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Indian dairy products market to increase at a CAGR of 5% through 2017

Press Release   •   Jun 19, 2013 15:13 BST

India is the world's largest producer and consumer of milk and dairy products. The country has experienced noteworthy improvement in the per capita availability of milk over the last five years, and the Indian dairy products market has been forecast to increase at a compound annual growth rate (CAGR) of 5% through to 2017.

The dairy industry in India has been on a steady path of progression since Indian independence. It has grown from producing 17 million tonnes of milk in 1951 to producing 121 million tonnes in 2011.

Today, India is one of the largest milk producing countries in the world. This solid progress is primarily attributable to structural changes in the Indian dairy industry brought about by the advent of dairy cooperatives.

However, the Indian dairy products industry continues to face challenges from a lack of quality and low productivity as a result of large part of the market being unorganised. The Indian dairy market is now witnessing the entry of a large number of foreign players.

This can be observed with the increasing presence of companies in emerging yogurt segment such as Red Mango, Cocoberry, Kiwi Kiss and Yogurberry, etc. Among dairy products, Amul and Mother Dairy are the two largest companies in the Indian dairy market.

The consumption pattern of dairy products in India is quite unique as compared to some of the western countries. Consumption is primarily skewed towards traditional products; however, westernised products are gradually gaining momentum in the urban areas.

Interestingly, buffalo milk accounts for the largest share of the total milk produced in the country. Since the pricing of milk is based on the fat content, buffalo milk offers higher profit margins as compared to cow milk as it contains higher fat.

For more information on the Indian dairy products market, see the latest research: Indian Dairy Products Market

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