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Dairy Industry in India 2026 Edition: Industry to Reach INR 57,859.1 Billion by 2034, At a CAGR of 11.73%

The market is experiencing robust growth, propelled by technological innovation, enhanced retail and e-commerce platforms, and improved cold chain infrastructure, meeting rising consumer demand with a diversified and quality-focused product range.
Published 12 December 2025

IMARC Group, a leading global market research and consulting company, has recently released a comprehensive report titled "Dairy Industry in India 2026 Edition: Market Size, Growth, Prices, Segments, Cooperatives, Private Dairies, Procurement and Distribution" The study offers a profound analysis of the industry, encompassing India dairy market share, size, growth factors, key trends, and regional insights.

Market Growth and Outlook: According to the latest analysis by IMARC Group, the dairy industry in India size reached INR 21,318.5 Billion in 2025.

Looking ahead, the market is projected to witness substantial growth, reaching INR 57,859.1 Billion by 2034, exhibiting a robust Compound Annual Growth Rate (CAGR) of 11.73% during the forecast period of 2026–2034.

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Factors Driving the India Dairy Industry: The market is witnessing strong growth primarily due to the rising demand for value-added products and government support.

  • Rising Health and Wellness Awareness: There is a significant surge in health consciousness among Indian consumers. The growing awareness regarding the nutritional benefits of dairy, such as protein and calcium for bone health and immunity, is a primary driver.
  • Government Initiatives and Support: Favorable schemes like the Rashtriya Gokul Mission and National Programme for Dairy Development (NPDD) are boosting milk productivity and strengthening infrastructure. Subsidies for cattle rearing and modernization of processing plants are further fueling expansion.
  • Shift to Value-Added Products: Consumers are increasingly moving beyond liquid milk toward value-added products like cheese, paneer, and yogurt. These products offer higher profit margins and cater to the evolving palate of urban consumers.
  • Expansion of Cold Chain Infrastructure: Investments in cold chain logistics and processing facilities are reducing wastage and ensuring the availability of fresh dairy products across wider geographies.
  • Rising Disposable Incomes and Urbanization: Rapid urbanization and increasing purchasing power are driving the demand for packaged and branded dairy products over loose alternatives.

Key Industry Trends: The report highlights several transformative trends shaping the future of the dairy industry in India:

  • Innovation in Product Formulations: Manufacturers are introducing a diverse range of products, including lactose-free milk, probiotic yogurts for gut health, and protein-fortified drinks for fitness enthusiasts.
  • Rise of Direct-to-Consumer (D2C) Models: The emergence of D2C dairy startups offering subscription-based delivery of fresh, organic, and farm-to-table milk is reshaping distribution.
  • Growth of A2 and Organic Milk: There is a growing preference for A2 milk and organic dairy products due to their perceived health benefits and digestion-friendly properties.
  • Technological Integration: The adoption of IoT (Internet of Things) for cattle monitoring, automated milking systems, and AI-driven quality checks is enhancing operational efficiency and product safety.
  • Sustainable Packaging and Practices: With increasing environmental concerns, companies are shifting towards eco-friendly packaging materials and sustainable farming practices to appeal to conscious consumers.

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Comprehensive Market Report Highlights & Segmentation Analysis:

The market report offers a comprehensive analysis of the segments, highlighting those with the largest India dairy market share. It includes forecasts for the period 2026-2034 and historical data from 2020-2025 for the following segments.

Analysis by Product Type:

  • Liquid Milk (Largest Share)
  • UHT Milk
  • A2 Milk (fastest-growing)
  • 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 stands as the leading product type with a market share of 65.3% in 2025.

Regional Insights:

  • Karnataka
  • Maharashtra
  • Tamil Nadu
  • Delhi
  • Gujarat
  • Andhra Pradesh and Telangana
  • Uttar Pradesh (Largest Share)
  • West Bengal
  • Kerala
  • Haryana
  • Punjab
  • Rajasthan
  • Madhya Pradesh
  • Bihar
  • Orissa

In 2025, Uttar Pradesh accounted for the largest market share of 18.7%.

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Competitor Landscape: The report offers an in-depth examination of the competitive landscape. It includes a thorough competitive analysis encompassing market structure, key player positioning, leading strategies for success, a competitive dashboard, and a company evaluation quadrant.

Key players include:

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

Access the Latest 2026 Data & Forecasts

Other key areas 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

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

Sources: IMARC Group

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IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services.

IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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