According to GlobalData’s recent survey, large and young population base with rising disposable income is boosting the Indian dairy and soy food sector, which is forecast to grow at a compound annual growth rate(CAGR) of 8.5% from Rs 1,32460 crore (approximately US$ 19.4 billion) in 2018 to Rs 1,99360 crore (approximately US$ 26.8 billion) by 2023.
GlobalData’s report on ‘Country Profile: Dairy and Soy Food in India’, reveals that milk was the largest category with value sales of Rs 1,18390 crore (approximately US$ 17.3 billion) in 2018. The soymilk and soy drinks category is forecast to register the fastest value growth at a CAGR of 10.6% during 2018–2023, closely followed by drinkable yogurt (10.4%).
GlobalData predicts that the cheese category will register the fastest CAGR of 6.7% in terms of volume followed by butter and spreadable fats (5.9%), during the forecast period.
Sneha Singh, the consumer analyst at GlobalData, said, “Rapid urbanization will lead to increasing acceptance of dairy and soy food products in the daily diets of Indian consumers.”
The per capita consumption (PCC) of dairy and soy food in India grew from 16.4 kilograms in 2013 to 19 kilograms in 2018, which was higher than the regional level (17.1 kilograms), but lower when compared to the global level (31.6 kilograms) in the same year. The per capita consumption is expected to grow further and reach 21.5 kilograms 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 & soy food sector, accounting for value shares of 20.6%, 10.5%, and 6.8%, respectively in 2018.
While GCMMF offers products in butter and spreadable fats, cheese, cream, dairy-based, and soy-based desserts, drinkable yogurt, milk, and yogurt categories, Mother Dairy has products positioned in butter and spreadable fats, cheese, cream, drinkable yogurt, milk, and yogurt categories.
“Indian consumers, with growing health consciousness and rising purchasing power will spur demand for dairy and soy food products with health and wellness claims such as ‘naturally healthy’, particularly in milk, butter, and spreadable fats and yogurt categories,” Singh concluded.