What’s Stirring-up Dairy Sector?

In the past few years, in line with the growth of the startup ecosystem in India, the number of food startups has also increased. In fact, the growth of the internet, mobile usage, and e-commerce have contributed immensely to the growth of food startups in India.

Adding to it, first launched in 2020 by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Startup India initiative, the National Startup Awards has come up as the perfect platform to recognise and promote the growth of outstanding startups that add value to the economy via innovative solution-based practices and boosting employment. 

Amongst others, dairy startups are also increasing gradually in number in our country. According to Sathguru Management Consultants, milk products are the second-largest category to gain investments into startups in the last five years. These dairy startups are inventing ideas and bringing fresh offerings into the market every month, as per the changing environment.

While adapting to the changing dynamics, entrepreneurs are observing the market transformations and exploring the evolving business opportunities in the field. One such recent change is the preference towards plant-based options.

Plant-based milk users in India claim that they will continue using both animal-derived and plant-based milk in the future. In fact, 90 per cent of them (plant-based milk users) have also consumed animal-derived dairy milk in the past 12 months. This clearly shows the potential for plant-based dairy to grow alongside animal-derived dairy consumption and not instead of it. 

Within plant-based milks, approximately 40 per cent of users have used more than one type of plant-based milk in the past few months showcasing the consumers’ need for variety and the potential of the plant-based dairy category in offering the same. With specific drivers of purchase, usage patterns and growth potential, plant-based milks are emerging as a great opportunity for the packaged milk industry and an exciting area of innovation for both the industry and the consumers.

“Dairy is a major economic engine for India. With a groundswell of entrepreneurship, research from eminent Indian universities in plant-based dairy foods utilising our indigenous crops such as millets, and growing demand for these products, plant-based dairy foods show promise to be a high-growth portion of that portfolio and benefit farmers and consumers alike”, says Varun Deshpande, Managing Director, Good Food Institute India.

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Mansi Jamsudkar

(mansi.jamsudkar@mmactiv.com)

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