India is said to be the largest milk producer, contributing to about 23% of global milk production. As per data, milk production has increased from 146.31 mn tonnes in 2014-15 to 209.96 mn tonnes in 2020-21, wherein the top 3 states are Uttar Pradesh, Rajasthan and Madhya Pradesh.
It is estimated that by the end of 2025 the dairy industry will be worth $355 bn while generating job opportunities for about 80 mn people.
Being one of the largest dairy ingredients suppliers in India, our Director, Mr. Akshit Gupta, looks forward to expanding the business by bringing in products as per industry’s growing demand. Below are excerpts of his thoughts on the outlook of the sector and its ecosystem –
- Government Support: With The Government of India in association with the Department of Animal Husbandry and Dairying in June 2020 announcing support through $2.1 bn infrastructure development fund with an interest subsidy scheme to promote investment, industry’s private players and MSMEs are expected to create millions of jobs under dairy, meat processing and animal feed plants.
- Organising of Industry: With Amul being one of the leading co-operatives to start The White Revolution, it bagged the first-mover advantage in organising the dairy industry back in 1946. Many brands have come up in the past competing against Amul and now, in the modern era, many entrepreneurial minds have taken the game of dairy production a notch up by adopting the ‘farm fresh’ or ‘from farm to palate’ approach. Disruption of supply chain due to the pandemic has led to cooperatives and farms turning entrepreneurial in nature, thereby organising the unorganised sector. The doodh walas have become a brand now!
- Change in consumption patterns: Post pandemic, the need for dairy products like Paneer and flavoured milk has seen an uprise. Moreover, the hybrid working model has affected eating habits and is more dynamic now, leading to more fluid intake and ready-to-eat products. Following the demand, brands are introducing products in the said categories while focusing on the quality, safety and hygiene.
- Dairy vs Veganism: Consumers’ rising interest in vegan diet has created opportunities for plant-based milk from sources like soya, almond, coconut & more, which is being grabbed by business oriented minds to prosper and organise that industry as well. These options act as an alternative to dairy products while claiming to be as good as cow based milk products with distinct health benefits. But the question is – are they really that beneficial? The marketing communication of such brands and consumers’ adoption will decide whether or not these alternatives grow beyond a fad and become a category in itself.
“The sector is in a phase of transition from every aspect and is evolving with time. It shall take some time to settle down and follow a pattern, considering the above factors. With a robust and huge supply chain, ARS group is capable of supplying and catering to the large market needs while it prepares to expand its horizons.”, says Akshit.
At ARS, the team is innovating continually and ensuring the supply of nutritious, clean and pure dairy ingredients.