The Indian Dairy Industry

Opportunities and Challenges, 2017

USD 1,500.00

* Required Fields

USD 1,500.00


Be the first to review this product

Of the Indian Dairy Industry, 80% remains unorganized even today, indicating the potential that can be tapped by Dairy Companies. Valued at INR 5,000 billion in 2016, 60% of the market comprises liquid and powdered milk, while value added products such as butter, ghee and curd comprise the remainder. Highly premiumized products such as branded yogurt, probiotic dahi, specialty cheeses etc., account for only 5% of the revenue; they nevertheless, hold the maximum margin potential for dairy industry companies and tend to be the focal point for private MNCs like Nestle and Danone. This industry docket provides a bird’s eye view of the dairy industry in 2016 and re-segments the market to gain strategic insights w

Table of Contents

The Indian Dairy IndustryScope & LimitationsScope & LimitationsIndian Dairy Industry: Key TakeawaysAn INR 5,000 Bn Market of which 80% is still Unorganized; however, Opportunities abound in both organized and unorganized segmentsRe-segmenting the market provides a strategic view of growth opportunities Wellness and premium products are a key focus area for private dairies… despite being only 5% of the market Two pronged strategy logical: Rural penetration in basic products; Category expansion in premium products for indulgent customers Basic Product Opportunities: Ice cream and Paneer most lucrative individual products due to ease of entry and market growthBasic Product Opportunities: Rural Penetration will require new strategies / business models for success… boom has just started Wellness and Premium Opportunities: Wellness and Premium Opportunities are better suited to new entrants, especially as short-term focusWellness and Premium Opportunities: Top 5 reasons to Invest indicate its potentialMarket Outlook: IndiaValue-added Products market growing 1.5 times faster than the milk marketConsumer preference for convenient, healthy yet indulgent products to see increased adoption of value-added premium productsGrowth will be driven by Value-added products… however, milk to continue to dominate as the largest category in the sectorInthe organized sector, state cooperatives dominate packaged milk, while private dairies focus on UHT and powdered milkMajor dairy competitors have consistently grown well above the industry growth rate; should continue so in the near and medium termsMargin pressures are driving competitors to improve volumes… Recombined milk and rural penetration are top two focus areasOrganized market: Coops* dominate mass market ghee, butter, curd, ice-creams variants; private dairies firmly fixed on premium variants of theseGrowing adoption of niche, premium products among urban consumers to drive value-added products categoryDairy Industry: Opportunities & ChallengesOpportunity focus in both rural and urban markets driven by increasing margin pressures for processorsKey Challenges in Dairy: Complexity and related indirect costs of milk procurement are a major pain point for most competitorsChallenges faced by Dairy in: Key Challenges in Dairy: Key Challenges in Dairy: Key Challenges in Dairy: Key Challenges in Dairy: Annexure: Our ServicesMaximize opportunities from existing products and markets; systematically explore new products, markets, including inorganic OpportunitiesOur Growth Consulting CanvasLegal Disclaimer

Why Frost & Sullivan

Working with the CEO’s growth team to create a vision based on a transformation growth strategy

Creating content-based digital marketing strategies that leverage our research perspective to differentiate and “tell your story”

Tracking over 1000 emerging technologies and analyzing the impact by industry and application to reveal the companies to watch in each sector

The Frost & Sullivan team is based in our 45 global offices and have developed a powerful global understandings of how industries operate on a global level.