Cheese in India

Industry Profile

Reference Code: 0102-2214 Publication date: June 2004

www.datamonitor.com
Datamonitor USA 245 Fifth Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: usinfo@datamonitor.com Datamonitor Europe Charles House 108-110 Finchley Road London NW3 5JJ United Kingdom t: +44 20 7675 7000 f: +44 20 7675 7500 e: eurinfo@datamonitor.com Datamonitor Germany Kastor & Pollux Platz der Einheit 1 60327 Frankfurt Deutschland t: +49 69 9754 4517 f: +49 69 9754 4900 e: deinfo@datamonitor.com Datamonitor Asia Pacific Room 2413-18, 24/F Shui On Centre 6-8 Harbour Road Hong Kong t: +852 2520 1177 f: +852 2520 1165 e: hkinfo@datamonitor.com

ABOUT DATAMONITOR

ABOUT DATAMONITOR
Datamonitor is a leading business information company specializing in industry analysis. Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services. The company also advises clients on the impact that new technology and eCommerce will have on their businesses. Datamonitor maintains its headquarters in London, and regional offices in New York, Frankfurt, and Hong Kong. The company serves the worlds largest 5000 companies. Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitors and products. Our experts then interpret this data to produce detailed forecasts and actionable recommendations, helping you create new business opportunities and ideas. Our series of company, industry and country profiles complements our premium products, providing top-level information on 10,000 companies, 2,500 industries and 50 countries. While they do not contain the highly detailed breakdowns found in premium reports, profiles give you the most important qualitative and quantitative summary information you need - including predictions and forecasts.

All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect. India - Cheese Datamonitor (Published June 2004) Page 2

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
Market Value The Indian cheese market grew by 7.4% in 2003 to reach a value of $66 million. Market Value Forecast In 2008 the market is forecast to have a value of $84 million, an increase of 26.9% since 2003. Market Volume The market grew by 7.0% in 2003 to reach a volume of 54 million Kg. Market Volume Forecast In 2008 the market is forecast to have a volume of 69 million Kg, an increase of 29.2% since 2003. Market Segmentation The processed cheese sector dominated the market in 2003, accounting for a 73.9% share of the revenue.

India - Cheese Datamonitor (Published June 2004) Page 3

CONTENTS

TABLE OF CONTENTS

EXECUTIVE SUMMARY CHAPTER 1

1.1 1.2

3 6
6 6

Market Overview

Market Definition Market Analysis

CHAPTER 2 CHAPTER 3 CHAPTER 4 CHAPTER 5

5.1 5.2 5.3

Market Value Market Volume Market Segmentation Leading Companies

7 8 9 10
10 10 10

Punjab State Co-operative Milk Producers Federation Ltd Gujarat Cooperative Milk Marketing Federation Ltd. Tamil Nadu Cooperative Milk Producers' Federation Ltd.

CHAPTER 6
6.1 6.2

Market Forecasts

11
11 12

Market Value Forecast Market Volume Forecast

CHAPTER 7
7.1 7.2 Sources

Further Reading

13
13 13

Related Datamonitor Research

India - Cheese Datamonitor (Published June 2004) Page 4

CONTENTS

LIST OF TABLES
Table 1: Table 2: Table 3: Table 4: Table 5: India Cheese Market Value: $ million, 1999-2003 ............................................... 7 India Cheese Market Volume: Kg million, 1999-2003.......................................... 8 India Cheese Market Segmentation: % Share, by Value, 2003........................... 9 India Cheese Market Value Forecast: $ million, 2003-2008 .............................. 11 India Cheese Market Volume Forecast: Kg million, 2003-2008......................... 12

India - Cheese Datamonitor (Published June 2004) Page 5

MARKET OVERVIEW

CHAPTER 1

MARKET OVERVIEW

1.1

Market Definition
The Cheese market includes natural and processed cheeses. The markets value is taken at retail selling price (RSP), with all currency conversions calculated using constant 2003 exchange rates.

1.2

Market Analysis
The Indian cheese market has been experiencing good growth since 1999, a trend that is expected to continue over the next five years. However, although the market is expected to enjoy positive growth, Datamonitor predicts that the rate of growth will slow down from 2004 onwards. The market reached a value of $65.9 million in 2003, an increase of 39.6% since 1999, having grown with a compound annual growth rate (CAGR) of 8.7% in the 1999-2003 period. This growth was considerably stronger than that of the Asia Pacific market itself, leading to Indias market share increasing by 0.2 percentage points between 1999-2003, accounting for 1.6% of the Asia Pacific market by the end of this period. This share is expected to remain stagnant between 2003-2008. The leading source of revenue for the Indian cheese market in 2003 was the processed cheese sector, which accounted for 73.9% of the market value. In value terms, this sector was worth $48.7 million in 2003, an increase of 35.0% since 1999. Despite its leading position, the processed cheese sector was outperformed by the natural cheese sector, which grew by 54.3% between 1999 and 2003. The natural cheese sector generated revenues of $17.2 million in 2003, equivalent to 26.1% of the markets value. During the next five years, the Indian cheese market is expected to experience positive but decreasing growth rates. By 2008, the Indian market is forecast to reach a value of $83.6 million, a CAGR of 4.9% in the 2003-2008 period. The Indian market is predicted to grow at a slower rate compared to that of Asia Pacific. The market is predicted to expand by 26.9% between 2003-2008, whereas in 2008 the whole Asia Pacific market is forecast to have grown by 30.3%.

India - Cheese Datamonitor (Published June 2004) Page 6

MARKET VALUE

CHAPTER 2

MARKET VALUE

The Indian cheese market grew by 7.4% in 2003 to reach a value of $66 million. The compound annual growth rate of the market in the period 1999-2003 was 8.7%. The strongest growth was in 2000 when the market grew by 12.8%. Table 1: Year 1999 2000 2001 2002 2003 CAGR, 1999-2003:
Source: Datamonitor

India Cheese Market Value: $ million, 1999-2003 $ million 47.2 53.3 56.9 61.3 65.9 INR million 2,202.8 2,485.1 2,657.0 2,862.0 3,074.0 % Growth

12.80% 6.90% 7.70% 7.40% 8.7%

DAT AMONITOR

Figure 1:

India Cheese Market Value: $ million, 1999-2003

$ million 70 60 50
$ million

% Growth 14.0% 12.0% 10.0%

% Growth

40 30 20 10 0 1999 2000 2001 2002 2003

8.0% 6.0% 4.0% 2.0% 0.0%

Source: Datamonitor

DAT AMONITOR

India - Cheese Datamonitor (Published June 2004) Page 7

MARKET VOLUME

CHAPTER 3

MARKET VOLUME

The Indian cheese market grew by 7.0% in 2003 to reach a volume of 54 million Kg. The compound annual growth rate of the market volume in the period 1999-2003 was 8.5%. The strongest growth was in 2000 when the market grew by 10.2%. Table 2: Year 1999 2000 2001 2002 2003 CAGR, 1999-2003:
Source: Datamonitor

India Cheese Market Volume: Kg million, 1999-2003 Kg million 38.7 42.7 45.7 50.2 53.7 blank % Growth

10.20% 7.00% 9.90% 7.00% 8.5%

DAT AMONITOR

Figure 2:

India Cheese Market Volume: Kg million, 1999-2003

Kg million 60 50
Kg million

% Growth 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%

% Growth

40 30 20 10 0 1999 2000 2001 2002 2003

Source: Datamonitor

DAT AMONITOR

India - Cheese Datamonitor (Published June 2004) Page 8

MARKET SEGMENTATION

CHAPTER 4

MARKET SEGMENTATION

The processed cheese sector dominated the Indian cheese market in 2003, accounting for a 73.9% share of the revenue. Natural cheese makes up the remaining 26.1% of the market's value. Table 3: Category Processed cheese Natural cheese Total
Source: Datamonitor

India Cheese Market Segmentation: % Share, by Value, 2003 % Share 73.90% 26.10% 100.0%
DAT AMONITOR

Figure 3:

India Cheese Market Segmentation: % Share, by Value, 2003

Natural cheese 26.1%

Processed cheese 73.9%

Source: Datamonitor

DAT AMONITOR

India - Cheese Datamonitor (Published June 2004) Page 9

LEADING COMPANIES

CHAPTER 5

LEADING COMPANIES

5.1

Punjab State Co-operative Milk Producers Federation Ltd

The Punjab State Co-operative Milk Producers Federation is the leader in the Indian milk market, and numerous other sectors of the dairy market. The company is made up of four divisions, two for the production of dairy products, one for cattle feed and one for administrative purposes. It sells products under the Verka and Vigour trade names. Punjab State Co-operative Milk Producers Federation is based in Chandigarh, India.

5.2

Gujarat Cooperative Milk Marketing Federation Ltd.

Gujarat Cooperative Milk Marketing Federation Ltd. (GGMMF) is a co-operative made up of ten thousand village societies, and is one of the largest in India. The company markets its range of products under the Amul, Naturamul and Dhara brand names. The group is headquartered in Anand, India.

5.3

Tamil Nadu Cooperative Milk Producers' Federation Ltd.

Founded in 1927, The Tamil Nadu Cooperative Milk Producers' Federation (TNCMPF) is the oldest dairy co-operative in India. The company markets its products largely under the Aavin brand name. It is headquartered in Chennai, India.

India - Cheese Datamonitor (Published June 2004) Page 10

MARKET FORECASTS

CHAPTER 6

MARKET FORECASTS

6.1

Market Value Forecast

In 2008 the Indian cheese market is forecast to have a value of $84 million, an increase of 26.9% since 2003. The compound annual growth rate of the market in the period 2003-2008 is predicted to be 4.9%. The strongest growth was predicted for 2003 when the market was forecasted to grow by 7.4%. Table 4: Year 2003 2004 2005 2006 2007 2008 CAGR, 2003-2008:
Source: Datamonitor

India Cheese Market Value Forecast: $ million, 2003-2008 $ million 65.9 69.8 73.0 76.2 79.6 83.6 INR million 3,074.0 3,258.7 3,405.1 3,553.4 3,712.0 3,902.2 % Growth 7.40% 6.00% 4.50% 4.40% 4.50% 5.10% 4.9%
DAT AMONITOR

Figure 4:

India Cheese Market Value Forecast: $ million, 2003-2008

$ million 90 80 70 60 50 40 30 20 10 0 2003 2004 2005 2006

% Growth 8.0% 7.0% 6.0%

% Growth

$ million

5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2007 2008

Source: Datamonitor

DAT AMONITOR

India - Cheese Datamonitor (Published June 2004) Page 11

MARKET FORECASTS

6.2

Market Volume Forecast

In 2008 the Indian cheese market is forecast to have a volume of 69 million Kg, an increase of 29.2% since 2003. The compound annual growth rate of the market volume in the period 2003-2008 is predicted to be 5.3%. The strongest growth is predicted for 2007 when the market is forecast to grow by 7.2%. Table 5: Year 2003 2004 2005 2006 2007 2008 CAGR, 2003-2008:
Source: Datamonitor

India Cheese Market Volume Forecast: Kg million, 2003-2008 Kg million 53.7 54.3 57.6 61.2 65.6 69.4 blank % Growth 7.00% 1.10% 6.10% 6.10% 7.20% 5.90% 5.3%
DAT AMONITOR

Figure 5:

India Cheese Market Volume Forecast: Kg million, 2003-2008

Kg million 80 70 60
Kg million

% Growth 8.0% 7.0% 6.0%

% Growth

50 40 30 20 10 0 2003 2004 2005 2006 2007 2008

5.0% 4.0% 3.0% 2.0% 1.0% 0.0%

Source: Datamonitor

DAT AMONITOR

India - Cheese Datamonitor (Published June 2004) Page 12

CONTENTS

CHAPTER 7

FURTHER READING

7.1

Sources
This report is based on a combination of primary Datamonitor research, including online, face-to-face and telephone interviews with consumer and industry players, and secondary research using various sources (including trade associations, news providers and others).

Industry Associations International Dairy Foods Association (IDFA) 1250 H Street, NW, Suite 900 Washington, DC 20005 Tel: 1 202 737 4332 Fax: 1 202 331 7820 www.idfa.org

7.2

Related Datamonitor Research

Datamonitor Industry Profiles Global Cheese ($200) Cheese in Asia-Pacific ($200) Cheese in the United States ($200) Cheese in the United Kingdom ($200) Cheese in Germany ($200) Cheese in Japan ($200) Cheese in Europe ($200) Cheese in France ($200)

India - Cheese Datamonitor (Published June 2004) Page 13