Picture a nation so abundant in milk that it alone contributes nearly a quarter of the world's supply, a staggering 210 million metric tons produced from the heart of its villages and farms, cementing India's position as the undisputed global leader in the dairy industry.
Key Takeaways
- India produced 210 million metric tons of milk in 2021-22, accounting for 23% of global production
- Uttar Pradesh contributed 15.2% of India's total milk production with 29.37 million tons in 2021-22
- Rajasthan ranked second in milk production at 14.9% share with 28.83 million tons in 2021-22
- Urban milk consumption grew 8% YoY in 2022 to 12.5 million tons processed
- Rural areas consume 68% of total milk at 140 million tons annually in 2022
- Per capita milk consumption is 428 ml/day nationally but 444 g/day availability in 2022
- India's dairy market size reached USD 110 billion in 2023
- Organized dairy sector market value USD 17.5 billion in FY23
- Total dairy industry projected to hit USD 232 billion by 2032 at 10.5% CAGR
- Employment in dairy sector 80 million people direct/indirect 2023
- 8 million rural women employed via cooperatives as of 2023
- Dairy contributes 5% to national GDP, USD 110 billion value 2023
- India's dairy exports reached USD 182 million in FY23
- Skimmed milk powder exports totaled 25,000 tons in FY23
- Ghee exports valued USD 50 million to Middle East in 2023
India leads global milk production with massive output and diverse dairy consumption.
Consumption Statistics
- Urban milk consumption grew 8% YoY in 2022 to 12.5 million tons processed
- Rural areas consume 68% of total milk at 140 million tons annually in 2022
- Per capita milk consumption is 428 ml/day nationally but 444 g/day availability in 2022
- Liquid milk accounts for 68% of total dairy consumption value in 2023
- Ghee consumption totals 2.8 million tons per year in India 2023
- Paneer demand rose 15% annually, reaching 0.5 million tons in 2022
- Yogurt consumption grew to 4.2 million tons in FY22, CAGR 12%
- Butter consumption stands at 0.45 million tons annually in 2023
- Cheese market consumption hit 0.15 million tons in 2022, growing 20% YoY
- SMP consumption for reconstitution is 0.3 million tons yearly
- 75% of milk consumed as liquid in households per NSSO 2021 survey
- North India consumes 45% buffalo milk, South prefers cow milk at 70%
- Organized sector supplies 40% urban milk consumption in 2023
- Per capita ghee consumption is 3.5 kg/year in 2022
- Ice cream consumption reached 0.45 billion liters in summer 2023
- Flavored milk consumption up 25% to 0.8 million tons in 2022
- Traditional sweets use 1.2 million tons milk equivalents yearly
- SMP used in food industry totals 0.4 million tons in 2022
- Household expenditure on milk is 4.2% of food budget per HCES 2022-23
- Urban per capita milk spend Rs 1,200/year vs rural Rs 800 in 2022
- Whey protein demand in fitness segment 50,000 tons in 2023
- Khoya production for sweets 0.6 million tons annually
- Lassi consumption 2.5 million tons per year in India 2022
- Organic milk consumption grew 30% to 0.05 million tons in 2023
- Skimmed milk powder household use 0.1 million tons yearly
Consumption Statistics Interpretation
The numbers paint a picture of a nation devoutly drinking its milk straight, but with a growing urban appetite—spurred by the gym and the sweet shop—slowly churning the sacred liquid into a more profitable array of paneer, ghee, and flavored indulgence.
Employment and Socio-economic
- Employment in dairy sector 80 million people direct/indirect 2023
- 8 million rural women employed via cooperatives as of 2023
- Dairy contributes 5% to national GDP, USD 110 billion value 2023
- 1.1 crore farmer families linked to cooperatives in 2023
- Average monthly income from dairy Rs 8,000 per household member 2022
- Women constitute 70% of dairy workforce in milk production chain
- Dairy provides livelihood to 21% rural households per NSSO 2019
- Cooperatives pay Rs 1.1 lakh crore to farmers annually as procurement value
- Skill development programs trained 5 lakh youth in dairy by 2023
- Marginal farmers (70%) dominate dairy with <2 animals average
- Dairy export earnings support 10 lakh jobs indirectly 2023
- NDDB model empowered 2 crore women via self-help groups
- Per capita income from dairy Rs 25,000/year average household 2022
- 18,000 Dairy Interest Groups formed employing 4 lakh members
- Dairy sector reduces rural poverty by 15% in participating states
- 163,000 village societies federated under 200 district unions 2023
- Youth employment in organized dairy processing 2 million jobs 2023
- Insurance covers 50 lakh cattle via cooperatives, aiding farmer stability
- Gender parity in dairy leadership: 30% women in boards 2023
- Dairy contributes 27% to agri GDP, employing 4% workforce 2023
- 50,000 AI technicians trained, creating rural jobs 2023
- Migrant labor in urban dairies 20% of 1 million workers
- Savings from cooperatives Rs 20,000 crore annually for farmers
- 15 million landless laborers earn via dairy buffaloes
Employment and Socio-economic Interpretation
While its heart beats with 80 million livelihoods and pumps 5% into India’s economic veins, the dairy sector is essentially a vast, patient matriarchy of 70% women, propping up rural households on a sturdy udder of cooperatives, where even a marginal farmer with two cows can milk a monthly hope of Rs 8,000.
Market Size and Value
- India's dairy market size reached USD 110 billion in 2023
- Organized dairy sector market value USD 17.5 billion in FY23
- Total dairy industry projected to hit USD 232 billion by 2032 at 10.5% CAGR
- Liquid milk segment valued at USD 70 billion in 2023
- Value-added dairy products market USD 12 billion in 2023
- Ghee market size USD 8.5 billion in FY23
- Ice cream industry valued at USD 3.1 billion in 2023
- Cheese market reached USD 1.2 billion in 2023, growing 18% CAGR
- Yogurt market size USD 2.8 billion in 2023
- Butter and spreads market USD 1.5 billion FY23
- SMP market value USD 2.1 billion imported equivalent in 2022
- Dairy equipment market size USD 1.8 billion in 2023
- Organic dairy market USD 0.8 billion growing 25% CAGR till 2028
- E-commerce dairy sales USD 1.2 billion in 2023, 20% growth
- Private labels in dairy hold 15% market share worth USD 16 billion in 2023
- Farmgate milk price averaged Rs 45/liter in 2023
- Consumer milk price Rs 60-70/liter in metros 2023
- Dairy exports value USD 0.8 billion in FY23
- Total investments in dairy sector Rs 1.2 lakh crore planned 2023-27
- Cooperatives control 48% market share in procurement value 2023
- Packaged milk market USD 10 billion in organized sector 2023
- Paneer market valued at USD 1.1 billion in 2023
- DBDP scheme allocated Rs 14,000 crore for dairy infra 2022-26
- Dairy turnover of Amul at Rs 61,000 crore in FY23
- Total cooperatives handle Rs 1.2 lakh crore milk value annually
Market Size and Value Interpretation
While India's dairy industry is a titan valued at $110 billion, its true strength lies not just in rivers of milk but in the organized quest to turn that white gold into even greater value, as evidenced by the ghee-fueled growth, the churning of investments, and the cheese dreams rising at an 18% clip.
Production Statistics
- India produced 210 million metric tons of milk in 2021-22, accounting for 23% of global production
- Uttar Pradesh contributed 15.2% of India's total milk production with 29.37 million tons in 2021-22
- Rajasthan ranked second in milk production at 14.9% share with 28.83 million tons in 2021-22
- Madhya Pradesh produced 12.98 million tons of milk, 6.7% of national total in 2021-22
- Punjab's milk production was 11.32 million tons, contributing 5.9% in 2021-22
- Gujarat produced 10.79 million tons of milk, 5.6% share in 2021-22
- Maharashtra contributed 7.89% with 15.28 million tons in 2021-22
- Haryana's milk output was 6.47 million tons, 3.3% of total in 2021-22
- Tamil Nadu produced 6.28 million tons, 3.2% share in 2021-22
- Andhra Pradesh milk production stood at 5.95 million tons in 2021-22
- Buffalo milk constituted 49.5% of total milk production at 104 million tons in 2021-22
- Cow milk share was 49.2% with 103.4 million tons in 2021-22
- Goat milk production was 5.8 million tons, 2.8% of total in 2021-22
- India's milk production grew at 6.5% CAGR from 2017-22, reaching 210 MT
- Per capita milk availability increased to 444 grams per day in 2021-22 from 428 in previous year
- Organized sector procured 15% of total milk production in 2022
- India has 192.5 million milk animals as of 2020 livestock census
- Crossbred cows number 50.4 million, contributing significantly to production
- Indigenous cows total 147.1 million in India per 2020 census
- Buffaloes number 193.8 million, major milk source
- Total milk production in 2022-23 estimated at 221 million tons
- Growth rate of milk production was 4% in 2022-23 over previous year
- Liquid milk processing capacity stands at 56.9 million liters per day as of 2023
- India added 5.2 million tons milk production in 2022-23
- Top 10 states account for 72% of India's milk production in 2021-22
- Milk production from cooperatives reached 28% of procurement in key states
- Annual milk production growth averaged 6% over last decade till 2022
- India's share in world milk production rose to 24% in 2022
- Total bovine population for milk is 303 million in 2020
- Milk yield per animal averaged 1,768 kg/year for cows in 2021
- India's per capita milk production basis animals is highest globally at 690 kg/animal/year
Production Statistics Interpretation
While India might not yet have mastered the art of turning every drop into cheese, its dairy sector is nonetheless an udderly massive economic engine, single-hoofedly responsible for nearly a quarter of the world's milk from a cattle population larger than most countries.
Trade and International
- India's dairy exports reached USD 182 million in FY23
- Skimmed milk powder exports totaled 25,000 tons in FY23
- Ghee exports valued USD 50 million to Middle East in 2023
- India imported 0.25 million tons SMP in FY23 worth USD 700 million
- Top export markets: UAE (25%), USA (15%), Saudi Arabia (12%) in FY23
- Dairy export growth 20% YoY to USD 220 million projected FY24
- White butter exports 10,000 tons mainly to Bangladesh 2023
- India holds 15% share in global SMP trade imports
- Exports of indigenous sweets like peda USD 10 million annually
- WTO dairy negotiations impact: India net importer status
- Exports to Nepal valued USD 30 million in milk products FY23
- Import of dairy machinery USD 150 million yearly average 2022-23
- Footwear from hides (dairy byproduct) exports USD 4 billion linked
- India exported 5,000 tons cheese equivalents in 2023
- Trade balance negative USD 500 million for dairy in FY23
- APEDA registered 1,200 dairy exporters in 2023
- Exports to Africa grew 30% to USD 20 million in FY23
- Import duties on SMP reduced to 30% in 2023 budget
- Organic dairy exports USD 5 million to EU/USA 2023
- LME milk powder prices influenced India's imports at USD 3,500/MT avg
- Exports of UHT milk 2,000 tons to Middle East 2023
- Bilateral trade with Bhutan dairy USD 15 million exports
- India's global dairy trade share 2% exports, 5% imports 2023
- Veterinary pharma exports from dairy sector support USD 1 billion
- India exported 15,000 tons whole milk powder in FY23
- Import from New Zealand SMP 40% of total at 100,000 tons 2023
Trade and International Interpretation
India is a dairy paradox, expertly selling ghee and pedas abroad while simultaneously buying mountains of skimmed milk powder, proving that in the global milk market, we are both the shrewd shopkeeper and the biggest customer.
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