Dairy Industry in Andhra Pradesh to Reach INR 1,367.2 Billion by 2033, Fostered by Rising Consumption of Dairy Products

February 12, 2025 | Food & Beverages

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IMARC Group’s latest report, titled “Dairy Industry in Andhra Pradesh: Market Size, Growth, Prices, Segments, Cooperatives, Private Dairies, Procurement and Distribution,” finds that the dairy industry in Andhra Pradesh reached a value of INR 713.9 Billion in 2024. Dairy refers to a high-value agricultural commodity that involves a labor-intensive production process. The dairy industry mainly comprises harvesting and processing milk from various animals, including cows, buffaloes, goats, sheep, horses, or camels, for human consumption. It produces a range of dairy products, such as liquid milk, butter, ghee, paneer, yogurt, cream, curd, and cheese. These products are rich in calcium, protein, zinc, carbohydrates, potassium, riboflavin, magnesium, and vitamins A, D and B12. Consequently, dairy products are gaining popularity in Andhra Pradesh as they promote body growth, build and repair muscle tissues, strengthen bones, and regulate blood pressure levels. At present, Andhra Pradesh represents one of the most advanced states in animal husbandry activities and the third-largest dairy market in India, as it has some of the richest livestock resources.

Dairy Industry in Andhra Pradesh Trends:

The increasing consumption of dairy products due to the shifting consumer preferences from meat toward dairy items for their daily protein intake represents the primary factor driving the market growth. Besides this, the elevating sales of ready-to-eat (RTE) foods, such as frozen desserts, butter, milk powder, and ice creams, owing to the inflating consumer expenditure capacities and rapid urbanization, has catalyzed market growth. Additionally, the Government of India (GOI) is taking various favorable initiatives to promote the development of the dairy industry in Andhra Pradesh. For instance, three projects have been approved in Andhra Pradesh under National Programme for Dairy Development (NPDD) with a total outlay of Rs.3242.60 lakh (including a central share of Rs.2883.97 lakh). Furthermore, the State government is encouraging the establishment of mini dairy units with five milch animals each through subsidies on the animals. In line with this, the State government has signed a Memorandum of Understanding (MoU) with Amul Diary to improve the capacities of cooperative dairies in the State, which is positively influencing the market growth. Moreover, the implementation of the National Dairy Plan (NDP) of the National Dairy Development Board (NDDB) in the major milk producing States, such as Andhra Pradesh, to offer rural milk producers’ better access to the organized milk processing sector has propelled the market growth. Other factors, including the establishment of new bulk cooling and processing plants, escalating demand for organic and clean-label dairy products, technological advancements and extensive research and development activities, are also creating a favorable market outlook. Looking forward, IMARC Group expects the market value to reach INR 1,367.2 Billion by 2033, expanding at a CAGR of 7.49% during 2025-2033.

Market Summary:

Based on the product type, the market has been classified into liquid milk, ghee, curd, paneer, ice cream, table butter, skimmed milk powder, frozen/flavored yogurt, fresh cream, lassi, buttermilk, cheese, flavored milk, UHT milk, dairy whitener, sweet condensed milk, infant food, and malt-based beverages. Amongst these, liquid milk represents the largest market segment in Andhra Pradesh.
The competitive landscape of the market has also been analyzed, with some of the key players being Vijaya (Andhra Pradesh Dairy Development Cooperative Federation Ltd), Tirumala Milk Products Limited India Ltd, Heritage Foods India Ltd, Dodla Dairy Ltd., and Creamline Dairy Products Ltd.

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Dairy Industry in Andhra Pradesh to Reach INR 1,367.2 Billion by 2033, Fostered by Rising Consumption of Dairy Products

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