The India buttermilk market was valued at USD 2.33 Billion in 2024. The industry is expected to grow at a CAGR of 13.40% during the forecast period of 2025-2034. Rising urbanization, growing awareness over health, and aggressive innovations on products in traditional dairy beverage have collectively resulted in a strong surge of buttermilk consumption through retail channels. In turn, all these factors have resulted in the market attaining a valuation of USD 8.19 Billion by 2034.
As per the India buttermilk industry analysis, the butter milk powder is being applied widely because of its long shelf life. This type of buttermilk is used in bakeries, instant food preparations, and restaurant chains. This makes it perfect for institutional buyers, such as hotels and caterers, because it offers space-efficiency with smooth storage and cost-effectiveness. Recently, this market segment has caught up in the global scene, especially in the Middle East and Southeast Asia, with the growing popularization of Indian-style fare. Hence, in line with such demands, players have also been adding to the volume of their exports and product line.
The increasing institutional requirement from food service and hospitality industry establishments is expected to result in heavy buttermilk consumption in India. As a refreshing and healthy drink, buttermilk has found its way onto the menu of several hotels, restaurants, and corporate caterers. The segment is also fast catching up with educational institutions and hospitals, where trends are oriented more toward diet than indulgence. Dairy cooperatives can now form B2B tie-ups and supply bulk packaging formats in large volumes, taking advantage of the predictability in demand cycles and zero wastage.
The West India buttermilk market tends to be the fastest-growing region. The growing awareness towards health has driven the market growth. For instance, Amul, which with its headquarters in Gujarat, has a huge market presence and market penetration for ready-to-drink buttermilk through modern trade and local stores. The spicy and digestive accompaniments typical to the region act as synchronization to the acceptance of masala buttermilk variants.
Furthermore, India buttermilk companies can diversify their portfolio with plant-based or lactose-free buttermilk options, expand their reach to Tier-3 cities with specific marketing campaigns, collaborations with health influencers, and recipe integrations on cooking apps.
GCMMF (Amul)
Founded in 1946 and located in Anand, Gujarat, Amul is a major player in the buttermilk market with its Masti range. The company believes in low-cost production catering to high volumes and modern retail penetration with seasonal campaigns. Their strategy focuses on affordability and primary availability.
Karnataka Co-operative Milk Producers Federation Ltd. (KMF)
The KMF, founded in 1974 and situated in Bengaluru, is one of the largest operations under the Nandini brand. The company has a strong foothold across South India, with its vast farmer network and cooperative structure. KMF endorses traditional buttermilk with strong regional branding.
VRS Foods Limited (Paras Dairy)
Based in Delhi-NCR and founded in the year 1986, Paras Dairy markets liquid and powdered packets of buttermilk to retail and institutional segments. The company largely focuses on developing an efficient cold-chain management system and a variety of SKUs.
Other players in the India buttermilk market include Hatsun, and Verka, among others.
This report equips government bodies, industry leaders, investors, and innovators with the data and foresight needed to navigate India buttermilk landscape, seize new opportunities, and build resilience against market shifts. Stay ahead with Expert Market Research’s trusted intelligence and forecasts.
India Buttermilk Market Report Summary
Market Size 2024
- USD Billion 2.33
Market Size 2034
- USD Billion 8.19
- CAGR 2025-2034
- 13.4%
CAGR 2025-2034 - Market by Region
- South India
- 15.3%
CAGR 2025-2034 - Market by Region
- West India
- 14.3%
CAGR 2025-2034 - Market by Sector
- Retail
- 14.7%
CAGR 2025-2034 - Market by Type
- Liquid Buttermilk
- 14.2%
- South India
- 22.3%
India Buttermilk Market Overview
Rising Health-Consciousness Among Consumers, Innovations in Packaging, and Increased Demand During Summer Boost the Market Growth
The India buttermilk market growth is majorly boosted by the growing health-consciousness among urban consumers, innovations in packaging, and increased demand during summer. The market is witnessing a rapid shift of preferences among young fitness enthusiasts from mass-market consumption to traditional, natural beverages. Companies are not only considering extended portfolios by introducing flavored variants of buttermilk, but they are also introducing probiotic and low-fat buttermilk to cater to the growing demand. Amul, KMF, and Mother Dairy, being the key players, are leveraging extensive distribution network and aggressive marketing strategies to dominate the market. Strongholds in South and West India, gradually growing presence in urban metros through retail chains and e-commerce, also reflect the scope for market expansion.India Buttermilk Market Drivers
Increasing Demand for Healthy and Traditional Beverages
Increasing awareness of health and nutrition among consumers has led to a heavy demand for functional drinks, fueling the demand in the India buttermilk market. Buttermilk has gained wide popularity for its cooling and digestive properties, thus serving as a healthier alternative to carbonated and sugary drinks. The market is further buoyed by Ayurveda and natural health considerations. Thus, large dairy companies are launching low fat probiotic variances to cater to this health-conscious clientele. These consumer trends gain further emphasis during the summer months.Urbanization and Expansion of Retail Infrastructure
The positive changes in the consumer habits in the rapidly urbanizing country has accelerated the India buttermilk market dynamics. The market is on the rise for ready-to-drink dairy products like buttermilk, with ever-increasing disposable incomes. Moreover, the channels that contributed to the rise of organized retail, namely more supermarkets, hypermarkets, and quick-commerce apps, have promoted packaged buttermilk consumption, mostly among people in professions who need convenience. Brands have also started using new main packaging formats such as that in tetra packs and PET bottles that are designed to have an extended shelf-life.Trends in the India Buttermilk Market
Flavored and Functional Buttermilk Variants Gaining Traction
Modern flavor innovations have driven up the India buttermilk market revenues significantly. Flavored buttermilk with mint and coriander and curry leaves, and more modern taste profiles of jaljeera and masala. Functional variants, those products with additional probiotic cultures or fortification with vitamins, are mainly targeted to the more health-conscious urban consumers. Working professionals, for example, appreciate Amul Masti Spiced Buttermilk and the KMF GoodLife range. Such innovations let brands take steps into new territory while keeping the spirit of buttermilk intact.Adoption of Sustainability and Eco-Friendly Packaging
Companies in the India buttermilk market are starting to adopt sustainable solutions for packaging considering the much-increased environmental awareness. Consumers, particularly millennials and Gen Z currently favor alternative packaging like recyclable bottles and cartons that can replace plastic pouches. For example, Mother Dairy has introduced biodegradable packaging for selected SKUs. Such an initiative resonates with the present consumer mindset and elevates buttermilk toward being viewed as a responsible natural choice in the ready-to-drink segment.India Buttermilk Market Share
By Type, Liquid Buttermilk Account for the Largest Share in the Market
Liquid buttermilk dominates the India buttermilk market revenue share, being well consumed in tropical states like Tamil Nadu and Maharashtra. Its ready-to-drink format, low price, and availability in single-serve packs make it a preferrable choice for most consumers. The segment is expected to grow at a CAGR of 14.2% over the forecast period. Leading brands such as Amul and Mother Dairy, have a whole range of spiced and plain liquid buttermilk, which is sold on the roadside, Kirana stores, supermarkets, and other distribution channels. The steady demand round the year, especially during peak summer, solidifies its dominance in both rural and urban markets.As per the India buttermilk industry analysis, the butter milk powder is being applied widely because of its long shelf life. This type of buttermilk is used in bakeries, instant food preparations, and restaurant chains. This makes it perfect for institutional buyers, such as hotels and caterers, because it offers space-efficiency with smooth storage and cost-effectiveness. Recently, this market segment has caught up in the global scene, especially in the Middle East and Southeast Asia, with the growing popularization of Indian-style fare. Hence, in line with such demands, players have also been adding to the volume of their exports and product line.
By Sector, Retail Channels Secure the Dominant Market Share
The largest share of the India buttermilk market is accounted by the retail sector. Consumers primarily buy branded buttermilk via supermarkets, convenience, and online shopping stores. Brands have increased their presence with marketing campaigns in the urban and semi-urban. Innovations in packs for single-serving portion sizes and richer flavors will help push buttermilk through retail channels.The increasing institutional requirement from food service and hospitality industry establishments is expected to result in heavy buttermilk consumption in India. As a refreshing and healthy drink, buttermilk has found its way onto the menu of several hotels, restaurants, and corporate caterers. The segment is also fast catching up with educational institutions and hospitals, where trends are oriented more toward diet than indulgence. Dairy cooperatives can now form B2B tie-ups and supply bulk packaging formats in large volumes, taking advantage of the predictability in demand cycles and zero wastage.
India Buttermilk Market Regional Analysis
CAGR 2025-2034 - Market by
- Region
- South India
- 15.3%
- West India
- 14.3%
- North India
- East India
Heavy Buttermilk Consumption in South India Makes the Region Lead the Market Growth
Buttermilk consumption is on a large scale in South India and is deeply rooted in cooking culture of the region. Curd-based drinks are preferred in Tamil Nadu, Karnataka, and Andhra Pradesh and have thus been a major contributor to the South Indian buttermilk market growth. Both homemade and packaged ones are consumed with the addition of spices and herbs. KMF and other companies dominate the region with localized production, strong distribution networks, and cultural connections. High consumption rates are also driven by regional festivals and a hot climate.The West India buttermilk market tends to be the fastest-growing region. The growing awareness towards health has driven the market growth. For instance, Amul, which with its headquarters in Gujarat, has a huge market presence and market penetration for ready-to-drink buttermilk through modern trade and local stores. The spicy and digestive accompaniments typical to the region act as synchronization to the acceptance of masala buttermilk variants.
Competitive Landscape
Most of the India buttermilk market players concentrate on expanding their rural penetration while packaging for premium urban customers. Their key areas of interest include enhancing cold chain logistics and implementing QR-based traceability for authenticity.Furthermore, India buttermilk companies can diversify their portfolio with plant-based or lactose-free buttermilk options, expand their reach to Tier-3 cities with specific marketing campaigns, collaborations with health influencers, and recipe integrations on cooking apps.
GCMMF (Amul)
Founded in 1946 and located in Anand, Gujarat, Amul is a major player in the buttermilk market with its Masti range. The company believes in low-cost production catering to high volumes and modern retail penetration with seasonal campaigns. Their strategy focuses on affordability and primary availability.
Karnataka Co-operative Milk Producers Federation Ltd. (KMF)
The KMF, founded in 1974 and situated in Bengaluru, is one of the largest operations under the Nandini brand. The company has a strong foothold across South India, with its vast farmer network and cooperative structure. KMF endorses traditional buttermilk with strong regional branding.
Mother Dairy Fruit and Vegetable Pvt. Ltd.
Set up in 1974, Mother Dairy headquartered in New Delhi, targets urban consumers with value-added products. With the health-conscious segment in mind, the brand has focused on hygienic PET bottles and eco-packaging and sells herb-infused variants.VRS Foods Limited (Paras Dairy)
Based in Delhi-NCR and founded in the year 1986, Paras Dairy markets liquid and powdered packets of buttermilk to retail and institutional segments. The company largely focuses on developing an efficient cold-chain management system and a variety of SKUs.
Other players in the India buttermilk market include Hatsun, and Verka, among others.
- Recent Developments
November 2024
MilkyMist, a well-known dairy pioneer from South India, partnered with SIG and AnaBio Technologies to launch the world's first long-life probiotic buttermilk in aseptic carton packs. This ground-breaking research, unveiled at Gulfood Manufacturing 2024 in Dubai, marks a significant milestone in the beverage industry, allowing probiotics to be introduced into shelf-stable drinks in aseptic cartons for the first time.June 2024
Amul, the dairy giant, launched Kathiyawadi Chaas, a new flavor of buttermilk that is notably popular in Gujarat's Saurashtra and Kutch areas. It also introduced a 1 kilogram package of Masti Dahi, the dairy's curd product.April 2023
Sid's Farm, a premium direct-to-consumer (D2C) dairy startup brand located in Telangana, announced the debut of Buttermilk in a new handy packaging, offering consumers a healthful and refreshing option for the forthcoming Indian summer season.March 2023
Heritage Foods Ltd. announced the debut of a new range of Buttermilk products under the brand name 'A-One', as well as a new line of milkshakes in convenient single-serve carton boxes. Heritage 'A-One' Spiced Buttermilk is a low-calorie natural refresher prepared by fermenting fresh Heritage milk with a unique combination of cultures to provide an extra smooth and thick mouthfeel while also providing the optimum balance of sourness and saltiness.Market Outlook: 2025-2034
The Indian buttermilk market is expected to be propelled by the health-conscious trends, growing retail infrastructure, and product diversification. As consumption of fortified and convenience beverages is expected to increase in urban centers, rural areas will continue to be centers of low-cost and habitual consumption. The market outlook holds plenty of opportunities for future growth, powered by governmental assistance to dairy cooperatives and investments in food processing infrastructure.Why This Report?
The India Buttermilk Market Report and Forecast 2025-2034 delivers a thorough and strategic analysis, offering key insights into:
- Market size, share, and growth forecasts, with a special focus on regional dynamics across North, South, East, and West India, highlighting investment hotspots and production clusters.
- In-depth SWOT and Porter’s Five Forces analyses to examine the competitive landscape, supplier and buyer dynamics, new entrants, and the bargaining power of players within the buttermilk ecosystem.
- Insights into key demand and price indicators, such as the impact of procurement policies, offset obligations, indigenization mandates, and international collaborations on pricing and investment trends.
This report equips government bodies, industry leaders, investors, and innovators with the data and foresight needed to navigate India buttermilk landscape, seize new opportunities, and build resilience against market shifts. Stay ahead with Expert Market Research’s trusted intelligence and forecasts.
Table of Contents
1 Executive Summary
2 Market Overview and Stakeholder Insights
3 Economic Summary
4 Country Risk Profiles
5 Asia Pacific Buttermilk Market Analysis
6 India Buttermilk Market Analysis
7 India Buttermilk Market by Type
8 India Buttermilk Market by Sector
9 India Buttermilk Market by Region
10 Market Dynamics
11 Value Chain Analysis
12 India Trade Dynamics (HS Code: 403)
13 Procurement Insights
14 Competitive Landscape
Companies Mentioned
- GCMMF (Amul)
- Karnataka Co-operative Milk Producers Federation Ltd. (KMF)
- Mother Dairy Fruit and Vegetable Pvt. Ltd.
- VRS Foods Limited (Paras Dairy)
- Hatsun
- Verka
