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CHEESE IN INDIA

Euromonitor International February 2012

............................................................................ 4 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Sales of Cheese by Category: Volume 2006-2011 ............ 1 Trends .................................................................................................................... 6 Cheese Brand Shares 2007-2010 ........................................................................ 5 Spreadable Processed Cheese by Type: % Value Breakdown 20062011 ................................................................................. 5 Cheese Company Shares 2006-2010 ........................... 5 Sales of Cheese by Category: % Value Growth 2006-2011 .............................. 7 Forecast Sales of Cheese by Category: % Volume Growth 2011-2016 ........................................... 4 Sales of Cheese by Category: Value 2006-2011 ... 4 Sales of Cheese by Category: % Volume Growth 2006-2011 .............................................CHEESE IN INDIA Passport I LIST OF CONTENTS AND TABLES Headlines ...................................................................................................................................................................... 1 Competitive Landscape .................................... 2 Prospects ............................. 6 Sales of Cheese by Distribution Format: % Analysis 2006-2011 ...................................................................... 8 Forecast Sales of Cheese by Category: % Value Growth 2011-2016 ...................................................................... 3 Category Data ......................... 7 Forecast Sales of Cheese by Category: Value 2011-2016.............................................. 6 Forecast Sales of Cheese by Category: Volume 2011-2016.......................................................... 5 Unprocessed Cheese by Type: % Value Breakdown 2009-2010 ......................... 8 © Euromonitor International ........................................................................

With non-traditional cheese (all forms of cheese apart from paneer) being considered surplus to requirements in a year of limited consumer spending.  A consistent rise in the price of milk and milk powder is expected to lead to average unit prices of cheese increasing by 8% in 2011. Amul (from Gujarat Cooperative Milk Marketing Federation) and Britannia (from Britannia Industries) were key brands which drove the “spreads” format of spreadable processed cheese in 2010.  Spreadable processed cheese is expected to be the smallest cheese category in terms of retail value sales in 2011. Due to its comparatively small size and its population with key brands. This product type was occasionally used as a substitute for butter in food preparations made with white/brown bread. thus adding to the growth of spreadable processed cheese. the category is expected to see appreciable growth in 2011. were cautious about incorporating price increments. processed cheese is used for Western food items such as sandwiches and pizzas. however. On the other hand. or even local bread variations such as parathas.CHEESE IN INDIA Passport 1 CHEESE IN INDIA HEADLINES  Current value sales of cheese increase by 23% to reach Rs7. as they looked to compete with unbranded paneer retailed through local kirana stores and dairies in India.  The current value growth of 23% expected in 2011 is higher than the review period CAGR. processed cheese is targeted towards a specific urban consumer group. Whilst soft cheese is used in traditional Indian preparations. and could hence afford to apply higher price increments. The national brands mentioned above were also complemented by regionally popular brands such as Go (from Parag Milk & Milk Products) and Mother Dairy (from Mother Dairy Fruit & Vegetable) in the review period. However. 2010 saw soft cheese brands cropping up throughout India. The popularisation of pizzas by consumer foodservice brands such as Domino’s Pizza and Pizza Hut in India saw increasing retail demand for the unprocessed cheese used to make such products at home. aggressive brand positioning by processed cheese brands is expected to lead to growth in 2011 exceeding that of soft cheese. Rising demand for multiple cheese formats (spreadable and unspreadable) which are not native to India drove growth over the year.8 billion in 2011  Processed cheese again leads absolute value sales after falling behind unprocessed cheese in 2010  Spreadable processed cheese registers the fastest current value growth in 2011  All cheese types other than soft cheese record double-digit growth in current unit prices in 2011  Gujarat Co-operative Milk Marketing Federation retains its value sales lead in cheese in 2010  Cheese is expected to increase by a constant value CAGR of 14% over the forecast period TRENDS  Packaged and branded soft cheese (primarily paneer in India) overtook processed cheese for the first time in terms of value sales in 2010. Cheese products were increasingly accepted by urban consumers as butter or ghee substitutes served with traditional meals and those with Western influence. which was the product type adopted by the © Euromonitor International .  The product range of spreadable processed cheese in India is expected to be significantly skewed towards reconstituted cheese in 2011. Branded players in soft cheese.

or want to experiment with premium products. rather than investing in mass media tools. however. Cheddar and gouda were the major hard cheese variants. paneer (classified under soft cheese) was the single most popular type of cheese in India. as nearly all the players maintained their positions from the previous year. Even the average urban consumer in India has not developed an appreciation of the various cheese variants on offer through retail shelves. manufacturers offer a variety of flavours. or for specially prepared dishes from non-Indian cuisines. such as pepper. as the brand Go added nacho cheese and shredded cheese to its portfolio. Gujarat Co-operative suffered only a small decline in its value share. Whilst cheese blocks are also available through all the leading brands. Cubes and blocks are popular amongst foodservice operators which do their grocery shopping at local kirana stores.  In 2011. or bought through local dairy shops. Due to the already established consumer acceptance of paneer in © Euromonitor International . Parag Milk & Milk Products and Mother Dairy Fruit & Vegetable used increased retail visibility to grow volume sales for their respective brands over the year. Britannia Industries was a distant second to Gujarat Co-operative. branded products commanded a notable consumer following amongst hygieneconscious consumers in 2011. companies tend to rely on distributor partnerships and retail footprints to garner interest. COMPETITIVE LANDSCAPE  Gujarat Co-operative Milk Marketing Federation accounted for a 47% share of value sales in cheese in 2010. international cheese manufacturers had a negligible presence in the Indian retail environment.  In 2010. even though the category itself was almost non-existent in respect of retail sales in 2011. Such consumers are either used to these products from stays in foreign countries. International brands from players such as Groupe Lactalis. The brand Amul enjoys consumer appreciation even outside the metropolitan areas in India. Gebrüder Woerle and Kraft Foods cater to an extremely niche consumer segment.  Unspreadable processed cheese in India is expected to be strongly dominated by cubes and slices in 2011. which was unheard of in the case of other non-soft cheese brands in 2010. Whilst it has historically been prepared in households. With cheese not commanding a large pool of loyal consumers in India.CHEESE IN INDIA Passport 2 leading spreadable processed cheese brands in India. as the extensive retail network commanded by the latter allowed it to overshadow all other retail cheese players. Regional dairy cooperatives such as Karnataka Cooperative Milk Producers Federation and The Punjab State Cooperative Milk Producers Federation also entered soft cheese through paneer offerings over the review period. masala herbs and plain cream. This was largely due to a well-established distribution network. Within reconstituted cheese.  Parag Milk & Milk Products continued its foray into cheese over 2011. which helped it to back its marketing campaign with product availability even in semiurban areas of India. The top four players in terms of value sales – which were all domestic in 2010 – accounted for a combined 68% share of value sales. as its flagship brand Amul accumulated the bulk of its sales through its leadership of unspreadable processed cheese and soft cheese. Regional or relatively new players. Cheese slices in particular gained appeal amongst urban consumers due to the elimination of the need to “spread” the cheese. retail consumers prefer smaller and more manageable formats for sporadic consumption. such as Heritage Foods (India). Several private dairy players entered soft cheese in 2010 and 2011.  Despite new entrants and many product launches in 2010. garlic.  Gujarat Co-operative lost minimal share in 2010.

peanut and tomato salsa flavours. However. Concentrating on modern retail formats. is thus likely to see intense competition from spreadable processed cheese in the forecast period. PROSPECTS  With the evolution of chained and independent foodservice operators in India.  In order to generate brand and product awareness. as it will gradually serve as a viable alternative to spreads in India.  Standard-priced brands such as Amul by Gujarat Co-operative and Britannia Milkman by Britannia Industries were dominant in cheese in 2010. The premium end of cheese in India consisted of imported products under well-known brand names such as Happy Cow. such as Pantaloon Retail India’s Fresh & Pure and The Nilgiri Dairy Farm’s Nilgiris Malai Paneer. Président and Kraft. The increase in branded activity is expected to culminate in retail volume sales exceeding foodservice volume sales in the forecast period. a few private label brands. Most of the other regional dairy cooperatives (such as Punjab State Cooperative Milk Producers Federation and Rajasthan Co-operative Dairy Federation) commanded a limited retail presence with their cheese portfolios in 2010. The dairybased nature of cheese spread offers an option different from traditional spreads in the form of jams and honey in India. thus overshadowing the growth registered in the review period. MMD Dairy introduced recipe books to educate consumers about the preparation of cheese products. Butter. the brand variant was present in chocolate. cheese manufacturers in India are not expected to shy away from increasing unit prices over the forecast period. received a lukewarm response from consumers frequenting supermarkets in 2010.  Go Cheezoos was a cheese offering introduced in the form of a 100g tube. In 2010. making use of their already established infrastructure in India. thus channelling the demand for hygienic and high-quality products even for traditional Indian preparations. pizza. is likely to drive the retail volume growth of cheese in India. and was launched with various flavours in 2011. Soft cheese variant paneer will see several regional dairy brands outside the traditional market of North India emerge over the forecast period.CHEESE IN INDIA Passport 3 India.  With their product offerings catering to a largely urban consumer base.  Constant value sales are expected to increase by a CAGR of 14% in the forecast period. Meanwhile.  Spreadable processed cheese is expected to see the highest constant value CAGR in the forecast period. As © Euromonitor International . Gujarat Co-operative depends largely on print advertisements in regional publications. Many foodservice suppliers focusing on cheese (such as Dynamix Dairy Industries) may look to penetrate the retail market. coupled with the popularity of foreign cuisine such as pasta. packaged branded cheese saw a consistent rise in foodservice volume sales in the review period. which is often used for the same purpose. All the existing categories within cheese are likely to benefit from heightened brand presence. a greater number of branded players entering soft cheese. Parag Milk Foods signed a licensing agreement with Warner Bros Consumer Products. and burgers. Processed cheese products will benefit from the existence of nationally popular brands such as Amul and Britannia Milkman. in conjunction with new product launches. as it looked to use cartoon characters Tom & Jerry to tailor marketing campaigns for Go Cheezoos towards children in 2011. even as new brands such as Go drive extensive marketing campaigns in the near future. regional players such as MMD Dairy and Hatsun Agro Product introduced new or improved variants of this product type in 2010. In-store advertising at dedicated dairy retailers and retail partnerships with kirana stores form an essential part of marketing strategies for cheese manufacturers in India. and increasing popularity amongst the masses.

3 19.7 2009 10.8 9. as it continues to aggressively market its cheese variants.597.141.7 13.6 370.8 17.3 263.0 11.7 1.4 3. trade press. Tapping into a substantial distribution network inherited from Cadbury India. the constrained milk production and ever-increasing demand for packaged cheese will result in a trend of regularly rising unit prices in processed cheese in constant value terms.Unspreadable Processed Cheese 1.4 13.9 8. As its packaged form gains consumer appeal.0 2.6 7.8 17. Parag Milk & Milk Products is also expected to carve out an appreciable value share in cheese.4 1.8 17.4 22.7 8.6 15.8 28.2 2007 1. CATEGORY DATA Table 1 '000 tonnes 2006 Processed Cheese . However.3 2008 2.293. with paneer brands focusing on mass consumers for volume sales.375.0 1.Spreadable Unprocessed Cheese Cheese Source: Sales of Cheese by Category: Volume 2006-2011 2007 8.606. trade sources Table 2 Rs million Sales of Cheese by Category: Value 2006-2011 2006 Processed Cheese .869.1 9. spicy variants of processed cheese and various product developments in packaged paneer will dominate the national players’ push towards product diversification.  Local dairy retailers in India account for a significant proportion of sales of unbranded soft cheese in India.8 20.6 25.500.0 2009 2. soft cheese is expected to see a decline in terms of constant unit prices over the forecast period.5 Euromonitor International from official statistics. Regional availability and local marketing campaigns may help these brands to connect with consumers. Kraft Foods is likely to enter cheese in India with brand launches in the forecast period. company research.676.5 7.9 1.130.1 591.Spreadable Processed Cheese . the contribution of other grocery retailers and kirana stores is expected to decrease in the forecast period.7 1.Spreadable Processed Cheese .7 © Euromonitor International .3 6. store checks.3 11.3 1.6 7.1 2011 3. trade associations.7 20.885. Supermarkets/hypermarkets will be increasingly popular amongst cheese manufacturers looking to market processed cheese.  The introduction of several soft cheese brands from regional players such as MMD Dairy and Parag Milk & Milk Products is likely to eat into the dominant share of Gujarat Co-operative over the forecast period.2 2.2 15.3 2010 3.  Cheese manufacturers are likely to experiment with “Indianised” flavours and variants of cheese in the forecast period.Soft Cheese .Unspreadable Processed Cheese Unprocessed Cheese .7 32.4 9. As such.0 221.1 1.Hard Cheese .3 2.5 2010 10.7 2008 9.CHEESE IN INDIA Passport 4 such. trade interviews.874.0 1.3 465.1 316.190.6 2011 12.

015.2 9.2 16.8 2006/11 Total 143.9 2. trade associations.994.460.493.4 55.289.6 58.CHEESE IN INDIA Passport 5 Unprocessed Cheese . company research.5 1. company research.1 24.Soft Cheese .4 15.7 19. trade associations. trade press. trade press.0 95.6 9.8 2. trade associations.3 3. trade sources Table 5 % retail value rsp Spreadable Processed Cheese by Type: % Value Breakdown 2006-2011 2006 Cream Cheese Reconstituted Cheese Total Source: 2007 5.5 3.Spreadable Unprocessed Cheese Cheese Source: 1.015.1 23.0 Euromonitor International from official statistics.Spreadable Processed Cheese . trade press. company research.5 200.Spreadable Processed Cheese . store checks.Soft Cheese . trade interviews.0 2009 5.0 2.7 27.0 2011 5.7 3.0 95.0 200.156.1 Euromonitor International from official statistics.Spreadable Unprocessed Cheese Cheese Source: 2006-11 CAGR 19.298.0 95.0 100.866.9 15.7 2.0 95.1 22.Unspreadable Processed Cheese Unprocessed Cheese .591.0 110.4 Euromonitor International from official statistics. company research.0 3. trade press.6 4.7 11.289.886. trade interviews. store checks.4 86.0 2010 5.0 100. trade sources Table 3 % volume growth Sales of Cheese by Category: % Volume Growth 2006-2011 2010/11 Processed Cheese .6 21.4 110.7 6.5 22.205. trade interviews.4 11.Hard Cheese . trade sources Table 4 Sales of Cheese by Category: % Value Growth 2006-2011 % current value growth 2010/11 Processed Cheese . trade sources Table 6 Unprocessed Cheese by Type: % Value Breakdown 2009-2010 © Euromonitor International .0 95.6 24.591.0 100.3 7.6 139.Hard Cheese .493.2 Euromonitor International from official statistics.Hard Cheese .3 3.0 100.Spreadable Unprocessed Cheese Cheese Source: 2006-11 CAGR 9.9 14.0 1.0 2008 5.156.5 23.7 4.0 5.866.0 1. store checks.0 100.Unspreadable Processed Cheese Unprocessed Cheese .5 21.751.6 23.Soft Cheese .3 2006/11 Total 55. store checks. trade interviews.0 13.0 16.3 11.6 2. trade associations.0 100.0 95.3 166.0 168.

1 27.0 15.2 0.1 100.5 1.2 1.7 100. trade interviews.9 100. store checks.2 25.1 100.2 2009 47.6 4.0 0. company research.7 2008 50. store checks.8 0.0 Euromonitor International from official statistics.0 15.2 1.2 Britannia Milky Mist Heritage Fresh & Pure Britannia Other Private Label Others Total Source: 3.9 0.0 3. trade sources Table 9 Sales of Cheese by Distribution Format: % Analysis 2006-2011 © Euromonitor International .1 27.2 25.5 1.2 Gujarat Co-operative Milk Marketing Federation Ltd Britannia Industries Ltd MMD Dairy Heritage Foods (India) Ltd Pantaloon Retail India Ltd Britannia New Zealand Foods Pvt Ltd Other Private Label Others Total Source: 0.8 0.2 1. trade press.0 0. trade associations. trade sources Table 8 % retail value rsp Brand Amul Cheese Brand Shares 2007-2010 Company Gujarat Co-operative Milk Marketing Federation Ltd Britannia Industries Ltd MMD Dairy Heritage Foods (India) Ltd Pantaloon Retail India Ltd Britannia New Zealand Foods Pvt Ltd 2007 52.CHEESE IN INDIA Passport 6 % retail value rsp 2009 Mozarella Paneer Others Total Source: 2010 21.0 100.7 100.1 100.5 2010 47.7 2008 50. trade associations. company research.1 30.7 2007 52.2 16.5 2010 47.0 Euromonitor International from official statistics.1 100.5 100.5 0.5 0.1 31.0 3.2 1.3 1.1 31.3 1.7 100.0 0.7 0.0 15.0 3. trade sources Table 7 % retail value rsp Company Cheese Company Shares 2006-2010 2006 55.2 2009 47. trade interviews.0 4.2 17. trade interviews.0 74. trade associations.2 0.2 16.7 0. trade press. company research.2 17.0 5.2 0.1 31.8 1. store checks.0 Euromonitor International from official statistics.0 100.2 0.0 20.0 4.0 0.2 17.0 5.0 75.2 25.6 4.0 15.9 0. trade press.

Supermarkets/ Hypermarkets .0 Euromonitor International from official statistics.2 38.0 2009 100.1 9..0 100.0 12.1 27. trade press.2 34.5 48.Other Non-Grocery Retailers Non-Store Retailing .1 591.Soft Cheese .4 2.885.1 23.2 30.8 23.0 49.8 2015 6.0 100.0 100.4 39.3 54.0 12. trade sources Table 10 '000 tonnes Forecast Sales of Cheese by Category: Volume 2011-2016 2011 Processed Cheese . company research.7 20.0 49.Internet Retailing . trade press.077.0 13.7 909..0 50.0 49.285.8 37.4 2012 4.7 100. trade interviews.3 49.CHEESE IN INDIA Passport 7 % retail value rsp 2006 Store-Based Retailing .5 © Euromonitor International .0 100..Direct Selling Total Source: 2007 100...6 30.5 27.7 100.0 100.0 37.426.3 2014 17.0 100.Hard Cheese .1 100.Homeshopping .1 18.0 12.3 38.0 100.1 2016 22.4 48. store checks.Convenience Stores .8 1.4 11.6 47.871.2 2013 15.0 49.Forecourt Retailers . company research.Other Grocery Retailers .0 2.7 38.3 34.0 13.3 38.Spreadable Processed Cheese . trade interviews.0 2008 100.6 673.3 50.Spreadable Processed Cheese 3. trade associations.7 32.Small Grocery Retailers .2 2014 5.7 12.0 2010 100.0 38.Health and Beauty Retailers .Independent Small Grocers .0 2011 100.8 20..0 39.Grocery Retailers .8 2013 5.0 12. trade sources Table 11 Rs million Forecast Sales of Cheese by Category: Value 2011-2016 2011 Processed Cheese .Unspreadable Processed Cheese Unprocessed Cheese .Spreadable Unprocessed Cheese Cheese Source: 2012 13.5 100.6 Euromonitor International from trade associations.9 2015 19.0 49.888.1 42.5 49.3 3..0 14.2 61.078..0 100.2 2.0 49.Non-Grocery Retailers ...1 2016 8.0 11.8 4.6 1.5 16.8 3.Discounters .Vending .6 777.0 100...084.

7 13.8 4.Spreadable Unprocessed Cheese Cheese Source: 2011-16 CAGR 13.Soft Cheese .4 12.1 11.0 14.8 Euromonitor International from trade associations.188. trade interviews.0 Euromonitor International from trade associations.793.866. trade press.1 4.0 6.572.188.403.1 15.0 14.Soft Cheese .1 85.974.4 6.3 15.6 6.794.8 4.3 7.830. trade interviews. trade sources Table 12 % volume growth Forecast Sales of Cheese by Category: % Volume Growth 2011-2016 2015/16 Processed Cheese .060.460.6 76.CHEESE IN INDIA Passport 8 .Spreadable Unprocessed Cheese Cheese Source: 3.9 117.752.6 92.Unspreadable Processed Cheese Unprocessed Cheese .8 8.1 13.5 10.293.3 15.572.4 2011/16 Total 90.Spreadable Unprocessed Cheese Cheese Source: 2011/16 TOTAL 107.4 3.9 5. company research.7 3.8 14.403.0 12.Spreadable Processed Cheese .866.1 5.6 13.0 11.8 15.3 106.751.827.Hard Cheese . trade press.8 16. company research.6 Euromonitor International from trade associations.3 3.8 85.6 12.2 76.2 13.1 87.Soft Cheese .6 94. trade interviews. trade press.Unspreadable Processed Cheese Unprocessed Cheese . trade sources © Euromonitor International .9 5.4 11.978. trade sources Table 13 Forecast Sales of Cheese by Category: % Value Growth 2011-2016 % constant value growth 2011-16 CAGR Processed Cheese .1 6.2 16.905.4 4.827.307.059.4 4.974.Unspreadable Processed Cheese Unprocessed Cheese .Hard Cheese .Hard Cheese .5 4.1 13.Spreadable Processed Cheese .5 89. company research.7 6.