The India dairy market reached a value of nearly INR 9918.00 Billion in 2024. The market is projected to grow at a CAGR of 14.00% between 2025 and 2034 and reach around INR 36768.22 Billion by 2034.
Base Year
Historical Period
Forecast Period
India is the world's largest dairy market in terms of milk production. In the 2022-23 period, India produced approximately 230.58 million tonnes of milk.
Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), Karnataka Co-operative Milk Producers Federation Limited (KMF), and Orissa State Cooperative Milk Producers Federation Ltd (OMFED) are some of the major companies in the India dairy market.
In 2022-23, the leading milk-producing states were Uttar Pradesh (15.44%), Rajasthan (14.44%), Madhya Pradesh (8.6%), Gujarat (7.49%), and Andhra Pradesh (6.70%), collectively accounting for 53.08% of the nation's milk output.
Compound Annual Growth Rate
14%
Value in INR Billion
2025-2034
India Dairy Market Outlook
*this image is indicative*
| India Dairy Market Report Summary | Description | Value |
| Base Year | INR Billion | 2024 |
| Historical Period | INR Billion | 2018-2024 |
| Forecast Period | INR Billion | 2025-2034 |
| Market Size 2024 | INR Billion | 9918.00 |
| Market Size 2034 | INR Billion | 36768.22 |
| CAGR 2018-2024 | Percentage | XX% |
| CAGR 2025-2034 | Percentage | 14.00% |
| CAGR 2025-2034 - Market by Region | West India | 14.6% |
| CAGR 2025-2034 - Market by Product | UHT Milk | 35.4% |
| CAGR 2025-2034 - Market by Sales Channel | Online | 20.2% |
| Market Share by Region | North India | 30.1% |
| Market Share by Product | Liquid Milk | 48.4% |
| Market Share by Sales Channel | Direct Selling | 43.8% |
India’s milk output increased by 3.83% in 2022-23, with a per-capita availability of 459 grams per day. The average daily yield per animal is 8.55 kg for exotic/crossbred cattle and 3.44 kg for indigenous/non-descript cattle. Milk production rose by 3.75% for exotic/crossbred cattle, 2.63% for indigenous/non-descript cattle, and 3.69% for buffaloes compared to 2021-22, according to the DAHD, Government of India.
Figure: Milk Production in India (in Metric Tonnes), 2018-2024
Some of the factors driving the India dairy market growth are the strong government support and the growing demand for milk and dairy products due to their cultural significance. Government funds like the Dairy Processing and Infrastructure Development Fund, and Animal Husbandry Infrastructure Development Fund (AHIDF) help farmers increase their milk processing capacity.
According to International Monetary Fund (IMF), in 2023, India's per capita income was USD 2,600 per annum. The International Monetary Fund (IMF) forecasts that this figure will rise to approximately USD 4,000 by 2028. This increase in income levels is anticipated to result in the addition of around 14 crore middle-income households and 2.1 crore high-income households in India by 2030. Additionally, the proportion of middle-income households is expected to grow from 54% in 2018 to 78% by 2030. According to the Investec Report, the rise in income levels is likely to lead to higher disposable incomes, driving consumer preference for premium and nutritious food products such as milk and milk products.
According to Invest India, the primary regions for dairy product production in India are Uttar Pradesh, Maharashtra, Madhya Pradesh, Punjab, and Rajasthan. Rajasthan is the top producer with 15.05% of the total milk production, followed closely by Uttar Pradesh at 14.93%. Other significant contributors include Madhya Pradesh (8.60%), Gujarat (7.56%), Andhra Pradesh (6.97%), Maharashtra (6.47%), Punjab (6.37%), Karnataka (5.34%), Bihar (5.48%), and Haryana (5.26%).
The presence of favourable government initiatives such as the Rashtriya Gokul Mission, National Programme for Dairy Development (NPDD), and the Dairy Entrepreneurship Development Scheme (DEDS) is significantly supporting the dairy market growth in India.
India contributes over 25% of the global dairy output and is a top milk producer. The increased milk consumption in the region supports the regional market expansion.
According to India Brand Equity Foundation, milk production in India was 187.75 million tonnes in 2018-19. The upward trend continued with 198.44 million tonnes in 2019-20 and reached 209.96 million tonnes in 2020-21. This steady increase in milk production highlights India's significant growth in the dairy sector, reflecting improvements in dairy farming practices, livestock management, and the overall dairy infrastructure.
According to the Indian dairy industry analysis, India is a significant exporter of dairy and dairy products on a global scale. According to India Brand Equity Foundation, in the fiscal year 2021-22, India exported 108,711 metric tonnes (MT) of dairy products, generating revenue of INR 2,928.79 crore (USD 391.59 million). Key export destinations included Bangladesh, UAE, Bahrain, Malaysia, Saudi Arabia, and Qatar. Bangladesh is the largest importer with USD 91.45 million, followed by the UAE (USD 58.66 million), Bahrain (USD 28.59 million), Malaysia (USD 25.36 million), and Saudi Arabia (USD 24.88 million). The trend of India’s dairy product exports shows a significant rise from USD 186.71 million in 2019-20 to USD 201.37 million in 2020-21, reaching USD 391.59 million in 2021-22. This upward trend reflects India's growing presence in the global dairy market and the increasing demand for its dairy products.
Indian households widely consume milk and dairy products due to their rich nutritional profile and protein content. Fortification through milk is widely adopted to nourish children. Desserts, such as kheer and gulab jamun rely, heavily on milk as a primary ingredient and are widely consumed during festivals.
Clean-label dairy products are gaining popularity due to consumers’ inclination towards a healthy lifestyle. Consumers are increasingly demanding transparency in the manufacturing process, with brands adopting the clean label criteria.
During 2014–15 to 2022–23, India’s milk production expanded by 58%, accounting for 230.58 million metric tonnes during 2022–23, which, in contributed to market development during the period. India is also a critical exporter of dairy products, globally. During 2022-23 India exported milk and milk products worth INR 3.36 thousand crores, retaining its position as a net exporter of dairy commodities.
The rapid adoption of advanced technologies, such as sensors, data analytics, and digital technology are helping dairy companies make profitable and data-driven decisions. The adoption of automated milking systems and the application of artificial intelligence and machine learning for enhanced farm management are further aiding the India dairy market development.
In 2022-23, India’s per capita milk availability soared to an astounding 459 grammes per day, surpassing the world average of 322 grammes per day. The National Dairy Development Board (NDDB), a Government of India initiative, is one of the implementing agencies of the Dairy Processing & Infrastructure Development Fund (DIDF), which has an implementation period of 2018–19 to 2022–23. Eleven projects that raised the processing capacity of milk by 63.7 lakh litres per day were completed as of March 2023.
Furthermore, technological advancements are expected to further improve the overall efficiency of dairy production in India. Example of ew-age technologies include IoT, AI, and advanced analytics, which are being adopted in the country to ensure optimal milk quality, reduce wastage, digitise operations, and improve last-mile logistics.
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“India Dairy Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Market Breakup by Product:
Market Breakup by Sales Channel:
Market Breakup by Region:
| CAGR 2025-2034 - Market by | Product |
| UHT Milk | 35.4% |
| Organic Milk | 27.2% |
| A2 Milk | 25.8% |
| Liquid Milk | XX% |
| Flavoured Milk | XX% |
| Others | XX% |
| CAGR 2025-2034 - Market by | Sales Channel |
| Online | 20.2% |
| Convenience Stores | 12.6% |
| Direct Selling | XX% |
| Supermarkets and Hypermarkets | XX% |
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Liquid milk dominates the market share due to its diverse household applications
In India, most of the processed liquid milk sold is produced by dairy cooperatives. 170 cooperative unions representing milk producers process and sell milk. Cooperatives such as Amul (Gujarat), Vijaya (Andhra Pradesh), Saras (Rajasthan), Nandini (Karnataka), Milma (Kerala), and Gokul (Kolhapur) have developed several brands over the years.
| 2024 Market Share by | Sales Channel |
| Direct Selling | 43.8% |
| Convenience Stores | XX% |
| Supermarkets and Hypermarkets | XX% |
| Online | XX% |
UHT milk segment is expected to hold a significant dairy market share in India due to the growing demand for lactose-free milk in cafes, bars, and restaurants. Several prominent brands dominate this market, offering a variety of UHT milk options to cater to different consumer needs. Some popular UHT milk brands include Amul Taaza Homogenised, Mother Dairy's UHT milk, and Nestle Pure Life, among others.
Ghee or clarified butter is considered an integral part of Indian cuisine. In India, about 60-70% of the total ghee produced is used for direct dressing, and about 15-20% for the cooking, frying, and sauteing of foods. The increasing awareness of the health benefits of ghee is increasing its consumption.
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Prominent dairy cooperatives in the India dairy market are as follows:
Headquartered in India and founded in 1973, Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), commonly called AMUL, is India’s largest producer of milk and milk products. The company offers a wide range of dairy products under the ‘AMUL’ and ‘SAGAR’ brands; products including butter, milk, bread spreads, cheese, paneer, dahi, and others.
Headquartered in India and founded in 1974, Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the leading organisation for the dairy cooperative movement in Karnataka. The company offers a wide range of dairy products under the brand name ‘NANDINI’. Its product portfolio includes milk, UHT milk, flexipack milk, curds and other fermented products, including ghee, butter, cheese, and paneer, among others.
Headquartered in India and founded in 1980, Orissa State Cooperative Milk Producers Federation Ltd (OMFED) focuses on promoting, producing, procuring, processing, and marketing milk and milk products, aiming to enhance the economic development of the rural farming community in Orissa. The company offers a wide range of milk and milk products, including milk, curd and other fermented products, ghee and butter, ice cream and frozen desserts, milk sweets, and others.
Headquartered in India and founded in 1967, Maharashtra Rajya Sahakari Dudh Mahasangh Maryadit serves as the apex federation of district and taluka milk unions in Maharashtra. The cooperative operates all across Maharashtra with its units in Goregaon, Pune, Varvand, Latur, and Nagpur. The cooperative offers products, including Annapurna milk, toned milk, double-toned milk, standardised milk, high-fat milk, chass, and other dairy products.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other Key Players are Mother Dairy Fruit & Vegetable Pvt. Ltd, Britannia Industries Limited, Nestle India Limited and many others.
North India is a prominent region due to the presence of milk-producing states such as Uttar Pradesh, Haryana, and Punjab.
Uttar Pradesh's bovine population, standing at 67.8 million, represents 16% of India's total. Despite a national decline, UP's livestock population has grown, yet half are low yielders, as per the 20th Livestock Census 2019. Uttarakhand's 4.42 million livestock include 50% local cows, 17% crossbreeds, and 33% buffaloes, with five districts housing half the in-milk bovine. Haryana and Punjab report 6.93 million and 6.99 million livestock, respectively.
| CAGR 2025-2034 - Market by | Region |
| West India | 14.6% |
| East and Central India | 14.2% |
| North India | XX% |
| South India | XX% |
In West India, Rajasthan (15.05%), Gujarat (7.56%) and Maharashtra (6.47%) are amongst the leading milk-producing states in the country from the region in 2022-23. Gujarat is home to around 18 domesticated animal breeds out of India's total of 137, which can present India dairy market opportunities.
In East and Central India, Bihar (5.48%) and Madhya Pradesh (8.60%) stand out as leading milk-producing states in India, prominent in the East and Central regions in 2022-23.
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In 2024, the Indian dairy market reached a value of around INR 9918.00 Billion.
The India dairy market is expected to grow at a CAGR of 14.00% between 2025 and 2034.
The India dairy market is estimated to register a healthy growth in the forecast period of 2025-2034 to reach INR 36768.22 Billion by 2034.
The key trends include the rising adoption of advanced production technologies leveraging sensors, the growing demand for clean-label dairy products, and increasing partnerships among small and medium-sized dairy farms across India.
The different sales channels of dairy include direct selling, convenience stores, supermarkets and hypermarkets, and online.
North India, East and Central India, West India, and South India are the significant markets for dairy.
The leading dairy cooperatives in India are Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), Karnataka Cooperative Milk Producers' Federation Limited (KMF), Orissa State Cooperative Milk Producers Federation Ltd (OMFED), Maharashtra Rajya Sahakari Dudh Mahasangh Maryadit, and The Punjab State Cooperative Milk Producers Federation Limited. The private companies in the Indian dairy sector are Mother Dairy Fruit & Vegetable Pvt. Ltd., Britannia Industries Limited, Nestle India Limited, VRS Foods Limited, Parag Milk Foods Limited, Sterling Agro Industries Ltd., Kwality Limited, and KSE Limited.
The market drivers include the introduction of favourable government initiatives to expand milk production, chilling, and processing capacity and the significance of dairy products in Indian culture.
The strict government policies related to mining, including its negative environmental impact, and high-risk nature of mining operations are the key challenges in the industry.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2024 |
| Historical Period | 2018-2024 |
| Forecast Period | 2025-2034 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Product |
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| Breakup by Sales Channel |
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| Breakup by Region |
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| Market Dynamics |
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| Trade Data Analysis |
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| Competitive Landscape |
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| Companies Covered |
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