India Sheep & Goat Market- Trend Analysis & Forecasts

Sheep & goat market in India valued at US$ ** billion in 2024 and is projected to witness a CAGR of **% during the period from 2025 to 2030. India stands among the world’s largest producers of sheep and goats, with a stronghold in both domestic consumption and regional exports. Rising protein demand, rural livelihoods, and cultural significance are shaping future growth in this sector, making it a pivotal element in India’s livestock economy.

Market Overview

India’s sheep and goat sector plays a vital role in the rural economy, supporting millions of marginal and landless farmers. According to the 20th Livestock Census, India had 74.26 million sheep and 148.88 million goats, making it one of the largest populations globally. The market, primarily dominated by small and marginal farmers, has witnessed moderate but consistent growth driven by increasing meat consumption, rising disposable income, and the growing demand for high-protein diets.

The Indian sheep and goat meat market is largely informal, with over **% of the meat sold through wet markets and local slaughterhouses. However, with the rise of organized retail and meat delivery startups such as Licious and FreshToHome, the formal segment is gradually expanding.

The demand for sheep and goat products, including meat, milk, leather, and wool, is growing both domestically and internationally. India exported around ** thousand tonnes of goat and sheep meat in 2024, with major destinations including the Middle East, Malaysia, and Vietnam.

With rising investments in meat processing and livestock productivity enhancement, the market is projected to grow at a CAGR of **% from 2024 to 2030. The government’s focus on veterinary healthcare, productivity enhancement, and entrepreneurship in rural livestock farming is likely to boost both supply and competitiveness in the coming years.

Importance of India in Global Sheep & Goats Supply Chain

India holds a critical position in the global sheep and goat market due to its vast population of small ruminants, particularly goats, where it ranks first globally. India contributes about **% of the global goat population and around **% of the global sheep population. It is also among the top five producers of goat meat and is a leading exporter in the regional MENA and Southeast Asian markets.

Indian goats, especially breeds like Jamunapari, Barbari, and Black Bengal, are in high demand due to their high reproduction rates and adaptability to diverse climates. The country’s wide agro-climatic diversity allows for rearing across various geographies, which strengthens its position as a reliable supply hub.

India's significance is also due to its religious and cultural practices. The country celebrates festivals like Eid al-Adha, where demand spikes for sacrificial goats and sheep, influencing global trade flows. Additionally, low production costs and a large domestic market make India a competitive exporter in the halal meat segment.

India Sheep & Goat Production & Demand Trend

Supply

India’s sheep and goat production has grown steadily over the past decade. The goat population increased by 10.1% from 2012 to 2019, reaching 148.88 million, while the sheep population saw a 14.1% rise to 74.26 million in the same period. The increasing trend is fueled by government support programs like the National Livestock Mission and rising profitability due to strong meat prices.

Small ruminant production is concentrated in states like Rajasthan, Uttar Pradesh, West Bengal, Andhra Pradesh, and Tamil Nadu. Goat farming is often preferred due to lower input requirements and shorter gestation cycles. Productivity remains low compared to global benchmarks, but new initiatives on breed improvement, fodder security, and veterinary outreach are expected to drive production efficiency.

Demand

India’s demand for sheep and goat meat is experiencing consistent growth, driven by urbanization, changing dietary patterns, and increased health awareness. Per capita consumption of mutton is estimated at around ** kg annually in urban areas, compared to ** kg in rural regions.

Cultural and religious influences also play a vital role, with goat and sheep meat considered premium compared to poultry. Urban middle-class consumers increasingly seek hygienically processed and branded meat, creating space for organized players. Additionally, demand for goat milk, considered easier to digest, is growing in urban health-conscious segments.

India's domestic consumption accounts for over 95% of total production, leaving a small but high-value surplus for exports. With the youth demographic seeking protein-rich diets and the rising popularity of goat milk products, domestic demand is likely to rise further.

India Market Growth Factors

The Indian sheep and goat market is driven by a combination of economic, cultural, and demographic factors. Rising income levels and urbanization are expanding the consumer base for red meat, particularly in metro and Tier 2 cities. The growing emphasis on high-protein diets, driven by nutritional awareness and lifestyle diseases, supports demand for mutton and goat milk.

The government has introduced supportive schemes like the Rashtriya Gokul Mission and National Livestock Mission, offering subsidies and infrastructure support for breeding and health services. E-commerce platforms and startups have made access to quality meat easier, enhancing transparency and improving consumer trust in hygienic meat.

From the supply side, India benefits from low input costs, abundant labor, and indigenous breeds well-suited for diverse terrains. The traditional practice of goat rearing as a source of supplementary income ensures wide-scale rural participation. Additionally, the export market, particularly for halal-certified meat, is expanding in regions like the UAE, Saudi Arabia, and Malaysia, providing a growth corridor for Indian exporters.

Market Restraints & Challenges

Despite the sector's growth potential, several challenges persist. The fragmented nature of production, with most animals reared by smallholder farmers, limits economies of scale. Low productivity due to poor genetics, lack of scientific feeding, and inadequate veterinary care further constrains output.

The sector also faces issues of insufficient processing infrastructure, cold chain facilities, and modern slaughterhouses, especially in rural areas. This limits the ability to supply hygienically processed meat and restricts access to premium export markets.

Culturally, meat consumption is still limited in many regions due to religious or dietary preferences, which caps domestic demand growth. Furthermore, livestock is vulnerable to diseases such as PPR (Peste des Petits Ruminants), and climate variability threatens fodder availability. Addressing these bottlenecks is critical for long-term sector resilience.

India Sheep & Goat Industry: Supply Chain Bottlenecks & Challenges

India’s sheep and goat value chain is riddled with inefficiencies that hinder scalability and profitability. The absence of organized aggregation at the farm gate results in dependence on middlemen who often dictate prices, reducing the farmer’s profit margin. Limited access to formal credit and insurance also discourages investments in productivity enhancement.

Transport and logistics challenges are rampant, especially in the post-harvest phase. Most meat reaches consumers through informal channels lacking cold storage or hygienic handling, resulting in spoilage and health risks. Processing infrastructure is concentrated in a few urban centers, which makes it difficult to scale operations nationally.

Veterinary services are underfunded and inaccessible in remote regions. Furthermore, poor fodder management practices and overgrazing result in low nutritional intake and weak animal health. Without a reliable supply chain for quality inputs, consistent production and marketing remain difficult.

Sheep & Goats Price Setting Power of India

India’s pricing power in the global sheep and goat market is moderate. While it is one of the leading producers, its export volumes are relatively small compared to major exporters like Australia and New Zealand, limiting its influence on global pricing. However, within South Asia and the Middle East, Indian exporters can influence niche halal meat pricing, especially during seasonal demand peaks such as religious festivals.

Domestically, price setting is often influenced by local demand-supply dynamics, with informal markets playing a dominant role. Prices are seasonal, rising during Eid and other festivities. Organized retailers are beginning to standardize pricing by offering premium meat at consistent rates, but these account for a small share of the market.

Over the last five years, wholesale and export prices for sheep and goat meat in India have shown a rising trend. In 2018, average export prices hovered around US$ ** per kg, rising to US$ ** per kg by 2023 due to increased input costs and higher demand from Gulf countries. Domestic wholesale prices also rose from ₹** per kg in 2018 to nearly ₹** per kg in 2024, driven by urban consumption and supply chain disruptions during COVID-19.

Seasonal spikes in prices are observed during religious festivals. Export prices tend to remain relatively stable due to long-term contracts and government regulations. However, volatility in fodder prices and livestock disease outbreaks occasionally cause abrupt price fluctuations.

India Sheep & Goat Market Segmentation Analysis

The Indian sheep and goat market can be segmented based on type, end-use, and distribution channel. By species, goats dominate in both number and meat production, contributing nearly **% of the combined market value. Within goats, popular breeds include Black Bengal, Osmanabadi, and Barbari, while for sheep, Deccani and Nellore breeds lead.

In terms of end-use, meat accounts for the majority share, followed by milk and wool. Goat milk, although niche, is gaining traction in urban health-conscious segments. The wool segment is declining due to the rise of synthetic alternatives.

Distribution is primarily through wet markets and butchers, but e-commerce and organized retail are emerging channels. Platforms like Licious and Meatigo are catering to urban consumers seeking clean and traceable meat products.

Regionally, North and West India lead in production, while urban centers like Delhi, Mumbai, Hyderabad, and Bengaluru are key consumption hubs. Export-oriented production is gaining ground in Andhra Pradesh and Maharashtra due to proximity to ports.

India Sheep & Goat Products Trade (Export & Import) Trend

India is a net exporter of sheep and goat meat, with exports totaling around ** thousand tonnes in 2024, valued at approximately US$ ** million. Major export markets include the UAE, Saudi Arabia, Qatar, Vietnam, and Malaysia. The preference for halal meat from India, due to cultural and religious compatibility, enhances its appeal in Islamic nations.

The country imports minimal volumes, largely limited to breed improvement or niche high-end cuts. The government tightly regulates meat exports to ensure domestic availability and quality standards. However, logistical and quality compliance issues hinder India’s ability to expand its market share in developed countries.

The Middle East continues to dominate Indian meat exports due to proximity and trade relationships. With improved traceability, certification, and infrastructure, India could further penetrate ASEAN and African markets.

India Sheep & Goat Market Competitive Analysis

The Indian sheep and goat market is highly fragmented, dominated by unorganized smallholder producers. However, the competitive landscape is evolving with the rise of organized players, meat startups, cooperatives, and exporters entering the value-added and processed meat segments.

Companies such as Licious, FreshToHome, and Zappfresh are disrupting traditional retail with tech-enabled delivery platforms that ensure hygiene, traceability, and consumer convenience. These companies source directly from farms and slaughter animals in certified facilities, appealing to premium consumers.

In the export segment, companies like Al Kabeer Exports and Allanasons dominate due to their large-scale facilities and established distribution networks. Cooperatives and state livestock boards also play a role in organized aggregation and veterinary outreach.

Regional meat processors, local butchers, and livestock traders form the backbone of the domestic market. Their flexibility, cultural familiarity, and low overheads make them competitive in rural and semi-urban markets.

Key Companies in India Sheep & Goat Supply Chain,

■ Vista Processed foods Pvt. Ltd.
■ Allanasons Pvt. Ltd.
■ Amroon Foods Pvt. Ltd.
■ Mirha Exports Pvt. Ltd.
■ AB Frigo Foods
■ ABZ Frozen Food
■ Arabian Exports
■ HMA Agro Industries Ltd.
■ Hyderabadi Goat Farm
■ Licious
■ FreshToHome
■ Zappfresh
■ Al Kabeer Exports Pvt. Ltd.
■ Meatigo

Future Outlook

The Indian sheep and goat market is poised for robust growth through 2030, driven by urban demand, export potential, and supportive policy measures. Investments in infrastructure, processing, and digital meat commerce will help integrate informal producers into a modern value chain, enhancing productivity and profitability. With rising global protein needs, India has the potential to become a dominant player in the regional small ruminant meat trade.