India Milk Alternatives Market Outlook to 2028

India Milk Alternatives Market Outlook to 2028

• The India Milk Alternatives Market is valued at USD 855 million as per our historic 5 year analysis, driven by increasing consumer demand for plant-based milk due to the growing awareness of lactose intolerance and vegan diets. The market has been propelled by a shift toward healthier and more sustainable alternatives, with strong growth projected in the coming years. With an annual increase in demand, market growth is supported by the shift in dietary patterns and health concerns among urban and rural populations alike.

• India is dominated by key cities like Delhi, Mumbai, and Bangalore, where a large urban population is adopting plant-based diets. These cities are home to the majority of plant-based milk manufacturers and distributors. The high concentration of health-conscious consumers in these cities, alongside greater disposable income, supports the market's rapid expansion. The dominance of these regions is also influenced by better retail infrastructure and distribution networks, which enable wider accessibility.
• In 2024, the Food Safety and Standards Authority of India (FSSAI) has implemented regulations regarding milk analogues, also known as plant-based milk alternatives. These regulations aim to prevent misinterpretations by ensuring accurate usage of dairy terminology. This initiative aims to ensure the accurate usage of dairy terminologies and safeguard consumers against potential misinterpretations or misconceptions.

India Milk Alternatives Market Segmentation

• By Source : The India Milk Alternatives Market is segmented by source into soy, almond, coconut, and others. Among these, the soy-based milk segment holds the highest market share. Soy milk is popular due to its well-established presence in the Indian market, driven by the familiarity of soy as an ingredient and its broad nutritional profile. It is perceived as the most versatile plant-based milk alternative and is widely used in cooking, coffee, and smoothies.

• By Flavour : The India Milk Alternatives Market is also segmented by flavour into flavoured and unflavoured options. Flavoured milk alternatives, such as chocolate and vanilla soy or almond milk, dominate the market. The trend is primarily driven by consumer preferences for novelty and taste variety, especially among younger generations. Flavoured alternatives cater to a wider audience, including children and those seeking to replace traditional dairy beverages.

Competitive Landscape

The India Milk Alternatives Market is characterized by intense competition among both global and local players. Leading companies such as Epigamia, Urban Platter dominate the market. These players are capitalizing on consumer shifts towards plant-based products, leveraging strong distribution channels and brand recognition. The market has also seen the emergence of local players like Raw Pressery, which offers region-specific plant-based milk alternatives, catering to growing consumer demand for more localized and natural options.

India Milk Alternatives Industry Analysis

Growth Drivers

• Rising Health Consciousness Among Consumers: In 2024, over 74% of Indian respondents had consumed plant-based milk alternatives such as soy, rice, almond, or oat milk. This high adoption rate underscores a significant shift towards healthier dietary choices, driven by increased awareness of the health benefits associated with plant-based diets.
• Growth of Vegan and Plant-Based Diet Movements: India's vegan and plant-based diet movement is growing rapidly, driven by health, ethical, and environmental concerns. Nearly 60 to 65% Indians are lactose intolerant, fueling demand for milk alternatives like almond and coconut milk. Additionally, 63% of Indian consumers prefer plant based alternatives over meat. Millennials and Gen Z are key adopters due to increased health awareness and eco-consciousness.
• Increasing Availability of Specialized Retail Channels : The expansion of modern retail formats, including supermarkets and hypermarkets, has enhanced the accessibility of plant-based products. This development aligns with the growing consumer demand for diverse and convenient shopping options, facilitating the wider availability of specialized dairy alternatives. It enables wider availability of specialized dairy alternatives and makes them more accessible to a larger audience.

Challenges

• High Price Compared to Traditional Dairy Products : Demand for Indian plant based milk is increasing.
• Limited Shelf Life of Some Milk Alternatives : Certain plant-based milks have a shelf life of 9 to 12 months, which is shorter compared to traditional dairy products. This limitation poses distribution and storage challenges, particularly in regions lacking adequate cold chain infrastructure, affecting product availability and consumer access.

Future Outlook

Over the next few years, the India Milk Alternatives Market is expected to experience robust growth. Driven by increasing consumer health awareness, demand for lactose-free and vegan-friendly products, and technological advancements in product innovation, this market is poised for significant expansion. Government initiatives promoting sustainable food choices and growing retail distribution networks will further accelerate market growth.

Opportunities

• Expanding Distribution Channels in Tier 2 and Tier 3 Cities : Plant-based dairy product manufacturers are expanding distribution networks to tier 2 and tier 3 cities like Indore, Surat, Jaipur, Bhopal, and Mysuru which offersignificant growth potential. These cities show rising health consciousness and demand for plant-based products, providing a promising market for milk alternatives.
• Collaborations with Established Food Brands for Cross-Promotion : Established food brands' entry into the plant-based segment, such as ITC's launch of Wonderz Milk, demonstrates the potential for cross-promotion. Collaborations can leverage existing brand equity to promote milk alternatives effectively, expanding their reach and consumer acceptance.