribution.

Competitive Landscape

Major companies operating in India Dairy Products Market include 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 Product 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). To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Milk & Milk-based Products

• Liquid Milk

• Flavored Milk

• UHT Milk  

By Fermented & Cultured Dairy Products

• Yogurt

• Curd

• Lassi 

By Value Added Dairy Products

• Cheese

• Butter

• Ice Cream

By Region

• North India

• West India

• South India

• East India