A report released by GlobalData, titled ‘Country Profile: Dairy & Soy Food in India’, revealed that a large, young population base with rising disposable income is boosting the Indian dairy and soy food sector. The sector is forecast to grow at a compound annual growth rate (CAGR) of 8.5% from INR1, $324.6 billion (AU$28 billion) in 2018 to INR1, $993.6 billion (AU$37.8 billion) by 2023, according to GlobalData.
The report reveals that milk was the largest category with value sales of INR1, equating to $183.9 billion in 2018. The soy milk and soy drinks category is predicted to register the fastest value growth at a CAGR of 10.6% from 2018–2023, followed by drinkable yoghurt at 10.4%. The cheese category is predicted to register the fastest CAGR of 6.7% in volume terms, followed by butter and spreadable fats (5.9%), during the forecast period.
“Rapid urbanisation will lead to increasing acceptance of dairy and soy food products in the daily diets of Indian consumers,” said Sneha Singh, Consumer Analyst at GlobalData.
The per capita consumption (PCC) of dairy and soy food in India increased from 16.4 kg in 2013 to 19 kg in 2018, higher than the regional level (17.1 kg), but lower than the global level (31.6 kg) in the same year. The PCC is expected to grow further and reach 21.5 kg by 2023.
Gujarat Cooperative Milk Marketing Federation (GCMMF), Mother Dairy Fruit & Vegetable, and Karnataka Co-Operative Milk Producers’ Federation were the top three companies in the Indian dairy and soy food sector, accounting for value shares of 20.6%, 10.5% and 6.8% respectively in 2018.
Increasing health consciousness among Indian consumers, coupled with rising purchasing power, is predicted to spur demand for dairy and soy food products with health and wellness claims such as ‘naturally healthy’, particularly in the milk, butter and spreadable fats and yoghurt categories.
