Indian Dairy Market Size to Reach INR 57,859.1Bn by 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 the dairy industry in India share, 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. Uttar Pradesh dominated the market in 2025, holding a market share of over 18.7%.

Dairy Industry in India Trends:

The Dairy Industry in India continues to grow steadily due to rising population, increasing disposable incomes, and expanding demand for diverse dairy products across rural and urban regions. As India remains the world’s largest milk producer, strong raw milk supply from millions of small farmers forms the backbone of the sector. Moreover, supportive government policies—including dairy infrastructure development funds, livestock health programs, and incentives for cold-chain expansion—are strengthening the industry’s production and distribution capabilities. Additionally, the growing penetration of organized dairy brands and processing companies is increasing product quality, packaging innovation, and distribution efficiency.

Latest News & Developments — India Dairy Industry

• White Revolution 2.0: Launched as a renewed commitment to boost dairy cooperatives and milk production, the plan aims to raise cooperative milk procurement from 650 lakh kg/day to 1,007 lakh kg/day by 2028–29. The initiative includes forming 75,000 new dairy cooperatives and strengthening tens of thousands of existing ones, while diversifying into allied areas such as fodder, horticulture, and manure.
  
  
• Revised National Programme for Dairy Development (NPDD 2025): The Union Cabinet in 2025 approved an enhanced outlay of ₹2,790 crore for NPDD for the current Finance Commission cycle. The scheme aims to modernize and expand dairy infrastructure, including chilling units, milk testing labs, and support for cooperative societies — especially in remote regions such as Northeastern India and hilly areas.
  
  
• Livestock Breed Improvement under Rashtriya Gokul Mission (RGM): As of 2025, the revised mission focuses on genetic upgradation of indigenous cattle and buffalo breeds, expansion of artificial insemination (AI) networks, and strengthening semen stations. These efforts aim to enhance milk yield and productivity across India.
  
  
• Expansion of Dairy Infrastructure in Northeast & Under-served Regions: Under NPDD’s Component A, the government is prioritizing creation of milk chilling centers, processing units, and cold-chain infrastructure in regions like the Northeast and Union Territories. This effort aims to integrate remote farmers into organised supply chains and improve market access.
  
  
• Support for Dairy Entrepreneurs and Value-Added Processing Units (State-level Policies): Certain state-level dairy development policies (e.g., in Uttar Pradesh) provide capital subsidies, interest subsidies for new milk-processing units, cattle-feed production, cold-chain setup, and support for value-added products like cheese, ice cream, and packaged dairy items. These incentives aim to modernize small-scale dairy units and expand organised dairy processing.

Request Free Sample Report: https://www.imarcgroup.com/dairy-industry-in-india/requestsample

Market Growth Drivers:

The Dairy Industry in India is experiencing strong transformation as consumer preferences shift toward value-added dairy products, improved quality standards, and convenient packaging formats. Traditional dairy staples like milk, ghee, paneer, and curd continue to dominate household consumption, but newer segments such as flavored milk, Greek yogurt, probiotic drinks, cheese, and dairy-based snacks are gaining rapid popularity across urban and semi-urban markets. Moreover, rising health consciousness is driving demand for fortified dairy products enriched with vitamins, protein, and probiotics that support immunity and gut health.

Additionally, the growing influence of modern retail, quick-commerce delivery platforms, and cold-chain logistics innovations is making fresh dairy products more accessible and reducing spoilage during transit. In addition, premium dairy trends—such as organic milk, A2 milk, and farm-fresh artisanal products—are appealing to affluent and health-aware consumers. Technology adoption is also reshaping the sector, with farmers using digital tools for cattle monitoring, automated milking, and milk quality testing to enhance transparency and productivity. Furthermore, the expansion of dairy cooperatives and the entry of private players are promoting product diversification and competitive pricing. Together, these trends reflect a dynamic dairy ecosystem where affordability, innovation, and health-focused choices are reshaping India’s dairy consumption landscape.

List of Leading Key Players in the India Dairy Market:

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

Get Complete Insights – Request Your Free Brochure

 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

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

Request Customization – Speak to an Industry Analyst Now

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.

About Us:

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.

Contact Us:  

IMARC Group 

134 N 4th St., Brooklyn, NY 11249, USA 

Email: sales@imarcgroup.com 

Tel No:(D) +91 120 433 0800 

United States: +1-201971-6302