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INTERNATIONL SCENARIO:
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The world market for cheese, by consumption is projected to reach 21 million metric tons by
2015. Growth in this market will primarily be driven by resurgence of demand fundamentals,
such as improving income levels, strengthening consumer sentiment/confidence, waxing
propensity to spend, and increase in the adoption of western-styled food across Asian countries.

The future outlook for global cheese market remains bright with consumption of cheese
projected to grow by more than 20% between 20010-2015. Purchasing decisions, being
increasingly guided by price, cheaper yet healthy and wholesome foods are surfacing back into
the spotlight. Consumers are additionally exhibiting shifting preferences from imported cheese
brands to locally produced cheese. Innovation and product diversification will be the most
prominent market strategies for manufacturers and suppliers of Cheese. The product mix is
poised to change from traditional types of cheeses to new cheeses that suit the demand in
developing dairy markets like China and India. The growing demand for dairy products that meet
consumers changing diet and nutritional needs will result into strong growth for innovative and
healthier cheese products, such as, lactose-free goat cheese products, and half-fat and reduced fat
cheeses.

Europe and the United States lead the global cheese market. However, with consumption levels
for cheese in such developed markets nearing saturation, the focus of the global cheese industry
now shifts towards emerging markets such as Asia-Pacific and Latin America. Cheese
consumption in developed economies will be fraught by challenges, such as a matured market
profile, limited growth in population, and most importantly the fast aging population, which
account for lesser per capita consumption than younger generation. Therefore, any further
development in cheese consumption within these markets is likely to be marginal and only
associated with changes in form and type of dairy products consumed. Meanwhile, developing
markets such as Asia, Latin America and the combined market of Middle East & Africa, are
projected to display superior growth rates over the analysis period 20010-2015. Large
population, and rising incomes in these nations will prove to be the major driving factors for
exceptional growth in dairy consumption, and cheese is bound to feel the trickling down effect of
the forecasted sanguine business conditions in the upstream dairy industry.

Greece is the world¶s largest (per capita) consumer of cheese, with 27.3 kg eaten by the average
Greek. (Feta accounts for three-quarters of this consumption.) France is the second biggest
consumer of cheese, with 24 kg by inhabitant. Emmental (used mainly as a cooking ingredient)
and Camembert are the most common cheeses in France Italy is the third biggest consumer by
person with 22.9 kg. In the U.S., the consumption of cheese is quickly increasing and has nearly
tripled between 1980 and 2010.

The consumption per person has reached, in 2010, 184.1 kg. Mozzarella is America¶s favorite
cheese and accounts for nearly a third of its consumption, mainly because it is one of the main
ingredients of pizza.

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A majority of global reports predict a boom in the cheese market with consumption projected to
grow more than 20% between 2008 and 2015 . Global consumption is actually slated at 21
million tones by the year 2015. According to the USDA, average cheese consumption, per
person, nearly tripled between 1970 and 2003, from 11 pounds to 31 pounds per person. The top
three favorite cheeses in America are mozzarella, cheddar and cream cheese respectively.





   
 

In Britain, regional cheese sales jumped by as much as 16% between 2006 and 20010 to reach
the £220 million mark. However, cheddars from the United Kingdom and abroad accounted for
about 52% of all cheese sales. The cheddar sales have grown at the rate of 7% between 2006 and
2010 to reach the £985 million mark. In the year 2009, the British cheese market was worth a
whopping £1.9 billion. However, cheese consumption, particularly amongst school children, is
said to have steadily deteriorated since then, prompting the British Cheese Board to launch the
³Choose Cheese´ campaign.

 
 
   
 

The Indian cheese market has witnessed a steady growth at 15 to 20% per annum; national
cheese consumption is touted at about 7,000 tons a year according to the Agri-Commodity
Federation. Metropolitan cities account for 60% of the cheese sales; smaller towns and cities
prefer variants such as cottage cheese . In general it is believed that larger populations and rising
incomes in developing countries will drive exceptional growth in dairy consumption, with the
cheese market experiencing the trickle-down effect.

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India is one of the Worlds largest and fastest growing markets for milk and value-added milk
products. Though India was not considered a cheese loving nation few year back, now cheese
producers are expanding in the India market. Indian consumers are now more willing to buy off
the shelf. With improving international exposure and brand affiliation, the demand for Cheese
products is reported to be increasing every year. Mckinsey, a global management consulting firm
has predicted growth in demand of Cheese by 25-30 % by 2015.

India having similar consumer trends ± like rising incomes, Westenization and urbanization- the
demand for cheese in India is likely to be grown on Double digit growth and there is likely to be
10-15 % growth in demand in tier tow cities.

Inida¶s top diary co-operative Amul is the biggest brand for Cheese in India. With demand
pouring in and Export to hit 600 tonne the Cheese industry will grow at 20 % plus. The demand
for Cheese is projected to grow from about Rs. 4.5 Billion in 2005-06 to Rs.13 Billion by 2014-
15.
Due to Change in Consumer pattern there is gradual shift from the India Panner to Cheese due to
its easy availability.

Consumption


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( Source: India Dairy Assoc)

The Great advantage smaller cheese makers have is the support of the restaurant Industry. Value
addition to the Kitchen . Now a days cheese has been widely used in all type of Cusines. Though
Branded Products are trying to increase there market share , they are facing hurdle as there is
huge gap in the Demand and supply .

Though West and North are the big consumers of Cheese. The West market has got lot of space
for the New Players.

Consumption of Cheese the Western part of India is growing at double digit. Existing player is
not able to cope up with the supply of Cheese. The below chart shows the rise in the
Consumption level in the Western Region.
 Consumption in the Western part
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At present the Market is dominated by three types of Players

1.c National Branded Cheese Products: Amul, Britannia, Kraft etc

2 Local Branded Players ±

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The above Chart shows the share of the Local players increasing in comparison with Branded
Players. The main factor for the shift is Cost. Second, is the establishment of the Brand Value of
the Local Players.