Dairy products and alternatives in 2025: The big picture
In 2025, dairy products and alternatives in India recorded substantial double-digit growth in retail current value terms. This expansion was predominantly driven by the country’s established dietary practices and the increasing consumer inclination towards health-oriented food choices. India’s position as the world’s largest milk producer plays a pivotal role in ensuring widespread availability and affordability of dairy products, thereby fostering a high frequency of consumption among Indian households.
Key trends in 2025
Health consciousness among Indian consumers is a key factor influencing demand in dairy products and alternatives. Increasing awareness of nutritional benefits has led to a preference for products perceived as supporting healthier lifestyle, such as drinking milk and flavoured yoghurt. This has further accelerated the clean label movement in dried baby food with brands focussing on natural, minimally processed ingredients, positioning themselves as healthier alternatives. Similarly, ghee (cooking fats) once perceived as a calorie-heavy indulgence, is now being re-evaluated as a good fat due to its rich nutritional profile and ayurvedic associations with digestion, immunity, and mental well-being, leading to its robust demand.
Competitive Landscape
In 2025, Gujarat Co-operative Milk Marketing Federation (Amul brand) remained the leading company within dairy products and alternatives in India. This can be attributed to the deep distribution networks, strong brand trust and affordability positioning of its wide range of offerings across categories. Amid increasing competition, Amul has maintained its leading position in butter and spreads, cheese, and drinking milk products, driven by its consumer-centric focus on affordable and quality offerings.
Channel developments
The traditional retail channel of small local grocers continued to dominate distribution for dairy products and alternatives in 2025. Such retail stores, locally termed as kirana stores, enjoy unmatched last-mile connectivity through their extensive presence, reaching both urban and rural regions where affordability and accessibility drive the majority of dairy purchases. However, these traditional retail formats are facing rising competition from rapidly growing channels in modern grocery retail and e-commerce.
What next for dairy products and alternatives?
India’s dairy products and alternatives industry is set to see further solid growth throughout the forecast period, fuelled by economic expansion, evolving lifestyle patterns, and an expanding middle class and employed population. Dairy products driven by long-established habits will continue to be consumed on daily basis thanks to their strong association with health benefits. With the Indian economy expected to grow robustly, and persistent urbanisation, consumer spending on dairy products is only likely to rise. Additionally, increasingly busy lifestyles will lead to higher demand for packaged dairy products such as soft cheese, yoghurt, and sour milk products, rather than homemade alternatives.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in India with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
If you're in the Dairy Products and Alternatives industry in India, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Dairy Products and Alternatives in India report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Dairy Products and Alternatives in India?
- Which are the leading brands in Dairy Products and Alternatives in India?
- How are products distributed in Dairy Products and Alternatives in India?
- How is the rise of e-commerce and/or the expansion of modern grocery retail impacting traditional retail?
- What are the key health and wellness concerns driving, or challenging, sales in Dairy Products and Alternatives?
- How significant are vegan and vegetarian dietary requirements in determining sales growth in India?
- How has COVID-19 impacted consumer demand? To what extent have lockdown, home seclusion and stockpiling boosted sales? Will the longer term economic repercussions of the pandemic stimulate or suppress future growth?
- Where is future growth expected to be most dynamic?
- How significant will values-based claims, such as sustainability and ethical labelling, be in supporting future growth and brand equity?
Dairy Products and Alternatives in India
Dairy products and alternatives in 2025: The big picture
Key trends in 2025
Competitive Landscape
Channel developments
What next for dairy products and alternatives?
DISCLAIMER
Baby Food in India
KEY DATA FINDINGS
Baby food brands prioritise clean labels and address nutrient gaps
Established players in milk formula maintain presence as competition intensifies in dried baby food
Pharmacies still crucial distribution channel, while e-commerce continues to expand thanks to convenience and variety
Further growth for baby food, though challenges remain
Innovation in formats set to gain traction
Labelling regulations and increased consumer scrutiny will impact development
Butter and Spreads in India
KEY DATA FINDINGS
Cooking fats driven by traditional dietary habits continue to dominate
Legacy brands continue to dominate amidst growing competition from new entrants
Small local grocers stay vital as modern retailers and e-commerce grow due to greater variety and convenience
Cooking fats will continue to see consistent growth
Butter will face more competition from substitutes as health-focused consumption rises
Government initiatives to further drive shift towards packaged cooking fats offerings via better accessibility
Cheese in India
KEY DATA FINDINGS
Soft cheese benefits from rising health consciousness, home cooking trend bolsters processed cheese
Competition continues to intensify through growing distribution reach of new-age brands
Small local grocers remain key as modern retailers and e-commerce benefit from greater variety and convenience
Processed cheese to drive growth, fuelled by improved consumer awareness and innovation
Soft cheese will see greater proliferation of packaged formats
Government initiatives to aid affordability of packaged cheese offerings
Drinking Milk Products in India
KEY DATA FINDINGS
Milk sees continued demand thanks to association with health benefits
Amul maintains leadership thanks to wide distribution reach and diverse range of products
Small local grocers as dominant sales channel
Flavoured milk drinks set to see steady demand fuelled by rising health consciousness
Packaged milk will expand in line with improved value proposition
Traditional stores to remain crucial for everyday purchases, while modern retailers and q-commerce push premiumisation
Yoghurt and Sour Milk Products in India
KEY DATA FINDINGS
Traditional consumption patterns and climatic conditions contribute to consistent growth in 2025
Legacy brands continue to dominate amid growing competition
Small local grocers remains primary distribution channel
Evolving lifestyles and rising awareness will fuel robust rises
Growing availability and healthier perception to drive flavoured yoghurt demand
Favourable weather and economic conditions to support increased demand
Other Dairy in India
KEY DATA FINDINGS
Convenience and celebratory occasions drive demand for other dairy
Legacy brands continue to dominate other dairy in 2025
Foodservice volumes maintain momentum
At-home baking trend to aid greater penetration of condensed milk
Improving living standards and rising health consciousness will boost consumption frequency
Consumer awareness and distribution remain key to growth
Plant-Based Dairy in India
KEY DATA FINDINGS
Urban, health-conscious and affluent consumers drive demand for plant-based dairy in India
Hershey leads through multi-channel reach and broad portfolio
E-commerce channel facilitates growth through enhanced product accessibility
Soy drinks will continue to dominate as other plant-based milks become more prevalent
Distribution reach and affordability remain critical for wider adoption
Competition is set to intensify as more brands enter the landscape
The following categories and subcategories are included:
Dairy Products and Alternatives
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- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
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- Liquid Standard Milk Formula
- Powder Standard Milk Formula
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- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
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- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
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- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
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- Butter
- Cooking Fats
- Margarine and Spreads
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- Spreadable Cheese
- Processed Cheese excl Spreadable
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- Packaged Hard Cheese
- Unpackaged Hard Cheese
- Soft Cheese
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- Dairy Only Flavoured Milk Drinks
- Flavoured Milk Drinks with Fruit Juice
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- Fat-free Fresh Milk
- Semi Skimmed Fresh Milk
- Full Fat Fresh Milk
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- Fat-free Shelf Stable Milk
- Semi Skimmed Shelf Stable Milk
- Full Fat Shelf Stable Milk
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- Goat Milk
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- Powder Milk
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- Sour Milk Products
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- Drinking Yoghurt
- Flavoured Yoghurt
- Plain Yoghurt
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- Chilled Dairy Desserts
- Shelf Stable Dairy Desserts
- Chilled Snacks
- Coffee Whiteners
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- Flavoured Condensed Milk
- Plain Condensed Milk
- Evaporated Milk
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- Cream
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- Flavoured Fromage Frais and Quark
- Plain Fromage Frais and Quark
- Savoury Fromage Frais and Quark
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- Soy Drinks
- Other Plant-based Milk
- Plant-based Yoghurt
- Plant-based Cheese
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This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
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