Dairy Industry in Gujarat 2023 | Report Analysis, Share, Growth, Trends & Forecast Till 2028

IMARC Group’s report titled “Dairy industry in Gujarat: Market Size, Growth, Prices, Segments, Cooperatives, Private Dairies, Procurement and Distribution“, According to the report, the size of dairy industry in Gujarat reached INR 1,139.1 Billion in 2022. Looking forward, the market is expected to reach INR 2,648.6 Billion by 2028, exhibiting a growth rate (CAGR) of 14.3% during 2023-2028.

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Factors Affecting the Growth of the Gujarat Dairy Industry:

• Increasing Consumption and Changing Dietary Habits:

The growing population and changing dietary habits, particularly in urban areas, are propelling the market growth in Gujarat. The rising awareness about the nutritional benefits of dairy products is leading to higher consumption of milk and milk-based products. The burgeoning middle class, with its enhanced purchasing power, is more inclined towards quality and branded dairy products, contributing to the growth of organized dairy players in Gujarat. This shift in consumer behavior is supported by a growing emphasis on protein-rich diets and a general inclination towards healthier lifestyle choices. The demand for dairy products is not just limited to traditional milk and butter but extends to low-fat variants, probiotic drinks, and other health-oriented dairy products.

• Technological Advancements and Modernization:

Technological advancements and modernization of dairy operations are supporting the market growth in Gujarat. The adoption of modern dairy equipment, automated milking machines, and efficient chilling and storage solutions are enhancing milk processing and packaging. This technological shift not only increases production capacity but also ensures higher product quality and longer shelf life, meeting both domestic and international standards. Additionally, the rising utilization of data analytics for supply chain management and mobile applications for farmer education and direct communication is bolstering the market growth. These technological integrations are not only streamlining operations but also opening up new markets.

• Diversification of Dairy Products and Branding:

The increasing diversification of dairy products and strategic branding, particularly by flagship brands, is impelling the market growth in Gujarat. Dairy products now encompass beyond traditional milk and ghee, venturing into value-added products, such as flavored yogurts, cheese, ice cream, and ethnic sweets, catering to evolving consumer preferences. This diversification strategy taps into new market segments, including health-conscious consumers and those seeking convenience. Moreover, effective branding and marketing campaigns by major players are creating a strong brand identity, associating dairy products with quality and reliability. These brands are also successfully penetrating international markets, further expanding their consumer base.

Gujarat Dairy Market Report Segmentation:

By Product Type:

• Liquid Milk
• Ghee
• Curd
• Paneer
• Ice-Cream
• Table Butter
• Skimmed Milk Powder
• Frozen/Flavoured Yoghurt
• Fresh Cream
• Lassi
• Butter Milk
• Cheese
• Flavoured Milk
• UHT Milk
• Dairy Whitener
• Sweet Condensed Milk
• Infant Food
• Malt Based Beverages

Liquid milk represents the largest segment due to its fundamental role in daily diets, widespread availability, and the extensive distribution networks of major dairy cooperatives.

Gujarat Dairy Market Trends:

The rising popularity of flavored and fortified dairy products is contributing to the market growth in Gujarat. This trend is driven by the evolving palate of consumers, especially among the younger demographic, who are seeking variety and enhanced nutritional benefits in their dairy consumption. Flavored yogurts, cheese with added herbs, and milk fortified with vitamins and minerals are gaining traction. This shift is encouraging dairy processors to innovate and diversify their product range, catering to these segments. These products not only offer added health benefits but also cater to the increasing demand for convenience and taste.

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