Drink Wrap
VALUE ADDED DAIRY
PRODUCTS:
THE GAME CHANGER IN THE DAIRY INDUSTRY
By : SAMARTH SETIA - CEO & Co-Founder, Mr. Milkman
T
he value-added market has taken
the dairy industry by storm. As
the spending capacity of Indians
is increasing, so is their willingness to
buy healthier, super-foods which we
like to call as value-added products.
Value-added products in the dairy
industry are products like cheese,
paneer, ghee, yoghurt, pro-biotic
drinks etc. These are products which
have been created by alteration and
enhancement via additives, segregation
etc. of liquid milk. Adaptation of various
methods to create a more profitable
product out of milk has allowed dairies
and FMCG companies to make good
revenue out of a mostly loss-making
SKU, liquid milk.
Magnitude of production
steadily increasing
While packaged liquid milk continues
to remain a key driver in the Indian
Industry, value-added products are
promising growth of 15 per cent to 20
per cent year on year that has varied
products like cheese, UHT milk,
curd, baby foods, ice-cream, butter,
flavoured milk and dairy whitener.
The Rs. 25,000 crore value-added dairy
products industry is set to outpace
liquid milk sales by 2021, as per a Crisil
report.
End consumers, in addition to milk,
tend to buy the value-added products
of the same brand, which adds to the
Dairy’s sales. As the production and
consumption of milk is increasing in
India, so is the opportunity to sell these
value-added products to an existing,
loyal customer. mom and pop shop to save time and
effort.
The organised sector is realising the
dire need to pull up its socks with new
international firms entering the market
to capture the increasing demand
from the Indian Consumers, leading
to increased competition and more
inelastic demand. Healthier Lifestyle
The Time Factor
Families today have very different
dynamics than 5-10 years ago. People
today have very little time in their lives
for activities like setting curd at home,
make ghee or homemade butter.
As lives are getting faster, people
are getting busier. The simplest of
items like curd and lassi which we
have seen being made at home, are
now purchased from the nearby
As the production
and consumption
of milk is
increasing in
India, so is the
opportunity to
sell these value-
added products
to an existing,
loyal customer
Drink Asia
34
July-August 2019
It has been noticed that Indian
consumers are increasingly getting
health conscious and that the
value-added dairy products industry
is seeing a marginal growth. A change
in consumer mindsets has led to
various changes. Lifestyle alterations
has led to an increase in the demand