PLANT-BASED DAIRY IN INDIA - A GROWTH SECTOR IN THE MAKING

The plant-based dairy industry in India is no longer a niche—it’s a booming movement reshaping the way Indians consume and think about food. As reported by MarkNtel, the market is valued at $2.5 billion in 2024, the sector is projected to nearly double to $4.9 billion by 2030, with an impressive CAGR of 12%. But what’s driving this explosive growth? Let’s dive into the trends, stats and consumer habits behind this plant-based transition.

Why the Surge in Plant-Based Dairy?

India, home to a rich culinary heritage rooted in dairy, is now embracing a new era of plant-based alternatives. This shift stems from a combination of health awareness, environmental concerns and ethical considerations.

Rising Veganism

Veganism is no longer a fringe lifestyle; it’s going mainstream. MarkNtel also reports that around 9% of India’s population identifies as vegan, with cities like Ahmedabad and Bangalore emerging as vegan hotspots. This cultural shift is powered by growing awareness about animal welfare, the environmental impact of dairy farming and personal health benefits.

Health & Lactose Intolerance

An estimated 60-65% of South Asians are lactose intolerant as stated in a report from imarc, making plant-based dairy a natural choice. Consumers are swapping traditional milk for almond, soy and oat alternatives to avoid digestive discomfort while enjoying the same creamy textures and flavours.

Sustainability Matters

India’s younger, eco-conscious generation is deeply concerned about the environmental footprint of dairy farming, which is linked to greenhouse gas emissions and water overuse. Opting for plant-based dairy aligns with their desire to contribute to a greener planet.

Current Trends Impacting the Market

Premium products, consumer preferences and global influence are all playing their part in shaping the dynamic dairy market across India. In the coming years, a mix of factors will drive the sector forward including:

Diversification of Products

Long gone are the days of plain soy milk. Now, plant-based dairy spans everything from creamy oat and almond blends to rich cashew and coconut options. Shelves boast an ever-growing array of vegan cheeses, yoghurts and indulgent ice creams that rival their traditional counterparts. Brands exhibiting at Gulfood 2025 such as Milky Mist and Farmer Fresh are leading the charge, offering everything from coconut yoghurt, ready-to-drink fusion shakes, flavoured cheese spreads and almond butter to name a few.?

Premiumisation

Indian consumers aren’t just looking for alternatives—they want premium ones. Products with clean labels, fortified nutrients and enticing flavours are commanding attention and higher price points.

Rising Awareness & Availability

Retailers and e-commerce giants are making plant-based options accessible to all. Grocery aisles, cafes and even quick-service restaurants are embracing this trend. Domino’s and Starbucks, for example, have introduced plant-based cheese and milk options on their menus, catering to the growing demand.

Start-Up Boom

India’s start-up ecosystem is thriving in this space, with companies like GoodDot and Plant Veda raising significant funding to innovate and scale. These brands are tapping into global trends while tailoring their products to suit Indian palates and dietary habits.

Discover the Cream of the Cop at Gulfood’s 30th Edition

The future of India’s plant-based dairy market is bright and brimming with potential. Government support, like the FSSAI’s efforts to regulate and standardize plant-based food labeling, is boosting consumer confidence. Meanwhile, increasing disposable incomes and evolving lifestyles will continue to propel the market forward.

Whether it’s the velvety richness of almond milk in a latte or the decadence of vegan ice cream, India is ready to welcome plant-based dairy with open arms. For brands, the message is crystal clear: adapt, diversify and lead the charge, because this shift is far from over — it’s only just beginning.

Be it expanding your dairy portfolio, forging new partnerships or staying ahead of industry trends, Gulfood 2025 is your gateway to a forward-thinking community driving the future of dairy.

Mark your calendars! 17–21 February 2025 at Dubai World Trade Centre — where every moment is churned into opportunity. ?? Register now at www.gulfood.com.