The market is projected to reach INR 49,953.5 billion by 2032, exhibiting a growth rate (CAGR) of 12.88% during 2023-2032, 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, ResearchAndMarkets writes.
One of the primary factors propelling the Indian dairy industry is the increasing consumption due to population growth and rising income levels. With the continual expansion of the population, the demand for dairy products is surging, providing a substantial consumer base for the industry. Increased affluence has enabled a larger segment of the population to spend more on nutritious food items, with dairy products being a traditional staple in Indian diets. This combination of demographic expansion and enhanced purchasing power has compelled dairy producers to scale up operations and innovate, ensuring steady market growth.
As the most populous state with a robust agrarian economy, Uttar Pradesh is home to the largest number of dairy animals in the country, significantly contributing to India’s overall milk production. The dairy sector in the state thrives due to government initiatives, a strong network of milk cooperatives, and effective procurement and distribution systems.
The high demand for dairy products in the state is met by the rising investments in milk processing plants. A large part of this industry is sustained by small and marginal dairy farmers. Additionally, the growing population and increasing disposable incomes in the state have led to a higher expenditure on milk and milk products.
