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Healthy indulgence dominating innovative dairy products market
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Wednesday, 01 April, 2026, 16 : 00 PM [IST]
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Dr Prashant Sahni
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Milk and milk-based products continue to be our constant companion for a healthy and comforting nutrition, that tend to lace and pass on our cultural food habits across the generations. The spread of artisanal cheeses across the globe to the traditional Indian sweetmeats finding their space on international retail shelves; dairy industry has witnessed paradigm shifts in the consumer preferences over the years. The global dairy market size was valued at US$1065 billion in 2024 and is expected to reach US$1762.57 billion by 2032, at a CAGR of 6.50% during the forecast period. Even though there is huge growth in the market share for the dairy-based products, the largest revenue share of 42.98% in 2024 has been witnessed in Asia-Pacific dominated regions for the value-added convenient dairy products whereas European dairy market expected the surge of CAGR of 11.25% during 2025–2032 owing to the rising consumer preference towards plant-based and speciality dairy products. There is equal pressure on the food and dairy industries to breakthrough this rising competition in the dairy sector to counteract the marginal profits by innovating the existing dairy products to align with the current consumer preference for convenient nutrition and healthy indulgence.
Lactose-free dairy
Despite being the largest producer of milk, there is growing apprehension in the consumption of milk in India in urban population as huge demographics grapple with lactose intolerance, particularly the one belonging to the geriatric segment. In India, where a large vegetarian population depends on dairy as a primary source of high-quality protein, lactose-free dairy plays a vital role in making essential nutrition accessible to all. Amul and Provilac lead India’s lactose-free dairy market, offering milk treated with lactase enzyme for easy digestion while retaining protein, calcium, and vitamins. Amul’s product is available nationwide in 250?ml packs, while Provilac targets metro cities like Mumbai, Pune, Hyderabad, Jaipur, and Delhi NCR. Emerging brands like Zumi Foods offer ready-to-drink flavoured lactose-free milk in cities such as Bengaluru, Hyderabad, and Chennai.
Plant-based dairy alternatives
Approximately 9% of India’s population has adopted a vegan lifestyle. Plant-based dairy products offer lactose-free dairy substitutes, often enriched with health benefiting compounds that provide additional nutraceutical benefits, supporting digestion, immunity, and overall wellness. Among plant-based dairy products, packaged soy and almond milk are the most popular, followed by plant-based cheese, oat milk, and plant-based yogurt. The Indian plant-based dairy products market was valued at approximately US$2.5 billion in 2024 and is projected to nearly double to US$4.9 billion by 2030, growing at an estimated CAGR of around 12% between 2025 and 2030. Top players in plant-based dairy alternatives include Danone S.A., Nestle S.A., ProSoya Foods, Raw Pressery, The Hershey Company, Urban Platter, Bio Nutrients (India) Pvt. Ltd., Hindustan Unilever, Califia Farms, GoodMylk, Pacific Foods, Sofit, Epigamia, ALT Foods and 1.5 Degree. Hybrid dairy foods that combine traditional dairy with plant-based ingredients are being explored largely at the research and pilot level, with limited commercial presence to date.
Probiotics
In India, probiotics are gaining popularity mainly in urban population and among the youth, as consumers increasingly seek products that support gut health and boost immunity. Even though probiotic dairy products have been in Indian market from quite substantial time, recently many players have entered the probiotic market and include key players like Heritage Foods, Nestle, Milkmantra, Yakult Danone, Milky Mist Dairy Food Limited, Mother Dairy and Dr. Reddy’s Laboratories Limited. The Indian probiotic market is expected to grow at a CAGR of around 15.62% between 2024 and 2027, reaching approximately US$12.2 million by the end of the period. However, the substantial share of market faces challenges due to a lack of standardisation and transparency regarding the strains used and colony forming units (CFUs), which can impact the efficacy of probiotic dairy products. In addition to conventional probiotic beverages, Indian consumer is now moving towards the consumption of specialty probiotic dairy products with huge focus on aforesaid lactose-free and vegan probiotic categories.
High protein dairy ingredients and protein-enriched products
The global milk protein market was approximately US$14.5 billion in 2025 and is projected to grow to US$23.9 billion by 2033 at CAGR of 6.5% between 2026 and 2033. Milk protein ingredients are not only a valuable source of high-quality nutrition, offering proteins with good biological value and a balanced amino acid profile, but they also function as versatile functional additives owing to excellent water binding, emulsification, and foaming, that can enhance the texture, stability, and overall quality of food products, improving product characteristics across a wide range of applications. Rising consumer focus on muscle health, weight management, and active lifestyle is driving the increase in manufacturing of protein powders, ready-to-drink beverages and nutritional bars. Additionally, dairy proteins are preferred over plant proteins in protein-enriched beverages due to their superior solubility, ability to form clear beverages, and fewer technological challenges related to viscosity and settling, making them easier to formulate and are more appealing to the consumers.
Next frontier of dairy innovation
Despite the remarkable growth and diversification of the dairy market, several areas of innovation remain largely untapped and are still in the research or experimental stage. These include herb-infused dairy products, dairy formulations with added vegetable powders or microalgae, and 3D printed dairy sweetmeats, which combine technology with customised nutrition and design. While these concepts have not yet reached widespread commercial production, they represent the next frontier for dairy innovation, promising to redefine taste, functionality, and consumer experience.
(The author is an assistant professor at College of Dairy and Food Technology, Agriculture University, Jodhpur. He can be contacted at ftech.sahni@gmail.com)
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