February 22, 2012

India's rising milk demand outpaces production

India's dairy industry has been expanding rapidly to keep up with the rising demand for milk and milk products in the country.

According to a new research report by RNCOS, the consumption of dairy products is rising exponentially in India as they provide rich nourishment.

The secondary market for dairy products, including tea, coffee, infant nutrition, and bakery products, has also been flourishing. At present, India is the world's largest producer as well as consumer of milk, and it is expected that the incessantly increasing demand for milk will surpass its production in the coming years.

The "Indian Dairy Industry Analysis" says that the dairy sector plays an important role in India's socio-economic development as milk and milk products provide livelihood to millions of homes in villages, ensuring supply of quality dairy products in urban as well as rural areas.

The Indian dairy industry has been witnessing an impressive growth for the past few years on back of rising milk production. It is estimated that the milk production will increase in the country at a compound annual growth rate (CAGR) of around 4% during 2011-2015.