Dairy and Milk Processing Market to Grow at a CAGR of 14.8% by 2018-2023 in India | Parag Milk Foods, Vadilal Industries, Nestle
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The Indian dairy and milk processing market comprise of organizations that deal with the manufacturing, treating, packaging, and storing of milk products. The products include milk, concentrated buttermilk, cream, ice cream, and whey powder. The milk processing methods used by the market players include cooling, pasteurization, and conversion into concentrated high-value products.
As of 2018, India is the leading milk producing country in the world, accounting for ~19% of the global market share. The milk processing industry in India is expected to expand at a compound annual growth rate (CAGR) of ~14.8% between FY 2018 and FY 2023, and will reach INR 2,458.7 Bn in FY 2023. Being one of the primary dairy consumables in India, the increase demand for milk in the country is owed to the increasing population. As of FY 2018, ~81.1% of the Indian dairy and milk processing market was part of the unorganized sector, which produces milk in unhygienic environments. This reduces the overall quality and nutrition levels of the milk produced.
State-wise segment insights:
Uttar Pradesh, Rajasthan, and Gujarat have been the major milk producing states in India. Uttar Pradesh is the largest dairy and milk-producing state because it is home to the highest buffalo population and the second-highest cattle population in the country. The majority of the rural population in this state is engaged in livestock rearing and dairying. Gujarat has numerous cooperative dairy milk unions, private dairy plants, and primary milk cooperative societies, which play crucial roles in the production of milk in the state.
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Value-added product wise segment insights:
Apart from milk, the revenue of the Indian dairy and milk processing industry is generated from several value-added products such as butter, curd, paneer, ghee, whey, flavored milk, ultra-high temperature (UHT) milk, cheese, and yogurt. During the period FY 2016 to FY 2020, the market size of butter is expected to grow by 14.5%, curd by 14.4%, paneer by 14.1%, and ghee by 14.1%, among others.
From India, the export of dairy products has increased to countries like Bhutan, Afghanistan, Canada, Egypt, and the United Arab Emirates. India has also imported a significant amount of dairy products from countries like France, New Zealand, Ireland, France, Ukraine, and Italy.
Key growth drivers of the market:
India’s livestock sector is regarded as one of the largest in the world with a bovine population of 299.9 Mn, which comprises of cattle, buffalo, mithun, and yak. The growth of the Indian dairy and milk processing market is ensured by the steady supply of milk which is the primary raw material for this industry.
Key deterrents to the growth of the market:
• Despite having a significant livestock base of milch animals, India lacks in terms of availability of cold storages which results in wastage of dairy output. Thus, the lack of sufficient storage facilities and inefficient distribution are hampering the growth of the Indian dairy and milk processing industry.
• Recurring droughts and floods affect the production of fodder in India. Sufficient quantities of feed and fodder are required for proper animal rearing and milk production. Lack of proper feed and fodder for milch animals, due to high usage of agricultural crop residues by producers of fiberboard, paper, and liquid fuels, affect its availability for dairy production and milk processing.
• Amrit Corporation Limited
• Hatsun Agro Product Limited
• Heritage Foods Limited
• Kwality Limited
• Parag Milk Foods Limited
• Vadilal Industries Limited
• Nestle India Limited
• Creamline Dairy Products Limited
• Gujarat Cooperative Milk Marketing Federation
• Mother Dairy Fruit Vegetable Private Limited
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Chapter 1: Executive summary
Chapter 2: Socio-economic indicators
Chapter 3: Introduction
3.1. Dairy and milk processing market definition
3.2. Food processing sector structure
3.3. Milk processing value chain analysis
Chapter 4: India dairy and milk processing market
4.1. Market overview
4.2. Dairy and milk processing market size and growth forecast – value-wise (FY 2016-FY 2023e)
4.3. Volume-wise milk production (FY 2014-FY 2017)
4.4. Per capita availability of milk (FY 2014-FY 2017)
Chapter 5: India dairy and milk processing market segmentation
5.1. State-wise milk production (FY 2015, FY 2016 and FY 2017)
5.2. Market size and growth forecast of major value - added products (FY 2016-FY 2020e)
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