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Transformation in India's Organic Dairy Industry
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Wednesday, 14 August, 2024, 14 : 00 PM [IST]
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Shashi Kumar
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The organic sector in the country has been experiencing growth in the past few years. With increased awareness in consumers and a visible inclination towards health and the environment, there is a significant shift towards organic products. Out of the various organic products, organic dairy has been gaining a lot of traction lately. People are increasingly choosing organic milk and other dairy products as they want healthier, and more nutritional eating alternatives.
Growth of the Organic Dairy Industry
Reports suggest the size of the Indian organic milk market was pegged at Rs 10,255.2 million in 2023. Further, IMARC Group expects the market to reach Rs 86,468.7 million by 2032, growing at a CAGR of 25.9% during the period 2024-2032. The growth is driven by growing consumer awareness of the benefits of organic dairy, government support, and efforts from organic dairy brands to raise awareness.
In organic dairy farming, a lot of emphasis is given to sustainability, welfare, and organically reared feeding. Organic milk is free from synthetic pesticides, antibiotics, or genetically modified organisms. All these aspects make organic dairy products of higher nutritional value and safer, hence making them a desirable choice for health-conscious customers.
Trends and Innovations:
There have been some trends and innovations which are driving the organic dairy industry in India.
Farm to table: The modern consumer is well aware and cautious of what goes on in their bodies and wants to know their food source and origin. This is where the farm-to-table movement comes into the picture. Organic dairy brands nowadays make use of it by including transparency in supply chains among their products. Companies are also taking initiatives by providing detailed information about their farms and practices, thereby making sure that consumers know exactly where their milk comes from.
Home Delivery Services: Home delivery services are a major driver for organic dairy. A lot of brands have shifted and are utilising the business model of direct-to-consumer in which fresh organic milk and other dairy products are delivered directly to their doorsteps. This model helps in building direct relationships with consumers.
Diversification of Products: The organic dairy industry has diversified from just organic milk into several products in the market like organic butter, cheese, yogurt, and ghee. This diversification caters to the increasing demand for organic food across various categories of dairy products.
Technological Advances: Technological advancements are also contributing significantly to the organic dairy sector. From techniques of precision farming to blockchain for supply chain transparency to the milking of cows without human intervention, these innovations in technology are making organic dairy farming more efficient.
Sustainability Practices: Sustainability is deeply rooted in organic farming because it avoids the use of synthetic chemicals. In addition to that, a lot of dairy brands are also practising using renewable energy sources, conservation practices, and efficient waste management techniques to enhance their environmental performance.
Challenges and Future Prospects
Even though the organic dairy industry is expanding in India, it faces several challenges. The cost of organic feed and lack of access to organic agricultural inputs is one of the major hurdles faced by farmers. However, with rising consumer demand and supporting government initiatives, these issues are gradually being resolved.
As long as consumers prioritise health and sustainability, the demand for organic dairy products continues to rise. With continuous innovation in organic farming practices, this sector is definitely going to reach new heights in times to come.
(The author is co-founder and CEO at Akshayakalpa Organic)
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