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India Dairy Alternatives Market Size

The India Dairy Alternatives Market is experiencing significant growth, driven primarily by the off-trade segment, with convenience stores playing a crucial role due to their widespread presence and influence on consumer purchasing decisions. Supermarkets and hypermarkets are also important channels, benefiting from rising urbanization and retail expansion. While the on-trade channel is still developing, there is a growing interest in dairy alternatives like plant-based milk and non-dairy butter, particularly in home settings.

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Market Size of india dairy alternatives Industry

India Dairy Alternatives Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 106.5 Million
svg icon Market Size (2029) USD 169.6 Million
svg icon Largest Share by Distribution Channel Off-Trade
svg icon CAGR (2024 - 2029) 9.76 %
svg icon Fastest Growing by Distribution Channel Off-Trade
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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India Dairy Alternatives Market Analysis

The India Dairy Alternatives Market size is estimated at 106.5 million USD in 2024, and is expected to reach 169.6 million USD by 2029, growing at a CAGR of 9.76% during the forecast period (2024-2029).

106.5 Million

Market Size in 2024 (USD)

169.6 Million

Market Size in 2029 (USD)

11.76 %

CAGR (2017-2023)

9.76 %

CAGR (2024-2029)

Largest Market by Category

77.57 %

value share, Non-Dairy Butter, 2023

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Steady increase in consumer awareness levels about ethics of producing dairy foods, and the impact of animal husbandry on the environment are the key factors driving the segment.

Largest Market by Distribution Channel

99.33 %

value share, Off-Trade, 2023

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Off-trade retail channels driven by convenience stores are the preferred shopping destination for the Indian urban consumer demanding for fresh and quality products.

Fastest-growing Market by Category

12.49 %

Projected CAGR, Non-Dairy Milk, 2024-2029

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Health & well-being related reasons come up as top reasons for purchase of plant-based categories in India with sustainability one of the major reasons propelling the segmental growth.

Fastest-growing Market by Distribution Channel

9.80 %

Projected CAGR, Off-Trade, 2024-2029

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The ongoing demand in off-trade channels majorly through online distribution channel as it provides ease of shopping with ample option availability is inticing the growth of segment.

Leading Market Player

4.19 %

market share, The Hershey Company, 2022

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The immense research and development activities by the player in the market which is letting it innovate various products in the segment making The Hershey Company, a leading player.

Market is driven by sustainable growth in sales of dairy alternatives led by off-trade retail coupled with growing revolutionization of supermarkets and hypermarkets

  • The off-trade segment drives dairy alternatives sales in India. Convenience stores primarily drive the high market share of off-trade channels. These stores have always maintained a strong lead in selling dairy alternatives in the Indian market. The proximity factor of these channels, in large and small (rural) cities, provides them with an added advantage of influencing the consumer’s decision to purchase among the large variety of products available in the market. Convenience stores are expected to lead the sales of dairy alternatives in overall off-trade channels in India, with a share of 82.5% of dairy alternatives' sales in 2023.
  • Supermarkets and hypermarkets are the second most opted channels for dairy alternatives sales in India. In 2023, the segment is expected to have a share of 12.3% in dairy alternatives sales. Rising urbanization and smart city development policies are promoting the expansion of supermarkets and hypermarkets in the region. Avenue Supermarts Limited, an Indian retail company, aims to add 135 DMart outlets across the country by March 2024. Reliance Retail, one of the largest grocery retailers in India, opened more than 1,000 new stores during 2021-2022 to reach a total store count of over 2,400.
  • The region has a small market for on-trade channels, which is at a growing stage. Consumers prefer dairy alternatives at home and are less likely to eat from a restaurant or food service outlet. Plant-based milk and non-dairy butter are in the growing stage. Some regional restaurants use plant-based milk as an ingredient option in cocktails, smoothies, coffees, and espresso-based drinks. The sales value of plant-based milk through off-trade channels is anticipated to increase by 39% during 2024-2027.
India Dairy Alternatives Market

India Dairy Alternatives Industry Segmentation

Non-Dairy Butter, Non-Dairy Milk are covered as segments by Category. Off-Trade, On-Trade are covered as segments by Distribution Channel.

  • The off-trade segment drives dairy alternatives sales in India. Convenience stores primarily drive the high market share of off-trade channels. These stores have always maintained a strong lead in selling dairy alternatives in the Indian market. The proximity factor of these channels, in large and small (rural) cities, provides them with an added advantage of influencing the consumer’s decision to purchase among the large variety of products available in the market. Convenience stores are expected to lead the sales of dairy alternatives in overall off-trade channels in India, with a share of 82.5% of dairy alternatives' sales in 2023.
  • Supermarkets and hypermarkets are the second most opted channels for dairy alternatives sales in India. In 2023, the segment is expected to have a share of 12.3% in dairy alternatives sales. Rising urbanization and smart city development policies are promoting the expansion of supermarkets and hypermarkets in the region. Avenue Supermarts Limited, an Indian retail company, aims to add 135 DMart outlets across the country by March 2024. Reliance Retail, one of the largest grocery retailers in India, opened more than 1,000 new stores during 2021-2022 to reach a total store count of over 2,400.
  • The region has a small market for on-trade channels, which is at a growing stage. Consumers prefer dairy alternatives at home and are less likely to eat from a restaurant or food service outlet. Plant-based milk and non-dairy butter are in the growing stage. Some regional restaurants use plant-based milk as an ingredient option in cocktails, smoothies, coffees, and espresso-based drinks. The sales value of plant-based milk through off-trade channels is anticipated to increase by 39% during 2024-2027.
Category
Non-Dairy Butter
Non-Dairy Milk
By Product Type
Almond Milk
Cashew Milk
Coconut Milk
Hazelnut Milk
Oat Milk
Soy Milk
Distribution Channel
Off-Trade
Convenience Stores
Online Retail
Specialist Retailers
Supermarkets and Hypermarkets
Others (Warehouse clubs, gas stations, etc.)
On-Trade
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India Dairy Alternatives Market Size Summary

The India Dairy Alternatives Market is experiencing significant growth, driven primarily by the off-trade segment, with convenience stores playing a pivotal role due to their strategic locations in both urban and rural areas. These stores dominate the market by offering a wide range of dairy alternative products, making them the preferred choice for consumers. Supermarkets and hypermarkets are also contributing to the market expansion, supported by rising urbanization and the development of smart cities. Despite the limited presence of on-trade channels, there is a growing interest in dairy alternatives in regional restaurants, where plant-based milk is increasingly used in various beverages. The market is characterized by a diverse range of products, including plant-based milk and non-dairy butter, which are gaining popularity due to the growing vegan population and changing consumer preferences towards sustainability and health.

The consumption of dairy alternatives in India is on the rise, with plant-based milk, such as soy and oat milk, leading the market. Consumers are drawn to these products due to their health benefits and sustainable sourcing. Non-dairy butter is also witnessing increased demand, driven by concerns for animal welfare and dietary changes. The market is fragmented, with major players like Danone SA, Nestlé SA, ProSoya Foods, Raw Pressery, and The Hershey Company holding a small share. These companies are actively expanding their product offerings to cater to evolving consumer tastes and preferences. Innovations such as plant protein-fortified drinks and new plant-based beverages are being introduced to meet the nutritional needs of diverse consumer segments, further fueling market growth.

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India Dairy Alternatives Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Category

      1. 1.1.1 Non-Dairy Butter

      2. 1.1.2 Non-Dairy Milk

        1. 1.1.2.1 By Product Type

          1. 1.1.2.1.1 Almond Milk

          2. 1.1.2.1.2 Cashew Milk

          3. 1.1.2.1.3 Coconut Milk

          4. 1.1.2.1.4 Hazelnut Milk

          5. 1.1.2.1.5 Oat Milk

          6. 1.1.2.1.6 Soy Milk

    2. 1.2 Distribution Channel

      1. 1.2.1 Off-Trade

        1. 1.2.1.1 Convenience Stores

        2. 1.2.1.2 Online Retail

        3. 1.2.1.3 Specialist Retailers

        4. 1.2.1.4 Supermarkets and Hypermarkets

        5. 1.2.1.5 Others (Warehouse clubs, gas stations, etc.)

      2. 1.2.2 On-Trade

India Dairy Alternatives Market Size FAQs

The India Dairy Alternatives Market size is expected to reach USD 106.47 million in 2024 and grow at a CAGR of 9.76% to reach USD 169.60 million by 2029.

In 2024, the India Dairy Alternatives Market size is expected to reach USD 106.47 million.

India Dairy Alternatives Market Report Snapshots

India Dairy Alternatives Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029