South India Organic Milk Market - 2025-2032

South India Organic Milk Market reached US$ 33.42 million in 2024 and is expected to reach US$ 140.84 million by 2032, growing with a CAGR of 19.7% during the forecast period 2025-2032.

Consumers' increasing preference for organic food and drink will drive manufacturers to release novel and unusual organic dairy products in the future. Innovative organic dairy products have recently entered the market, including organic yogurt with granola and fruit toppings, Greek yogurt and organic milk that contains antioxidants and good fatty acids like DHA and omega 3.

Australia, North Europe, US and other foreign nations were the places where the A1 type of milk from cow breeds first originated. They are also frequently referred to as hybrid cows. Indian desi cows like Gir, Sahiwal and Tharparkar provide A2 milk. A balanced diet (dry fodder, green fodder, compound cattle feed or concentrates and mineral combinations) can be used to meet the needs of breastfeeding cows and maintain the amount of fat and SNF in their milk.

The market for organic milk is expanding significantly and will continue to do so over the coming few years as a result of shifting customer preferences for the consumption of natural and organic food and beverage items. According to the Government of Gujarat, The organic dairy market is less than 1% of the total dairy market in India. In India, there is an increasing consumption of organic milk and milk products, especially organic ghee.

Dynamics

Growing Interest In Organic Milk Drives The Market Expansion

Blood pressure, cardiovascular ailments, obesity and others are the main drivers propelling the growth of the organic milk market in South India. According to non-communicable disease (NCD) screening is done in the state, for every 100 people over 30 in Telangana, 26 have diabetes and high blood pressure (hypertension). These medical conditions are thought to affect close to 12 lakh people. Furthermore, formaldehyde, a deadly chemical used to preserve corpses, is now present in milk and dairy products, according to recent news reports from Hyderabad on January 2023.

It has been noticed that 30 out of every 100 people screened in Hyderabad have these medical conditions, even though the exercise is still ongoing. In comparison to prior years, the prevalence of high blood pressure has increased by 20%, while the burden of diabetes has increased by 6%. These and other medical conditions are compelling Hyderabad people to switch to organic milk from their regular dairy products. Furthermore, formaldehyde, a deadly chemical used to preserve corpses, is now present in milk and dairy products, according to recent news reports from Hyderabad on January 2023. Over 600 liters of milk contaminated with formaldehyde were distributed to numerous hotels over the course of the previous six months, according to the Hyderabad Police.

Growing Demand For Organic Milk Associated With Non-GMO & Clean Label

There has been a growing demand for clean-label dairy products, including organic milk, which is associated with Non-GMO and clean-label claims. In the dairy industry, there has been relatively strong interest in non-GMO labeling, where over 23% of launches carried GMO-free claims in the South Indian region. Dairy products have historically valued a natural appearance and rising interest has resulted in continued efforts to produce organic and grass-fed or pasture milk. Due to the overwhelming demand from consumers for A2 milk, the Sid farm company implemented pre-booking. Sid's Farm has maintained a reasonable price of Rs 75 per package of 500 ml for their newest product addition.

Additionally, the consumer demand for organic milk will lead to the introduction of new products and an increase in production for the manufacturers. For instance, Akshayakalpa Organic, a Bengaluru-based organic dairy company, said on January 20, 2023 that it will commence agricultural operations in Tamil Nadu and that it would be able to produce more milk each day. Over the next five years, Akshayakalpa expects to supply more than 200,000 discerning customers with clean, nutritious organic milk and dairy products.

Rising Cost of Organic Milk

The rising production costs cause an increase in the price of organic milk, which may hamper market expansion. For instance, dairy industry executives predicted that a shortage of organic milk along with plans by processors to increase the amount paid to farmers would result in a rise in retail prices by as much as 10 percent. In addition, the producer also changes the price suddenly due to the production cost which will defiantly impact the consumer interest in organic milk. For instance, the dairy company Sid's Farm announced on April 20, 2023, that it had increased the price of milk after a two-year period.

The new prices for the half-liter packs of cow milk have increased by Rs 2, buffalo milk by Rs 3 and skim milk by Rs 3, due to increases in input costs and raw materials. Cow milk is now priced at Rs 40 per 500 ml pack, buffalo milk is now priced at Rs 48 and skim milk is now priced at Rs 30. Additionally, a rise in milk prices is occurring in India once more in 2023, which worries both consumers and policymakers. The average retail price of milk in India has risen from Rs 57.15 per liter a year ago by 12%. India-wide wholesale milk prices have increased by 10.2% YoY since December 22 began. Milk prices in South India have increased by 12.8% since last year. Just 0.6% more was spent on wholesale goods overall in India in the past month.

Segment Analysis

The South India organic milk market is segmented based on source, variant type, composition, and city.

Rising Demand for A1 Varient Milk due to Wellness Trends

South India's demand for A1 organic milk is influenced by a number of factors, such as consumer preferences, health and wellness trends and marketing tactics used by producers. A1 organic milk comes from cows that only produce the A1 beta-casein protein, which some people think is easier to digest than the A2 beta-casein protein found in regular milk. There is a rise in demand for A1 organic milk in South India as more people become health-conscious. Additionally, as consumers learn more about the distinctions between A1 and A2 milk, those who are sensitive to or intolerant of the A2 protein may be more inclined to select A1 organic milk.

Demand for A1 organic milk in South India may rise due to the presence of major players in the area and their marketing tactics. Businesses that produce and distribute A1 organic milk can promote its advantages, such as the absence of synthetic hormones and antibiotics, to draw in consumers who are health-conscious. Due to consumer demand, there are numerous A1 organic milk producers in South India. For instance, South Indian organic milk producer Astra Dairy Farms. They have their own farm in Coimbatore, Tamil Nadu, where they produce A1 organic milk.

Geographical Penetration

Incresing Vegan Population Fueled the Demand of Organic Milk in Hyderabad

The demand for organic milk products is increasing due to the Hyderabad’s expanding vegan population. Additionally, one of the top free-from promises that consumers favor is ""free of allergens,"" which encourages producers of organic milk to release new products on the market. To meet the rising demand for organic milk, many start-ups are making their way in the developing organic dairy sector. The composition of milk is roughly 86% water, 4.6% lactose sugar, 3.7% triglycerides, 2.8% milk protein, 0.54 percent minerals and 3.36 percent miscellaneous ingredients.

Hyderabad's market for organic milk is still developing. But because more people are becoming aware of the health advantages of organic milk, it is expanding quickly. In recent years, there has been an increase in demand for organic milk and it is anticipated that this trend will continue in the years to come. Hyderabad has a developing market for organic milk, but it still confronts a number of obstacles. The lack of customer awareness is one of the greatest problems facing Hyderabad's organic milk sector. The advantages of organic milk and the distinction between organic and conventional milk are still mostly unknown.

Competitive Landscape

The major players in the market include Heritage Foods Limited, Sids Farm, Klimom, Muralya Dairy Products, Hatsun Agro Product Limited, Swachh Organic Farms, The Organic Carbon Pvt. Ltd., Akshayakalpa, Country Delight, GCMMF (Amul), Annam Milk, and Madras Milk.

Recent Developments

 October 2024, according to sources in the South India organic milk market, Karnataka produces approximately 2.5 crore litres of milk daily. Of this, around one crore litre is directly consumed by households or sold locally, another one crore litre is procured by the Karnataka Milk Federation (KMF), and approximately 50 lakh litres are handled by private dairies.

 July 2024, Akshayakalpa Organic, India's first certified organic dairy firm, is set to enhance its presence in major urban markets, specifically targeting Chennai, Bengaluru, and Hyderabad. Akshayakalpa aims to expand its network and increase accessibility to premium organic dairy products for health-conscious consumers.

By Source
• Cow
• Buffalo

By Variant Type
• A1
• A2

By Composition
• Fat
• SNF

By City
• Hyderabad
• Vizag
• Madurai
• Chennai
• Trissur
• Bangalore
• Kochi
• Coimbatore
• Trivandrum
• Mysore
• Rest of South India

Why Purchase the Report?
• To visualize the South India organic milk market segmentation based on source, variant type, composition, and city.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points at the organic milk market level for all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The South India organic milk market report would provide approximately 48 tables, 38 figures, and 180 pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies