India Ghee Market to Grow with a CAGR of 8.85% through 2031F

The India Ghee Market is driven by factors such as rising health awareness, growing preference for traditional and natural foods, and increasing disposable incomes.

According to TechSci Research report, “India Ghee Market – By Region, Competition Forecast & Opportunities, 2021-2031F”, the India Ghee Market was valued at USD 44.85 Billion in 2025 and is expected to reach USD 74.61 Billion by 2031 with a CAGR of 8.85% during the forecast period. The Indian ghee market is deeply rooted in the country’s culinary, cultural, and medicinal traditions. Ghee, also known as clarified butter, has been a staple in Indian households for centuries, revered not only for its rich taste but also for its perceived health benefits. As a crucial component of Indian cuisine, Ayurveda, and religious rituals, ghee continues to enjoy unwavering demand across both urban and rural regions. Its prominence in traditional Indian diets, especially during festivals and celebrations, makes it one of the most consistent segments in the country’s dairy sector. The versatility of ghee—used in cooking, confectionery, herbal preparations, and rituals—ensures it maintains a strong foothold in Indian consumer habits.

Busy lifestyles, dual-income households, and a growing number of nuclear families have led to greater demand for ready-to-use food products that save time without compromising on taste. Mayonnaise perfectly fits this need, offering an easy way to prepare sandwiches, burgers, wraps, and snacks. Its long shelf life and availability in various pack sizes make it ideal for both households and commercial kitchens. Moreover, it complements a wide range of ingredients—from vegetables and meat to bread and rice—making it highly adaptable to Indian culinary preferences. This growing demand is further supported by the expansion of modern retail formats, online grocery platforms, and last-mile delivery services, which have made mayonnaise more accessible than ever.

Over the years, the ghee market in India has undergone a significant transformation. From being predominantly available in loose or unbranded forms through local dairies, the market has shifted toward organized retail with a surge in demand for packaged, branded ghee. This change has been driven by urbanization, rising disposable incomes, increasing health consciousness, and a growing awareness of food safety and hygiene.

The shift in consumer behavior is also being influenced by the rise of digital commerce and the demand for premium, wellness-oriented products. Online platforms like Amazon, Flipkart, BigBasket, and specialty food websites have expanded the accessibility of niche ghee products to a wider audience, including millennials and health-conscious consumers. Premium offerings such as A2 cow ghee, bilona ghee (prepared using traditional churning methods), and lactose-free ghee are gaining popularity for their perceived superior health benefits. Launches like Two Brothers Organic Farms' “Full Moon Ghee” and Amaya Milk Company’s “Havan Ghee” demonstrate the growing interest in artisanal and ritual-specific ghee, adding value to what was once considered a basic household item.

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The India Ghee Market is segmented into type, application, sales channel and region.

Based on sales channel, The online segment is emerging as the fastest growing in various consumer markets due to increasing digital literacy, affordable smartphones, and expanding internet penetration across urban and rural India. Consumers now prefer the convenience of shopping from home, accessing a wide range of brands, comparing prices, and benefiting from discounts and home delivery. The rise of e-commerce platforms like Amazon, Flipkart, and BigBasket, along with specialized dairy and grocery apps, has made purchasing products like ghee more accessible. Post-pandemic shifts have further accelerated digital adoption, with brands investing in direct-to-consumer (D2C) models and personalized marketing. Social media influence and digital payment integration are also enhancing the online shopping experience, driving strong growth in this segment.

Based on region, southern region of India is emerging as the fastest growing segment in the ghee market, driven by increasing health awareness, a strong cultural affinity for dairy products, and rising disposable incomes. States like Tamil Nadu, Karnataka, Andhra Pradesh, and Kerala are witnessing a surge in demand for both traditional and premium ghee variants, including organic and A2 cow ghee. The popularity of South Indian cuisine, which frequently uses ghee in daily cooking and festive preparations, further fuels consumption. Additionally, the rise of organized retail, expanding e-commerce penetration, and the influence of wellness trends are encouraging consumers to opt for branded, high-quality ghee. Local and national brands are increasingly targeting this region with region-specific marketing and product innovations.

Major companies operating in India Ghee Market are:

• Gujarat Cooperative Milk Marketing Federation Ltd.
• Mother Dairy Fruit & Vegetable Pvt Ltd.
• Parag Milk Foods Ltd.
• Patanjali Ayurved Limited
• Creamy Foods Private Limited
• Nestlé India Limited
• G.K. Dairy & Milk Products Pvt. Ltd.
• Beejapuri Dairy Private Ltd
• Britannia Industries Limited
• Ananda Dairy Ltd.

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“The Indian ghee market is driven by rising health awareness, growing preference for traditional and natural foods, and increasing disposable incomes. Consumers are shifting toward branded and organic ghee due to hygiene and quality concerns. Urbanization and modern retail expansion have enhanced product accessibility. Trends include rising demand for A2 and bilona ghee, premiumization, and growth of online and direct-to-consumer (D2C) channels. Cultural importance and festive consumption continue to support steady market growth”, said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“India Ghee Market By Type (Cow Ghee, Buffalo Ghee, Others), By Application (Industrial, Commercial, Household), By Sales Channel (Supermarkets/Hypermarkets, Traditional Grocery Stores, Specialty Stores, Online, Others), By Region, Competition, Forecast & Opportunities, 2021-2031F”, has evaluated the future growth potential of India Ghee Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Ghee Market.

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