Dairy is witnessing consistent growth in the consumption of value-added products such as flavoured milk drinks, lassi, curd and yoghurt. The Indian dairy market, though dominated by cooperatives, is also witnessing increased interest from financial institutions as an investment destination. Progressive Grocer spoke to Prashant Roy, Senior Research Analyst – Food & Nutrition at Euromonitor International and Dilip Radhakrishna, Research Analyst – Food & Nutrition at Euromonitor International about the trends and developments influencing the dairy industry in India and prospects ahead for its different product segments.
Give us a sense of the broad segmentation of the dairy market in India – the size of the market overall and the volume and value share of the products in India’s dairy market? How is the market size of the dairy category growing in India in recent years?
Euromonitor International’s dairy coverage includes retail sales of packaged drinking milk products, butter, cheese, yoghurt and sour milk and other dairy products. As an exception, unpackaged hard cheese, such as Cheddar, Edam, Parmesan and Gouda, is also taken under consideration. We have also included soft cheese (paneer) in our coverage. However, the majority of cottage cheese produced is sold in unpackaged format.
The Indian dairy market recorded a 16% yearon-year value growth, through 2013-17, in line with the growth of fresh milk. Besides the shift from unpackaged to packaged, increasing health consciousness and awareness is driving growth. Consumers are increasingly shifting from carbonated drinks or drinks with high amount of sugar content, towards healthier alternatives such as milk.
To cater to these shifting consumers’ preferences, the manufacturers have expanded their range of value-added dairy products, such as flavoured milk drinks, lassi and yoghurt, which are a better and healthier alternative to the traditionally available carbonated and sugary drinks.
Value-added milk products such as flavoured milk drinks, buttermilk, lassi, yoghurt and curd have also witnessed a huge spike in demand during summer season in the country. As a result, the industry is expected to witness a high growth momentum soon, primarily guided by improved distribution capabilities and operational efficiencies, which will ensure the availability of milk and milk-based products catering to the rising consumption pattern across the country.
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