1. Rising Consumption and Production
- India’s milk consumption is growing fast — about 3.1% per person every year.
- Milk production is also increasing by 3.6% per year (2025–2034) thanks to more cattle, better breeds, and improved efficiency.
- India has the world’s largest population (1.5 billion), with nearly half under 25 years old, driving future demand.
2. Economic Growth and Changing Lifestyles
- India’s GDP will grow around 6.3% in 2026, boosting incomes, especially in rural areas.
- Dairy is essential in Indian diets — an important source of protein, fat, and energy, especially for vegetarians.
- Consumers now want healthier, high-quality, and value-added dairy products.
3. Changing Product Trends
- Liquid milk remains the top dairy product.
- From 2025–2030, demand will rise sharply for:
- Yogurt (+12%)
- Cheese (+11%) — mostly paneer, but western cheeses like mozzarella and cheddar are growing fast.
- Ghee remains popular in cooking.
- Due to lactose intolerance, demand for lactose-free milk and dairy products is increasing.
Read More: National Cooperative Development Corporation (NCDC):Strengthening India’s Cooperative Ecosystem
4. Modernisation and Market Shifts
- Only 25% of milk currently goes through organised dairies; most still comes from local vendors and households.
- As cold chains and supply systems improve, dairy-processed milk is expected to grow by 10.3% (2025–2030).
- Supermarkets and online shopping are becoming major sales channels for dairy.
5. Challenges and Opportunities
- Key challenges: feed shortages, water scarcity, and heat stress for cattle.
- Despite these, private investments and technology are modernising the sector.
- Dairy contributes 4% to India’s GDP and 25% to agricultural GDP, making it a key part of the economy.
6. Trade and Export Outlook
- India mainly meets domestic demand but aims to boost dairy exports through better infrastructure and policies.
- Future focus: improving milk powder and value-added processing for export markets.
- Imports of premium dairy ingredients (like infant formula and protein concentrates) are also rising.
7. India–UK Dairy Trade
- From 2019–2024, UK dairy exports to India rose sharply:
- Overall volume +119.8%
- Value +88.7%
- Whey +562 tonnes, Milk powder +165 tonnes
- Cheese exports fell slightly but remain important.
- Strong future potential for UK infant formula and health-based dairy proteins.
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Disclaimer
I do my best to share reliable and well-researched market insights but but occasional errors or omissions may slip through. Please view all content as informational, not financial advice.
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