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 dairy industry in india share, growth, trends, and regional insights.

How Big is the Dairy Industry in India ?

The India dairy market size 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%.

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Dairy Industry in India Trends:

The Dairy Industry In India is currently navigating a significant phase of "premiumization," where the market focus is shifting from basic liquid milk to high-margin, value-added products. Modern consumers are increasingly bypassing loose milk in favor of branded, traceable options, fueling a surge in demand for "farm-to-table" A2 milk and antibiotic-free organic variants.

Additionally, there is a robust innovation wave in the fermented segment; products like probiotic Greek yogurts, fortified buttermilk, and flavored cheese spreads are becoming household staples, driven by a post-pandemic focus on gut health and immunity. Moreover, the distribution landscape is being revolutionized by Quick Commerce (Q-commerce) platforms. The ability to deliver temperature-sensitive items like ice cream and fresh paneer in under ten minutes has drastically increased impulse consumption in urban metros, forcing legacy cooperative brands to rethink their supply chain strategies to remain agile and competitive in this digital-first ecosystem.

Market Growth Drivers:

The primary engine fueling the Dairy Industry In India is the government’s aggressive push towards strengthening infrastructure through schemes like the Animal Husbandry Infrastructure Development Fund (AHIDF) and the revised National Programme for Dairy Development (NPDD). These initiatives are incentivizing private investment in modern cold chain logistics and chilling centers, which is critical for reducing wastage in a tropical climate. In addition, the cooperative model is being revitalized to ensure better remuneration for farmers, thereby stabilizing the supply side of this massive unorganized sector.

Furthermore, the demographic dividend plays a pivotal role; with rising disposable incomes and a young population increasingly viewing dairy as a primary protein source rather than just a cultural staple, the per capita consumption of processed dairy is climbing. This structural shift, combined with the rapid urbanization of Tier-2 and Tier-3 cities, ensures a sustained demand trajectory that continues to modernize the sector from the grassroots level up.

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Leading India Dairy Market Leaders:

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

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 stands as the leading product type with a market share of 65.3% in 2025. 

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%.

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.

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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.

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