Dairy Industry in India to Reach USD INR 57,859.1 Billion (CAGR 11.73%) by 2034 | Get Free Sample Report

According to IMARC Group's report titled "Dairy Industry in India 2026 Edition: Market Size, Growth, Prices, Segments, Cooperatives, Private Dairies, Procurement and Distribution", The report offers a comprehensive analysis of the industry, including market share, growth, trends, and regional insights.

Short Summary:

The India dairy industry remains one of the most critical sectors in the country's food & beverages landscape, driven by rising population, growing per-capita consumption, and increasing demand for both everyday milk and value-added dairy products such as cheese, yogurt, paneer and flavored milk. According to IMARC Group, the dairy industry in India was valued at INR 21,318.5 billion in 2025.

Over the coming years (2026-2034), the market is expected to grow at a compound annual growth rate (CAGR) of 11.73%, reaching INR 57,859.1 billion by 2034.

The growth is underpinned by structural transformations - expansion of organized retail and e-commerce, improvement in cold-chain & supply infrastructure, diversified consumer preferences for processed and value-added dairy, and strong demand across urban and rural areas.

Further, states with high dairy production and supply networks (e.g., rural clusters, high livestock population) continue to dominate the industry, with some regions - notably Uttar Pradesh - holding more than 18.7% share in 2025.

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Latest News & Developments:

• Expansion of national dairy production goals under new rural dairy programmes - Government support for dairy infrastructure and procurement systems continues to bolster milk availability and cold-chain distribution, reinforcing industry growth.

• Increased adoption of modern cold-chain & processing infrastructure - Investments and policy support for storage, pasteurization, chilling centers and logistics to reduce wastage and improve shelf-life of dairy products.

• Rising demand for value-added & packaged dairy products (cheese, UHT milk, yogurt, flavored milk) - Driven by changing urban lifestyles, health awareness, and retail expansion, in line with consumer trends documented in IMARC report.

• Government focus on rural dairy farmer welfare & support schemes - Subsidies, incentives, veterinary services, and cooperative-based procurement mechanisms continue to support the backbone of dairy production.

• Growth in organized retail and e-commerce distribution channels - Modern retail chains and online grocery platforms are widening reach of dairy products, boosting accessibility especially in urban and semi-urban markets.

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Growth is supported by:

• Population Growth & Rising Middle Class: India's growing population, expanding middle-income households, and rising per-capita dairy consumption remain the foundational demand drivers.

• Urbanization & Changing Lifestyles: Busy lifestyles and urban living boost demand for ready-to-consume, convenient, and processed dairy products.

• Government Support & Rural Dairy Infrastructure: Policies supporting dairy development, subsidies for farmers, chilled milk procurement systems, and cooperative support strengthen the supply base and industry resilience.

• Modernization of Cold-Chain & Distribution: Advances in cold storage, pasteurization, refrigerated transport, and modern supply chains reduce wastage and assure quality - enabling expansion of dairy across regions.

• Growing Demand for Value-Added Dairy Products: Rising popularity of cheese, yogurt, paneer, probiotic drinks, flavored milk, UHT milk - driven by nutrition awareness, urban demand and global dietary trends.

• Expansion of Organized Retail & E-commerce Channels: Supermarkets, convenience stores, and online grocery platforms are increasing reach, convenience, and availability of branded dairy across India.

• Product Innovation & Health-Focus: Launch of fortified, low-fat, probiotic, and specialized dairy products targeted at health-conscious consumers - expanding market segmentation and consumption frequency.

Key Market Trends:

• Surge in consumption of value-added dairy products: Cheese, yogurt, flavored milk, UHT milk and probiotic drinks are gaining popularity as lifestyles urbanize.

• Expansion of cold-chain and supply infrastructure: Better chilling, storage and transport facilities help reduce wastage and improve product shelf-life.

• Growth of organized retail & e-commerce for dairy distribution: Retail chains and online grocery platforms are enhancing availability and reach across India.

• Preference for packaged & processed dairy over unbranded milk: Safety, hygiene, convenience and quality drive demand for branded dairy.

• Rising health & nutrition consciousness among consumers: Demand for high-protein, low-fat, fortified, and specialized dairy products increases.

• Regional market expansion, beyond traditional dairy hubs: New geographies are scaling up dairy production and consumption, aided by supportive policies and logistics.

Access the Latest 2026 Data & Forecasts: https://www.imarcgroup.com/checkout/detail?id=608&method=1337

An In-Depth Analysis of Prominent Companies in the Industry by IMARC Group:

Dairy Cooperatives:

• 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)

Private Dairies:

• 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.
• VRS Foods Limited

Comprehensive Market Report Highlights & Segmentation Analysis:

The market report offers a comprehensive analysis of the segments, highlighting those with the largest Dairy Industry in India share. It includes forecasts for the period 2026-2034 and historical data from 2020-2025 for the following segments.

Breakup by Segment:

• Liquid Milk
• UHT Milk
• A2 Milk
• Organic Milk
• Flavored Milk
• Curd
• Lassi
• Butter Milk (Chach)
• Flavored and Frozen Yoghurts
• Cheese
• Probiotic Dairy Products
• Table Butter
• Ghee
• Paneer
• Khoya
• Dairy Whitener
• Skimmed Milk Powder
• Ice Cream
• Dairy Sweets
• Cream
• Whey
• Milk Shake
• Sweet Condensed Milk

Liquid milk stands as the leading product type with a market share of 65.3% in 2025.

Breakup by Region:

• Karnataka
• Maharashtra
• Tamil Nadu
• Delhi
• Gujarat
• Andhra Pradesh and Telangana
• Uttar Pradesh
• West Bengal
• Kerala
• Haryana
• Punjab
• Rajasthan
• Madhya Pradesh
• Bihar
• Orissa

In 2025, Uttar Pradesh accounted for the largest market share of 18.7%

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

Other key areas covered in the report:

• COVID-19 Impact on the Market
• Porter's Five Forces Analysis
• Strategic Recommendations
• Market Dynamics
• Historical, Current and Future Market Trends
• Market Drivers and Success Factors
• SWOT Analysis
• Value Chain Analysis
• Comprehensive Mapping of the Competitive Landscape
• Top Winning Strategies
• Recent Industry News
• Key Technological Trends & Development

Frequently Asked Questions:

Q1. What is the current size of the India dairy industry?
The dairy industry in India was valued at INR 21,318.5 billion in 2025.

Q2. What is the projected market value for 2034?
The industry is projected to reach INR 57,859.1 billion by 2034, growing at a CAGR of 11.73% (2026-2034).

Q3. Which Indian state leads the dairy industry market share?
As of 2025, Uttar Pradesh leads among states, with a market share of over 18.7%.

Q4. What are the major product segments in the Indian dairy industry?
The industry encompasses a wide range of products including liquid milk, UHT milk, A2/organic milk, flavored milk, curd, lassi, butter-milk (chach), cheese, yogurt, paneer, table butter, ghee, skimmed milk powder, ice cream, dairy sweets, whey, milkshakes, condensed milk, and more.

Q5. What factors are driving the growth of value-added dairy products?
Urbanization, rising disposable income, health & nutrition awareness, changing dietary preferences, expansion of retail and e-commerce, and improved cold-chain infrastructure together are fueling demand for value-added dairy.

Q6. What are the key challenges facing the dairy industry in India?
Challenges include supply-chain inefficiencies in remote areas, cold-chain gaps leading to wastage, smallholder farmers' fragmentation, variable milk productivity, infrastructure constraints for processing and logistics, and price sensitivity among rural consumers.

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Note: If you need specific information that is not currently within the scope of the report, we can provide it to you as a part of the customization.

Also Read Related Blogs:

• List of Top Dairy Companies in India - https://www.imarcgroup.com/top-indian-dairy-companies

• Top Snacks Manufacturers & Companies in India - https://www.imarcgroup.com/indian-snacks-companies

• Top Indian Organic Food Companies List - https://www.imarcgroup.com/organic-food-manufacturers-and-companies-india

• Top Indian Bakery Companies & Manufacturers - https://www.imarcgroup.com/india-bakery-companies-and-manufacturers

• Top Companies in the India Edible Oil Market - https://www.imarcgroup.com/indian-edible-oil-manufacturing-companies

Updated Date: 26-Nov-2025
Author: Tarang Chauhan
Sources: IMARC Group

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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.

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