Dairy Industry in India 2026-2034

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 dairy industry in India research report, growth, trends, and regional insights.

How Big is the Dairy Industry in India ?

The dairy industry size in India was valued at INR 21,318.5 Billion in 2025 and is projected to grow to INR 57,859.1 Billion by 2034, with an expected compound annual growth rate (CAGR) of 11.73% from 2026 to 2034.

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Market Growth Drivers:

The Dairy Industry in India is experiencing a major shift as consumers increasingly demand hygienic, nutritious, and value-added dairy products. While traditional items like milk, ghee, curd, and paneer continue to dominate daily consumption, there is a strong rise in demand for processed and specialty dairy offerings. Moreover, categories such as flavored milk, Greek yogurt, probiotic drinks, cheese, and dairy-based desserts are gaining popularity among urban families seeking healthier and convenient food choices. Additionally, the growing preference for clean-label, preservative-free, and organic dairy products is shaping purchasing behavior, with consumers favoring brands that prioritize animal welfare, sustainable farming, and transparent sourcing.

In addition, the rise of modern retail formats and e-commerce grocery platforms is improving accessibility, making premium dairy products available across metro cities and emerging urban centers. Technology adoption is another major trend, with dairy farms investing in automated milking systems, cold chain upgrades, and data-driven herd management to enhance milk quality and productivity. Furthermore, the rise of lactose-free and fortified dairy products indicates a shift toward personalized nutrition. Together, these evolving trends reflect a dairy sector moving toward innovation, quality enhancement, and consumer-centric product diversification.

Dairy Industry in India Trends:

The Dairy Industry in India continues to grow steadily due to rising incomes, expanding urbanization, and strong cultural dependence on milk and dairy-based foods. India’s large cattle population, widespread dairy farming practices, and well-established cooperative structure also contribute significantly to the sector’s growth. Moreover, government initiatives aimed at improving dairy infrastructure—such as support for chilling units, milk testing labs, and rural dairy development—are enhancing quality and reducing post-harvest losses. Additionally, increasing demand from foodservice chains, bakeries, cafes, and packaged food companies is boosting consumption of cheese, butter, cream, and value-added dairy ingredients.

In addition, the health and fitness movement across India is encouraging consumers to incorporate protein-rich dairy products such as paneer, milk powders, and whey protein into their diets. Export opportunities for milk powder, casein, ghee, and specialty cheeses are expanding as global markets recognize India’s production capabilities. Furthermore, the growth of private dairies, investments in organized supply chains, and technology-driven farm management are modernizing the sector and ensuring consistent production. Together, these growth drivers position the Dairy Industry in India on a strong upward trajectory—supported by rising consumption needs, structural improvements, and the nation’s deep-rooted reliance on dairy nutrition.

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Leading India Dairy Market Leaders:

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

Dairy Industry in India Segmentation:

The market report offers a comprehensive analysis of the segments, highlighting those with the largest dairy industry share in India. 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 holds the dominant position in the market, accounting for the largest share due to its widespread consumption, high demand, and essential role in daily nutrition.

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

Uttar Pradesh takes the lead in the market, holding the dominant position by accounting for the largest share of the overall market demand and growth.

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Other Key Points 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

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

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