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Indian cheese industry – Status and future scope

Saturday, 19 December, 2015, 08 : 00 AM [IST]

Dr Atanu Jana

Introduction
Except for the popular Indian variety of cottage cheese - Paneer, India is not traditionally a ‘cheese nation.’ Cheese was more or less kept for sandwiches, or to create dishes that would go along as evening dishes or accompaniments to cocktails. The Western world introduced us to cheese. Now, the mainstream use of cheese and cheese spreads has increased in the urban areas. Cheese is used as cheese blocks, grated cheese and cheese spreads. With the growing saturation of cheese consumption in the West and the encouraging successes in other ‘non-cheese’ Asian countries like Japan and China; overseas cheese producers are eyeing the Indian market for its huge promise. There are 3,000 cheese varieties globally. India's stores and delis offer about 40 varieties.

Cheese types popular in India
Cheese can basically be broadly classified into hard cheese, soft cheese and very hard cheese. The kinds of cheese that are available today in India include:

Cheddar: Cheddar is a kind of hard cheese that is relatively more famous than other hard cheese types. Cheddar can be mild or sharp flavoured and can be smooth or dry, depending on the age of the cheese. It can be anything from just a month old to even two years old. Cheddar cheese is normally used for cooking purposes and as ingredients for soups and sauces. Cheese is also used for grating and melting. Spices are added to cheddar to improve its taste.

Mozzarella Cheese: Mozzarella cheese is of two types (a) low-moisture (45-54% moisture) part skim Mozzarella (referred to as pizza cheese) and (b) full-fat Mozzarella cheese (high moisture – up to 60%). These are common in the marketplace. The high demand for Mozzarella cheese is owing to its emergence as an integral part of pizzas. Even though this cheese is often substituted with other cheese when making pizza, nothing can make a pizza look, feel and taste - like mozzarella cheese can. Pizza cheese creates a stringy (stretch) look when a hot pizza is pulled apart or cut. Mozzarella made from buffalo milk has a richer concentration of proteins, minerals, nutrients as compared to cow milk cheese.

Emmental Cheese: Emmental is a type of Swiss cheese made from whole cow's milk. Emmental is a firm cheese with a pale yellow colour and possesses a buttery, mildly sharp, slightly nutty taste. Emmental features the characteristic holes or ‘eyes’ typical of Swiss cheese. The holes in such cheese are formed by gas bubbles (carbon dioxide) released by the bacteria (starter culture). Since the cheese melts very well, it is frequently used in sauces and grilled sandwiches. Emmental is one of the two main cheeses (along with Gruyère) in the traditional fondue recipe.
Processed Cheese and Cheese Spreads: Pasteurised processed cheese (maximum 47% moisture) is prepared by grinding, blending, and heating one or more natural cheeses (of different stage of ripening) together in presence of emulsifying salts (sodium salts of citrates or phosphates) to all achieve uniformity and prolonged keeping quality. Pasteurised processed cheese products usually have good melting properties. Cheese spread is similar to pasteurised processed cheese food except that an edible stabiliser is added and the moisture permitted is greater (i.e. maximum 60%) than for processed cheese. This allows for smooth spreading at refrigeration temperature.

Cheese market in India
The organised cheese industry in India is at best in its nascent stage, accounting for < 1% of total dairy products production and largely limited to urban consumption. Though cheese was first marketed under the brand name ‘Amul’ in the late 1970s, it attained an identity of its own only as late as 1990s. The cheese industry growth rate is estimated at about 10-12% per year in terms of volume and 16-17% per year in value terms. Current household cheese penetration is 5%, with about 50% of consumption being limited to cities. Mumbai and Delhi together capture half of the cheese market. Within cheese products, around 60% of the market is dominated by processed cheese, 30% by cheese spreads and the remaining 10% by flavoured and specialty cheeses.

The per capita consumption of cheese in India is poor (i.e. 2.4 kg/annum) as compared to over 20 kg/annum in the United States. The urban population accounts for major cheese consumption in India. Taken together, the four metropolitan cities viz., Delhi, Mumbai, Chennai and Kolkata consume over 60% of the total cheese sold in India. In supermarkets it is easy to find tinned cheese and cheese cubes which are salted and ready-to-eat; cheese spread as a spreadable delicacy; cheese singles (slice) which are used as stuffing for sandwiches; pizza cheese used as topping on pizzas and so on.

The Indian cheese market is dominated by Gujarat Cooperative Milk Marketing Federation (GCMMF) that markets Amul products and Britannia New Zealand Foods Pvt. Ltd., using the brand name ‘Britannia Milkman.’ Amul owns about 65% of the cheese market; Britannia has ~25% share. Amul sells Gouda and Emmental cheese too. Other conspicuous players are Dabon International Pvt. Ltd, a wholly-owned subsidiary of the French dairy company Bongrain SA, and other regional brands like Mother Dairy and Vijaya. These companies have just 10% market share. The remainder 5% of the market is taken by imported cheese brands, retailed in specialty stores.

Amul has introduced a low calorie cheese called ‘slim cheese,’ targeted at calorie-conscious people. Top players of branded cheese manufacturing in India include Amul, Britannia, Le Bon, and Mother Dairy. There are Vita and Vijaya who have a small share in the Indian cheese market. The Australian cheese processor, Kraft, has made an inroad into the Indian market followed by Remia of Holland. Initially, the imported brands of cheese were patronised by expatriates, but, now some Indians have started taking a fancy for these brands.

According to Health Food Store, an upmarket retail outlet in Calcutta's Park Street, demand for exotic cheese variants has grown. Today, the store sells around 15 kg a day, spread over 50 varieties, supplied by small producers in Delhi, Haryana and Kodaikanal. The trend is catching on in other metros too. OTB Farm Products, Mumbai, has a display of cheese that could have a European gastronome salivating. Delhi's Modern Bazaar does brisk business in Jeera and Paprika cheese. Pune's German Bakery sells about 20 kg of cheese every morning in several forms; from cheesecake to hard, mature yak cheese from Kalimpong. ABC Farms, Pune, produces close to 3 tonne a month to satisfy an estimated total demand of 33 tonne a month for natural cheese. ABC Farm produces about 70 varieties of natural cheese that includes Pecorino goat cheese, alcohol cheese, Port wine cheese, a vodka and cumin cheese, smoked ham cheese. From ABC Farms, Pune, and Tudor at Ooty, it is possible to find smoked Edam ball, gooey Mozzarella, smelly Gorgonzola, and even Quark, a kind of fluid paneer that finds favour with dieticians.

Camberzola, a very sharp cheese (combining traits of Camembert and Gorgonzola cheese), are available at exclusive outlets priced at Rs 600/kg. Demand for Edam and Gouda, both cheese of Dutch origin have increased; priced at Rs 280 and Rs 400 per kg respectively. Taking a major slice of the cheesecake is the Italian Mozzarella. Mozzarella cheese costs between Rs 180 and Rs 240 per kg. Cheddar cheese is offered for Rs 170 per kg, while the price of Camember hovers between Rs 500 and Rs 600 per kg. Connoisseurs of cheese are going in for Nepalese Yak cheese - hard, smelly cheese that is ripened in caves.

The demand for natural cheese as opposed to the processed variety is rising and its production in the unorganised sector is 400-500 tonne annually. The processed cheese market which contributes about 2,000 tonne a year is dominated by Amul with a 75% share. The rest is divided between Verka and Vijaya.

Market profile for cheese
The Indian organised cheese market including its variants like processed cheese, mozzarella, cheese spreads, flavoured and spiced cheese is valued at ~ Rs 4.5 billion. Processed cheese at 60% of the overall market is worth Rs 2.7 billion. The next popular variant is cheese spread claiming a share of around 30% of the total processed cheese market. The market is primarily an urban phenomenon and is known to be growing at around 15%. The market for cheese cubes, slices and tins is growing. The market for cheese in India is worth Rs 1,250 crore currently.

GCMMF with the Amul brand continues to be the main operator in the branded cheese market in India. It pioneered the market for processed, branded cheese. Britannia Industries joined the fray in the cheese market in mid-1990s through an arrangement with Dynamix Dairy Industries (DDI). Britannia’s cheese is sold in tins in the form of cubes, and in individually wrapped slices. The network covers some 60,000 dairy outlets equipped with cold cabinets, refrigerators and insulated boxes. Amul covers some 500,000 retail outlets. Britannia has launched new variants of flavoured cheese. The cheese cubes are available in three flavours Masala Mania, Mirchi Poppers and Cream ’n Onion. Amul has a cheese spread in garlic and pepper flavours.

Pune-based Parag Milk Foods, a player in the cheese business, with the brand name Go (for Gowardhan), is selling Cheddar and Mozzarella, and planning to introduce Emmental cheese in the market. All the cheese products of Gowardhan are made in the world-class facility situated at Manchar (near Pune) in state-of-art advanced cheese plant, with staggering capacity of producing 40 MT cheese per day. The assorted cheese products catered to by Gowardhan includes processed cheese and cheese spreads, cheese slices, sandwich slices, pizza cheese, Mozzarella cheese, pizza topping, Cheddar cheese (including Orange Cheddar), Gouda cheese, Monterey Jack cheese, Colby cheese, Emmental cheese, Parmesan cheese, cheese wedges, and Nacho cheese. They cater to Mozzarella cheese in shredded and diced forms too.
French cheese major, Fromageries Bel, has entered the Indian market with La Vache Kirit (popularly known as ‘The Laughing Cow’). The Bel product is being produced at Bel’s facility in Poland exclusively for the Indian market. Fromageries Bel has launched laughing Kirit (creamy cheese in cube form) and Babybel (semi-hard with a wax coating appropriate for sandwiches). Along with ‘Laughing Cow,’ Woerle’s Australian cheese brand, ‘Happy Cow,’ Nestle and Kraft’s brands have started marketing their products in the Indian market.

Himalaya International Ltd, Himachal Pradesh, prepares Mozzarella cheese, exclusively for export. La Ferme Cheese was started to develop a line of handmade farm cheeses for the citizens of Auroville, Pondicherry. The firm adopts traditional methods for cheese making. The team includes professional Indian, Dutch and French cheese-makers who use natural whole cow milk, salts, vegetarian enzymes and seasoning cultures. From fresh cheese including Mozzarella, Feta, Ricotta, to seasoned cheeses like Lofabu, Auroblochon, Parmesan, and Jeera cheese, La Ferme produces about 100 kg of handmade cheese in over 10 varieties daily.

Foreign brands in India include Provolone, Colby, Mozzarella and Parmesan from Italy, Cheddar from Dutch and Gryuere. The US-based Philip Morris, which brought in its Kraft cheese brand earlier, has gained a significant presence in the market. The rest of the market is spread among Verka, Nandini and Vijaya. Dabur claims a product range of 20 varieties of cheese under Le Bon brand. Dabon has a manufacturing facility at Noida with an installed capacity of 12,000 tonne per annum.

Premium imported cheese has takers too. According to Anoop Chopra, marketing head, Dairy Craft India Ltd, Parmiggiano Reggiano cheese sells for Rs 1,700 per kg, yet has got a plenty of Indian customers.

Western-style processed cheese is sold by large companies under their brands. The processed cheese market including its variants like processed cheese, cheese spreads, Mozzarella, flavoured and spiced cheese, is estimated to be 10,000 tonne per annum (HS & SL estimates). The four metro cities alone account for > 60 % of the consumption. Mumbai is the largest market, accounting for 30% of cheese sold in the country, followed by Delhi (20%), Kolkata (7%) and Chennai (6%).

One can find tinned cheese and cheese cubes which are salted and ready-to-eat. Cheese spread has been introduced as a bread spread and cheesy delicacy; cheese singles (slice) are used as stuffing for sandwiches.

Leading brands of processed cheese products in India include Amul, Britannia, Vijaya, Verka, Dabur (Le Bon), Vadilal, Kraft, and Nandini. GCMMF has reported that Amul processed cheese volumes grew by 25% during 2008-09.

The processed cheese market is estimated to be growing at about 14% per annum (HS&SL estimates). Aggressive advertising and promotion by dairy companies is expected to push the growth rate. Increasing popularity of pizza shops may also give a boost to processed cheese. Flavoured cheese segment, however, has been declining.

Future scope for cheese products
Increasing consumer preference towards cheesy cuisine, rising disposable income and government initiatives are the major factors contributing to the growth of cheese in the country. The Indian cheese market is expected to grow at a CAGR of nearly 18% during 2015-2020.

The Government of India has made it mandatory for all packaged food items to be affixed with the veg/non-veg symbol (one of BWC’s major achievements) and this applies to imported foods as well. However, importers do tend to affix the green vegetarian symbol on all cheeses and some other non-vegetarian items, either deliberately or due to ignorance. In view of the above facts, it is most important for vegetarians to read the ingredients on labels very carefully. Manufacturers of a couple of quality brands of foreign cheese sold in India state “suitable for vegetarians” on their entire range of cheese packets indicating that animal rennet is not an ingredient, e.g. Pilgrims Choice, imported from the UK.

There is a segment of populace, which is keen on consuming cheese, without bothering about the calories or the sodium content in it. For them, the cheese industry is already coming up with “low-fat, low-salt – dietetic cheeses.” When reducing the fat content, the body and texture of cheese tends to be tough and chewy. Hence, concerted efforts are afoot to increase the moisture content in such ‘low-calorie’ cheese making the product acceptable sensorily. Processed cheese/spread preparation entails use of emulsifying agents (permitted up to maximum of 4% by weight), increasing the sodium as well as ash content (may pose problem to kidneys). Research is continuing to reduce the rate of addition of both NaCl as well as the emulsifying salts in processed cheese manufacture, without any adverse effect on the resultant cheese product.

Cheese has already been promoted as a healthy snack for children, but increasingly it is being promoted for adult consumption as a high protein snack. New eating occasions for cheese have evolved in recent years through indulgent variants, such as the Philadelphia cinnamon spread. which is consumed as a sweet snack and a variety of new cheese brands are being turned into cooking ingredients which further augment the number of occasions during which cheese can be consumed.

(The author is professor & head, department of dairy technology, SMC College of Dairy Science, Anand Agricultural University, Anand, Gujarat. He can be contacted at atanujn@gmail.com)