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Opportunities and Challenges, 2017
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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 with respect to growth opportunities in the market. The docket further includes market projections, key trends, drivers and restraints. The docket also delves into the major challenges faced by current competitors and what typical steps are taken to overcome them Key questions this Docket looks at: • How big is the dairy market in India? • What is the current level of organization in the market? • Who are the major organized players in this market? • What does the industry ecosystem look like? • What are the roles of various stakeholders? • What are the key challenges plaguing the dairy industry currently and what are the major players doing to overcome these? • Where do the growth opportunities for suppliers lie?
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