The Rising Cost Of

Milk

And Why More Indian Households Are Trying Plant-Based Options

Quick Summary

India’s mornings are incomplete without the doodh wali chai and evenings without a glass of milk. However, milk prices are soaring with each passing day, prompting consumers to opt for plant-based options like soy milk, almond milk, and oat milk. This article examines the reasons behind the rise in milk prices and other health concerns that are driving the shift in milk consumption in Indian kitchens. Dive deeper to know more. 

Deep Dive

For decades, milk symbolised nourishment, purity and prosperity in Indian homes. Milk was, and still is, more than a beverage; it is a ritual, culture, and childhood comfort in a glass. But 2025’s India tells a slightly different story. With dairy prices rising sharply and plant-based brands proliferating on supermarket shelves, the country’s relationship with milk is undergoing a shift. The country's current economy is reshaping the way dairy is consumed. 

Inflation, fodder shortages, and climate pressures have pushed cow’s milk prices to next level. At the same time, India’s growing middle class, which is increasingly health-conscious, urban, and digitally connected, is seeking alternatives that fit their modern lifestyle. Almond, soy, and oat milk now appear on café menus and online grocery carts, marketed as sustainable, lactose-free, and nutrient-rich.

The shift does not mean that India is turning its back on dairy; rather, it has become more about balance, which is a blend of nostalgia and new-age nutrition. Read this article to understand the economics behind milk and how health awareness is driving this transformation across Indian kitchens.

How Dairy Became Costly

Milk has long been one of India’s most accessible sources of protein and calcium. However, in recent years, dairy prices have been steadily climbing. Fodder shortages, fuel price hikes, and disruptions in cold storage chains have driven up production costs. This is leading to a litre of packaged milk that cost ₹45 just a few years ago now sells for ₹65 or more in several cities.

For an average household, this adds up. Families that once bought multiple litres daily are cutting down or exploring options that last longer and offer similar nutrition. The economic shift is evident in metros, where consumers are open to trying non-dairy alternatives that deliver more value per rupee, especially when they do not spoil as quickly and do not need boiling.

The Rise Of Plant-Based Alternatives In Indian Homes

What began as a niche wellness trend has now become a mainstream movement. Almond, soy, oat, and coconut milks have found a loyal following, particularly among millennials and young professionals. Indian start-ups are leading the charge with fortified, affordable, and locally produced options. These milk alternatives are also easily accessible. Supermarkets, cafés, and even small convenience stores now stock non-dairy milk in handy tetra packs. This is a sign of shifting demand, a transition from curiosity to regular consumption. And while the early adopters were typically health enthusiasts or vegans, the audience today includes families seeking more cost-effective and digestible options.

Why People Are Switching

Lactose intolerance is a big, though often unspoken, factor in India’s shift towards plant-based milk. Studies suggest that nearly 60 per cent of Indian adults have some degree of lactose sensitivity. For many, the switch to almond or oat milk brings immediate relief from bloating, indigestion, and discomfort. Calories are also an essential factor that has gained attention today. With growing fitness awareness, consumers are actively reading labels and comparing fat, sugar, and cholesterol content. Almond milk, for instance, is naturally lower in calories and fat. Soy milk offers a protein-rich, cholesterol-free alternative. Many brands now fortify their milks with vitamin B12 and calcium to match or even exceed the nutritional profile of dairy milk. The health angle has taken centre stage now, when it comes to India choosing its beverages. 

Sustainable Sips For A Changing Climate

Sustainability is emerging as another powerful motivator behind the rise of non-dairy milk. Producing one litre of dairy milk requires thousands of litres of water and a large carbon footprint. In contrast, oat and soy milks use less land, less water, and emit fewer greenhouse gases.

In a country which is already grappling with water scarcity and rising temperatures, this eco-conscious choice feels personal. Young consumers, particularly in urban areas, are increasingly making food choices that align with their environmental values. Indian brands are now offering recyclable packaging, sourcing ingredients locally, and promoting environmentally friendly farming practices. The switch to plant-based milk is not just about health, but about hope for a sustainable food future.

Economic Futures

India’s dairy sector is not disappearing, but it is diversifying. Plant-based milk currently represents a small share of the market, but it is experiencing rapid growth. Analysts predict double-digit growth in the coming years, driven by affordability, innovation, and awareness. As competition intensifies, prices are expected to continue dropping, making non-dairy options more accessible beyond metropolitan areas. The most likely scenario is not replacement, but coexistence. Dairy will remain rooted in tradition, for festivals, sweets, and everyday cooking, while plant-based milk finds its niche in modern diets.