Global and Indian Cheese Production Trends: A Growth Overview

Cheese has come a long way from being a regional specialty of European kitchens. Today, it is one of the most widely consumed dairy products in the world, with production volumes climbing steadily every decade. Whether it is a slice of cheddar on a burger, mozzarella on a pizza, or a spread of processed cheese on a sandwich, global demand continues to push cheese production to new heights. India, despite being traditionally a paneer-consuming nation, has also witnessed a remarkable rise in cheese manufacturing. Let’s look at how global and Indian cheese production have evolved over the decades.

How global cheese production grew over the decades 🔗

The story of global cheese production is one of consistent growth. Back in 1995, the world produced approximately 14.9 million tonnes of cheese. The United States and countries within the European Union were the dominant producers even then, and they continue to hold that position today.

Fast forward to 2023, and global cheese output reached roughly 22.15 million metric tonnes, representing a substantial increase of over 48% compared to the mid-1990s. By the 2024/2025 marketing year, the USDA Foreign Agricultural Service estimated production at around 22.62 million metric tonnes, with a ten-year compound average growth rate of about 2%.

This growth has been driven by several factors: rising per capita incomes, the spread of Western dietary habits (especially fast food) across Asia and the Middle East, and innovations in cheese types and packaging that make cheese more accessible to new consumer segments.

Who leads global cheese production? 🔗

The European Union remains the undisputed leader in cheese manufacturing. In 2023, the EU-27 bloc produced approximately 10.39 million metric tonnes of cheese. Within Europe, Germany leads with about 2.35 million metric tonnes, followed by France at 1.92 million and Italy at 1.39 million. Countries like the Netherlands and Poland each contribute close to a million metric tonnes as well.

The United States comes in second globally. In 2023, total U.S. cheese production reached 14.1 billion pounds (approximately 6.4 million metric tonnes), with Wisconsin and California leading as the top cheese-producing states. American cheese consumption has also been climbing – the average American consumed about 42.3 pounds of cheese in 2023, up from around 33 pounds in 2010.

Other important cheese-producing nations include Brazil, Argentina, Australia, and New Zealand. However, none of them come close to the production volumes of the EU or the United States.

The global cheese market in value terms 🔗

Beyond production volume, the cheese market has grown enormously in monetary value. The global cheese market was valued at approximately USD 199 billion in 2025, and is projected to grow at a compound annual growth rate (CAGR) of around 5-6% through 2034. Europe alone accounts for more than 40% of the global market share, reflecting the continent’s deep-rooted cheese-making traditions and strong consumer demand for both artisanal and industrial cheese.

In the export market, Germany topped the list in 2023 with cheese exports worth around USD 6.5 billion, followed by the Netherlands at USD 5.7 billion. Overall, the five largest cheese exporters – Germany, Italy, the Netherlands, France, and the USA – accounted for more than 55% of the total global cheese export value in 2024.

Key drivers of global growth 🔗

Several factors have fuelled the growth of global cheese production and consumption:

Western dietary influence: The spread of fast food chains, pizza restaurants, and Western-style dining in countries across Asia, the Middle East, and Latin America has significantly boosted cheese demand. Cheese is a core ingredient in pizzas, burgers, sandwiches, and ready-to-eat meals.

Rising demand for convenience foods: Busy lifestyles and the growth of quick-service restaurants (QSRs) have made sliced, shredded, and processed cheese varieties highly popular. Pre-packaged cheese products offer portion control and long shelf life.

Health and protein trends: Cheese is increasingly marketed as a protein-rich, calcium-dense food. The growing interest in high-protein diets has made cheese an attractive snack and meal component for health-conscious consumers.

Innovation and diversification: The cheese industry has seen considerable innovation – from organic and artisanal varieties to plant-based alternatives targeting vegan and lactose-intolerant consumers. Natural cheese remains the dominant segment, holding about 73% of the market share globally.

India’s cheese production: from modest beginnings to rapid growth 🔗

India’s relationship with cheese has historically been through paneer, a fresh, unaged cheese made by curdling milk with an acid. Paneer has been part of Indian cuisine for centuries. However, the production and consumption of Western-style cheeses like cheddar, mozzarella, and processed cheese remained extremely limited until the late 20th century.

In 1977, India’s total cheese production was estimated at only about 800 tonnes. By 1994, this figure had risen to approximately 8,000 tonnes – a tenfold increase in just 17 years. While this was still a tiny fraction of global output, it marked the beginning of a significant shift in Indian dairy diversification.

The role of Operation Flood and Amul 🔗

Much of India’s dairy transformation can be traced back to Operation Flood, launched in 1970 by the National Dairy Development Board (NDDB). This programme replicated the cooperative model pioneered by the Kaira District Cooperative Milk Producers’ Union (later known as Amul) across the entire country. By building a network of village-level dairy cooperatives, district unions, and state federations, Operation Flood dramatically scaled up milk procurement and processing capacity.

Amul itself played a historic role in cheese production. In its early years, the cooperative successfully developed cheese and baby food on a commercial scale using buffalo milk, something that was considered a breakthrough at the time. This demonstrated that India’s abundant buffalo milk supply could be used for more than just traditional dairy products.

By the time India became the world’s largest milk producer in the late 1990s, the infrastructure and cooperative networks for diversified dairy production – including cheese – were already well established.

India’s cheese market today 🔗

The Indian cheese market has undergone explosive growth in the 21st century. The market was valued at INR 107.54 billion in 2024 and is projected to reach INR 593.47 billion by 2033, growing at an impressive CAGR of nearly 20%. In USD terms, the market stood at approximately USD 2.86 billion in 2024 and is expected to nearly double by 2032.

This growth is being driven by a combination of urbanization, rising disposable incomes, and a young population that is increasingly adopting Western food habits. Pizza alone accounts for around 45% of cheese consumption in India, reflecting the enormous influence of QSR chains on the domestic cheese market.

Key players shaping the Indian cheese industry 🔗

The Indian cheese market is dominated by a few large domestic dairy companies:

Amul (GCMMF) remains the largest player. It recently expanded its cheese production capacity from 40 to 120 tonnes per day to keep pace with rising demand. India’s mozzarella exports surged dramatically in 2025, with companies like Amul leading investment in buffalo-milk mozzarella production.

Parag Milk Foods (makers of the Go Cheese brand), Britannia Industries, and Mother Dairy are other major domestic players. In 2024, Britannia Bel Foods inaugurated a ₹220 crore cheese plant in Maharashtra to manufacture The Laughing Cow brand locally.

International companies are also making inroads. In 2024, RELCO partnered with Milky Mist Dairy to set up India’s largest cheddar cheese manufacturing plant, while Kraft Heinz and other multinationals continue to expand their product portfolios in the Indian market.

Mozzarella leads the way 🔗

Mozzarella has become the most consumed cheese variety in India, holding roughly 35% of the market by type. This dominance is directly linked to the massive growth of the pizza industry in India. Processed cheese – the familiar slices and spreads – continues to be widely popular for home use and in QSR chains. Meanwhile, a growing segment of premium and artisanal cheeses (cheddar, parmesan, gouda) is emerging among urban consumers who are exposed to global food trends through travel and social media.

Factors fuelling India’s cheese growth 🔗

Urbanization and lifestyle changes: India’s rapidly growing urban population is increasingly adopting cheese-based meals. The shift from traditional paneer to Western-style cheese is most prominent among younger consumers in metro cities like Mumbai, Delhi, and Bangalore.

Expansion of foodservice sector: India’s food services market was valued at about USD 71 billion in 2023. Pizza chains, burger outlets, cafes, and cloud kitchens have become major bulk consumers of cheese, particularly mozzarella and processed varieties.

World’s largest milk producer: India produced over 239 million tonnes of milk in 2024, accounting for about 22% of global output. This enormous raw material base gives Indian cheese manufacturers a strong domestic supply advantage, reducing dependence on imports.

E-commerce and retail expansion: Online grocery platforms and organized retail chains have made diverse cheese products accessible even in smaller cities and semi-urban areas. The retail channel alone accounts for about 78% of cheese sales in India.

Government and institutional support: The dairy industry benefits from government programmes aimed at dairy development, infrastructure modernization, and export promotion. In 2025, Milky Mist Dairy received SEBI approval for a ₹2,035-crore IPO to expand and modernize its manufacturing, including cheese production.

Challenges and the road ahead 🔗

Despite the encouraging growth trajectory, the Indian cheese market faces several challenges. Cold chain infrastructure remains uneven, especially in rural and semi-urban areas, which limits the distribution of perishable cheese products. Price sensitivity is another barrier – cheese is still considered a premium product by a large section of Indian consumers, and per capita consumption remains a fraction of what it is in Western countries.

On the global front, rising input costs, trade tariffs, and the impact of climate change on dairy farming are concerns that could affect cheese production growth. The United States, for instance, has proposed tariffs of 10-31% on imported cheeses, which could reshape global trade flows.

However, the overall outlook is strongly positive. Globally, cheese production is expected to continue its steady upward trend, supported by population growth, rising incomes in developing markets, and continued product innovation. For India specifically, the transition from a paneer-first market to one that embraces a wide range of cheese varieties represents a structural shift in consumer behavior that is still in its early stages.

What do you think? Given India’s massive milk production base and the rapid rise in cheese consumption, do you believe India could eventually become a major global cheese exporter? How might the traditional preference for paneer coexist with the growing demand for Western-style cheeses in Indian kitchens?

References

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