Authored By: Sarah
12 Mar 2025

Flavoured Milk Market -India 2024-2028: Trends, Drivers, and Key Players

The flavoured milk market in India is forecast to increase by USD 5.13 billion at a CAGR of 14.95% between 2023 and 2028. The market is experiencing significant growth due to changing consumer preferences for nutritious, convenient, and indulgent beverage options. The demand for premium flavoured milk is particularly driving this trend, with consumers increasingly choosing ready-to-drink, nutrient-rich beverages that offer a combination of convenience and taste. The market is also being reshaped by the rise of eco-friendly packaging, which aligns with the growing preference for sustainable and environmentally-conscious choices among consumers. Additionally, flavoured milk variants, often fortified with calcium and vitamin D, are gaining popularity among coffee and tea drinkers.

Flavoured Milk Market in India 2024-2028

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Flavoured Milk Market Segmentation

By Flavor

  • Chocolate
  • Fruit
  • Vanilla
  • Others

By Distribution Channel

  • Offline
  • Online

By Type

  • Dairy-based
  • Plant-based

By Geography

  • India

Market Dynamics: Drivers, Trends, and Challenges

Drivers

  1. Increased Demand for Premium Flavored Milk: There is a growing preference for premium, high-quality flavoured milk as consumers opt for beverages that are nutritious and convenient.
  2. Health-Conscious Consumption: Increasing awareness about the health benefits of flavoured milk, such as its high calcium content and fortified nutrients, is boosting demand.
  3. Convenience and Accessibility: The availability of ready-to-drink flavoured milk in small, single-serving packaging, especially through supermarkets, convenience stores, and online platforms, adds to its appeal among busy consumers.
  4. Rise of Dairy-Free and Lactose-Free Alternatives: The growth of plant-based alternatives such as soy, almond, and rice milk, along with lactose-free variants, is responding to the dietary preferences and health needs of lactose-intolerant and vegan consumers.

Trends

  1. Eco-Friendly Packaging: Consumers are increasingly seeking sustainable packaging options, such as biodegradable and recyclable materials, as the demand for eco-friendly packaging continues to rise.
  2. Innovation in Flavors: New flavors like banana, coconut, and mango are gaining popularity, providing unique taste experiences that attract a diverse consumer base.
  3. Health and Nutritional Benefits: Flavoured milk products are being fortified with essential nutrients, including phosphorus, vitamin A, vitamin D, and potassium, catering to health-conscious consumers.

Challenges

  1. Lactose Intolerance and Milk Allergies: The prevalence of lactose intolerance and milk allergies in India (affecting around 60% of the population) is limiting the potential consumer base for traditional dairy-based flavoured milk. As a result, plant-based and lactose-free alternatives are increasingly in demand.
  2. Competition from Plant-Based Alternatives: The growing popularity of plant-based milks presents a challenge to traditional dairy-based flavoured milk, forcing manufacturers to innovate and diversify their offerings.

Market Research Overview

The flavoured milk market has witnessed significant growth, driven by evolving consumer preferences for dairy beverages that combine taste with nutritional benefits. The rise of health-conscious beverages has spurred demand for low-sugar flavoured milk and organic flavoured milk, catering to consumers seeking healthier alternatives. Popular variants such as chocolate milk, mango flavoured milk, and strawberry milk continue to dominate, especially among younger demographics, reinforcing the importance of flavoured milk for kids. Additionally, probiotic milk drinks are gaining traction due to their digestive health benefits. Urban areas have seen a surge in ready-to-drink milk consumption, reflecting broader trends in urban dairy consumption, while the rural milk market remains vital for expanding distribution networks. Innovations in flavoured milk packaging also play a crucial role in enhancing convenience and shelf life, contributing to overall dairy market growth.

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Key Players in the India Flavoured Milk Market

  1. Adisoy Foods and Beverages Pvt. Ltd.
  2. Arla Foods amba
  3. CavinKare Pvt. Ltd.
  4. G.K. Dairy and Milk Products Pvt. Ltd.
  5. Government of Karnataka
  6. Gujarat Cooperative Milk Marketing Federation Ltd.
  7. Gujarat Food Web
  8. Heritage Foods Ltd.
  9. Inner Mongolia Yili Industrial Group Co. Ltd.
  10. Kwality Ltd.
  11. Meiji Holdings Co. Ltd.
  12. Mother Dairy Fruit and Vegetable Pvt. Ltd.
  13. Nestle SA
  14. Parag Milk Foods Ltd.
  15. Purisons Group
  16. The Hershey Co.
  17. The Tamil Nadu Dairy Development Corp. Ltd.

Research Analysis Overview

The flavoured milk industry is undergoing rapid transformation, with beverage innovation driving new product developments and market expansion. Companies are increasingly focusing on nutritional milk alternatives to cater to diverse dietary needs while ensuring sustained growth in the flavoured milk retail sector. The rising popularity of dairy-based nutrition is influencing purchasing decisions, particularly in urban markets where convenience and health benefits are primary considerations. Additionally, the growing demand for street-food-inspired dairy beverages is influencing regional preferences, further shaping flavoured milk trends. With advancements in processing technologies and evolving consumer behavior, the sector is poised for continuous expansion, leveraging both traditional and modern retail channels.

 

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