Dairy Industry in India Report and Market Analysis 2026-2034 | Get Sample Report

According to IMARC Group’s latest report titled "Dairy Industry in India Report 2026 Edition: Market Size, Growth, Prices, Segments, Cooperatives, Private Dairies, Procurement and Distribution", this study offers a granular analysis of the country's transformation from a milk-deficient nation to the world's largest milk producer. The study offers a profound analysis of India dairy market, encompassing market share, size, growth factors, key trends, and regional insights. The report covers critical market dynamics, including the rise of B2C dairy startups, the increasing consumption of value-added products like cheese and probiotic drinks, and the modernization of cold chain infrastructure supported by government initiatives.

Market At-A-Glance: Key Statistics (2026-2034):

• Current Market Size (2025): INR 21,318.5 Billion
• Projected Market Size (2034): INR 57,859.1 Billion
• Growth Rate (CAGR): 11.73%
• Dominant Region: Uttar Pradesh (Holding ~18.7% market share due to its massive agrarian economy and livestock population)
• Leading 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., and VRS Foods Limited.

Request Free Sample Report (Exclusive Offer on Corporate Email): https://www.imarcgroup.com/dairy-industry-in-india/requestsample

Dairy Industry in India Overview

The dairy industry in India 2025 size reached INR 21,318.5 Billion. Looking forward, IMARC Group expects the market to reach INR 57,859.1 Billion by 2034, exhibiting a robust double-digit growth rate (CAGR) of 11.73% during 2026-2034.

The industry is witnessing a structural shift, primarily driven by the transition from unorganized to organized retail. While liquid milk remains the cornerstone, accounting for over 65% of the market, there is an aggressive push towards value-added dairy products (VADP). Changing consumer lifestyles and rising disposable incomes are fueling the demand for convenient, protein-rich options like flavored milk, yogurt, and cheese. Technological advancements, such as IoT-enabled farm management and automated milking systems, are enhancing productivity and milk quality. Furthermore, the proliferation of online grocery platforms and subscription-based delivery models is reshaping the distribution landscape, ensuring fresher products reach urban consumers directly.

Top Emerging Trends

• Rising Preference for Packaged and Branded Dairy Products: Consumers increasingly prefer packaged, branded milk and dairy products due to hygiene awareness, urban lifestyles, cold-chain availability, and trust in quality standards.
• Growing Demand for Value-Added Dairy Products: Value-added dairy products such as cheese, yogurt, flavored milk, and probiotic drinks are gaining demand driven by convenience, nutrition, and evolving taste preferences.
• Adoption of Digital and Automated Dairy Processing Technologies: Dairies are adopting digital milk collection, automated processing, and quality testing technologies to improve efficiency, traceability, and farmer integration nationwide.
• Expansion of Premium Dairy Segments: Premium segments including A2 milk, organic dairy, and lactose-free products are expanding as health-conscious consumers seek differentiated nutrition benefits and options nationwide.

Growth Factors (Drivers)

• Rising Population and Increasing Dairy Consumption: Rising population, urbanization, and income growth are increasing per-capita dairy consumption, supporting sustained demand for milk and processed dairy products.
• Government Support for Dairy Development and Cooperatives: Government programs supporting dairy cooperatives, cold chains, and animal productivity are strengthening milk supply, farmer incomes, and organized dairy development.
• Expansion of Cold Chain and Modern Retail Infrastructure: Expansion of cold storage, refrigerated transport, and modern retail is improving shelf life, distribution reach, and availability of dairy products nationwide.
• Growing Demand from Food Processing and HoReCa Sectors: Growing food processing, HoReCa demand, and bakery applications are boosting bulk consumption of butter, cheese, cream, and milk powders across India.

Explore the Full Report with Charts, Table of Contents, and List of Figures: https://www.imarcgroup.com/dairy-industry-in-india

Market Segmentation

Analysis by Product Type:

• Liquid Milk (Dominant segment; essential staple)
• A2 Milk (Fastest growing niche)
• UHT Milk
• Organic Milk
• Flavored Milk & Yoghurts
• Cheese & Butter
• Ghee (Traditional staple with high value)
• Ice Cream
• Dairy Sweets
• Others (Paneer, Khoya, Skimmed Milk Powder)

Regional Insights:

• Uttar Pradesh: The largest market, supported by a vast network of cooperatives and high buffalo population.
• Rajasthan & Gujarat: Key milk-surplus states with strong cooperative structures (e.g., Amul in Gujarat).
• Delhi-NCR: Rapidly growing urban market driving demand for premium and packaged dairy.
• Maharashtra
• Karnataka
• Tamil Nadu
• Others

Dairy Industry in India Recent Developments & News

• January 2025: Hatsun Agro Product (HAP) acquired Milk Mantra Dairy for ₹233 crore to strengthen its foothold in Eastern India.
• November 2024: Nandini Dairy entered the Delhi-NCR market, challenging incumbents with competitive pricing.
• October 2024: Britannia Bel Foods inaugurated a ₹220 crore cheese plant in Pune to produce "The Laughing Cow" products locally.
• May 2024: Amul announced the launch of high-protein "super milk" to cater to the fitness-conscious demographic.

Why Buy This Report? (High-Value Insights)

• Granular Segmentation: Detailed analysis of Liquid Milk vs. Value-Added revenue streams, helping businesses identify high-margin opportunities.
• Regional Hotspots: In-depth breakdown of demand in Uttar Pradesh vs. South India, assisting in procurement and distribution planning.
• Future-Ready Trends: Insights into the commercial viability of Camel Milk and Lactose-Free products, highlighting niche growth areas.

Key Highlights of the Report

• Market Forecast (2026-2034): Quantitative data on market value and rapid growth trajectory.
• Competitive Landscape: Comprehensive analysis of key cooperatives (Amul, Mother Dairy) vs. private players (Nestle, Britannia).
• Strategic Analysis: Porter’s Five Forces analysis and value chain assessment.
• Technological Trends: Insights into advancements in blockchain for supply chain traceability.

Get Your Customized Market Report Instantly: https://www.imarcgroup.com/request?type=report&id=608&flag=E

Customization Note: If you require specific data we can provide it as part of our customization services.

About Us:

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services.

IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

Contact Us:  

IMARC Group 

134 N 4th St. Brooklyn, NY 11249, USA 

Email: sales@imarcgroup.com 

Tel No:(D) +91 120 433 0800 

United States: +1-201971-6302