Dairy Market To Witness Rise In Demand

Dec-2017 | 99Strategy | Agriculture

Due to the growing demand for dairy products in the country, the sector's business is expected to grow at a rate of 15% annually by 2020 to Rs 9,400 Billion. According to a report by Edelweiss Securities, at the present, the business of about Rs 5,400 Billion is expected to reach about Rs 9,400 Billion.

According to the report, India's dairy industry has risen to Rs 5,400 Billion from the rate of 15% between 2010 and 2016. In the coming time, it is expected to remain at this level even till 2020. This constant demand will also be responsible for the bringing the business to Rs 9,400 Billion.

In the 1970s, India was behind the demand of 20 million tonnes of milk production. While today it is poised to become the world's largest milk producing country with 16 million tonnes of milk production. About 18.5% of all milk production of the whole world is in India.

According to the report, by 2020 India is expected to become the world's largest dairy producer. The government implemented the National Dairy Plan-phase one between 2012 and 2017. Its aim is to increase the productivity of dairy cooperatives.

It has been said in the report that with the increase in per capita consumption of India in the coming time, value-added products will also increase. There is a possibility of 15 to 30% increase in milk products in India.

Increasing investment by the private and public investors and limited stringent regulatory have drastically motivated the production and demand for dairy products. On the other hand, growing numbers of departmental stores, convenience stores, e-commerce platforms, hypermarkets is also promoting the growth of the global dairy market. Dairy products manufacturers adopting advanced technologies for production is also up-surging the production ratio, resulting in fulfillment of demand of the dairy products.