India’s dairy industry, especially in states like Andhra Pradesh and Gujarat, is witnessing strong growth in the probiotic segment. Leading dairy brands such as Mother Dairy, Heritage Foods, Amul, and Yakult are tapping into the rising demand for gut-health products. Driven by increasing consumer awareness, health-conscious millennials, and higher disposable income, the probiotic dairy market is expected to grow at a compound annual growth rate of about 25%, potentially reaching USD 10 billion by 2033.
India’s dairy industry is undergoing a transformation as consumers shift toward health-focused diets, with probiotic-based dairy products gaining widespread popularity. Andhra Pradesh is playing a key role in this shift, with companies like Heritage Foods leading innovation in the space.
Mother Dairy Fruit & Vegetable Pvt Ltd, a government-owned company based in New Delhi, and Heritage Foods, a leading dairy brand in southern India, are championing the adoption of probiotics in dairy offerings. These companies are combining India’s long-standing tradition of dairy consumption with modern nutritional needs by introducing curd, yogurt, and buttermilk enriched with probiotics.
Manish Bandlish, Managing Director of Mother Dairy, notes that probiotic products are well-suited to the Indian market due to consumers’ strong dairy preference and growing wellness awareness. Research from IMARC Group estimates that the probiotic dairy market in India could grow from USD 2.2 billion in 2024 to around USD 10 billion by 2033, supported by a projected CAGR of approximately 25%.
Heritage Foods has already seen early success with its probiotic buttermilk, which now contributes 15% to its total buttermilk sales. The heightened focus on immunity and gut health since the pandemic has further encouraged consumer interest in these products.
However, the cost of production remains a challenge. Most probiotic strains are imported from companies like Novonesis and IFF-Dupont, increasing manufacturing costs. Indian regulations also mandate that probiotic products contain at least 100 million colony-forming units per gram, ensuring their effectiveness.
Amul and Yakult are also capitalizing on this trend, introducing dairy products tailored to modern health needs while retaining traditional flavors. A report by GlobalData found that nearly 46% of Indian millennials are actively working to improve their gut health, presenting vast market potential.
With health consciousness becoming a central factor in food choices, India’s probiotic dairy industry is set for robust expansion, backed by brand innovation, regulatory oversight, and informed consumers.
