India Cheese Market, By Format (Slices, Diced/Cubes, Shredded, Blocks, Liquid, Crème, Cheese Spreads), By Type (Processed Cheese, Mozzarella, Cheddar, Emmental, Ricotta, Others), By Sales Channel (Retail, Institutional), By Region, Competition, Forecast & Opportunities, 2021-2031F

Market Overview

India cheese market was valued at USD 119.21 Billion in 2025 and is expected to reach USD 370.44 Billion by 2031 with a CAGR of 20.8% during the forecast period. The India cheese market is witnessing robust growth driven by changing dietary habits, urbanization, and the increasing influence of Western cuisines. Rising disposable incomes and a growing middle-class population are fueling the demand for value-added dairy products, with cheese emerging as a popular choice among consumers. The proliferation of quick-service restaurants (QSRs), cafes, and food delivery platforms has significantly contributed to the rise in cheese consumption, particularly among millennials and Gen Z.

Additionally, the surge in home cooking, especially post-COVID-19, has spurred demand for convenient, versatile cheese formats suited for Indian and fusion recipes. Major players are expanding their product portfolios and improving cold chain logistics to enhance product availability across metros and Tier I and II cities. The increasing acceptance of international food trends, such as pizzas, burgers, and pasta, has further bolstered demand for mozzarella and other specialty cheeses. Simultaneously, there is a rising interest in health-conscious and organic cheese varieties, catering to a niche yet growing segment of health-aware consumers. Government initiatives supporting dairy infrastructure and the entry of global brands are fostering competition and innovation in the market. Moreover, marketing strategies highlighting the protein and calcium content of cheese are reshaping its perception from an indulgence to a nutritious food option. The expanding modern retail network, including supermarkets and online grocery platforms, is also playing a crucial role in widening consumer access and boosting trial and repeat purchases. Despite challenges such as storage constraints and limited cold-chain infrastructure in rural areas, the outlook for the Indian cheese market remains positive, with consistent investments in manufacturing capacity and distribution expected to accelerate growth. As the consumer palate continues to evolve, cheese is gradually transitioning from a niche product to a mainstream household staple, setting the stage for sustained long-term expansion in both retail and institutional channels.

Key Market Drivers

Rising Urbanization and Changing Dietary Preferences

One of the primary drivers of the Indian cheese market is the rapid pace of urbanization coupled with shifting dietary habits, especially among the urban middle class. With increased exposure to global food cultures through travel, digital media, and the presence of multinational food brands, Indian consumers are embracing Western cuisines where cheese is a core ingredient. Urban households consume more processed and dairy products compared to rural ones. For instance, per-capita cheese intake is around 700g/year in urban India, versus 200g nationally. Urban households, especially nuclear families and working professionals, are looking for convenient, ready-to-use food options, and cheese fits this requirement due to its versatility and ease of use. Moreover, younger generations are increasingly incorporating cheese into traditional Indian recipes, leading to the fusion of cuisines and expanding the scope for cheese usage beyond fast food. The growing appetite for international-style fast foods such as pizzas, burgers, and sandwiches, especially in metropolitan and Tier I cities, is significantly pushing the demand for cheese in various formats.

Growth of Food Services and Quick-Service Restaurant (QSR) Sector

The booming food services industry, particularly the expansion of quick-service restaurants and cafes, is a major growth engine for the Indian cheese market. Chains like Domino’s, Pizza Hut, Subway, and other local and international QSRs heavily rely on cheese as a key ingredient, especially mozzarella. Over 50% of India’s population is under 25 and 65% under 35—a demographic that accounts for 24% of teenagers’ spend on food. The increasing frequency of dining out, rise of food delivery platforms like Zomato and Swiggy, and the evolving café culture have led to a surge in demand from institutional buyers. This trend is further amplified by the popularity of food trucks, gourmet food chains, and premium dine-in restaurants that use cheese innovatively in their menus. Institutional consumption now accounts for a significant share of overall cheese usage, and with the continued penetration of organized food retail and expansion of QSRs into Tier II and III cities, the institutional demand for cheese is set to grow rapidly in the coming years.

Increased Consumer Focus on Nutrition and Value-Added Dairy

As awareness of nutrition and healthy eating gains momentum, cheese is increasingly being viewed not just as a flavorful addition but also as a rich source of protein, calcium, and essential fats. With the rise in health-conscious consumers, there is growing demand for cheese varieties that offer nutritional benefits, including low-fat, organic, and fortified options. Brands are actively marketing cheese as a wholesome snack for children and fitness-oriented adults, highlighting its contribution to bone health and muscle development. This shift in perception, supported by aggressive marketing campaigns and product innovation, is turning cheese into a mainstream dietary component. The growing preference for value-added dairy products as part of a balanced lifestyle is likely to sustain long-term growth in the Indian cheese market.

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Key Market Challenges

Inadequate Cold Chain and Storage Infrastructure

A major challenge for the Indian cheese market is the lack of a robust cold chain and storage infrastructure, which is essential for maintaining the quality and safety of cheese products. Cheese is a temperature-sensitive product requiring uninterrupted refrigeration during production, transportation, and retail display. However, in many parts of India, particularly in Tier II, Tier III cities, and rural areas, cold chain logistics are either inadequate or absent. Retailers in these regions often avoid stocking cheese due to concerns over spoilage and high maintenance costs. Additionally, small-scale distributors and kirana stores may not have the equipment or capacity to store cheese properly, limiting market reach and consumer access. This infrastructure gap significantly hampers distribution efficiency, leads to product wastage, and ultimately increases the cost burden on producers and consumers alike, restricting market growth beyond major urban centers.

High Production Costs and Import Dependence for Specialty Cheese

India’s cheese production ecosystem still faces high input costs due to limited automation, inconsistent milk quality, and underdeveloped dairy processing facilities. Producing high-quality cheese, especially specialty variants like Emmental, Ricotta, and authentic Cheddar, often requires imported cultures, enzymes, and sometimes even machinery, driving up production costs. Moreover, certain specialty cheeses are still predominantly imported due to a lack of domestic expertise and scale, making them expensive and inaccessible to a wider consumer base. This not only reduces the competitiveness of domestic players but also limits the variety of cheese products available in the local market. Furthermore, global price volatility and fluctuating import duties can make imported cheese unaffordable, especially in retail, hindering category expansion and product diversification in India’s growing cheese sector.

Low Consumer Awareness and Cultural Barriers

Despite growing urban demand, a significant portion of India’s population remains unfamiliar with cheese or considers it a niche or foreign food item. Traditional Indian diets have limited use of cheese (apart from paneer), and in many regions, there is still low awareness about the variety, usage, and nutritional benefits of cheese. This cultural disconnect poses a challenge in expanding cheese consumption in non-metro markets. Additionally, misconceptions about cheese being unhealthy or fattening deter health-conscious consumers. Educating consumers on portion control, nutritional value, and diverse applications of cheese in Indian cuisine remains a critical yet underdeveloped area. Overcoming these perception and knowledge barriers through targeted marketing, sampling campaigns, and recipe localization is essential for unlocking broader consumer adoption.

Key Market Trends

Product Innovation and Regional Flavor Customization

A prominent trend in the Indian cheese market is the increasing focus on product innovation and the customization of cheese to suit regional taste preferences. Manufacturers are moving beyond traditional processed cheese to offer variants infused with Indian spices and herbs, such as chili, cumin, garlic, and even curry flavors. This adaptation is helping cheese integrate more seamlessly into Indian culinary traditions, which are inherently spice-rich and diverse. Furthermore, companies are introducing hybrid products, such as cheese-filled snacks, cheese-based sauces, and fusion spreads, to cater to experimental palates. The development of smaller, single-use packs, grated cheese sachets, and cheese dips tailored for home cooks and snackers alike reflects this innovation wave. These strategies not only encourage trial among new users but also increase consumption frequency among existing customers. Customization is becoming a key differentiator in a competitive market, helping brands tap into a broader demographic and geographic consumer base.

Growing Popularity of Artisanal and Organic Cheese

As consumer awareness of food origin, quality, and processing methods increases, there is a rising preference for artisanal and organic cheese in India, particularly among urban and health-conscious consumers. These cheeses, often produced in small batches using traditional methods and hormone-free milk, are perceived as healthier and more premium than mass-produced alternatives. Artisanal cheese makers in India, such as those based in Auroville, Himachal Pradesh, and Maharashtra, are gaining traction for offering unique textures and flavors like Brie, Camembert, and blue cheese tailored to Indian climates. Additionally, organic cheese, free from preservatives and artificial additives, is finding space in premium retail shelves and online gourmet stores. This trend, although niche, is expanding steadily as consumers become more selective and are willing to pay a premium for authenticity, traceability, and sustainability. It also opens up new opportunities for local dairy entrepreneurs and farm-to-table businesses to enter the cheese segment.

E-Commerce and D2C Brand Penetration

The digital transformation of retail, accelerated by the COVID-19 pandemic, has reshaped how cheese is marketed and delivered across India. E-commerce platforms and Direct-to-Consumer (D2C) brands are playing an increasingly vital role in expanding the cheese market, especially in Tier I and Tier II cities where traditional modern retail penetration may be limited. Online grocery platforms like BigBasket, Blinkit, Amazon Fresh, and niche gourmet food portals are offering a wide variety of cheese formats and brands, enabling consumers to explore beyond conventional options. D2C startups are leveraging digital marketing and influencer campaigns to build awareness, educate consumers on usage, and deliver products directly with minimal shelf-time. This trend is also enabling the launch of subscription-based cheese boxes and personalized offerings, enhancing consumer convenience and brand loyalty. The rise of digital discovery has significantly widened the market footprint for both established players and new entrants.

Segmental Insights

Format Insights

In the India Cheese Market, The Indian cheese market offers a variety of formats tailored to both consumer convenience and institutional use. Cheese slices remain one of the most popular formats in the country, largely due to their convenience and application in everyday foods like sandwiches, burgers, and quick snacks. They are particularly favored in urban households and QSRs that rely on uniform cheese portions for operational efficiency. The portion control and ease of use make slices a preferred choice for breakfast items and tiffin solutions. Diced or cubed cheese formats are gaining traction, especially among home chefs and foodservice providers. These are widely used in salads, platters, and Indian gravies, where bite-sized cheese enhances texture and taste without the need for further preparation. This format is also becoming increasingly popular in ready-to-cook kits and meal boxes, adding functional value to culinary applications.

Shredded cheese has emerged as a highly versatile format, especially suitable for pizzas, pastas, baked dishes, and fusion Indian recipes like cheese parathas or cheese dosas. It provides the perfect melt and is used heavily in institutional kitchens, particularly in the QSR and hospitality industry. The demand for this format is accelerating with the growth of the food delivery ecosystem and café culture. Block cheese caters to both B2B and B2C segments. While food service providers prefer blocks for grating or melting as per recipe needs, certain household consumers also opt for blocks due to their economic value in bulk usage. Blocks are commonly used in culinary schools, industrial kitchens, and premium households.

Sales Channel Insights

The retail sales channel represents the most significant contributor to the Indian cheese market by volume, value, and product variety. It includes a wide array of distribution points such as hypermarkets, supermarkets, neighborhood kirana stores, modern trade outlets, online grocery platforms, and specialty food stores. This channel directly serves end consumers, making it a central pillar in the consumption of cheese for in-home and personal use. One of the core reasons for the dominance of the retail channel is the increasing urbanization of India’s population and the changing socio-economic structure, particularly the rise of nuclear families, dual-income households, and time-pressed consumers seeking convenience in everyday cooking.

Within the retail space, cheese products such as slices, cubes, processed cheese blocks, spreads, and shredded cheese are prominently featured. These formats cater to consumers looking for convenience, longer shelf life, and ease of incorporation into meals. Sliced cheese has emerged as a household essential due to its wide application in sandwiches, burgers, toasts, and Indian fusion snacks like cheese parathas and rolls. Cheese spreads, often consumed during breakfast or as a snack with crackers or bread, are especially popular among children and working professionals. With cheese increasingly being considered a healthy and protein-rich alternative to traditional Indian breakfast items, its popularity through the retail route has surged.

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Regional Insights

In the India Cheese market, Western India, comprising states like Maharashtra, Gujarat, and Rajasthan, stands as the leading region in the Indian cheese market. This dominance is attributed to the region’s deeply entrenched dairy culture, strong urbanization, and the presence of major cheese manufacturers such as Amul (Gujarat Cooperative Milk Marketing Federation), Parag Milk Foods, and Go Cheese. Gujarat and Maharashtra are home to some of the largest dairy processing and cheese production facilities in the country, offering a wide product portfolio and ensuring robust supply chains. Leading manufacturers like Amul and Parag Milk Foods have established vast processing capabilities in Western India. Parag operates a 40 MT/day cheese plant in Manchar (Maharashtra). Urban centers like Mumbai, Pune, and Ahmedabad have high consumption rates, driven by greater exposure to Western cuisines, higher disposable incomes, and growing health consciousness among consumers. The region also has a strong retail infrastructure and thriving foodservice market, further boosting cheese demand in both processed and premium formats. Additionally, the region's rich culinary diversity embraces cheese in fusion dishes, fast food, and home-cooked meals, reinforcing its leadership position in the market.

Recent Developments

• At the AAHAR 2025 exhibition in New Delhi, Paras Dairy (a VRS Foods Limited brand) introduced its premium Galacia Cheese range, produced at its new plant in Newasa, Maharashtra. The offering targets both household and foodservice segments, positioning itself as a high-quality alternative in formats like mozzarella, with plans to expand the range to include cheddar, cheese dips, and slices.
• In 2024, Britannia Bel Foods (a JV between Britannia and Bel Group) opened a new cheese factory in Ranjangaon, Maharashtra. This facility has an annual capacity of approximately 6,000 tons of natural cheese (cheddar, mozzarella) and 10,000 tons of processed cheese, marking its commitment to becoming a leader in India’s growing cheese segment.
• In 2024, Eleftheria, a Mumbai-based artisanal cheesemaker, ranked fourth globally with its Brunost at the World Cheese Awards. This achievement highlights rising quality standards and international recognition for Indian handcrafted cheeses, signaling growing domestic and global interest in specialty dairy products.
• In 2024, Milky Mist Dairy, in partnership with RELCO, inaugurated its largest Cheddar cheese plant in Coimbatore, Tamil Nadu, capable of processing 1 million L of milk daily from 60,000 farmers. This expansion doubles production capacity, strengthens export potential.

Key Market Players

• Gujarat Cooperative Milk Marketing Federation Ltd.
• Britannia Industries Limited
• Parag Milk Foods Ltd.
• Mother Dairy Fruit & Vegetable Pvt. Ltd.
• The Kraft Heinz Company
• Dodla Dairy Ltd.
• Karnataka Cooperative Milk Producers' Federation Ltd.
• Prabhat Dairy Ltd.
• Parag Milk Foods Ltd.
• Milky Mist Dairy Food Pvt. Ltd.

Report Scope:

In this report, the India Cheese market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India Cheese Market, By Format:

o   Slices

o   Diced/Cubes

o   Shredded

o   Blocks

o   Liquid

o   Crème

o   Cheese Spreads

• India Cheese Market, By Type:

o   Processed Cheese

o   Mozzarella

o   Cheddar

o   Emmental

o   Ricotta

o   Others

• India Cheese Market, By Sales Channel:

o   Retail

o   Institutional

• India Cheese Market, By Region:

o   North

o   East

o   West

o   South

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the India Cheese market.

Available Customizations:

India Cheese market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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