Current Market Scenario & Opportunities – Global Perspective
The global dairy market today is defined by volatility rather than stability. International milk production is growing at a modest 1–1.5% annually, while demand patterns are shifting sharply across regions. Developed markets are witnessing stagnation or decline in liquid milk consumption, offset by growth in cheese, butter, whey proteins, and specialised nutrition. Emerging markets, including India, continue to drive volume growth, but with increasing pressure on margins due to rising input costs and price-sensitive consumers.
India’s domestic dairy demand continues to expand at 5–6% CAGR, supported by population growth, urbanisation, and changing food habits. Per capita milk availability has crossed 460 grams per day, well above global averages. Yet, the market remains heavily skewed toward liquid milk, which absorbs over 50–55% of total production, leaving limited headroom for value optimisation. This structural imbalance exposes processors to cyclical stress, particularly when SMP and butter prices soften globally.
On the global front, price signals remain mixed. SMP prices have seen extended periods of weakness, while butter and ghee have shown relatively stronger fundamentals. For India, which operates largely outside formal global dairy trade, this creates both insulation and opportunity. Exports—currently around USD 600–700 million—remain concentrated in low to mid-value products, highlighting the need for diversification and market sophistication.
Opportunities lie in strategic product-market alignment. Regions in Africa, the Middle East, and South-East Asia continue to show demand for affordable dairy nutrition, where India has a natural cost advantage. However, accessing these markets requires consistency in quality, logistics efficiency, and regulatory compliance. Domestically, emerging channels such as quick commerce, HoReCa revival, and institutional catering are opening new consumption avenues.
The current market scenario clearly signals that growth will no longer come from volume expansion alone. The opportunity is in reading global cues early, aligning procurement with demand, and moving decisively toward value-led portfolios.
The International Dairy Processing Conference (IDPC), organised by the Trade Promotion Council of India (TPCI) with support from leading industry associations, will be held on 7 January 2026 at Yashobhoomi, Dwarka, New Delhi. The first Session will be on Current Market Scenario & Opportunities – Global Perspective
Esteemed Speakers and Moderator for the Session-I
Moderator: - Dr J V Parekh, International Consultant to Dairy and Food Industry, Parekh International Consultancy Services Esteemed Speakers: - Mr Ankur Shah, Member, TPCI National Committee on Dairy and General Manager- Exports, SDP Industries Pvt Ltd - Mr Jitendra Bihani, Managing Director, Bangdiwala Unitree (Cow Cart) - Mr Dixit Nagpal, Commercial Director ME & India, Mana Agro DMCC - Mr Saurabh Kumar Sinha, Marketing Director – South Asia Markets, Tetra Pak India Pvt Ltd - Mr Deepak Raj, CEO, Binsar Farms, New Zealand - Dr Radhey Shyam Dixit, Member, TPCI National Committee on Dairy and Chairman & Managing Director, Ananda Dairy LimitSource : Dairynews7x7 Dec 24th 2025