When French multinational, Danone, first entered India in 2011, they launched a lineup of dairy products including plain yoghurt, flavoured yoghurt and smoothies. Though the Indian market is high on dairy consumption, its price-sensitive nature and affinity to local brands proved difficult to break into. Over the years, Danone saw a major learning curve, navigating one of the world’s most dynamic consumer landscapes. They carved out new paths for themselves and pivoted into specialised nutrition. We spoke to their Marketing Director, Sriram Padmanabhan, to gauge what their journey in the Indian market has been like and what the future holds.

Early Lessons

Danone entered India with high hopes, leveraging its global strengths in dairy and nutrition. It invested in dairy plants in Punjab and Haryana, intending to carve out a share of the competitive Indian dairy market. However, this sector proved to be a challenge. India’s dairy industry is dominated by local giants like Amul and thrives on fresh, home-prepared products, leaving little room for packaged offerings from international brands.

By 2018, Danone made the difficult decision to exit the dairy business in India. Despite significant investments, the company struggled to gain traction in a market where consumer loyalty to local brands and fresh products outweighed the appeal of international alternatives. The closure of its dairy operations marked a turning point for Danone in India, forcing the company to reassess its strategy and focus on areas where it could add unique value. 

“Danone has observed a significant shift in the Indian market, with consumers increasingly prioritising health and nutrition,” says Padmanabhan. Over the years, awareness around dietary choices has grown, as more people seek products that support their well-being, immunity and digestive health. 

A Strategic Pivot

Following its departure from the dairy sector, Danone turned its attention to specialised nutrition. Products like Protinex, Aptamil and Dexolac have become the cornerstone of its India strategy. Protinex, in particular, has been at the forefront of raising awareness about protein deficiency in the country. 

“Protinex has been actively driving a national movement to raise awareness about protein-rich diets since 2017.” The brand revamped its look and packaging to appeal to modern consumers and launched campaigns that addressed the importance of protein for health and wellness. This focus aligns well with India’s growing health consciousness, where consumers increasingly seek functional foods that provide specific health benefits.

For infants and young children, Danone’s Aptamil and Dexolac products offer science-backed nutrition tailored to Indian needs. The company’s AptaGrow campaign introduced tools like the ‘Growth Chakra’ to help parents assess and address their children’s nutritional requirements, creating a reputation for the brand as a trusted provider of nutritional solutions across life stages.

Aligning With Local Values

One of the keys to Danone’s strategy in India has been its ability to adapt global expertise to local needs. “Indian consumers value tradition, yet are open to new, science-backed innovations that enhance their quality of life.” To meet these expectations, Danone has tailored its offerings to fit Indian tastes, textures and nutritional needs. The localisation also extends beyond products to include educational initiatives that empower consumers with knowledge about balanced nutrition. 

Danone’s marketing strategies in India are purpose-driven, focusing on health, nutrition and conscious living with the company’s mission of ‘bringing health through food to as many people as possible’ at the heart of campaigns. “At the heart of our efforts is purpose-driven marketing, where every campaign emphasises making healthier choices.” Through a mix of traditional and digital channels and hyperlocal content tailored to regional preferences, Danone has leveraged digital channels to foster deeper connections with its consumers. 

Their multi-dimensional approach to engaging with our consumers on digital channels, especially social media, includes encouraging user-generated content, gathering feedback, and fostering a sense of community through interactive campaigns. “We closely monitor online trends and conversations, allowing us to respond promptly to consumer questions and concerns.”

What’s Next?

As awareness about the environmental impact of food choices grows, Danone’s expertise in plant-based nutrition positions it to capitalise on this emerging trend. “The plant-based foods market in India is still relatively niche, although we are noticing some gradual shifts.” Globally, the company’s “One Planet. One Health” vision integrates sustainability into its operations, and this philosophy resonates well with eco-conscious Indian consumers. The aim is to position Danone as a driver of the global food revolution and while plant-based foods remain a niche category in India, Danone sees potential in this segment. 

Danone’s exit from the dairy market highlighted the need for a deep understanding of local dynamics and the importance of focusing on areas of expertise. “Through this journey, Danone has not only deepened its roots in India but has also established itself as a trusted brand by addressing key health concerns and aligning with the aspirations of a growing health-conscious demographic.”

Renewed investments, such as a EUR 20 million boost for operations in Punjab, demonstrate Danone’s long-term commitment to India. The company is also exploring potential acquisitions to strengthen its presence further. Danone aims to balance its global expertise with local insights, ensuring that its products meet the needs of India’s diverse and complex market. 

In a country where health consciousness is on the rise, Danone’s ability to adapt, innovate and connect meaningfully with consumers will be crucial. Whether through science-backed products, purpose-driven marketing or a commitment to sustainability, the company is building a legacy that extends beyond nutrition to encompass that of well-being and environmentalism.