India is endowed with the largest livestock population in the world. It accounts for about 57.3 per cent of the world's buffalo population and 14.7 per cent of the cattle population. Millions of small and marginal farmers in dairying who own two to three animals and produce an average of 5 litres comprise a critical portion of India’s dairy industry. Livestock development in general and dairy development activities in particular are key components of pro-poor development strategies because livestock distribution is much more equitable than land distribution. Demand for dairy products in India is likely to grow significantly in the coming years, driven by more consumers, higher incomes and greater interest in nutrition. Consumption of processed and packaged dairy products is increasing in urban areas. Because of the increasing competition from the private sector, several national and international brands have entered the market and expanded consumers’ expectation of quality although only among a small proportion of the population.
Dairy products or milk products are a type of food produced from or containing the milk of mammals, most commonly cattle, water buffaloes, goats, sheep, and camels. Dairy products include food items such as yogurt, cheese and butter. Dairy product, milk and any of the foods made from milk, including butter, cheese, ice cream, yogurt, and condensed and dried milk. Milk has been used by humans since the beginning of recorded time to provide both fresh and storable nutritious foods. In some countries almost half the milk produced is consumed as fresh pasteurized whole, low-fat, or skim milk. However, most milk is manufactured into more stable dairy products of worldwide commerce, such as butter, cheese, dried milks, ice cream, and condensed milk. Most dairy products, including yogurts and cheeses, are based on casein micelles and whey proteins. Coagulation of milk results in two different kinds of gel, depending on whether the milk has previously been heated above 85°C.
The global dairy products market size was valued at INR 35,8050 Crores in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 2.5% from 2020 to 2027. The rising consumption of dairy products and shifting consumer preference from meat to dairy products for protein enrichment are the significant drivers for this market’s growth. The easy availability of dairy products due to modern retail facilities and cold chain logistics further drives the market growth. Furthermore, significant product sales through online distribution channels during the Covid-19 pandemic also supported the market growth. Dairy products offer various health benefits as they are rich in calcium, riboflavin, vitamin D, vitamin A, niacin, potassium, and phosphorus. India has been the leading producer and consumer of dairy products worldwide since 1998 with a sustained growth in the availability of milk and milk products. Dairy activities form an essential part of the rural Indian economy, serving as an important source of employment and income. India also has the largest bovine population in the world. However, the milk production per animal is significantly low as compared to the other major dairy producers. Moreover, nearly all of the dairy produce in India is consumed domestically, with the majority of it being sold as fluid milk. On account of this, the Indian dairy industry holds tremendous potential for value-addition and overall development. Along with offering profitable business opportunities, the dairy industry in India serves as a tool of socio-economic development.
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