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The India - Flavored Milk Market size is projected to increase by USD 5.13 billion, at a CAGR of 14.95% between 2023 and 2028
Fruit-flavored milk in India is experiencing remarkable growth, driven by the increasing demand for healthier beverage options. With enticing flavors like mango, strawberry, and banana, fruit milk caters to diverse taste preferences, especially among the younger demographic. Perceived as a nutritious alternative, it combines the goodness of milk with fruit-derived vitamins and antioxidants. The flavored milk market in India benefits from constant innovation, introducing flavors like litchi and guava. Ready-to-drink formats provide convenience to busy consumers, addressing the demand for quick beverage choices. Fruit-flavored milk's popularity among children and teenagers, coupled with strategic diversification by established dairy companies like Adisoy Foods and Beverages Pvt. Ltd., contributes to the market's growth.
The market shows an accelerated CAGR during the forecast period.
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The high nutritional value and high shelf life of flavored milk are notably driving market growth. A significant portion of the Indian population has started focusing on balancing their diet by taking care of their nutritional intake. Therefore, this factor is leading to an increased demand for flavored milk, including nutrition such as calcium, vitamin A, and phosphorus. In addition, flavored milk products often have a higher shelf life than plain milk products because of the reliance on high-temperature pasteurization. Urban Indian consumers have also started using value-added dairy products such as flavored milk, particularly for its convenience and health benefits.
Moreover, the availability of low-sugar as well as fat-free varieties of flavored milk products is expected to result in an increased diabetic and health-conscious population during the forecast period. Flavored milk has more muscle-building protein as compared to juices and sodas. Moreover, chocolate milk has a better combination of carbohydrates and protein, which makes it suitable for post-exercise recovery. This makes flavored milk in India a better post-exercise drink. These factors are expected to increase the demand for flavored milk in India, which will propel the growth of the market during the forecast period.
New product launches in the flavored milk market in India are an emerging trend shaping market growth. To gain a competitive edge in the India - flavored milk market, vendors are strategically launching new products. Parag Milk Foods Ltd. expanded its product portfolio with Go Milkshake in October 2021, offering diverse flavors like strawberry, vanilla, chocolate, and coffee.
Similarly, in June 2020, Mother Dairy introduced a butterscotch-flavored turmeric milk to enhance consumer immunity, addressing the health-conscious population in India. These product launches are instrumental in adding variety to vendors' offerings, fostering competition, and are expected to drive the growth of the market during the forecast period.
Rising cases of lactose intolerance and milk allergies are a significant challenge hindering market growth. Lactose intolerance is the inability to digest lactose, the sugar found in milk, leading to digestive discomfort, while milk allergies involve an immune response to proteins in milk. Lactose intolerance has a high prevalence in India, where approximately 60% of people are lactose intolerant. The growing prevalence of lactose intolerance and milk allergies narrows the potential consumer base for traditional dairy-based flavored milk. Individuals with these conditions may seek alternative beverages, limiting the flavored milk market in India reach.
Moreover, manufacturers must invest in clear and comprehensive allergen-free labeling to reassure consumers and comply with regulations, adding potential costs and complexities. The health-conscious trend is driving consumers to explore alternative, non-dairy options perceived as healthier. This inclination is fueled by the association of dairy with digestive discomfort for those with lactose intolerance or allergies. Thus, the rising prevalence of lactose intolerance and milk allergies will reduce the demand for flavored milk in India and will hamper the growth of the market during the forecast period.
Offline channels, such as hypermarkets, supermarkets, and specialty stores sell flavored milk. Supermarkets dominate the market because of their large size and proximity to customers. They also offer privileges such as special offers and customer loyalty programs for regular customers. In addition, they provide discounts and upmarket products to meet the needs of various types of customers. Customers purchase products from hypermarkets because they are convenient to shop in and stock a wide assortment of flavored milk under one roof. Some prominent hypermarket chains in India are Hypercity, Big Bazar, and Reliance Fresh. The opening of new stores in India by hypermarkets offering flavored milk, such as Big Bazar and Hypercity, are expected to increase the sales of flavored milk during the forecast period.
The market share growth by the chocolate segment will be significant during the forecast period. The growth of the chocolate segment of the flavored milk market in India is mainly driven by increasing health awareness among consumers, which has led to the high demand for chocolate flavored milk. Key vendors offering chocolate-flavored milk in India are Nestle and Parag Milk, among others
The chocolate segment was the largest and was valued at USD 1.49 billion in 2018.
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Chocolate boosts the flavor profile of dairy products, including flavored milk. The bitter taste of chocolate made from cocoa complements the sweet and bland taste profile of flavored milk well. An increasing number of consumers prefer flavored milk made with cocoa and chocolate ingredients, owing to health benefits. For instance, cocoa is rich in antioxidants, which help in reducing cell damage and thereby are beneficial in preventing the risk of heart diseases. Moreover, flavanols in cocoa beans help lower blood pressure and improve vascular function. Thus, owing to health benefits and the increasing launch of new products will propel the growth of the market through the chocolate segment during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including Adisoy Foods and Beverages Pvt. Ltd., Arla Foods amba, CavinKare Pvt. Ltd., G.K. Dairy and Milk Products Pvt. Ltd., Government of Karnataka, Gujarat Cooperative Milk Marketing Federation Ltd., Gujarat Food Web, Heritage Foods Ltd., Inner Mongolia Yili Industrial Group Co. Ltd., Kwality Ltd., Meiji Holdings Co. Ltd., Mother Dairy Fruit and Vegetable Pvt. Ltd., Nestle SA, Parag Milk Foods Ltd., Purisons Group, The Hershey Co., and The Tamil Nadu Dairy Development Corp. Ltd.
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research and growth report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
India Flavored Milk Market Scope |
|
Report Coverage |
Details |
Page number |
146 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.95% |
Market Growth 2024-2028 |
USD 5.13 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
13.8 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adisoy Foods and Beverages Pvt. Ltd., Arla Foods amba, CavinKare Pvt. Ltd., G.K. Dairy and Milk Products Pvt. Ltd., Government of Karnataka, Gujarat Cooperative Milk Marketing Federation Ltd., Gujarat Food Web, Heritage Foods Ltd., Inner Mongolia Yili Industrial Group Co. Ltd., Kwality Ltd., Meiji Holdings Co. Ltd., Mother Dairy Fruit and Vegetable Pvt. Ltd., Nestle SA, Parag Milk Foods Ltd., Purisons Group, The Hershey Co., and The Tamil Nadu Dairy Development Corp. Ltd. |
Market dynamics |
Parent market trends and analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Flavor
7 Market Segmentation by Distribution Channel
8 Market Segmentation by Type
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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