New Delhi, Apr 25 (KNN) According to a NITI Aayog report, the country's milk production is projected to reach an impressive 300 million tonnes by 2030, up from 231 million tonnes in the financial year 2023, registering a compound annual growth rate (CAGR) of 6 per cent over the past decade.

The Indian dairy market, currently valued at a staggering Rs 13 lakh crore (approximately USD 160 billion), is expected to more than double to Rs 31 lakh crore (around USD 380 billion) by 2027, growing at a CAGR of 15 per cent over the past 15 years.

While the unorganised sector has traditionally dominated the Indian dairy industry, holding a 60 per cent share in the liquid milk market, the organised sector is rapidly gaining ground. 

Its share has increased from 32 per cent to 40 per cent in the last three years and is projected to reach 54 per cent by 2026, aided by capital investments from cooperatives and private players.

The liquid milk segment, which currently accounts for 61 per cent of the overall dairy market, is expected to grow at a CAGR of 9 per cent over the next five years. 

However, the real growth drivers are the traditional value-added products like paneer, ghee, and curd, which are anticipated to grow at a CAGR of 14 per cent, and emerging value-added products such as cheese and flavored milk, which are projected to grow at an impressive CAGR of over 19 per cent.

Consequently, consumer preference for premium and nutritious dairy products is likely to surge, presenting a significant growth opportunity for private companies offering diverse product ranges and quickly adapting to changing consumer preferences, according to IMF.

With its large population, rising incomes, and evolving dietary habits, India's dairy industry is poised for remarkable growth.

(KNN Bureau)