The Cheese Industry in India

Summary

India is not traditionally a 'cheese nation'

The organised cheese industry in India is at best in its nascent stage, accounting for under 1% of total dairy production and largely limited to urban consumption. The organized cheese industry in India as of 2006, is valued at Rs 250 crore ( US$ 50 million), with a volume in excess of 8000 tonnes. The industry growth rate is estimated at about 10%-12% per year in terms of volume and 16%-17% per year in value terms. Current household cheese penetration is 5%, with about 50% of consumption being limited to cities. Mumbai and Delhi together capture half of the cheese market. Within cheese products, around 60% of the market is dominated by processed cheese, 30% by cheese spreads and the remaining 10% by flavoured and specialty cheese. Amul and Britannia Milk Man are the lead brands.

Overseas cheese producers are eyeing the Indian market for its huge promise. The explosion of retailing in India is expected to have its impact on the cheese industry also. This paper looks at the lead national and regional players as well as the consumption, production and marketing trends.

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