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Artisanal cheese farms could challenge dairy giants in India?€™s cheese market: Bonafide Research
The Indian cheese market comprises retail and institutional segments, with institutional cheese holding a dominant position due to high demand from the HoReCa (Hotels, Restaurants, and Cafes) and QSR (Quick Service Restaurants) sectors. Traditionally, Indian consumers preferred home-cooked meals, but there has been a significant shift as younger generations embrace international cuisines and dining out becomes more frequent. Indians now spend around 8-10% of their food expenditures outside the home, fueling the demand for cheese in the institutional sector. Public institutions such as the Indian Railways and government office canteens contribute significantly to this demand, while corporate catering is also growing, with large companies offering subsidized meals for employees. This rising preference for eating out has increased the use of cheese in restaurant menus, boosting overall market growth.
According to the report "India Cheese (Retail & Institutional) Market Outlook, 2027-28" published by Bonafide Research, the cheese market is anticipated to grow at a 19% CAGR for 2023-2028. The cheese market is divided into processed and unprocessed categories, further segmented into spreadable and un-spreadable variants. Unprocessed cheese, which mainly consists of paneer, dominates with a 90% share in the institutional segment, while processed cheese accounts for the remaining 10%. As more Indians adopt fast food and international cuisine, demand for different types of cheese has surged, particularly in the QSR space. The entry of global fast-food brands in India, starting with McDonalds in 1996, has significantly influenced cheese consumption patterns. Various international chains such as Burger King, KFC, Dominos, Pizza Hut, and Subway require multiple cheese varieties, which they source either locally or from international suppliers.
Several QSR chains use specific types of cheese based on their menu requirements. Pizza Hut predominantly uses skim milk mozzarella for its pizzas, while Dominos blends mozzarella, Pecorino, Parmesan, and Asiago cheeses to create its signature flavor. McDonalds, as part of its commitment to local sourcing, procures fresh cheese from Dynamix Dairy in Baramati, Maharashtra, ensuring quality and supporting community-based dairy farming. Leading Indian dairy companies like Amul, Parag Foods, and Prabhat Dairy supply cheese to both retail and institutional segments. While cheese consumption at home remains occasional, it plays an essential role in restaurant and cafe menus, solidifying the dominance of institutional cheese over retail cheese in the Indian market. As gourmet cheese gains traction, boutique cheesemakers are competing with large dairy companies by catering to restaurants, luxury hotels, and premium retailers. Many high-end hotels and restaurants have established direct partnerships with these artisanal cheesemakers to source fresh, high-quality cheese for their gourmet dishes. While dairy giants such as Amul, Britannia, and Mother Dairy continue to dominate the mass market, the growing preference for premium and natural cheese has led to increased competition in the sector. With evolving consumer preferences, higher disposable incomes, and expanding foodservice chains, the Indian cheese market is set for significant growth in the coming years.
Alongside the expansion of processed and institutional cheese, India is also witnessing a shift toward gourmet and specialty cheese. For a long time, the Indian cheese market was limited to paneer and Amul?€™s processed cheese. Imported cheese was primarily processed, with minimal availability of fresh, natural, or artisanal varieties. However, the growing demand for premium products has led to the rise of local cheesemakers specializing in gourmet cheese. Some producers adhere to traditional European cheesemaking techniques, while others create Indian-inspired adaptations of international varieties. Artisanal cheesemakers such as La Ferme Cheese in Auroville, Acres Wild in Coonoor, and Himalayan Artisan Cheese in Kashmir have carved a niche in the market by offering handcrafted, farm-based cheeses. Others like Exito Gourmet in Chandigarh, ABC Farms in Pune, and Flanders Dairy have introduced a diverse range of cheeses, from Gouda and Ricotta to Scamorza and Mascarpone. The Spotted Cow Fromagerie, founded by two brothers, has gained recognition for its unique cheese varieties, including Bombrie and Camembay, inspired by classic European Brie and Camembert.
According to the report "India Cheese (Retail & Institutional) Market Outlook, 2027-28" published by Bonafide Research, the cheese market is anticipated to grow at a 19% CAGR for 2023-2028. The cheese market is divided into processed and unprocessed categories, further segmented into spreadable and un-spreadable variants. Unprocessed cheese, which mainly consists of paneer, dominates with a 90% share in the institutional segment, while processed cheese accounts for the remaining 10%. As more Indians adopt fast food and international cuisine, demand for different types of cheese has surged, particularly in the QSR space. The entry of global fast-food brands in India, starting with McDonalds in 1996, has significantly influenced cheese consumption patterns. Various international chains such as Burger King, KFC, Dominos, Pizza Hut, and Subway require multiple cheese varieties, which they source either locally or from international suppliers.
Several QSR chains use specific types of cheese based on their menu requirements. Pizza Hut predominantly uses skim milk mozzarella for its pizzas, while Dominos blends mozzarella, Pecorino, Parmesan, and Asiago cheeses to create its signature flavor. McDonalds, as part of its commitment to local sourcing, procures fresh cheese from Dynamix Dairy in Baramati, Maharashtra, ensuring quality and supporting community-based dairy farming. Leading Indian dairy companies like Amul, Parag Foods, and Prabhat Dairy supply cheese to both retail and institutional segments. While cheese consumption at home remains occasional, it plays an essential role in restaurant and cafe menus, solidifying the dominance of institutional cheese over retail cheese in the Indian market. As gourmet cheese gains traction, boutique cheesemakers are competing with large dairy companies by catering to restaurants, luxury hotels, and premium retailers. Many high-end hotels and restaurants have established direct partnerships with these artisanal cheesemakers to source fresh, high-quality cheese for their gourmet dishes. While dairy giants such as Amul, Britannia, and Mother Dairy continue to dominate the mass market, the growing preference for premium and natural cheese has led to increased competition in the sector. With evolving consumer preferences, higher disposable incomes, and expanding foodservice chains, the Indian cheese market is set for significant growth in the coming years.
Alongside the expansion of processed and institutional cheese, India is also witnessing a shift toward gourmet and specialty cheese. For a long time, the Indian cheese market was limited to paneer and Amul?€™s processed cheese. Imported cheese was primarily processed, with minimal availability of fresh, natural, or artisanal varieties. However, the growing demand for premium products has led to the rise of local cheesemakers specializing in gourmet cheese. Some producers adhere to traditional European cheesemaking techniques, while others create Indian-inspired adaptations of international varieties. Artisanal cheesemakers such as La Ferme Cheese in Auroville, Acres Wild in Coonoor, and Himalayan Artisan Cheese in Kashmir have carved a niche in the market by offering handcrafted, farm-based cheeses. Others like Exito Gourmet in Chandigarh, ABC Farms in Pune, and Flanders Dairy have introduced a diverse range of cheeses, from Gouda and Ricotta to Scamorza and Mascarpone. The Spotted Cow Fromagerie, founded by two brothers, has gained recognition for its unique cheese varieties, including Bombrie and Camembay, inspired by classic European Brie and Camembert.
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