Dairy Market in India 2014 covers a wide spectrum of concerns in the dairy industry and identifies several factors impacting the sale of dairy products in India. The report provides a snapshot of the Indian dairy industry which has witnessed several changes post Operation Flood era. Dairy sector witnessed spectacular growth during 1971 and 1996 primarily due to integrated cooperative dairy development programmes conducted by the National Dairy Development Board (NDDB). Moreover, after 1991, due to liberalization and delicensing, private sector also started entering the market, which further accelerated its growth. The report also discusses the opportunities and strengths of the dairy market, and provides an insight into the competitive landscape. Major players of the Indian dairy market include Gujarat Cooperative Milk Marketing Federation (Amul), Mother Dairy, Nestle India, Britannia Industries, Hatsun Agro and Heritage Foods, among others. In addition to this, a number of regional players have also entered the market in the past few years, thereby making the market more competitive in nature.
In India, cooperatives hold a large share of the organized dairy market, although some small regional entities have managed to secure their presence in recent years. With the rise in disposable incomes of Indian consumers, there has been heightened interest in high protein diets. With entities paying attention to this segment, the sector is set to grow further over the years. Rapid urbanization and subsequent inclination of consumers towards packaged food products as well as aggressive marketing campaigns by all the players to break the product clutter are other eminent factors that have led to considerable growth in this sector. The report also identifies a few pain points within the industry that pose obstacles to future growth, including poor supply chain, inefficient distribution facility and rise in packaging costs.
For dairy products, quality standards laid by FSSAI have to be followed by the industry players. Various government policies that have been formulated for the food processing sector such as FDI, tax benefits and export promotions are applicable to the dairy category as well.
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