Sales volume of dairy foods in India 2012-2022

The sales volume of dairy foods within the Indian packaged foods market amounted to 27.1 million metric tons in 2022. This was an increase as compared to previous year sales volume. The expansion and diversification of the country's food retail was likely a catalyst for dairy packaged foods, with urban areas accounting for over 75 percent of sales.

Key hindrances to market growth

India is home to one of the largest bovine populations in the world, and subsequently an enormous populace of milk cows. Despite that, the lack of cold storage facilities available induces significant output loss of dairy production volume. The cattle industry is heavily dependent on the fodder and feed available for the dairy animals. Constant floods and droughts across the agricultural land render the supply inconsistent, consequently making the process of feeding the cattle difficult.

Effects of COVID-19 on dairy consumption

Being a staple dairy consumable in India, the demand for liquid milk is owed to the increasing population of the country. Apart from milk, its processed and packaged products like butter, curd and paneer account for a large majority of the dairy market. The advent of COVID-19 pandemic forced a majority of the population to opt for online shopping which was a boon to the dairy market. Widespread lockdowns and a rekindled affinity to online cooking recipes have fueled the demand for dairy products even during such times.