The new report, ‘Dairy Market in
India’, states that the Indian dairy market is experiencing rising demand due
to various driving factors which in turn is providing immense opportunities to
manufacturers to grow and operate in the market lucratively.
The Indian food and beverage sector
is huge and highly competitive in nature. The industry comprises of several
sub-sectors such as fruits & vegetables, meat & poultry, dairy, marine
products, grains and consumer foods. Dairy Industry plays an important role in
the socio-economic development of the nation by generating huge rural
employment as well as providing cheap and nutritional food to the vast
population. Though the dairy market in India is dominated by the unorganized
sector, the organized sector has shown remarkable growth last few years.
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The report provides a snapshot of
the Indian dairy industry which has witnessed several changes post ‘Operation
Flood’ era. Dairy sector witnessed spectacular growth during 1971 and 1996
primarily due to integrated cooperative dairy development programmes conducted
by the National Dairy Development Board (NDDB). Moreover, after 1991, due to
liberalization and delicensing, private sector also started entering the
market, which further accelerated its growth.
Major players of the Indian dairy
market include Gujarat Cooperative Milk Marketing Federation (Amul), Mother
Dairy, Nestle India, Britannia Industries, Hatsun Agro and Heritage Foods
amongst others. In addition to this, a number of regional players have also entered
the market in the last few years thereby making the market more competitive in
nature.
There are certain factors that
predominantly work towards enabling the sector to grow in the likes of higher
disposable income that aids in greater spending power by consumers, rapid
urbanization which leads to busy lifestyle and subsequent inclination of
consumers toward packaged food products and aggressive marketing campaigns by
all the players to break the product clutter and attract consumers toward their
brand. In addition to these, the other factors which are contributing towards
rapid growth of the industry include favorable demographics, fast expanding
retail network, growth of user industries and rise in bovine population.
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For dairy products, quality standards
laid by FSSAI have to be followed by the industry players. Various government
policies that have been formulated for the food processing sector such as FDI,
tax benefits and export promotions are applicable for the dairy category as
well.
To sum up, the Indian dairy industry
is a stable market at present and has strong growth potential in the future
years.
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