Dairy Market Size in India | Explore Industry Share, Drivers & Demand 2025

Q: What is the CAGR of India dairy market?

India dairy market is expected to grow at a CAGR of 9.1% between 2025 and 2031.

Q: What drives the demand for dairy in India?

Rising income, changing lifestyles, health trends, and growing urbanization are key demand drivers.

Q: Which dairy products are growing fastest in India?

Flavoured milk, yogurt, cheese, probiotic drinks, and organic milk are leading the growth.

Q: Are Indian dairy brands expanding exports?

Yes, Indian dairy brands are exploring exports, especially of ghee, paneer, and milk powder to Asia and the Middle East.

Q: What challenges affect the dairy industry in India?

Challenges include supply chain inefficiencies, cold chain limitations, milk adulteration, and price volatility.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

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Code: MTA4560

Publication Date: Jun 2025

What is the size of the India Dairy Market?

According to 6Wresearch internal database and industry insights, the India dairy market is expected to expand its landscape at a strong CAGR of 9.2% during the forecast period 2025–2031.

India dairy market is expanding gradually due to rising urban consumption, evolving dietary preferences, and a shift toward value-added dairy products. As India is considered the largest producer of diary and consumer of dairy, therefore India is witnessing increasing demand for packaged milk, cheese, yogurt, paneer, flavoured milk, and ghee. Moreover, the modernization of dairy farms, cold chain expansion, and the proliferation of organized dairy brands in tier-2 and tier-3 cities are also fuelling sales of diary product.

Key Growth Factors of the India Dairy Market

Growing population and per capita milk consumption
Rising demand for value-added dairy products and health-based formulations
Support of government through schemes promoting dairy infrastructure and cooperative models
Expansion of cold storage and last-mile delivery networks
Growing awareness regarding protein-rich and probiotic dairy products
Emergence of digital milk delivery startups and subscription models

India Dairy Market Trends

India Dairy Market sector is undergoing for the major transformation with growth factors including innovation in lactose-free, fortified, and plant-dairy hybrid products. One notable trend is the health-conscious urban consumers are increasingly shifting towards the low-fat, organic, and probiotic-rich offerings.

Other emerging trend are contributing in the expansion of market, technological integration such as IoT-enabled dairy farms, quality testing, and blockchain for traceability is also gaining attention among consumers. The market is reshaping with the rise of direct-to-consumer (D2C) dairy brands and sustainable packaging solutions. Furthermore, the export potential for niche Indian dairy items like paneer and ghee is expanding with international market access improvements.