How Indian States and the Recent Trends are Contributing to the Milk Production in India

To be able to talk about milk production in India carries the pride of it being the largest producer of milk worldwide. As per the Union Minister of Animal Husbandry and Dairying Rajiv Ranjan Singh, as of March 25, 2025, India has also set a target of producing 300 million metric tons (MMT) of milk in the next five years from the present 239 MMT. 

With this forward-looking approach, India is looking at not just milk production but also the potential for an increase in revenue along with generating employment. Currently, the dairy industry in the Indian market size is valued at Rs. 18,975 Billion in 2024, as per the IMARC Group's recent research. 

The industry has been supporting the rural economy of the country and the ever-increasing population and a growing middle class are the most common factors, which have resulted in increasing the demand for milk, curd, and other supply chains.

In the future, the country also looks forward to reaching Rs. 57,001.81 billion by 2033, which simply exhibits a CAGR of 12.35% during 2025-2033. As per various research papers published in this regard, milk production has been projected to observe robust growth, embedded by technological innovation, and cold chain infrastructure. 

State-wise distribution and the science behind

Of all states, Uttar Pradesh turned out to be dominating the market in 2024, holding a market share of over 18.7%. Reportedly, the state’s top five districts in milk production in 2023-2024 are Bulandshahr, Meerut, Agra, Aligarh and Azamgarh. The reasons behind the lead go to the strong farmer support, mixed with the efficient dairy cooperatives. Moreover, the state also has a thriving dairy sector that balances organised and unorganised sectors. 

After Uttar Pradesh, which accounts for 18% of the total milk in India, Rajasthan accounts for 11%. Rajasthan has a strong focus on Indigenous cattle breeds like Rathi, Tharparkar, and Gir. It also has major dairy cooperatives such as Saras Dairy and Amul Rajasthan, along with government schemes promoting cattle health and dairy development.

Other than this, Andhra Pradesh has a share of 10%, Gujarat, 8%, Punjab, 7%, and Maharashtra 6%): and is popular for a “strong” urban dairy demand. This is followed by the growth observed by Madhya Pradesh in milk processing and Tamil Nadu, with its rapid adoption of dairy technology.

The evident trends

As far as the recent trends are concerned in the industry, one of the biggest has been the advent of the increased per capita income and changing lifestyles that have influenced consumer preferences towards various brands. 

While it is difficult to gauge the exact number of homegrown brands of milk in the country right now, experts have noticed the rise in the D2C brands. Moreover, another trend has marked the rise for packaged, branded and convenience products. The industry is witnessing diversifications with niche segments like flavoured milk, cheese and ready-to-drink beverages.

Many brands are also experimenting with segments like Soy milk, almond milk, condensed milk, and organic milk giving the customers plenty of options to choose from.

What does it look like for the homegrown brands?

As the industry grows and looks towards the potential growth trajectory for the newly opened homegrown brands, there remain many challenges in their production. Rajat Ingale from Mr. Milk says, “The cold chain challenges exist as it is hard to keep milk fresh without costly refrigeration and fast delivery. Moreover, the daily doorstep delivery is an expensive and logistically complex process for us.”

Mr. Ingale also states that competing with big dairy brands is tough without strong marketing, as the high operational costs leave a lower margin for profit. 

Addressing the challenges like continued dominance of the unorganised segment, which still handles over 50% of the milk traded in the country, Srideep N Kesavan, from Heritage Foods mentions that the dairy industry is also “facing mounting pressure from rising input costs—whether it’s animal feed, fuel, or logistics—and climate change is adding another layer of complexity with increased heat stress and disease outbreaks.”

Talking to Local Samosa, Mr. Kesavan details the solutions as driven by his own brand and says that “optimising logistics through real-time analytics and geospatial planning, while promoting preventive animal healthcare among the farmer partners, and exploring sustainable packaging and energy-efficient operations” can solve a lot of the problems being faced by the homegrown brands.

Stating how Heritage Foods is aspiring to remain agile and future-ready while delivering high-quality dairy products at an affordable price, Mr. Kesavan adds, “It’s about balancing economic resilience with environmental responsibility."