Indian dairy outlook

The dairy sector in India, which epitomizes the socio-economic development of the country, forms a crucial growth segment for India’s economy according to a report from Research and Markets. Increasing revenues and meliorated profits of the sector’s domestic players, a trend of diversification and consolidation observed in the sector, and foreign companies’ foray into the segment, are some of the indicators which elicit that India’s dairy industry will swiftly tread the growth trajectory in the years to come. As the industry emerges, investors find it lucrative to bet money on it given its high growth potential. Rising disposable incomes and growing demand for dairy products are likely to fuel the Indian dairy industry’s growth over the next few years.

The report, “Indian Dairy Industry Outlook 2020”, notes that India is the world’s largest milk producer, accounting for around 17% of the global milk production. It is also one of the largest producers and consumers of dairy products. Due to their rich nutritional qualities, dairy products’ consumption has been growing exponentially in the country, and considering various facts and figures, the study anticipates that milk production in India will further grow at a CAGR of around 5% between 2013-14 and 2020-21.

A lot many initiatives have been undertaken and implemented by India government for increasing clean milk production, dairy development, cattle breeding and feed fodder management. These initiatives are primarily run by the Department of Animal Husbandry, NDDB, and other government affiliated institutions. The main objective of these initiatives is to manage the dairy industry’s resources in such a manner that it would enhance milk production and upgrade milk processing technologies.

The Indian dairy industry significantly offers good opportunities for both domestic and foreign conglomerates/investors for entry and expansion. Foreign companies like Danne and Fonterra have set foot in the Indian Dairy Industry while ITC has plans to foray into this segment in a couple of months. The report covers analysis of the primary dairy market and markets of its sub segments like Liquid Milk, Yoghurt, Butter, Ghee, Paneer, Cheese and Cream; and EXIM data of major dairy commodities extracted through intensive primary research and detailed secondary analysis. Moreover, the emerging trends & drivers; challenges; and opportunities have been described in-depth in the report.

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