Value added dairy products segment to maintain higher growth in India

According to industry experts, India contributes around 17 per cent of the total milk production globally. The projected milk production expected around 254.5 million tonnes in 2021-22, India is on course to  becoming the largest milk producer in the world.

Rabobank did an analysis in 2016-17 stating that Indian dairy market was largely divided into Liquid Milk (64%), Value Added Products (25%), Ghee (7%) and Milk Powder (4%). The Value Added Products segment is further growing at a healthy rate of 15 per cent to 20 per cent year on year that has varied products like UHT milk, curd, cheese, ice cream, baby foods, flavored milk, dairy whitener and butter.

Mr Anuj Modi, Director, Lotus Dairy Products Ltd. says, “In dairy industry the value added market is expecting an expansion to 30 per cent by 2020.  Requirement to strengthen processing line and procurement by the Indian organised dairy sector will help scaling up of value added market. Also, the dairy industry is looking towards health aspects very strictly by focusing  on milk nutrition and value added products which is not served by the unorganised market.”

With the Indian consumer becoming more and more health conscious as well as the increase in demand for healthier products with organic, ayurvedic, natural ingredients. This is majorly due to the changing consumer lifestyle, increasing personal disposable incomes, increasing number of working women are come of the factors because of which their is an increase in demand of value added dairy products.

Aggressive marketing is being done for small packs of packaged dairy products for the second and third tier markets make sure the brand’s penetration is deeper as well as increase the volume. The increase in the numbers of dairy players focusing their business strategies on the untapped rural and semi urban giving significant opportunities for growth in the segment.

The dairy industry of the United States is putting pressure indirectly on India to open market access. The warmly greeted decision made recently by US administration for the termination of preferential trade status granted to India.