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India ghee market expected to reach INR 6,931 billion by 2032 with rising health consciousness and shift towards organic products

India ghee market expected to reach INR 6,931 billion by 2032 with rising health consciousness and shift towards organic products

The "Ghee Market in India Report by Type (Cow Ghee, Desi Ghee), Retail and Institutional Sales (Retail, Institutional), and Region 2024-2032" report has been added to ResearchAndMarkets.com's offering.


The ghee market in India size reached INR 3,203 Billion in 2023 and is expected to reach INR 6,931 Billion by 2032, exhibiting a growth rate (CAGR) of 9% during 2023-2032. The growing consumption of ghee among the masses, the escalating shift towards organic food products due to the rising health consciousness, and rapidly growing the e-commerce sector are among the key factors driving the market growth.


Ghee Market in India Trends/Drivers


Growing Health Consciousness Among Consumers

Over the years, the consumption of ghee in India has been witnessing a remarkable increase due to the growing awareness of its health benefits. Traditionally, ghee has been a central component of Indian diets, particularly for its high nutritional value and medicinal properties, such as aiding digestion and improving heart health. Recent years have seen a revival in the popularity of traditional eating habits and the increasing endorsement of ghee as a healthier alternative to butter and other cooking oils by health and wellness experts. Today's consumers are more health-conscious than ever, seeking foods that not only satiate their hunger but also contribute to their overall well-being. This heightened focus on healthy eating and the nutritional benefits associated with ghee is a significant driver for the ghee industry in India.


Increasing Preference for Packaged Ghee

With the advent of modern retail formats, such as supermarkets and e-commerce platforms, consumers' buying patterns have evolved. Along with this, consumers are preferring packaged ghee over loose ghee for reasons such as assurance of quality, hygiene, longer shelf-life, and convenience. Therefore, it is significantly supporting the market. In addition, packaged ghee manufacturers often maintain stringent quality checks to ensure that the products are free from adulteration and meet the specified standards, providing an edge over loose ghee. This shift in consumer preference towards packaged ghee, driven by the promise of quality and convenience, is fuelling the growth of the ghee industry in India.


Desi ghee represents the most widely used type

The report has provided a detailed breakup and analysis of the market based on the type. This includes cow ghee and desi ghee. According to the report, desi ghee represented the largest segment.


The India ghee industry experiences several market drivers that contribute to the demand for desi ghee. Additionally, cultural preferences play a pivotal role, as desi ghee holds a longstanding significance in Indian culinary traditions and rituals. Along with this, the perceived health benefits associated with desi ghee, such as its rich nutrient profile and potential medicinal properties, drive consumer preferences towards this type of ghee. In addition, the growing awareness of the importance of locally sourced and traditional products among consumers has led to an increased demand for authentic desi ghee, further fueling the market. Furthermore, the expanding market for ethnic and traditional foods both domestically and internationally has provided a significant boost to the India ghee industry. In conclusion, the market drivers for desi ghee in the India ghee industry encompass cultural heritage, health considerations, consumer preferences for traditional products, and the rise in demand for ethnic foods.


Uttar Pradesh exhibits a clear dominance, accounting for the largest share for India ghee market

The report has also provided a comprehensive analysis of all the major regional markets, which includes Karnataka, Maharashtra, Tamil Nadu, Delhi, Gujarat, Andhra Pradesh and Telangana, Uttar Pradesh, West Bengal, Kerala, Haryana, Punjab, Rajasthan, Madhya Pradesh, Bihar, and Orissa. According to the report, Uttar Pradesh accounted for the largest market share.


The ghee industry in Uttar Pradesh is driven by its rich agricultural landscape ensuring a steady supply of high-quality milk, which serves as the primary raw material for ghee production. The abundance of dairy farms and cooperatives in the state fosters a robust dairy industry, supporting the ghee manufacturing process. Along with this, Uttar Pradesh's cultural heritage and culinary traditions deeply integrate ghee into the daily diet of its residents, bolstering consistent demand for this traditional product. The state's large population, combined with a steady increase in disposable incomes, further drives consumer spending on ghee products.


In addition, the state's strategic location, with well-established transportation networks, facilitates the efficient distribution of ghee to both domestic and international markets. Furthermore, the government's support through various initiatives and incentives for dairy farmers and ghee manufacturers further strengthens the industry's growth. In conclusion, the market drivers for the ghee industry in Uttar Pradesh encompass the abundant supply of milk, cultural significance, growing consumer base, favourable geographical positioning, and government support, all of which contribute to the industry's success and expansion in the region.


Competitive Landscape

The key players in the market are offering variants, such as flavoured ghee, organic ghee, and value-added ghee products. Ghee companies are investing in marketing and branding initiatives to establish their brands as reliable and premium choices among consumers. Effective marketing campaigns are being used to highlight the nutritional benefits and cultural significance of ghee. Along with this, the implementation of strict quality control measures and adherence to food safety standards are positively influencing the market.


In addition, the growing focus on optimizing distribution and supply chain networks to ensure their products are readily available to consumers across various regions in India is significantly supporting the market. Apart from this, the accelerating investments in research and development to innovate and create new ghee products that align with evolving consumer preferences, health trends, and sustainability concerns is favourably impacting the market. Furthermore, strategic collaborations and partnerships with dairy farmers, cooperatives, and other stakeholders in the dairy industry are contributing to the market.


The report has provided a comprehensive analysis of the competitive landscape in the ghee market in India.


Some of the key players in the market include

  • Gujarat Co-operative Milk Marketing Federation Ltd

  • Mother Dairy Fruits and Vegetables Pvt. Ltd

  • SMC Foods Limited

  • Bhole Baba Dairy Industries Ltd

  • Rajasthan Cooperative Dairy Federation Ltd (RCDF)

  • Parag Milk Foods Ltd


Ghee Market in India Segmentation

The report provides an analysis of the key trends in each segment of the India ghee market report, along with forecasts at the country and state levels from 2024-2032. 


Breakup by Type

  • Cow Ghee

  • Desi Ghee


Breakup by Retail and Institutional Sales

  • Retail

  • Institutional


Breakup by Region

  • Karnataka

  • Maharashtra

  • Tamil Nadu

  • Delhi

  • Gujarat

  • Andhra Pradesh and Telangana

  • Uttar Pradesh

  • West Bengal

  • Kerala

  • Haryana

  • Punjab

  • Rajasthan

  • Madhya Pradesh

  • Bihar

  • Orissa


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