Dairy Sector

Dairy sector is one of the key industries in India as the country is the leading producer and consumer of milk & milk-based products in the world. Although the level of milk processing is low currently, it is likely to increase in the near future with rise in demand for dairy products. The value-added dairy products market in India is expected to treble to ` 12,000 crore by 2014 from ` 4,000 crore in 2009. To tap this opportunity, packaged food players will have to focus on product development, distribution and marketing.

Courtesy: Russell Finex

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Modern Food Processing | December 2010

Pankaj Gupta and Angshuman Bhattacharya

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he share of value added products in the overall packaged dairy products market in India has increased from 27 per cent to 36 per cent between 2005 and 2009, while the share of milk has decreased from 73 to 64 per cent during this period (Figure 1). The trend is expected to continue in the future, making this an attractive market over the next five years. According to a research by Tata Strategic Management Group (TSMG), there are five consumer mega-trends driving this transformation: Increased food safety and hygiene consciousness Need for convenience On-the-go consumption Palate diversification Growing health and wellness consciousness

Shift from ‘made-at-home’ consumption to ‘brought-to-home’ consumption: The Indian urban consumer today is willing to pay a premium for products that provide convenience and save time. This phenomenon is evident from the growth of categories like set/pouch curd at 20 per cent between 2005 and 2008. Products like curd and lassi, which have traditionally been made at home are increasingly being ‘brought to home’. Increasing preference for longer shelf-life products: After an initial consumer reluctance to adopt non-fresh dairy products, ultra heat treatment (UHT) packing is finding widespread acceptance across dairy beverages. UHT enhances the shelf-life of the product, thereby offering...