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"India?€™s dairy giant Amul ramps up production to meet rising demand for dining out": Bonafide Research
India dairy giant Amul ramps up production to meet rising demand for dining out
The India spread market has seen a remarkable transformation over the past few decades. Initially, dairy and spreadable products in India were limited, with only a few traditional options available. However, as consumer preferences shifted toward Western diets and the demand for ready-to-use products increased, companies began introducing a variety of cheeses, butters, and spreads to cater to diverse tastes. These products are primarily used in households, restaurants, and cafes for a variety of dishes, ranging from sandwiches to pastries and curries. Cheese, butter, and peanut butter spreads technically refer to processed food products made from dairy and peanuts, where cheese is produced by coagulating milk proteins, butter is made by churning cream, and peanut butter is created by grinding roasted peanuts into a paste. These spreads solve the problem of time-consuming meal preparation, providing convenience, and a source of nutrients like proteins, fats, and vitamins. Technological advancements, such as improved pasteurization, refrigeration techniques, and packaging innovations, have helped companies increase production and extend shelf life, making it easier for consumers to store and use these products at their convenience. Moreover, Research and Development (R&D) efforts have led to the creation of healthier alternatives with low-fat, organic, and even plant-based options to meet the growing demand for health-conscious food products. Despite its growth, the cheese, butter, and peanut butter spread market in India faces several challenges. One challenge is the fluctuating price of raw materials like milk and peanuts, which affects production costs. Additionally, local taste preferences can limit the acceptance of certain cheese varieties or spreads, making it harder for international brands to succeed without local adaptations.
According to the report, “India Spread (Cheese, Butter & Peanut butter) Market Overview, 2022-2028” published by Bonafide Research, the market is anticipated to grow with more than 14% CAGR during the forecast period. The spread market has seen significant growth, driven by increasing demand for convenient and diverse food options. This market is expected to grow at a steady pace, with a notable increase in consumption across urban areas. The rising middle class, evolving eating habits, and the growing trend of dining out and snacking are major factors driving this growth. As more consumers seek ready-to-use, tasty spreads for various meal preparations, the market has expanded, with both international and domestic brands offering various types of cheese, butter, and peanut butter spreads. Major players like Amul, Britannia, and Parag Milk Foods dominate the market, providing consumers with a variety of options, from traditional dairy spreads to healthier, low-fat, and plant-based alternatives. These companies focus on offering high-quality products that cater to the growing health-conscious population, while also meeting the demand for innovative flavors and convenience. The market also sees opportunities in expanding product ranges, such as vegan and organic spreads, to meet consumer demand for plant-based food choices. Certifications like FSSAI (Food Safety and Standards Authority of India) ensure that these products adhere to food safety standards, giving consumers confidence in their quality. Furthermore, adherence to quality certifications helps companies maintain compliance with regulations and reduces the risk of product recalls. The latest trends in the market include a surge in demand for low-fat, low-sugar, and natural spreads, as consumers become more health-conscious. These trends are shaped by the growing awareness of nutrition and wellness, making healthier spreads more popular among all age groups.
Consumers in urban areas are increasingly seeking convenience in their food choices, and spreads offer an easy, ready-to-use option for quick breakfasts, snacks, and meals. Retail buyers, especially young professionals and families, tend to favor well-known brands offering butter, peanut butter, and cheese spreads in convenient packaging. The demand for healthier alternatives, like low-fat butter, organic peanut butter, and dairy-free cheese spreads, is also on the rise as consumers become more health-conscious. Additionally, the rising awareness of global food trends, such as veganism and gluten-free diets, has led to the introduction of plant-based spreads in the market. On the other hand, the institutional market in India includes large-scale buyers like hotels, restaurants, catering services, and even educational institutions. These institutions purchase spreads in bulk for use in daily meal preparations, snacks, and buffet offerings. Restaurants and hotels use spreads like butter and peanut butter in sandwiches, pastries, and as part of breakfast offerings. Institutional buyers focus on cost-effectiveness and consistent quality to meet the demands of a large number of customers. Moreover, with the increasing presence of international food chains in India, the demand for premium spreads in hotels and cafes has risen.
In India, the spread market is diverse and offers a range of products catering to different consumer needs and preferences. Honey is a popular spread, especially in rural areas, due to its natural sweetness and health benefits. It’s widely used on bread, parathas, or as a sweetener for tea or yogurt. Honey is also gaining attention among health-conscious consumers looking for natural alternatives to sugar. Butter remains a staple in Indian households and is widely used for breakfast, in cooking, or on bread. Both traditional salted and unsalted butter varieties are available, with the increasing preference for low-fat or butter alternatives, especially among health-conscious consumers. The demand for ghee, which is considered a healthier fat option in Indian cuisine, also continues to rise. Jam, Jellies & Preserves is another key segment in the Indian spread market, particularly popular in urban areas. Flavors such as mango, strawberry, and mixed fruit are common, with brands often promoting these spreads as a quick and nutritious breakfast option. Chocolate spread, led by brands like Nutella, has gained significant popularity among children and millennials. It’s commonly used in sandwiches, pancakes, or as a topping for desserts. Peanut butter is widely consumed in India, especially among young professionals and fitness enthusiasts, thanks to its high protein content. It’s often used in sandwiches, smoothies, and as a quick snack. Cheese spread, particularly in the form of processed cheese, is also a staple in India, used in sandwiches, as a dip, or in quick meal preparations. The other spreads, such as almond butter, hazelnut spread, and fruit-based butters, are gradually growing in popularity as consumers look for healthier and more diverse options. The Indian spread market continues to evolve with a rising demand for healthier, plant-based, and international spread varieties.
The India spread market has seen a remarkable transformation over the past few decades. Initially, dairy and spreadable products in India were limited, with only a few traditional options available. However, as consumer preferences shifted toward Western diets and the demand for ready-to-use products increased, companies began introducing a variety of cheeses, butters, and spreads to cater to diverse tastes. These products are primarily used in households, restaurants, and cafes for a variety of dishes, ranging from sandwiches to pastries and curries. Cheese, butter, and peanut butter spreads technically refer to processed food products made from dairy and peanuts, where cheese is produced by coagulating milk proteins, butter is made by churning cream, and peanut butter is created by grinding roasted peanuts into a paste. These spreads solve the problem of time-consuming meal preparation, providing convenience, and a source of nutrients like proteins, fats, and vitamins. Technological advancements, such as improved pasteurization, refrigeration techniques, and packaging innovations, have helped companies increase production and extend shelf life, making it easier for consumers to store and use these products at their convenience. Moreover, Research and Development (R&D) efforts have led to the creation of healthier alternatives with low-fat, organic, and even plant-based options to meet the growing demand for health-conscious food products. Despite its growth, the cheese, butter, and peanut butter spread market in India faces several challenges. One challenge is the fluctuating price of raw materials like milk and peanuts, which affects production costs. Additionally, local taste preferences can limit the acceptance of certain cheese varieties or spreads, making it harder for international brands to succeed without local adaptations.
According to the report, “India Spread (Cheese, Butter & Peanut butter) Market Overview, 2022-2028” published by Bonafide Research, the market is anticipated to grow with more than 14% CAGR during the forecast period. The spread market has seen significant growth, driven by increasing demand for convenient and diverse food options. This market is expected to grow at a steady pace, with a notable increase in consumption across urban areas. The rising middle class, evolving eating habits, and the growing trend of dining out and snacking are major factors driving this growth. As more consumers seek ready-to-use, tasty spreads for various meal preparations, the market has expanded, with both international and domestic brands offering various types of cheese, butter, and peanut butter spreads. Major players like Amul, Britannia, and Parag Milk Foods dominate the market, providing consumers with a variety of options, from traditional dairy spreads to healthier, low-fat, and plant-based alternatives. These companies focus on offering high-quality products that cater to the growing health-conscious population, while also meeting the demand for innovative flavors and convenience. The market also sees opportunities in expanding product ranges, such as vegan and organic spreads, to meet consumer demand for plant-based food choices. Certifications like FSSAI (Food Safety and Standards Authority of India) ensure that these products adhere to food safety standards, giving consumers confidence in their quality. Furthermore, adherence to quality certifications helps companies maintain compliance with regulations and reduces the risk of product recalls. The latest trends in the market include a surge in demand for low-fat, low-sugar, and natural spreads, as consumers become more health-conscious. These trends are shaped by the growing awareness of nutrition and wellness, making healthier spreads more popular among all age groups.
Consumers in urban areas are increasingly seeking convenience in their food choices, and spreads offer an easy, ready-to-use option for quick breakfasts, snacks, and meals. Retail buyers, especially young professionals and families, tend to favor well-known brands offering butter, peanut butter, and cheese spreads in convenient packaging. The demand for healthier alternatives, like low-fat butter, organic peanut butter, and dairy-free cheese spreads, is also on the rise as consumers become more health-conscious. Additionally, the rising awareness of global food trends, such as veganism and gluten-free diets, has led to the introduction of plant-based spreads in the market. On the other hand, the institutional market in India includes large-scale buyers like hotels, restaurants, catering services, and even educational institutions. These institutions purchase spreads in bulk for use in daily meal preparations, snacks, and buffet offerings. Restaurants and hotels use spreads like butter and peanut butter in sandwiches, pastries, and as part of breakfast offerings. Institutional buyers focus on cost-effectiveness and consistent quality to meet the demands of a large number of customers. Moreover, with the increasing presence of international food chains in India, the demand for premium spreads in hotels and cafes has risen.
In India, the spread market is diverse and offers a range of products catering to different consumer needs and preferences. Honey is a popular spread, especially in rural areas, due to its natural sweetness and health benefits. It’s widely used on bread, parathas, or as a sweetener for tea or yogurt. Honey is also gaining attention among health-conscious consumers looking for natural alternatives to sugar. Butter remains a staple in Indian households and is widely used for breakfast, in cooking, or on bread. Both traditional salted and unsalted butter varieties are available, with the increasing preference for low-fat or butter alternatives, especially among health-conscious consumers. The demand for ghee, which is considered a healthier fat option in Indian cuisine, also continues to rise. Jam, Jellies & Preserves is another key segment in the Indian spread market, particularly popular in urban areas. Flavors such as mango, strawberry, and mixed fruit are common, with brands often promoting these spreads as a quick and nutritious breakfast option. Chocolate spread, led by brands like Nutella, has gained significant popularity among children and millennials. It’s commonly used in sandwiches, pancakes, or as a topping for desserts. Peanut butter is widely consumed in India, especially among young professionals and fitness enthusiasts, thanks to its high protein content. It’s often used in sandwiches, smoothies, and as a quick snack. Cheese spread, particularly in the form of processed cheese, is also a staple in India, used in sandwiches, as a dip, or in quick meal preparations. The other spreads, such as almond butter, hazelnut spread, and fruit-based butters, are gradually growing in popularity as consumers look for healthier and more diverse options. The Indian spread market continues to evolve with a rising demand for healthier, plant-based, and international spread varieties.
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