Yoghurt and Sour Milk Products

in India
Euromonitor International
September 2020
YOGHURT AND SOUR MILK PRODUCTS IN INDIA Passport i

LIST OF CONTENTS AND TABLES

KEY DATA FINDINGS.................................................................................................................. 1
2020 IMPACT ............................................................................................................................... 1
Targeting health-conscious demand ......................................................................................... 1
Increasing use of local flavours and ingredients ....................................................................... 1
Leading players experience share erosion ............................................................................... 1
RECOVERY AND OPPORTUNITIES .......................................................................................... 2
Health-orientated positioning set to drive strong growth ........................................................... 2
Innovation with A local focus .................................................................................................... 2
Return of on-the-go demand ..................................................................................................... 2
CATEGORY DATA ....................................................................................................................... 2
Table 1 Sales of Yoghurt and Sour Milk Products by Category: Volume 2015-
2020 ............................................................................................................. 2
Table 2 Sales of Yoghurt and Sour Milk Products by Category: Value 2015-
2020 ............................................................................................................. 3
Table 3 Sales of Yoghurt and Sour Milk Products by Category: % Volume
Growth 2015-2020 ....................................................................................... 3
Table 4 Sales of Yoghurt and Sour Milk Products by Category: % Value
Growth 2015-2020 ....................................................................................... 3
Table 5 NBO Company Shares of Yoghurt and Sour Milk Products: % Value
2016-2020 .................................................................................................... 4
Table 6 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2017-
2020 ............................................................................................................. 4
Table 7 Distribution of Yoghurt and Sour Milk Products by Format: % Value
2015-2020 .................................................................................................... 5
Table 8 Forecast Sales of Yoghurt and Sour Milk Products by Category:
Volume 2020-2025 ....................................................................................... 6
Table 9 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value
2020-2025 .................................................................................................... 6
Table 10 Forecast Sales of Yoghurt and Sour Milk Products by Category: %
Volume Growth 2020-2025 .......................................................................... 7
Table 11 Forecast Sales of Yoghurt and Sour Milk Products by Category: %
Value Growth 2020-2025 ............................................................................. 7

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YOGHURT AND SOUR MILK

PRODUCTS IN INDIA
KEY DATA FINDINGS
▪ Lockdown drives up at-home consumption of yoghurt and sour milk products
▪ Yoghurt and sour milk drinks sees 24% current value growth in 2020 to reach INR308.9
billion, while volumes rise by 17% to 2.5 million tonnes
▪ Plain yoghurt is the most dynamic category in 2020, with current value growth of 26% leading
to sales of INR248.7 billion
▪ The average unit price of yoghurt and sour milk products rises by 6% in current terms in 2020
▪ Gujarat Co-operative Milk Marketing Federation Ltd regains the lead in 2020, despite its value
share falling to 13%
▪ Yoghurt and sour milk products is forecast to see a 24% current value CAGR (19% at
constant 2020 prices) over 2020-2025

2020 IMPACT

Targeting health-conscious demand

Household consumption of dairy products, including yoghurt and sour milk products has been
bolstered by enforced home seclusion during the COVID-19 lockdown. Demand has been
supported by increasing consumer health-consciousness, with growing numbers of consumers
opting for such products for their perceived health benefits. Manufacturers are courting health-
conscious demand with products making functional claims. Heritage Foods Ltd, for example,
has introduced Sabia Lassi, which is claimed to help with weight loss, improve digestion and
promote healthy skin, and Ragi Lassi, which includes the traditional ingredient, ragi, which is
claimed to reduce cholesterol, help to lose weight, and aid in relaxation.

Increasing use of local flavours and ingredients

Efforts to establish a strong health positioning for yoghurt and sour milk products face the
challenge that many consumers consider taste to be a barrier to selecting health-orientated
products. This is especially true for children, as parents try to shift their offspring to healthier
options amidst growing concerns about issues such as childhood obesity. Aiming to appeal to
local taste preferences, manufacturers are increasingly looking to develop yoghurt and sour milk
products incorporating traditional local flavours. Epigamia Artisanal Mishti Doi, for example, is
inspired by a popular Bengali dessert. Products utilising local flavours and ingredients are likely
to increase in popularity amongst adult consumers, as uncertain social and economic conditions
due to COVID-19 lead to a nostalgic yearning for familiar products.

Leading players experience share erosion

The major cooperatives, Gujarat Co-operative Milk Marketing Federation and Karnataka
Cooperative Milk Producers Federation, remain the largest players in yoghurt and sour milk
products through their Amul and Nandini brands, respectively. The strength of these companies
is founded on strong distribution networks, brand loyalty, broad product ranges, and affordable
pricing. While Karnataka Cooperative Milk Producers Federation is focused on the state of

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Karnataka, Gujarat Co-operative Milk Marketing Federation, the category leader, has
established a nationwide presence. However, while these two players jointly account for more
than a quarter of category sales, they are both expected to see significant share erosion in
2020, as smaller companies, ranked outside the top 15, continue to gain ground.

RECOVERY AND OPPORTUNITIES

Health-orientated positioning set to drive strong growth

Yoghurt and sour milk products is expected to maintain dynamic growth in both volume and
value terms throughout the forecast period. Rising consumer health-consciousness will play a
key role in driving growth, as increasing publicity about issues such as obesity encourages
consumers to look for healthier dietary options. Manufacturers will increasingly focus their
product innovation and marketing strategies on developing a health-orientated positioning for
yoghurt and sour milk products. Moreover, innovation is likely to be bolstered by the efforts of
major manufacturers such as market-leader, Gujarat Co-operative Milk Marketing Federation, to
use excess milk procured during lockdown to develop value-added dairy products.

Innovation with A local focus

Combining traditional local products, ingredients and flavours with health claims will become
an increasingly prominent strategy in yoghurt and sour milk products during the forecast period.
The central role of dairy products in many regional diets provides a strong foundation for product
development in India. Lassi is a traditionally popular drink in the northern part of the country,
consumed mainly during the summer. As well as offering refreshment, lassi is claimed to offer
multiple health benefits such as aiding the digestive system and improving bone health,
amongst others. Manufacturers are aiming to stimulate demand for packaged lassi by
introducing popular flavours such as mango, strawberry, chocolate, rose, sweet and salty.
However packaged versions face some competition from home-made lassi, which may be
intensified given the impact of measures to contain COVID-19 on consumers’ pockets. While
lassi is popular in northern India, buttermilk forms an important part of the diet of people in the
south. Here, too, manufacturers are introducing new flavours to stimulate demand, including
curry leaves and tadka.

Return of on-the-go demand

During lockdown, demand for yoghurt and sour milk products was inevitably strongly focused
on at-home consumption. However, as economic and social activity returns to normal and
consumers are once more immersed in hectic lifestyles, there will be a growing demand for
products compatible with on-the-go consumption, especially if they are also perceived to be
healthy and nutritious. This is likely to lead to packaging innovation involving the development of
smaller, portable formats and resealable closures during the forecast period.

CATEGORY DATA
Table 1 Sales of Yoghurt and Sour Milk Products by Category: Volume 2015-2020

'000 tonnes
2015 2016 2017 2018 2019 2020

Sour Milk Products 292.3 325.0 365.2 412.4 469.4 531.4

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Yoghurt 859.2 994.1 1,187.9 1,423.9 1,699.8 2,009.5

- Drinking Yoghurt 6.0 7.9 10.4 13.1 15.5 18.2
- Flavoured Yoghurt - - - - - -
- Plain Yoghurt 853.2 986.2 1,177.5 1,410.8 1,684.3 1,991.3
Yoghurt and Sour Milk 1,151.5 1,319.1 1,553.1 1,836.3 2,169.1 2,540.8
Products
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Sales of Yoghurt and Sour Milk Products by Category: Value 2015-2020

INR million
2015 2016 2017 2018 2019 2020

Sour Milk Products 24,936.0 29,082.0 34,221.0 40,380.8 48,255.1 56,879.9

Yoghurt 74,089.6 93,481.7 120,992.7 156,464.6 200,102.7 251,978.2
- Drinking Yoghurt 1,090.6 1,425.7 1,849.7 2,293.6 2,763.8 3,275.5
- Flavoured Yoghurt - - - - - -
- Plain Yoghurt 72,999.0 92,056.0 119,143.0 154,171.0 197,338.9 248,702.6
Yoghurt and Sour Milk 99,025.6 122,563.7 155,213.7 196,845.4 248,357.7 308,858.0
Products
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2015-
2020

% volume growth
2019/20 2015-20 CAGR 2015/20 Total

Sour Milk Products 13.2 12.7 81.8

Yoghurt 18.2 18.5 133.9
- Drinking Yoghurt 17.2 24.7 201.8
- Flavoured Yoghurt - - -
- Plain Yoghurt 18.2 18.5 133.4
Yoghurt and Sour Milk Products 17.1 17.1 120.6
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2015-
2020

% current value growth

2019/20 2015-20 CAGR 2015/20 Total

Sour Milk Products 17.9 17.9 128.1

Yoghurt 25.9 27.7 240.1
- Drinking Yoghurt 18.5 24.6 200.3
- Flavoured Yoghurt - - -
- Plain Yoghurt 26.0 27.8 240.7
Yoghurt and Sour Milk Products 24.4 25.5 211.9
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

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Table 5 NBO Company Shares of Yoghurt and Sour Milk Products: % Value 2016-2020

% retail value rsp

Company 2016 2017 2018 2019 2020

Gujarat Co-operative 17.3 16.1 14.6 14.3 13.1

Milk Marketing
Federation Ltd
Karnataka Cooperative 15.8 16.4 16.7 16.0 12.4
Milk Producers
Federation Ltd
Mother Dairy Fruit & 11.1 9.2 8.3 7.6 6.9
Vegetable Pvt Ltd
Hatsun Agro Products Ltd 5.7 4.2 5.2 6.0 5.3
Nestlé India Ltd 5.6 5.8 5.7 4.8 4.2
Tamil Nadu Cooperative 6.5 5.7 4.9 4.3 3.8
Milk Producers
Federation Ltd
Kerala Cooperative Milk 3.3 3.2 3.1 3.1 2.6
Marketing Federation Ltd
Punjab State 1.3 1.5 1.4 1.3 1.2
Cooperative Milk
Producers Federation
Ltd, The
Andhra Pradesh Dairy 2.0 1.8 1.5 1.4 1.2
Development Cooperative
Federation Ltd
Lactalis, Groupe 1.8 1.6 1.3 1.1 0.9
Bihar State Co- 1.4 1.2 1.1 1.1 0.9
operative Milk
Producers Federation Ltd
Orissa State 1.4 1.2 1.1 1.0 0.8
Cooperative Milk
Producers Federation
Ltd, The
Heritage Foods Ltd 1.3 1.2 1.0 0.9 0.7
Yakult Danone India Pvt 0.7 0.6 0.6 0.6 0.5
Ltd
Britannia Dairy Pvt Ltd 0.3 0.2 0.2 0.1 0.1
Danone Food & Beverages 0.7 0.7 0.6 - -
India Pvt Ltd
Tirumala Milk Products - - - - -
Pvt Ltd
Others 23.7 29.4 32.5 36.4 45.4
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2017-2020

% retail value rsp

Brand (GBO) Company (NBO) 2017 2018 2019 2020

Amul Gujarat Co-operative 16.1 14.6 14.3 13.1

Milk Marketing
Federation Ltd
Nandini Karnataka Cooperative 16.4 16.7 16.0 12.4

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Milk Producers
Federation Ltd
Mother Dairy Dahi Mother Dairy Fruit & 7.3 6.6 6.1 5.5
(National Dairy Vegetable Pvt Ltd
Development Board)
Fresh 'n' Natural Nestlé India Ltd 5.8 5.7 4.8 4.2
Dahi (Nestlé SA)
Aavin Tamil Nadu Cooperative 5.7 4.9 4.3 3.8
Milk Producers
Federation Ltd
Arokya Hatsun Agro Products Ltd 1.6 2.0 3.0 2.7
Hatsun Hatsun Agro Products Ltd 2.6 3.2 3.0 2.6
Milma Kerala Cooperative Milk 3.2 3.1 3.1 2.6
Marketing Federation Ltd
Verka Punjab State 1.5 1.4 1.3 1.2
Cooperative Milk
Producers Federation
Ltd, The
Vijaya Andhra Pradesh Dairy 1.8 1.5 1.4 1.2
Development Cooperative
Federation Ltd
Mother Dairy Lassi Mother Dairy Fruit & 1.7 1.5 1.3 1.2
(National Dairy Vegetable Pvt Ltd
Development Board)
Tirumala Lactalis, Groupe 1.6 1.3 1.1 0.9
Sudha Bihar State Co- 1.2 1.1 1.1 0.9
operative Milk
Producers Federation Ltd
Omfed Orissa State 1.2 1.1 1.0 0.8
Cooperative Milk
Producers Federation
Ltd, The
Heritage Heritage Foods Ltd 1.2 1.0 0.9 0.7
Yakult (Yakult Yakult Danone India Pvt 0.6 0.6 0.6 0.5
Honsha Co Ltd) Ltd
Nutrifit (National Mother Dairy Fruit & 0.2 0.2 0.2 0.1
Dairy Development Vegetable Pvt Ltd
Board)
Britannia Britannia Dairy Pvt Ltd 0.2 0.2 0.1 0.1
(Britannia
Industries Ltd)
Danone (Danone, Danone Food & Beverages 0.7 0.6 - -
Groupe) India Pvt Ltd
Tirumala Tirumala Milk Products - - - -
Pvt Ltd
Others Others 29.4 32.5 36.4 45.4
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 7 Distribution of Yoghurt and Sour Milk Products by Format: % Value 2015-2020

% retail value rsp

2015 2016 2017 2018 2019 2020

Store-Based Retailing 100.0 99.1 99.1 99.0 99.0 98.9

- Grocery Retailers 100.0 99.1 99.1 99.0 99.0 98.9
-- Modern Grocery 8.1 8.4 8.6 8.7 8.7 7.5
Retailers

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--- Convenience Stores - - - - - -

--- Discounters - - - - - -
--- Forecourt Retailers - - - - - -
--- Hypermarkets 3.7 4.0 4.2 4.3 4.3 3.5
--- Supermarkets 4.4 4.4 4.4 4.4 4.3 4.0
-- Traditional Grocery 91.9 90.7 90.5 90.3 90.3 91.4
Retailers
--- Food/drink/tobacco - - - - - -
specialists
--- Independent Small 28.0 28.5 29.0 29.2 28.9 30.3
Grocers
--- Other Grocery 63.9 62.2 61.5 61.1 61.4 61.2
Retailers
- Non-Grocery Specialists - - - - - -
-- Health and Beauty - - - - - -
Specialist Retailers
-- Other Foods Non- - - - - - -
Grocery Specialists
- Mixed Retailers - - - - - -
Non-Store Retailing - 0.9 0.9 1.0 1.0 1.1
- Vending - - - - - -
- Homeshopping - - - - - -
- E-Commerce - 0.9 0.9 1.0 1.0 1.1
- Direct Selling - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 8 Forecast Sales of Yoghurt and Sour Milk Products by Category: Volume 2020-
2025

'000 tonnes
2020 2021 2022 2023 2024 2025

Sour Milk Products 531.4 599.9 677.2 763.5 861.1 971.1

Yoghurt 2,009.5 2,366.9 2,769.5 3,224.4 3,737.0 4,341.0
- Drinking Yoghurt 18.2 21.2 24.5 28.2 32.4 37.3
- Flavoured Yoghurt - - - - - -
- Plain Yoghurt 1,991.3 2,345.7 2,744.9 3,196.1 3,704.6 4,303.7
Yoghurt and Sour Milk 2,540.8 2,966.8 3,446.6 3,987.9 4,598.1 5,312.1
Products
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 9 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value 2020-
2025

INR million
2020 2021 2022 2023 2024 2025

Sour Milk Products 56,879.9 64,529.2 73,113.1 82,673.8 93,246.3 105,305.2

Yoghurt 251,978.2 305,111.0 367,983.1 442,483.2 530,397.6 636,816.4
- Drinking Yoghurt 3,275.5 3,732.0 4,228.4 4,781.3 5,397.3 6,097.9
- Flavoured Yoghurt - - - - - -
- Plain Yoghurt 248,702.6 301,379.1 363,754.7 437,701.9 525,000.3 630,718.5
Yoghurt and Sour Milk 308,858.0 369,640.2 441,096.2 525,157.1 623,643.9 742,121.6
Products

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Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 10 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Volume
Growth 2020-2025

% volume growth
2020/21 2020-25 CAGR 2020/25 Total

Sour Milk Products 12.9 12.8 82.8

Yoghurt 17.8 16.7 116.0
- Drinking Yoghurt 16.6 15.5 105.3
- Flavoured Yoghurt - - -
- Plain Yoghurt 17.8 16.7 116.1
Yoghurt and Sour Milk Products 16.8 15.9 109.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 11 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Value
Growth 2020-2025

% constant value growth

2020/2021 2020-25 CAGR 2020/25 Total

Sour Milk Products 13.4 13.1 85.1

Yoghurt 21.1 20.4 152.7
- Drinking Yoghurt 13.9 13.2 86.2
- Flavoured Yoghurt - - -
- Plain Yoghurt 21.2 20.5 153.6
Yoghurt and Sour Milk Products 19.7 19.2 140.3
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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