Present Status of the Dairy Industry in India (2024–25)

Livestock Population and Milk Production

The latest livestock census (2019) recorded 302.3 million bovines (192.5 million cattle; 109.9 million buffaloes) and 223.2 million small ruminants (74.3 million sheep; 148.9 million goats). Total milk production reached 230.6 million tonnes in 2022–23, delivering a per-capita availability of 459 g/day—up from 307 g/day in 2013–14.

Market Size and Growth

In 2024 the Indian dairy market was valued at INR 18,975 billion. It is projected to expand to INR 57,002 billion by 2033, growing at a compounded annual growth rate of 12.35% during 2025–33.

Production and Consumption Trends

• Uttar Pradesh, Rajasthan and Gujarat together account for over 35% of national milk output.
• Urban demand is driving rapid growth in packaged liquid milk, yoghurt, paneer and other value-added products (VAP).
• VAP now comprise about 45% of major dairy players’ product mix and are forecast to grow 16–18% in FY 2025.

Sector Structure

• Organized cooperatives and private dairies handle roughly 25–30% of total marketed milk; the remainder is processed by unorganized local vendors.
• Major cooperatives include Amul (GCMMF), Mother Dairy, and private leaders such as Nestlé and Britannia.

Utilization Pattern

Approximate distribution of milk utilization:

• Liquid milk: 46%
• Ghee/butter: 33%
• Dahi, lassi, shrikhand: 7%
• Khoa/chhana: 14% (7% khoa; 7% chhana)
• Western products (cheese, ice-cream): 4%

Economic Contribution

• Agriculture & allied sectors account for ~19% of India’s gross value added (GVA); livestock contributes ~6% (2021–22).
• Dairy supports an estimated 27 million livelihoods, predominantly among small and marginal farmers.

Key Drivers and Recent Trends

• Rising disposable incomes and health consciousness are boosting demand for fortified, organic and A2-milk products.
• Expansion of cold-chain infrastructure and modern retail/e-commerce platforms is improving quality and reach.
• Government incentives (National Dairy Plan, subsidies for breed improvement and fodder development) are enhancing productivity and supply stability.

SWOT Overview

Strengths

• World’s largest milk producer; extensive cooperative network.
• Growing adoption of mechanized milking and farm-level automation.

Weaknesses

• Feed and fodder shortages; patchy veterinary and extension services.
• Inadequate cold storage and inter-state logistics.

Opportunities

• Rapid growth in value-added segments (cheese, ready-to-drink beverages).
• Export potential in skimmed milk powder and specialized dairy ingredients.

Threats

• Competitive imports following tariff reductions.
• Quality lapses and adulteration risks in unorganized channels.

Challenges

• Integrating smallholders into formal procurement systems.
• Ensuring consistent milk quality and safety across geographies.
• Bridging infrastructure gaps in remote and peri-urban areas.

Future Outlook

With continued public-private partnerships, digital traceability initiatives and targeted investments in breeding, feed, cold-chain and processing capacities, the Indian dairy industry is poised to sustain double-digit growth—delivering higher farmer incomes and meeting evolving consumer needs.