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Drinking Milk Products in India
Drinking Milk Products in India
INDIA
Euromonitor International
November 2015
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TRENDS
In 2015, UHT (ultra high temperature) milk was becoming popular amongst urban consumers
due to its convenience without any compromise on nutrition or quality factors such as hygiene
and cleanliness. Most of the manufacturers such as Nestl and Gujarat Co-operative Milk
Marketing Federation have expanded their product portfolios, keeping in mind consumers
needs and preferences of low fat milk.
Increasing supply of flavoured milk products in various retail formats across India and also
increasing penetration into smaller cities supported the growth in 2015 of 15%, which is
similar to the review period CAGR. The increasing health and hygiene awareness across
India and also urban consumers shifting from unpackaged milk to packaged milk and from
traditional packaged milk to Tetra Pak packaging and UHT milk pouches were supporting the
growth.
Flavoured milk drinks continued to be the fastest-growing category with a value growth of
25% in 2015. Increasing penetration into smaller cities and movement from glass bottles to
brick liquid carton packaging by most manufacturers also supported the growth of flavoured
milks in 2015.
Average unit prices increased slightly, mainly because of an increase in milk procurement
costs and also an increase in packaging costs.
Flavoured milk drinks are becoming popular amongst middle-class and upper-class
consumers. With the introduction of exciting flavours such as butterscotch, mango, strawberry
and elaichi, consumers are consuming flavoured milk drinks during hot weather in the
summers, and consumers prefer to drink chilled flavoured drinks instead of other soft drinks.
A few state governments in India such as the Karnataka government provide free milk to
schoolchildren. However, this does not have any impact on retail sales of drinking milk
products.
Fresh milk is available in various types such as toned milk, skimmed milk and full cream milk,
which have a low shelf life and are distributed door to door by delivery persons every morning.
However, UHT milk is consumed more in metropolitan cities such as Mumbai, Delhi and
others, as mainly due to fast-moving lifestyles, most of the working consumers have less time
to go to kirana shops or milk depots to buy milk every day. These consumers mostly prefer
UHT milk which has long shelf life and convenience.
Non-dairy milk alternatives in India are still in a nascent stage and only soy based milk drinks
are available in the major cities of India.
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Unpackaged milk continued to account for the bulk of milk consumption in India in 2015,
which is excluded from report coverage. However, the majority of consumers, especially in
rural areas, continued to prefer unpackaged milk, mainly because of the lack of availability of
branded milk and lower price when compared to packaged milk. In addition, consumers
preferred unpackaged milk because it was perceived to be healthier and more nutritious than
packaged milk. However, consumers continued to switch to packaged milk, mainly due to
safety and hygiene concerns.
COMPETITIVE LANDSCAPE
Gujarat Co-operative Milk Marketing Federation maintained the lead with a value share of
15% in 2015. The companys long-established presence, wide distribution network and strong
brand image that it built for its brand Amul helped it maintain the leadership for many years.
Furthermore, increasing distribution into smaller cities of India helped the company to
maintain its leadership in 2015.
Karnataka Cooperative Milk Producers Federation saw the biggest increase in value share in
drinking milk products, which is dominated by cooperative societies. The increase in
penetration to other states from Karnataka helped the company to gain shares over the other
players.
All milk federations in India have maintained a low pricing strategy as compared to private and
international players. Furthermore, international manufacturers such as Danone Foods &
Beverages have provided refrigerators where they can keep their own brands in stores as
consumers are now looking for hygiene and cleanliness.
A few international companies such as Lactalis and Danone forayed into India to tap into the
growing sales of drinking milk products. Many of them partnered with local Indian companies
to leverage their knowledge of distribution and the products themselves. For instance, Lactalis
acquired Tirumala Milk Products to make a foray into Indian dairy. However, drinking milk
products is dominated by the domestic players with more than 99% retail value share as of
2015.
No key launches by any of the manufacturers impacted drinking milk products in 2015.
Only a few cooperative societies are advertising through various media channels to promote
their products as packaged milk products that are healthy. However, no new advertisement
campaigns were noticed by any of the players in 2015 for drinking milk products.
There were no new packaging innovations which impacted drinking milk products in 2015.
Most drinking milk products, especially fresh milk and flavoured milk, were economically
priced and within the reach of consumers. However, a few products such as soy milk and
UHT milk were perceived as a bit more expensive, and the consumption of such products
remained restricted to only a few consumers in urban areas.
PROSPECTS
There is increasing shift of consumers from unpackaged to packaged milk, mainly because of
its assurance of consistent quality, safety and hygienic milk all the year round. Furthermore,
increasing presence of cooperatives and private players in milk procurement will provide
healthy competition and also attract consumers towards packaged milk.
Drinking milk products value sales are expected to see a value CAGR of 6% at constant 2015
prices over the forecast period. The growth during the forecast period will be mainly driven by
consumers switching from loose milk to fresh packaged milk. Furthermore, increasing
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availability of packaged milk in smaller SKUs such as 200ml and also longer shelf-life packs
such as UHT milk will support the growth during the forecast period.
Flavoured milk drinks will outperform all other drinking milk products with a value CAGR of
13% at constant 2015 prices during the forecast period. The forecast growth is mainly
attributed to increasing penetration of flavoured milk drinks into smaller cities, and new pack
types such as metal tins and Tetra Paks with smaller SKUs will also fuel the growth.
The average unit price will increase slightly, mainly because of an expected increase in milk
procurement prices during the forecast period. Furthermore, increasing uptake of products
with long shelf life such as UHT milk will also lead to an average unit price increase.
Milk cooperatives will introduce more SKUs under Tetra Pak and UHT packaging to have
additional competition against international manufacturers and private label players.
Larger numbers of private label players such as MTR and Maiyas from South India will
increase their ranges of flavoured milk drinks with local tastes which suit the consumers
during the forecast period.
CATEGORY DATA
Table 1
'000 tonnes
2010
2011
2012
2013
2014
2015
110.2
110.2
135.8
135.8
162.9
162.9
191.9
191.9
223.3
223.3
263.7
263.7
11,152.6
11,152.6
61.0
8.1
11,890.5
11,890.5
62.9
9.0
12,608.8
12,608.8
64.6
9.8
13,314.7
13,314.7
66.0
10.7
14,086.4
14,086.4
67.3
11.7
14,998.1
14,998.1
68.6
12.8
8.1
-
9.0
-
9.8
-
10.7
-
11.7
-
12.8
-
11,331.9
12,098.2
12,846.1
13,583.3
14,388.7
15,343.2
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Table 2
INR million
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2010
2011
2012
2013
2014
2015
7,312.1
7,312.1
9,652.6
9,652.6
12,615.6
12,615.6
16,347.2
16,347.2
20,680.7
20,680.7
25,774.2
25,774.2
290,109.1
290,109.1
334,175.0
334,175.0
385,313.6
385,313.6
448,129.7
448,129.7
515,305.5
515,305.5
593,049.5
593,049.5
- Goat Milk
Powder Milk
Non-Dairy Milk
Alternatives
- Soy Drinks
- Soy Milk
- Other Non-Dairy Milk
Alternatives
Drinking Milk Products
Source:
Passport
11,814.3
552.2
13,143.0
668.6
14,734.3
808.7
16,621.8
975.8
18,617.5
1,160.5
20,631.3
1,373.2
552.2
-
668.6
-
808.7
-
975.8
-
1,160.5
-
1,373.2
-
309,787.6
357,639.1
413,472.3
482,074.6
555,764.1
640,828.2
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Table 3
% volume growth
2014/15
2010-15 CAGR
2010/15 Total
18.1
18.1
6.5
6.5
1.9
8.9
8.9
6.6
19.1
19.1
6.1
6.1
2.4
9.5
9.5
6.2
139.2
139.2
34.5
34.5
12.4
57.2
57.2
35.4
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Table 4
2014/15
2010-15 CAGR
2010/15 Total
24.6
24.6
15.1
15.1
10.8
18.3
18.3
15.3
28.7
28.7
15.4
15.4
11.8
20.0
20.0
15.6
252.5
252.5
104.4
104.4
74.6
148.7
148.7
106.9
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Table 5
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Company
2011
2012
2013
2014
2015
Gujarat Co-operative
Milk Marketing
Federation Ltd
Mother Dairy Fruit &
Vegetable Pvt Ltd
Karnataka Cooperative
Milk Producers
Federation Ltd
Tamil Nadu Cooperative
Milk Producers
Federation Ltd
Andhra Pradesh Dairy
Development Cooperative
Federation Ltd
Maharashtra Rajya
Sahakari Dudh Mahasangh
Maryadit
Rajasthan Co-operative
Dairy Federation Ltd
Kerala Cooperative Milk
Marketing Federation Ltd
Hatsun Agro Products Ltd
Bihar State Cooperative Milk
Producers Federation Ltd
Heritage Foods Ltd
Punjab State
Cooperative Milk
Producers Federation
Ltd, The
Dairy Development
Department Maharashtra
State
VRS Foods Ltd
Madhya Pradesh State
Cooperative Dairy
Federation Ltd
Haryana Dairy
Development Cooperative Federation Ltd
Orissa State
Cooperative Milk
Producers Federation
Ltd, The
Metro Dairy Ltd
Delhi Milk Scheme
Nestl India Ltd
Britannia Dairy Pvt Ltd
Amrit Corp Ltd
Godrej Hershey Foods &
Beverages Ltd
Madhya Pradesh Glychem
Industries Ltd
Amrit Banaspati Co Ltd
Others
Total
14.6
14.5
14.3
14.5
14.7
13.0
12.7
12.3
11.8
11.6
8.0
8.1
8.2
8.2
8.4
7.2
7.0
6.6
6.5
6.4
3.7
3.7
3.8
3.7
3.7
3.5
3.5
3.6
3.6
3.7
3.5
3.5
3.5
3.4
3.4
3.0
3.1
3.0
3.0
2.9
2.3
2.3
2.3
2.3
2.4
2.3
2.4
2.3
2.4
2.4
2.1
2.0
2.2
2.0
2.3
2.0
2.3
2.0
2.3
2.0
1.9
1.9
1.9
1.8
1.8
1.2
1.2
1.2
1.2
1.2
1.2
1.2
1.3
1.2
1.2
1.0
1.0
1.0
1.0
1.0
0.9
0.9
0.9
0.9
0.9
0.9
0.6
0.3
0.2
0.1
0.1
0.9
0.6
0.3
0.2
0.1
0.1
0.9
0.6
0.3
0.2
0.1
0.1
0.9
0.5
0.3
0.2
0.2
0.1
0.9
0.5
0.3
0.2
0.2
0.1
0.1
0.1
0.1
0.1
0.1
26.2
100.0
26.3
100.0
27.2
100.0
27.7
100.0
27.6
100.0
Source:
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Table 6
Passport
Mother Dairy
Nandini Toned Milk
Aavin
Vijaya
Mahanand
Saras
Milma Toned
Amulspray
Sudha
Heritage
Verka
Aarey
Nandini
Paras
Sanchi
Komatha
Arokya
Vita
Omfed
Metro Dairy
DMS
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Company
2012
2013
2014
2015
Gujarat Co-operative
Milk Marketing
Federation Ltd
Mother Dairy Fruit &
Vegetable Pvt Ltd
Karnataka Cooperative
Milk Producers
Federation Ltd
Tamil Nadu Cooperative
Milk Producers
Federation Ltd
Andhra Pradesh Dairy
Development Cooperative
Federation Ltd
Maharashtra Rajya
Sahakari Dudh Mahasangh
Maryadit
Rajasthan Co-operative
Dairy Federation Ltd
Kerala Cooperative Milk
Marketing Federation Ltd
Gujarat Co-operative
Milk Marketing
Federation Ltd
Bihar State Cooperative Milk
Producers Federation Ltd
Heritage Foods Ltd
Punjab State
Cooperative Milk
Producers Federation
Ltd, The
Dairy Development
Department Maharashtra
State
Karnataka Cooperative
Milk Producers
Federation Ltd
VRS Foods Ltd
Madhya Pradesh State
Cooperative Dairy
Federation Ltd
Hatsun Agro Products Ltd
Hatsun Agro Products Ltd
Haryana Dairy
Development Cooperative Federation Ltd
Orissa State
Cooperative Milk
Producers Federation
Ltd, The
Metro Dairy Ltd
Delhi Milk Scheme
11.8
11.7
11.9
12.1
12.7
12.3
11.8
11.6
6.8
6.8
6.8
7.0
7.0
6.6
6.5
6.4
3.7
3.8
3.7
3.7
3.5
3.6
3.6
3.7
3.5
3.5
3.4
3.4
2.8
2.7
2.7
2.7
2.8
2.7
2.6
2.5
2.3
2.3
2.3
2.4
2.2
2.0
2.3
2.0
2.3
2.0
2.3
2.0
1.9
1.9
1.8
1.7
1.3
1.3
1.4
1.5
1.2
1.2
1.2
1.2
1.2
1.3
1.2
1.2
1.2
1.1
1.0
1.2
1.2
1.0
1.2
1.2
1.0
1.2
1.2
1.0
0.9
0.9
0.9
0.9
0.9
0.6
0.9
0.6
0.9
0.5
0.9
0.5
Milma
Passport
Britannia
Gagan
Nestl Milk
Sofit
Gagan
Anikspray
Others
Total
Source:
0.3
0.3
0.3
0.3
0.2
0.1
0.2
0.1
0.2
0.1
0.2
0.1
0.2
0.2
0.2
0.1
0.2
0.2
0.2
0.1
26.6
100.0
27.5
100.0
28.0
100.0
28.0
100.0
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Table 7
Store-Based Retailing
- Grocery Retailers
-- Modern Grocery
Retailers
--- Convenience Stores
--- Discounters
--- Forecourt Retailers
--- Hypermarkets
--- Supermarkets
-- Traditional Grocery
Retailers
--- Food/drink/tobacco
specialists
--- Independent Small
Grocers
--- Other Grocery
Retailers
- Non-Grocery Specialists
-- Health and Beauty
Specialist Retailers
-- Mixed Retailers
-- Other Foods NonGrocery Specialists
Non-Store Retailing
- Vending
- Homeshopping
- Internet Retailing
- Direct Selling
Total
Source:
2010
2011
2012
2013
2014
2015
100.0
100.0
5.4
100.0
100.0
5.8
100.0
100.0
6.2
100.0
100.0
6.1
100.0
100.0
6.1
100.0
100.0
6.1
3.1
2.3
94.6
3.5
2.3
94.2
3.8
2.3
93.8
3.8
2.3
93.9
3.8
2.3
93.9
3.8
2.3
93.9
16.1
16.0
15.6
15.6
15.6
15.6
78.5
78.2
78.3
78.2
78.3
78.3
100.0
100.0
100.0
0.0
0.0
100.0
0.0
0.0
100.0
0.0
0.0
100.0
2019
2020
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Table 8
'000 tonnes
2015
Euromonitor International
2016
2017
2018
Passport
263.7
263.7
309.0
309.0
359.1
359.1
412.3
412.3
467.5
467.5
525.8
525.8
14,998.1
14,998.1
68.6
12.8
15,886.1
15,886.1
69.5
13.8
16,737.7
16,737.7
70.2
14.9
17,583.3
17,583.3
71.1
16.1
18,427.2
18,427.2
72.2
17.3
19,275.7
19,275.7
73.4
18.7
12.8
-
13.8
-
14.9
-
16.1
-
17.3
-
18.7
-
15,343.2
16,278.5
17,181.9
18,082.7
18,984.2
19,893.6
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Table 9
INR million
2015
2016
2017
2018
2019
2020
25,774.2
25,774.2
29,595.5
29,595.5
33,809.9
33,809.9
38,160.3
38,160.3
42,590.9
42,590.9
47,300.9
47,300.9
593,049.5
593,049.5
20,631.3
1,373.2
633,209.6
633,209.6
21,161.6
1,500.2
673,063.8
673,063.8
21,587.1
1,625.4
710,828.8
710,828.8
21,975.2
1,752.9
746,713.5
746,713.5
22,333.8
1,884.7
779,323.7
779,323.7
22,624.5
2,016.0
1,373.2
-
1,500.2
-
1,625.4
-
1,752.9
-
1,884.7
-
2,016.0
-
640,828.2
685,466.9
730,086.1
772,717.3
813,522.9
851,265.1
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Table 10
% volume growth
Euromonitor International
2015/16
2015-20 CAGR
2015/20 Total
12.5
12.5
4.6
4.6
-
14.8
14.8
5.1
5.1
-
99.4
99.4
28.5
28.5
-
Powder Milk
Non-Dairy Milk Alternatives
- Soy Drinks
- Soy Milk
- Other Non-Dairy Milk Alternatives
Drinking Milk Products
Source:
Table 11
Passport
1.7
8.0
8.0
4.8
1.4
8.0
8.0
5.3
7.0
46.7
46.7
29.7
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2015/2016
2015-20 CAGR
2015/20 TOTAL
11.1
11.1
4.4
4.4
1.3
7.0
7.0
4.6
12.9
12.9
5.6
5.6
1.9
8.0
8.0
5.8
83.5
83.5
31.4
31.4
9.7
46.8
46.8
32.8
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