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List of Profitable Manufacturing Business Ideas. Projects on Milk Processing & Dairy Products, Milk and Milk Products.

Wednesday, February 14, 2018

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List of Profitable Manufacturing Business Ideas. Projects on Milk Processing & Dairy Products, Milk and Milk Products.

Production of Butter, Cheese, Ghee, Ice Creams, Chocolate, Curd, Lassi, Flavored Milk, UHT Milk, Fluid Milk, Milk Powder, Skimmed Milk Powder Non-Dairy Cream, Buttermilk, Condensed Milk, Cottage Cheese, Casein, Yogurt, value added Dairy Products


India is the world’s largest producer and consumer of milk and dairy products. The country has experienced noteworthy improvement in the per capita availability of milk over the last five years. The unorganized sector comprising of small farmers and cooperatives contribute primarily to the dairy market. Over the last few years, the organized sector has been catching up rapidly by offering customized products to the end consumers, thereby causing a rise in the organized market share. The Indian dairy market is now witnessing the entry of a large number of foreign players.

The market for dairy products in India has grown rapidly over the last few decades and anticipated to be growing at a faster rate when compared to the global dairy products market. India’s demand for milk and milk products is increasing twice as fast as the production of milk. The market is also witnessing a consumer shift towards healthier products such as UHT milk, probiotic drinks and yoghurts, etc.

The dairy sector in India which epitomizes the socio-economic development of the country forms a crucial growth segment for India’s economy. Increasing revenues and meliorated profits of the sector’s domestic players, a trend of diversification and consolidation observed in the sector, and foreign companies’ foray into the segment, are some of the indicators which elicit that India's dairy industry will swiftly tread the growth trajectory in the years to come. As the industry emerges, investors find it lucrative to bet money on it given its high growth potential. Rising disposable incomes and growing demand for dairy products are likely to fuel the Indian dairy industry’s growth over the next few years. The Indian dairy industry significantly offers good opportunities for both domestic and foreign conglomerates/investors for entry and expansion.

The global butter market is expected to grow at a CAGR of 3.8% during the forecast period, 2018-2023. Butter is one of the vital ingredients of confectionary products. However, with the dropping prices of butter, the competition between substitute products has intensified. The demand for spreadable butter has been growing gradually in developing countries, as it is used in various food products.

The increase in demand for natural products due to the rise in health consciousness drives the growth of this market. A rise in the disposable incomes, especially in the developing countries, is another driver of this market. In developed countries, product innovation and the increase in home-baking drive the butter market growth. Availability of healthy alternatives to butter, such as margarine, along with government regulations in the production and distribution of butter restrain the market growth. Growing demand in developing countries can be considered as an opportunity for butter market.

The global butter market has been segmented on the basis of processing as: processed butter and non-processed butter. Processed butter holds a share of 56% in 2016. By type, the market is segmented into cultured butter, uncultured butter, cream and whipped butter, whey butter and salted butter. Regarding usage, the market has been segmented into spreadable and non-spreadable, wherein, the non-spreadable butter segment dominates the global market.  The market is further segmented by the distribution channel into super markets/hyper markets, convenience stores, grocery stores and others.

Cheeseis originally from southern Italy and is used for several pizzas and pasta dishes. Consumption of cheese has several health benefits associated with it. It is a good source of Vitamins, minerals, proteins. Apart from several benefits there are various health problems associated with its consumption such as heart attacks. Some other growth factors are increasing demand for protein rich supplements. Increasing health awareness and changing preferences of the customers for the low fat content cheese are some of the restraints in the cheese market.

Indian Cheese market is expected to show double digit growth. Processed cheese market in India is expected to grow with above average CAGR that includes products such as slices, cubes and slabs. Processed cheese segment is well organised and have several Indian and International players.

On the basis of Geography Cheese market is segmented into North America, Asia Pacific, Europa and Rest of the world. On the basis of product type Cheese market in India is segmented into Cheddar (Hard cheese), Cottage Cheese and Mozzarella cheese. Cheese market can also be segmented on the basis of type as processed cheese which includes spreadable and block cheese and unprocessed cheese which includes hard cheese, soft cheese and spreadable unprocessed cheese.

Ghee, which is widely used in Indian cooking, is the pure butter fat left over after the milk solids and water are removed from butter. It is very fragrant with a rich nutty taste and represents the second largest consumed dairy product in India, after liquid milk.

Ghee, also referred to as clarified butter, is a good alternative to cooking oil and is often used in Indian and Middle Eastern dishes. It is very fragrant and has a rich nutty taste. Ghee is solid at room temperature but can easily be melted if necessary. Many people prefer cooking with ghee over butter because it does not burn as easily as butter. The ghee market in India has witnessed a strong growth in recent years. Some of the factors which have contributed in influencing the market growth are increasing disposable incomes, expanding distribution channels and introduction of organic ghee.

The strong growth of the Indian ghee market can be attributed to numerous factors. One of the major driving factors is the fact that the majority of the Indian population is engaged in agricultural practices which involve a lot of physical labour. Thus, ghee is considered as a vital source of energy and nutrition in an Indian household. Apart from this, growing health-consciousness among the consumers has prompted manufacturers to come up with organic ghee, which in turn, has added to the overall demand. Some of the other driving factors include population growth, rising disposable incomes and expanding distribution channels in the country. The market is further expected to reach a value of more than INR 3014 Billion by 2021, growing at a CAGR of nearly 15% during 2017-2021.


Here are few Projects for Startup:


Coffee and tea are important in any office. Working professionals feel the need for these beverages intermittently during their hectic schedule. Increasing labor costs and the need for instant availability have brought in vending machines. Read more


Every person needs good health and for good health we need good proteins. In these cases milk is the best way to achieve good health. This is the best source of vitamin and Enzymes. Milk is an opaque white liquid produced by the mammary glands of mammals. Read more


The synthetic fats are known in India by different names such as Vanaspati, Dalda Ghee, and Hydrogenated Oil etc. Perhaps because vanaspati ghee is manufactured with vegetable oils and there is not much change in the components of vegetable oil after it has undergone the process of refining and hydrogenation, the name Vanaspati has been given to this refined oil. Read more


The covering of chocolates was originally carried out solely by hand the process being known as hand dipping. Each piece or centre was handled individually, dropped into molten chocolate, covered and finally placed a plaque to set. Read more


Powdered milk is a dairy product produced from cow milk. Cow milk basically contains water, fats, protein sugar and ash. About 86% to 88% of cow milk by weight is water. Milk powder is prepared by skimming the milk whereby a considerable but proportional cream substance is extracted before it is powdered. Read more


Peanut butter is not butter but butter like product made from ground nut or peanut. It consists essentially of cleaned, graded, blanched, roasted and crushed groundnuts containing about 45 percent of oil and over 25 percent of proteins, being thus a highly nutritive food. Read more


Milk is an important human food. It is palatable, easy to digest and highly nutritive. It contains proteins, fat, sugar, minerals and a liberal quantity of different kinds of vitamins. In World milk production, India ranks next only to the United States of America and the U.S.S.R. Read more


Food is mainly composed of three main groups of constituents i.e. carbohydrates, fat & protein. In addition to this there must be some inorganic minerals & organic substances e.g. vitamins, Iron, Mg etc. The body cereal foods is that enriched food which has a requisite level of nutrition. Read more


Milk is the normal product of mammary gland secretion. Milk is a complex, nutritious product that contains more than 100 substances that are either in solution, suspension or emulsion in water. The fat and fat soluble vitamins in the milk are in the form of an emulsion; Read more


Cheese is basically milk product, which is manufactured from milk by acidulation and then by filtration. The precipitate is cheese, there are few seeds and cereals grain contains highly soluble protein, fat and carbohydrate. By grinding and mixing with water, it forms substitute of animal (cow, buffalo) milk. Read more


Ice-cream, though of a comparatively recent origin, is a popular food item among people. It is a frozen dairy product made by suitable blending and processing of ice-cream and other milk products together with sugar, flavor, stabilizer and air during agitation. Read more


Agriculture still continues to be the major sector in India economy. Indian agriculture is based on mixed farming i.e. crop production through irrigation and rearing livestock. Co-operative dairying grew in the post-independence era on the foundation of co-operation. Read more


Dairy products are basically based on Milk. India ranks next only to USA & USSR in world milk production. There are a number of dairy products like butter, cream, cheese, Khoya, Paneer, flavoured milk etc. Read more


Ghee, also referred to as clarified butter, is a good alternative to cooking oil and is often used in Indian and Middle Eastern dishes. It is very fragrant and has a rich nutty taste. Ghee is solid at room temperature but can easily be melted if necessary. Read more


Ice cream is defined as a frozen dairy product made by suitable blending and processing of cream and other milk products together with sugar, flavour, stabilizer and incorporation of air by agitating during the freezing process. Read more


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