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 Indian Dairy Industry is undergoing a 'Value-Over-Volume' Transformation from a 'Pouched Milk' Economy to a High Margin VAP (Value Added Product) Economy. The fastest growing segment of the Industry is 'Functional and Fortified Dairy', led by the health conscious urban consumer. Brands are currently aggressively moving into Greek yogurt, whey based drinks and cheese, through multiple premium variants at margins much higher than the cost of regular pouched milk.

Thereafter is the "Farm-to-Fork" D2C Revolution, in which tech-enabled startups like Country Delight, Akshayakalpa etc. are bypassing cooperatives with a farm-to-fork model, that delivers "Traceable A2 Milk" within 24 hours of milking, via an app-based subscription service. Finally, the "Smart Dairying" trend, in which large milk producers are deploying "IoT" based cattle monitoring (on collar-mounted sensors) that tracks estrus cycles, and automated milking parlors that help to standardize the quality of milk, and eliminate antibiotic residue, thereby conforming to the quality standards in developed markets for exports.

Market Growth Drivers:

Heavy intervention by the Government holds the key to the development of Indian Dairy Industry. Several policy schemes like Animal Husbandry Infrastructure Development Fund (AHIDF) and Rashtriya Gokul Mission, etc. have been implemented to provide interest subvention and credit guarantee to the Private Sector for setting up modern processing and cold chain infrastructure to minimize post-harvest losses.

Fast-growing Q-Commerce players such as Blinkit and Zepto, which can deliver fresh paneer, curd and flavored milk in 10 minutes, are driving huge growth for the category as they replace the customary "doodhwala" and local sweet shops, particularly in Tier-1 cities. "Premiumization of Rural Consumption", where rural consumers, as their incomes increase, start to veer away from loose unpasteurized milk to packaged pouches, is another volume growth driver for the industry. As a result, organized cooperatives such as Amul and Mother Dairy have spread into the rural hinterlands, previously serviced by the unorganized sector.

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Leading India Dairy Market Leaders:

Dairy Cooperatives:

Private Dairies:

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

Breakup by Region:

In 2025, Uttar Pradesh accounted for the largest market share of 18.7%.

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Other Key Points Covered in the Report:

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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