India’s Whey Protein Market: Demand and Supply Conundrum

Published July 31, 2024

Executive Summary

This discussion document analyses the demand and supply conundrum in India’s whey protein market. It examines the competitive advantage of India’s dairy sector, the role of private players and the factors that hamper whey protein production.

Due to increased demand and lower domestic production capacity, India faces a whey protein deficit.  India’s import restrictions exacerbate the supply issues in the market. The dominance of the unorganised sector in India’s dairy market further limits the ability of private players to address the demand-supply imbalance in whey protein. Additionally, low productivity, poor yield, and substandard products further impede the sector’s growth, along with various tariffs and non-tariff barriers against dairy exports.

Therefore, India’s whey protein market must enhance its competitiveness by boosting private sector participation, improving productivity and quality in dairy products, and removing import restrictions to achieve growth in this sector. The discussion document suggests several policy measures to enhance quality and innovation in the sector, including corporatising cooperative societies and fostering greater competition.

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