As we conclude another year, it is essential to reflect on the key developments, challenges, and achievements that have shaped different sectors throughout the past 12 months. The year 2024 has been marked by dynamic shifts, rapid innovation, and the continued adaptation to both external factors and emerging trends.
Adgully’s annual feature – REWIND – revisits different sectors and identifies the key developments as well gauges the long-term impacts of those developments. We speak to a cross-section of industry leaders to bring a 360-degree view of the industry landscape, the growth trends, financial performance, disruptions, innovations, challenges and more.
In this Rewind 2024 article, Akshali Shah, Executive Director, Parag Milk Foods, reflects on the year gone by for the FMCG industry in India, impact of broader Indian economy on the growth and investment in the FMCG sector, trends and developments dominated the FMCG sector, and more.
Overview of the industry and Indian economy in 2024
2024 marked a pivotal year for the Indian economy, reflecting resilience despite global uncertainties. Rising disposable incomes and increasing urbanization boosted consumer demand across sectors, including FMCG. For the dairy industry, the year saw a surge in demand for value-added products, fueled by health awareness and convenience-seeking consumers. The government’s focus on rural development and infrastructure further supported sectoral growth, while evolving consumer preferences toward functional nutrition shaped market dynamics.
Dairy industry recap
According to the IMARC report, the global dairy industry, in particular, is expected to grow at a compound annual growth rate (CAGR) of 3.8% from 2024 to 2032. The Indian dairy industry is in an exceptionally favourable position, growing at a CAGR of 10.7% from 2018 to 2023, with the organized segment witnessing a growth of 13.5% during the same period.
The Indian dairy market is expected to maintain a CAGR of 14% from 2024 to 2032.
Key trends and developments
Key trends included the surge in demand for dairy alternatives, premiumization, and the rise of digital platforms for direct consumer engagement. Sustainability and traceability of dairy origin also gained prominence, with consumers preferring brands that are transparent and environmentally conscious. The rise of e-commerce and quick commerce platforms have also significantly contributed to product accessibility, particularly for niche and premium categories.
Performance and achievements in 2024
This year has been remarkable for us at Parag Milk Foods, marked by a significant rise in consumer demand for hyper-personalized and experiential campaigns that deliver value beyond the product itself. Balancing authenticity with innovation, while staying true to our roots, remains a key focus. While digital-first strategies continue to gain momentum, we maintain a comprehensive 360-degree marketing approach. A standout achievement has been our collaboration with over 200 influencers across brands like Avvatar and Pride of Cows, enabling us to expand our reach and engage with audiences in a meaningful way.
A vital takeaway for us this year has been the importance of crafting thoughtful, context-driven brand partnerships that resonate with diverse consumer groups. Our association with ‘Kaun Banega Crorepati’ demonstrated how partnering with trusted legacy platforms can enhance visibility and build trust. Likewise, Avvatar Protein’s collaboration with Spartan Endurance, an international obstacle course event, highlighted the impact of purpose-driven initiatives, positioning whey protein as a cornerstone of fitness journeys. Additionally, Go Cheese’s integration with ‘Bigg Boss Season 18’ proved to be an effective experiential campaign, embedding our brand into viewers’ daily lives and driving strong recall.
We have entered into a new product category – Gowardhan Khushiya, a ready to eat sweet category. This is our forward integration of Gowardhan Ghee brand. The Gowardhan Khushiya mithais, made out of Pure Gowardhan ghee, is the key differentiator in this clutter category. We have built a new TVC around the same conversation – “Na bhakti me na bhog me na mithai me, milavat kahi bhi nahi honi chahiye”, – highlights the importance of purity in every aspect of life, whether in devotion, offerings, or food.
We have made a new brand film for our premium Brand Pride of Cows, which talks about Single Origin Milk. We have also made a new TVC for Go Cheese showcasing Go Cheese’s use in various dishes like pizzas, tacos, and pasta. The ad, which premiered during ‘Bigg Boss 18’ promos, highlights the versatility of Go Cheese in enhancing everyday meals – ‘Make it amazing with GoCheese’.
The road ahead in 2025
As we enter 2025, the dairy industry is poised to embrace digital transformation, with AI and data analytics enhancing personalization and consumer insights. The demand for single-origin dairy and functional products will continue to grow. Sustainability will take center stage, with eco-friendly packaging and supply chain transparency becoming non-negotiable. Emerging trends such as plant-based dairy alternatives and probiotic-rich products are also expected to gain momentum.
At Parag Milk Foods, we look forward to expanding our footprint in value-added dairy and nutrition-focused categories. We anticipate tailwinds from the rising health consciousness of Indian consumers and opportunities in the premium and functional dairy space. However, challenges like inflationary pressure on raw materials and fluctuating global dairy prices will require strategic agility. Leveraging advanced software solutions like SAP HANA, we aim to streamline operations, optimize decision-making, and improve overall efficiency across the value chain.
We remain committed to driving growth through innovation, partnerships, and a consumer-first approach that balances tradition and modernity.
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