India's organised dairy sector is projected to deliver revenue growth of 13% to 15% in the current fiscal year, significantly outpacing the broader industry's production metrics.
The rating agency CRISIL highlighted this divergence, noting that formal players are capturing market share even as raw milk production slows to a 4% growth rate.
This marks a deceleration from the 5% compound annual growth rate recorded between FY20 and FY25.
This marks a deceleration from the 5% compound annual growth rate recorded between FY20 and FY25.
The slowdown in raw milk output is attributed to El Niño-linked weather disruptions and rising fodder costs, which are weighing on cattle yields across the country.
Despite these headwinds on the supply side, the organised segment continues to benefit from structural shifts in consumer preference toward branded and processed dairy products.
This trend allows formal companies to maintain pricing power and volume growth independent of the raw commodity cycle.