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Dairy Market (Production, Consumption) in India Details

Indian Dairy market is highly fragmented between organized and unorganized players. Corporative and Private Dairy falls under the organized dairy segment whereas traditional milk man and self consumption at home are the part of unorganized dairy milk segment in India. Organized dairy market controls only 15-20 percent of total milk production sold in India whereas rest of the total milk is sold by unorganized players. Currently, major organized player’s presence origin state only such as Gujarat Cooperative Milk Marketing Federation Limited (Amul) is highly presence in Gujarat whereas Mother Dairy is dominating in Delhi/NCR region.  However, their objectives are to expand all part of India. Their primary goal is to become the leading players in this market place. Gujarat Cooperative Milk Marketing Federation Limited presently targets consumers across the country in both urban and rural regions.

Unorganized dairy market plays very critical role to the growth of the India dairy market as it is very large in numbers with compare to organized players.  Unorganized dairy market related players are presence only in a particular region and they did not think too much for expansion. They are limited to cities. Most of milkman sold milk on local tea venders, sweets shop and door to door households.
                                                   Organized Vs Unorganized dairy market Share (Percent), 2017
Per capita milk consumption in India
In compare to other developed countries, India per capita milk consumption is low nearly 97 Litters but nearly four times high as compared to China. China per capita milk consume was only 24 Litters whereas United States, EU27 and Russian Federation consume were 285 Litters, 281 Litters and 220 Litters respectively in 2017.
                                                        India per capita milk consumption (Litters), 2017
India Milk Production & Consumption Volume
Milk production in India is continuously growing and reached to 162 Million Metric Ton in financial year 2017, from the 17 Million Metric Tons in financial year 1952 and become the largest milk producer in the world.  In context of state wise production, Uttar Pradesh, Rajasthan and Gujarat were the largest milk producers accounting for 17.0%, 12.1% and 8.0% respectively of total milk production in the financial year 2017. Cow milk is dominating 24 states and territories in India. Top 5 cow milk producing states are Tamil Nadu, Uttar Pradesh, Rajasthan, Maharashtra and West Bengal.
Steadily rising population, growing income level has helped for milk consumption growth in India. In financial year 2017 (April 2016 – March 2017), Indian has consumed 154 Million Metric Ton (MT) milk; represented the world’s largest milk consumer. Cow milk accounted around half of the total milk consumption in 2017. 
                                                            India Milk Production & Consumption (Metric Ton), 2017
India Dairy Market
Indian dairy market has grown at a CAGR of 13 percent during the spanning period of 2010-2016 and reached to INR 6,911 Billion in 2016, from INR 3,320 Billion in 2010. Un-Organized dairy market is dominating in the India dairy market. In 2016, Unorganized and Organized both accounted market worth of INR 5,127 Billion and INR 1,784 Billion respectively. It is predicted that organized player’s market share will steadily growing during the forecasting period 2017 - 2022.  In 2017, both organized and unorganized holds 26.9 percent and 73.1 percent market share respectively in the Indian dairy market.
                                                                India Dairy Market (Billion INR), 2010 & 2016
Driving Factors for Indian Dairy Market
  • Increasing income of Indian has shifted eating habits of consumers are expected drive the consumption of dairy products in the country.
  • Rising middle class household drives Indian dairy market as it is anticipated that middle class household will grow to 586 Million by 2025, from 255 Million in 2015.
  • Large and increasing population is also driving this market tremendously as Indians has general perception that milk is perfect health foods.
  • Large and working population is also drive this market as India has world’s largest younger population which has turned into working population.