The report suggests that value added dairy products like UHT milk, flavored milk, flavored yoghurts, probiotic dairy products, etc. are currently growing at 20-25% annually.
Noida, India, August 16, 2015 –(PR.com)– India represents the world’s largest producer and consumer of dairy products. According to a new study entitled “Dairy Industry in India: Market Size, Growth, Prices, Segments, Cooperatives, Private Dairies, Procurement and Distribution,” India’s milk production, which increased by nearly nine folds during 1951-2014, reached 147 Million Tons in 2014 and is expected to reach 189 Million Tons by 2020. This enormous growth can be attributed to a number of factors. These include – strong economic growth, rising middle class and urban population, increasing working population, changing dietary patterns and the fact that milk is considered a perfect health food in India. According to an analyst at IMARC Group “With a large vegetarian population, milk has traditionally been considered as an important health food and a good source of proteins, fats, carbohydrates, minerals and vitamins. Milk has been associated with good health and wellness and, as a result, has driven the country to become the world’s largest consumer of milk.”
According to the report, increasing incomes have resulted in consumers moving away from cereals to high value food products such as milk, egg, meat, fruits and vegetables – a natural corollary to the negative income elasticity for cereals in India and positive income elasticity for high quality food. This change is occurring both among rural and urban households. In the case of rural households, out of total monthly food expenditure, households spent around 15% of their total income on milk and milk products. In the case of urban households these figures were around 16%. Another trend worth noting is that the per capita monthly expenditure on milk and milk products had increased at a CAGR of 14% and 12% during the last seven years for rural and urban households respectively. The per capita expenditure on cereals during the same period, on the other hand, had increased only at 6% and 7% for rural and urban households respectively. This suggests that with rising income levels, Indians are now consuming lesser amounts of cereals and increasing their consumption of milk and milk products.
Looking at the competitive landscape, the overall dairy market in the country is predominantly unorganized with the organized sector- consisting of private dairies and cooperatives currently accounting for only 20% of the entire market. The organized sector, however, is currently growing much faster than the unorganized sector with value-added dairy products (VADP) currently being its biggest drivers. Factors such as rising urbanization, changing consumption patterns and an increasing demand for safe, nutritious and healthy milk products that can be eaten on-the-go are currently the biggest drivers of this market. According to the report, value added dairy products have a lower competition and tend to fetch significantly higher margins than plain products. The report suggests that value added products like UHT milk, flavored milk, flavored yoghurts, probiotic dairy products, etc. are currently growing at 20-25% annually.
IMARC Group’s new report entitled “Dairy Industry in India: Market Size, Growth, Prices, Segments, Cooperatives, Private Dairies, Procurement and Distribution,” which is the fourth edition of their highly acclaimed publication is an outcome of an intensive research on the Indian dairy industry. This report draws upon a comprehensive analysis of every major dairy segment in India.
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To know more on Dairy Industry in India visit: http://www.imarcgroup.com/dairy-industry-in-india/