Indian Dairy Industry

India has been the leading producer and consumer of dairy products worldwide since 1998 with a sustained growth. Dairy activities form an essential part of the rural Indian economy, serving as an important source of employment and income. Nearly all of the dairy produce in India is consumed domestically, with the majority of it being sold as fluid milk. On account of this, the Indian dairy industry holds tremendous potential for value-addition and overall development. The dairy market in India had reached a value of INR 9,168 billion in 2018. Along with offering profitable business opportunities, the dairy industry in India serves as a tool of socio-economic development. Keeping this in view, the Government of India has introduced various schemes and initiatives aimed at the development of the dairy sector. The private participation has also increased over the past few years. Both national and international players are entering the dairy industry attracted by the size and potential of the Indian market. The focus is being given to value-added products such as cheese, yogurt, probiotic drinks, etc. and also to launch of innovative products keeping in mind the specific requirements of the Indian consumers. The improvisation of milk procurement network is further facilitating the development of the dairy industry in India. Looking forward, the market is expected to reach a value of INR 21,971 Billion by 2024, exhibiting a CAGR of around 16% during 2019-2024.

Trends in the Dairy Industry

Consumer inclination towards a healthy lifestyle has turned tables for the dairy industry. This has prompted players in the dairy foods market to innovate heavily in their offerings. One of the main areas of focus in the dairy industry is to provide sustainable nutrition (healthy food) to people produced in an environment-friendly manner. Clean labels have become the 'new supreme' for dairy products. It has now turned from a 'fad' to a 'necessity'. The big players have made clean labels a way of life as in helping to increase consumer trust and mitigate brand risk. Furthermore, there is a rapidly growing need for transparency among consumers in the dairy industry. Employing data technologies such as sensors, data analytics and digital technology at unprecedented levels are empowering dairy companies to facilitate better decision-making. Companies are offering new and innovative ways to entice customers. Flavoured dairy products are garnering much attention of the younger population. Companies in the dairy industry are taking this trend rather seriously while also bringing products that contain no or very less added sugar content. Companies in the dairy industry have been using the functional and technical benefits in product development to drive more variety and excitement into their products.


India has the largest bovine population in the world as blessed with a huge biodiversity of 43 indigenous cattle breeds and 13 Buffalo breeds. However, the milk production per animal is significantly low as compared to the other major dairy producers. Besides, the Indian dairy sector is plagued with various other impediments like shortage of fodder, poor quality of feed, poor transportation facilities and lack of appropriate cold chain infrastructure. As a result, the supply side lacks in elasticity that is expected of it. In terms of packaging, there is an additional need for protective packaging for cow's milk due to artificial lighting. Light-protective packaging may be the most effective approach in protecting milk from photo-induced sensory damage. Despite challenges, one emerging trend in Indian dairying is the growing number of the commercial dairy farms in the urban and peri-urban areas of the metros and big cities.

Emergence of Commercial Farming

Commercial dairy farming in India is no doubt playing an important role in the total milk production and economy of our country. And almost all regions of India are suitable for setting up dairy farming business. Farmers need to learn about improved dairy or cattle management, proper breeding, balanced diet, preventing disease, primary care and modern farming methods to get better production. Keeping proper prevention and management regulations improve dairy farming. Realizing the growing importance of commercialization, the dairy sector needs to meet the challenges of globalization, in terms of organized production and marketing. Many State Dairy Development Departments, cooperatives like Amul and private sector dairy players are giving an impetus to setting up Hi-tech commercial dairy farms leading to clean milk production.

Holistic growth

Since agriculture and dairy sector share a relationship because of the mutually linked inputs and outputs, it is important to promote the two in tandem to move towards holistic growth. It is important to introduce quality feed material and efficient feeding methods, encourage commercialization and mechanization of dairy farms, develop networks to promote processed food and beverages based on milk, have well managed cold chain facilities to minimize wastage and organize the sector further. In order to promote these and ensure the all-round development of the Indian dairy industry, we invite dairy companies, investors, packaging and processing machinery manufacturers, cold-chain developers, feeds suppliers, livestock healthcare companies to join us at 10th DairyTech India 2021 from 5th - 7th August 2021 in Bangalore, India. The event will have its co-located shows - 12th AgriTech India 2021, 12th India Foodex 2021, 9th International Poultry & Livestock Expo and 7th MeatTech Asia 2021. DairyTech India 2021 is the best place to become part of the emerging Indian Dairy Industry and promote its further commercialization.