Gut-Friendly dairy market gains traction in India

INDIA – India’s dairy industry is experiencing a surge in demand for gut-friendly products, particularly probiotic yogurts and drinks, as consumer interest in health and wellness grows. 

The market for these products, deeply rooted in India’s culinary traditions, is expanding rapidly, driven by rising disposable incomes and increased awareness of gut health.

Industry analysts project the probiotic dairy segment, currently a niche market, to grow at an annual rate of 25% by 2032, with sales of probiotic drinks, curd, and yogurt expected to reach US$10 billion by 2033, up from US$2.2 billion in 2024.

Probiotics, long embedded in Indian cuisine through fermented foods like curd and lassi, are now being marketed by major dairy brands as remedies for digestive issues, particularly among younger consumers. 

Dr. Sreemathy Venkatraman, a clinical dietitian in Bengaluru, emphasized the need for such products, stating, “Young Indians are facing more gut health issues due to ultra-processed foods. Probiotic dairy items are a remedy for them.” 

This sentiment is echoed by promotional campaigns from companies like Amul, India’s largest dairy brand, which markets its probiotic buttermilk as a digestive aid and dietary alternative to tea or soup.

Urban areas, where e-commerce and organized home delivery are prevalent, are the primary markets for these products. 

Smaller neighborhood shops face challenges in stocking fresh probiotic items due to limited shelf space, according to Dr. K. Rathnam, CEO of Milky Mist Dairy. 

The growth of online platforms has facilitated access, with 95% of Heritage Foods’ probiotic sales coming from supermarkets and delivery channels. 

Companies like Mother Dairy and Nandini are also capitalizing on this trend, launching educational campaigns to promote the health benefits of probiotics.

The profitability of probiotic products is a key driver for manufacturers. 

Dr. Satish Kulkarni, a former scientist at the National Dairy Research Institute, noted, “Probiotic yogurt brings better margins than regular yogurt, and protein-plus probiotic yogurt offers even higher profits.” 

This has spurred innovation, with brands like Yakult using culturally resonant flavors like mango to appeal to Indian consumers. 

However, the Food Safety and Standards Authority of India has introduced regulations requiring products to contain at least 100 million colony-forming units per gram of specific microorganisms to qualify as probiotics.

The market’s growth was further boosted during the COVID-19 pandemic, as consumers sought immunity-supporting products. 

Manish Bandlish, managing director of Mother Dairy, highlighted the market’s potential, saying, “Rising consumer interest in health and wellness is driving growth in this category.” 

As India’s dairy industry continues to innovate, the gut-friendly segment is poised to become a cornerstone of the market, blending tradition with modern health trends.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE