Cheese in India

Euromonitor International
September 2019
CHEESE IN INDIA Passport i

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
Rapidly Growing Fast Food Industry To Drive Household Consumption of Cheese ................. 1
Strong Demand for Flavoured Cheese To Drive Sales of Cheese in India ............................... 1
Shift From Unpackaged To Packaged Paneer Continues ........................................................ 1
Competitive Landscape ................................................................................................................ 2
Gujarat Co-operative Milk Marketing Federation Continues To Lead Cheese .......................... 2
Parag Milk Foods Continues To Perform Well .......................................................................... 2
Indian Market Shows Acceptance of Artisanal Cheese ............................................................ 2
Category Data .............................................................................................................................. 3
Table 1 Sales of Cheese by Category: Volume 2014-2019 ...................................... 3
Table 2 Sales of Cheese by Category: Value 2014-2019 ......................................... 3
Table 3 Sales of Cheese by Category: % Volume Growth 2014-2019 ...................... 3
Table 4 Sales of Cheese by Category: % Value Growth 2014-2019 ......................... 4
Table 5 Sales of Spreadable Processed Cheese by Type: % Value 2014-2019 ....... 4
Table 6 Sales of Unprocessed Cheese by Type: % Value 2014-2019 ...................... 4
Table 7 NBO Company Shares of Cheese: % Value 2015-2019 .............................. 4
Table 8 LBN Brand Shares of Cheese: % Value 2016-2019 ..................................... 5
Table 9 Distribution of Cheese by Format: % Value 2014-2019................................ 5
Table 10 Forecast Sales of Cheese by Category: Volume 2019-2024........................ 6
Table 11 Forecast Sales of Cheese by Category: Value 2019-2024........................... 6
Table 12 Forecast Sales of Cheese by Category: % Volume Growth 2019-2024 ....... 7
Table 13 Forecast Sales of Cheese by Category: % Value Growth 2019-2024 .......... 7

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CHEESE IN INDIA Passport 1

CHEESE IN INDIA
HEADLINES
▪ In 2019, cheese records retail value current growth of 18% to reach INR40.3 billion
▪ Out-of-home consumption is influencing household consumption by influencing and
introducing new formats of cheese
▪ Other processed cheese registers the strongest retail current value growth of 21% in 2019
▪ Average unit price in cheese rises by 9% in current terms in 2019, with the sharpest increase
of 10% seen in other processed cheese
▪ Gujarat Co-operative Milk Marketing Federation remains the clear leader in cheese with a
retail value share of 38% in 2019
▪ Sales are expected to rise at a 19% current value CAGR (13% 2019 constant value CAGR)
over 2019-2024

PROSPECTS

Rapidly Growing Fast Food Industry To Drive Household Consumption

of Cheese
With the increase in the number of working-age population, people have less time to prepare
food at home, hence the food industry is experiencing healthy growth. This has led to the
increase in consumption of fast foods where cheese is an important ingredient thus driving the
growth of cheese, which is influencing household consumption.
Increased tourism leads to an increase in consumption at horeca and QSRs where cheese is
extensively used, thus driving foodservice sales of cheese. This again influences household
consumption of cheese. This changing food-eating habit has also led to a change in the palates
of consumers and the effects are rubbing off on traditional cooking as well. Cheese has now
found an application in traditional dishes such as dosa, parathas along with other traditional
dishes. Cheese has seen strong marketing from players such as Taco Bell with its
TheCheesyPull campaign to attract cheese lovers.

Strong Demand for Flavoured Cheese To Drive Sales of Cheese in India

The year 2019 witnessed manufacturers coming up with flavoured cheese to cater to different
tastes and preferences of consumers in India. Consumers today are moving towards more
functional and customised offerings. Manufacturers are expanding their portfolios by adding
international and ethnic flavours to cater to the demand. For examples, Parag Milk Foods added
flavours such as Mexican and Italian flavours of cheese and GCMMF added Mexican Chilli and
Roasted Garlic. Manufacturers have come up with innovative packaging and formats to drive
sales. For example, Go Cheese has variants such as slices, wedges, angles, cheese sauces,
and squeeze packets. Demand is primarily from the younger generations who like to try new
international flavours.

Shift From Unpackaged To Packaged Paneer Continues

Shift from unpackaged to packaged paneer on the back of increasing hygiene awareness
drives demand for packaged paneer, especially in second- and third-tier cities. Paneer is not a
mature category and has strong potential for growth. Frequent dining out has increased

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consumer awareness driving demand for paneer. Dairy companies across the country expanded
the distribution of packaged paneer to second- and third-tier cities, as independent small
grocers upgraded their cold storage infrastructure. That said, the widespread availability of
unpackaged paneer at a relatively affordable price will continue to impact potential growth.

COMPETITIVE LANDSCAPE

Gujarat Co-operative Milk Marketing Federation Continues To Lead

Cheese
Gujarat Co-operative Milk Marketing Federation remained the leader in cheese in 2019.
GCMMF saw strong volume sales growth. This is attributed to increased milk procurement,
rapid expansion and its 3-tier cooperative model. The rapid expansion was aided with
aggressive efforts in its existing robust distribution and pricing. GCMMF plans to further expand
its capacity.
Although GCMMF spends only 1% of its revenue on promotions, GCMMF enjoys a loyal
customer base that helps the company with word-of-mouth advertising, along with very effective
digital marketing campaigns focusing on topical ads with the iconic “Amul girl”, which is still
going strong with its tongue-in-cheek humour and clever wordplay.

Parag Milk Foods Continues To Perform Well

Parag Milk Foods witnessed strong growth in its sales because of the strong performance of
the Go Cheese brand. This is attributed to strengthening its existing distributor and stockist base
to achieve higher retail penetration. The company has also started introducing low unit price
products in third-tier cities to cater to the local demand. Rise in foodservice outlets is also one of
the reasons for increasing sales as the company has a strong presence in the institutional and
horeca segment.
Parag Milk Foods introduced healthy and nutritious variants such as high-protein, low-fat
cheese products to leverage the healthy living trend in the country in the cheese varieties such
as Green Chutney (Mint Leaves), Schezwan, Piri-Piri, cheese spreads in the flavours Smoked
Paprika, Herbs and Olives, Garlic, Spice and Gourmet cheese, among others.
Parag Milk Foods also announced the launch of a new Go Cheese campaign
#HarTastyCheezMeinGoCheese. The TVC narrates a story of cheese lovers enjoying the
delightful and happy moments with the type of cheese that suits their palate. Parag Milk Foods
is making an effort to educate customers that the cheese it has in QSRs etc is Go Cheese and
this campaign resonates with its business objective for the brand which is trying to reach from
QSRs to customers’ homes.

Indian Market Shows Acceptance of Artisanal Cheese

Artisanal cheese is made in a traditional or non-mechanised way usually from unpasteurised
milk so that makers can control the taste. This cheese is made in small scale as it is a slower
and often more labour-intensive process. The majority of this cheese is made with cow’s milk.
Currently artisanal cheese production is more concentrated in the southern part of the country.
The increase in the number of artisanal cheese makers is due to lack of authentic handcrafted
cheese in India.
Though this a very niche category and still at a nascent stage, there is a huge potential for
this category as the existing artisanal cheese makers are experiencing strong demand. Well-
travelled, affluent people with developed taste palates and those with higher disposable income
are the existing customer base for artisanal cheese. High- end restaurants and cafés were the

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traditional buyers of this kind of cheese but the individual buying is also becoming a trend. This
is also fuelled by the desire to experiment. Manufacturers are educating the customers by
organising events along with the curated experience.
Supermarkets are starting to place artisanal cheese along with the imported cheese variants.
Examples of artisanal cheese are Brie, Camembert, flavoured Gouda cheese, Ricotta, Gruyère,
Edam, Parmesan, blue cheese etc.

CATEGORY DATA
Table 1 Sales of Cheese by Category: Volume 2014-2019

'000 tonnes
2014 2015 2016 2017 2018 2019

Processed Cheese 19.3 22.1 25.2 28.5 31.4 34.6

- Spreadable Processed 3.2 3.7 4.3 5.0 5.5 6.1
Cheese
- Other Processed Cheese 16.0 18.4 20.8 23.5 25.9 28.5
Unprocessed Cheese 30.0 33.6 37.2 41.5 44.3 47.5
- Hard Cheese - - - - - -
-- Packaged Hard Cheese - - - - - -
-- Unpackaged Hard Cheese - - - - - -
- Soft Cheese 30.0 33.6 37.2 41.5 44.3 47.5
Cheese 49.2 55.7 62.4 70.0 75.7 82.1
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Sales of Cheese by Category: Value 2014-2019

INR million
2014 2015 2016 2017 2018 2019

Processed Cheese 7,849.3 10,051.1 12,737.8 15,919.7 19,256.0 23,208.1

- Spreadable Processed 1,260.4 1,622.1 2,059.2 2,583.3 3,060.2 3,608.0
Cheese
- Other Processed Cheese 6,588.9 8,429.0 10,678.5 13,336.4 16,195.8 19,600.1
Unprocessed Cheese 7,691.1 9,224.0 10,905.4 13,050.5 14,910.3 17,072.3
- Hard Cheese - - - - - -
-- Packaged Hard Cheese - - - - - -
-- Unpackaged Hard Cheese - - - - - -
- Soft Cheese 7,691.1 9,224.0 10,905.4 13,050.5 14,910.3 17,072.3
Cheese 15,540.5 19,275.0 23,643.2 28,970.2 34,166.3 40,280.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Sales of Cheese by Category: % Volume Growth 2014-2019

% volume growth
2018/19 2014-19 CAGR 2014/19 Total

Processed Cheese 10.1 12.4 79.4

- Spreadable Processed Cheese 9.5 13.3 86.8
- Other Processed Cheese 10.2 12.2 77.9
Unprocessed Cheese 7.2 9.6 58.5

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- Hard Cheese - - -
-- Packaged Hard Cheese - - -
-- Unpackaged Hard Cheese - - -
- Soft Cheese 7.2 9.6 58.5
Cheese 8.4 10.8 66.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 Sales of Cheese by Category: % Value Growth 2014-2019

% current value growth

2018/19 2014-19 CAGR 2014/19 Total

Processed Cheese 20.5 24.2 195.7

- Spreadable Processed Cheese 17.9 23.4 186.3
- Other Processed Cheese 21.0 24.4 197.5
Unprocessed Cheese 14.5 17.3 122.0
- Hard Cheese - - -
-- Packaged Hard Cheese - - -
-- Unpackaged Hard Cheese - - -
- Soft Cheese 14.5 17.3 122.0
Cheese 17.9 21.0 159.2
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 Sales of Spreadable Processed Cheese by Type: % Value 2014-2019

% retail value rsp

2014 2015 2016 2017 2018 2019

Cream Cheese 5.0 5.0 5.0 5.0 5.0 5.0

Reconstituted Cheese 95.0 95.0 95.0 95.0 95.0 95.0
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 Sales of Unprocessed Cheese by Type: % Value 2014-2019

% retail value rsp

2014 2015 2016 2017 2018 2019

Mozzarella 20.0 20.0 20.0 20.0 19.8 -

Paneer 75.0 76.0 76.0 76.0 76.3 -
Others 5.0 4.0 4.0 4.0 3.9 -
Total 100.0 100.0 100.0 100.0 100.0 -
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 7 NBO Company Shares of Cheese: % Value 2015-2019

% retail value rsp

Company 2015 2016 2017 2018 2019

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Gujarat Co-operative 46.5 44.6 42.5 39.3 38.3

Milk Marketing
Federation Ltd
MMD Dairy 4.0 3.9 3.8 4.0 3.9
Britannia Dairy Pvt Ltd 6.2 5.5 4.5 3.9 3.6
Parag Milk Foods Pvt Ltd 2.3 2.5 2.6 2.5 2.5
Punjab State 2.5 2.2 2.0 1.9 1.8
Cooperative Milk
Producers Federation
Ltd, The
Heritage Foods Ltd 1.3 1.3 1.3 1.3 1.2
Pantaloon Retail India 0.2 0.2 0.2 0.2 0.2
Ltd
Britannia Industries Ltd 0.3 0.2 0.2 0.2 0.1
Other Private Label 1.1 1.1 1.1 1.1 1.1
Others 35.7 38.6 41.8 45.8 47.2
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 8 LBN Brand Shares of Cheese: % Value 2016-2019

% retail value rsp

Brand (GBO) Company (NBO) 2016 2017 2018 2019

Amul Gujarat Co-operative 40.4 38.9 35.8 35.0

Milk Marketing
Federation Ltd
Milky Mist (Milky MMD Dairy 3.9 3.8 4.0 3.9
Mist Dairy Foods
Pvt Ltd)
Britannia Britannia Dairy Pvt Ltd 5.5 4.5 3.9 3.6
(Britannia
Industries Ltd)
Go Cheese Parag Milk Foods Pvt Ltd 2.5 2.6 2.5 2.5
Verka Punjab State 2.2 2.0 1.9 1.8
Cooperative Milk
Producers Federation
Ltd, The
Heritage Heritage Foods Ltd 1.3 1.3 1.3 1.2
Fresh & Pure Pantaloon Retail India 0.2 0.2 0.2 0.2
(Private Label) Ltd
Britannia Britannia Industries Ltd 0.2 0.2 0.2 0.1
Other Private Label Other Private Label 1.1 1.1 1.1 1.1
(Private Label)
Others Others 42.7 45.4 49.2 50.6
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 9 Distribution of Cheese by Format: % Value 2014-2019

% retail value rsp

2014 2015 2016 2017 2018 2019

Store-Based Retailing 100.0 100.0 99.2 99.0 99.0 98.9

- Grocery Retailers 100.0 100.0 99.2 99.0 99.0 98.9

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-- Modern Grocery 14.0 14.0 14.1 13.8 14.2 14.4

Retailers
--- Convenience Stores - - - - - -
--- Discounters - - - - - -
--- Forecourt Retailers - - - - - -
--- Hypermarkets 8.6 8.6 8.7 8.6 8.8 8.9
--- Supermarkets 5.4 5.4 5.4 5.2 5.4 5.5
-- Traditional Grocery 86.0 86.0 85.1 85.2 84.8 84.5
Retailers
--- Food/drink/tobacco - - - - - -
specialists
--- Independent Small 49.0 49.0 48.2 48.4 48.2 48.4
Grocers
--- Other Grocery 37.0 37.0 37.0 36.9 36.6 36.1
Retailers
- Non-Grocery Specialists - - - - - -
-- Health and Beauty - - - - - -
Specialist Retailers
-- Other Foods Non- - - - - - -
Grocery Specialists
- Mixed Retailers - - - - - -
Non-Store Retailing - - 0.8 0.9 1.0 1.1
- Vending - - - - - -
- Homeshopping - - - - - -
- Internet Retailing - - 0.8 1.0 1.0 1.1
- Direct Selling - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 10 Forecast Sales of Cheese by Category: Volume 2019-2024

'000 tonnes
2019 2020 2021 2022 2023 2024

Processed Cheese 34.6 38.2 42.2 46.7 51.8 57.6

- Spreadable Processed 6.1 6.7 7.5 8.5 9.8 11.2
Cheese
- Other Processed Cheese 28.5 31.5 34.6 38.1 42.0 46.4
Unprocessed Cheese 47.5 51.1 55.5 60.9 67.3 74.9
- Hard Cheese - - - - - -
-- Packaged Hard Cheese - - - - - -
-- Unpackaged Hard Cheese - - - - - -
- Soft Cheese 47.5 51.1 55.5 60.9 67.3 74.9
Cheese 82.1 89.3 97.7 107.6 119.1 132.5
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 11 Forecast Sales of Cheese by Category: Value 2019-2024

INR million
2019 2020 2021 2022 2023 2024

Processed Cheese 23,208.1 26,661.9 30,554.9 35,013.5 40,110.2 45,908.2

- Spreadable Processed 3,608.0 4,080.7 4,630.1 5,283.1 6,058.6 6,980.7
Cheese
- Other Processed Cheese 19,600.1 22,581.3 25,924.8 29,730.4 34,051.6 38,927.5

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Unprocessed Cheese 17,072.3 18,700.9 20,589.5 22,843.2 25,529.2 28,647.3

- Hard Cheese - - - - - -
-- Packaged Hard Cheese - - - - - -
-- Unpackaged Hard Cheese - - - - - -
- Soft Cheese 17,072.3 18,700.9 20,589.5 22,843.2 25,529.2 28,647.3
Cheese 40,280.4 45,362.8 51,144.3 57,856.8 65,639.4 74,555.6
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 12 Forecast Sales of Cheese by Category: % Volume Growth 2019-2024

% volume growth
2019/20 2019-24 CAGR 2019/24 Total

Processed Cheese 10.4 10.7 66.5

- Spreadable Processed Cheese 11.2 13.1 85.3
- Other Processed Cheese 10.2 10.2 62.5
Unprocessed Cheese 7.7 9.6 57.8
- Hard Cheese - - -
-- Packaged Hard Cheese - - -
-- Unpackaged Hard Cheese - - -
- Soft Cheese 7.7 9.6 57.8
Cheese 8.8 10.1 61.5
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 13 Forecast Sales of Cheese by Category: % Value Growth 2019-2024

% constant value growth

2019/2020 2019-24 CAGR 2019/24 Total

Processed Cheese 14.9 14.6 97.8

- Spreadable Processed Cheese 13.1 14.1 93.5
- Other Processed Cheese 15.2 14.7 98.6
Unprocessed Cheese 9.5 10.9 67.8
- Hard Cheese - - -
-- Packaged Hard Cheese - - -
-- Unpackaged Hard Cheese - - -
- Soft Cheese 9.5 10.9 67.8
Cheese 12.6 13.1 85.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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