With an annual output of 130 MT, India is the largest producer of the milk in the world. It also has the largest milk-producing animal population of over 118 million. According to the National Dairy Development Board, demand for milk is expected to increase at a compound annual growth rate or CAGR of 5% from 138 million tonnes in 2014 to 200 million tonnes in 2022.
The move towards value added dairy products, offer higher margins than liquid milk for the Indian Milk Industry. According to a report by CARE Ratings, the share of value added products in the milk and milk derivatives segment in India is growing at around 25% every year and is expected to grow at the same rate until 2019-20.
Almost 75-80% of the Indian dairy market is still unorganized and even in the organized sector, large part of the market is occupied by liquid milk. However, there is a clear shift from unorganized to organized industry and also a shift from liquid milk to products.
INDIAN DAIRY INDUSTRY AT A GLANCE IN 2014 - 2015 
