Cheese and curd market in Southern Asia

Earlier Report Observations

From 2018 to 2020, the cheese and curd market in Southern Asia expanded from 628.9 thousand tons to 697.8 thousand tons. This growth was initiated by the Indian government's 'Operation Greens' initiative launched in late 2018, which aimed at developing integrated supply chains for agricultural products, including dairy. The subsequent approval of the Production Linked Incentive Scheme for the food processing industry in 2020, specifically targeting dairy products like mozzarella cheese, provided direct financial incentives to boost domestic production capacity, countering initial COVID-19 related supply chain disruptions.

Market volume continued to rise, reaching 758.5 thousand tons in 2022, driven by a pronounced consumer shift towards value-added dairy products such as cheese, fueled by rising disposable incomes and health awareness. This period saw significant industry investments, including Parag Milk Foods expanding its whey processing capabilities and the rapid entry of new artisanal cheese producers. After a moderate contraction to 725.5 thousand tons in 2023, the underlying market trend remained strong, supported by the fast growth of the Indian cheese market reported at 20% annually and the emergence of niche segments like camel and goat cheese.

Entering 2024, regulatory changes shaped the market landscape, including revised FSSAI compositional standards for mozzarella cheese and new mandatory labeling requirements for dairy products. Major dairy cooperatives like Amul announced plans to double mozzarella production capacity, reflecting continued investment to meet growing demand. The artisanal cheese segment further consolidated, with producers improving techniques and preparing for exports, indicating a market increasingly focused on quality, innovation, and value addition.

Production cheese and curd in Southern Asia

In kind, 2017-2020, K t

Top producers of cheese and curd, 2017-2020

World map of production of cheese and curd, 2017-2020

Southern Asia's cheese and curd production has increased for the second consecutive year. In 2020, the region produced 774.1 K t of cheese and curd, marking a 12.0% rise compared to the previous year. Production grew by 10.3% between 2017 and 2020, which translates to an annualized growth rate of 3.3%. The lowest production level was recorded in 2018 at 674.1 K t, which also saw the largest decline of 4.0% during this period.

Annual dynamics of production in Southern Asia in kind, 2017-2020, K t

Exports cheese and curd from Southern Asia

Exports in kind, t

Southern Asia's cheese and curd export volume has increased for the third consecutive year. In 2020, exports reached 88 072 t, representing a 24.3% increase from the previous year. Between 2017 and 2020, exports grew by 55.4%, with an annualized growth rate of 15.8%.

Annual dynamics of product's exports from Southern Asia in kind, 2017-2020, t

From 2017 to 2020, Iraq was the dominant destination for cheese and curd exports from Southern Asia, accounting for 82.4% of total export volumes. Other countries each held significantly smaller shares during this period.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Southern Asia in kind, 2017-2020

Exports in value, M $ US

Cheese and curd export revenues from Southern Asia declined for the second consecutive year. In 2020, exports totaled 120.2 M $ US, a significant decrease of 17.6% compared to the prior year. Over the 2017-2020 period, export revenues fell by 39.1%, with a compound annual growth rate of -15.3%. The highest value was recorded in 2018 at 199.5 M $ US, which also saw the largest increase of 1.0%. The largest decline occurred in 2019 with a drop of 26.9%.

Annual dynamics of product's exports from Southern Asia in value, 2017-2020, M $ US

From 2017 to 2020, Iraq was the primary buyer of cheese and curd from Southern Asia in value terms, accounting for 83.0% of total export revenues. The remaining share was distributed among a diverse group of other countries.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Southern Asia in value, 2017-2020

Imports cheese and curd to Southern Asia

Imports in kind, t

In 2020, Southern Asia's cheese and curd import volume amounted to 11 736 t, up by 22.8% from the previous year. Between 2017 and 2020, imports increased by 4.9%, with an annualized growth rate of 1.6%. The lowest import volume was recorded in 2019 at 9 553 t, which also saw the largest decline of 24.9%. The highest import volume occurred in 2018 at 12 727 t.

Annual dynamics of product's imports to Southern Asia in kind, 2017-2020, t

During 2017-2020, cheese and curd imports to Southern Asia were spread across numerous markets. Austria (13.3% of import volume), New Zealand (8.4%), and Denmark (5.4%) together accounted for only 27.2% of total imports, indicating a highly diversified import structure.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Southern Asia in kind, 2017-2020

Imports in value, M $ US

In 2020, Southern Asia's cheese and curd import value totaled 55.6 M $ US, a 13.8% increase from 2019. Between 2017 and 2020, import value grew by 6.7%, with an annualized growth rate of 2.2%. The lowest value was recorded in 2019 at 48.8 M $ US, which also experienced the largest decline of 7.7%.

Annual dynamics of product's imports to Southern Asia in value, 2017-2020, M $ US

From 2017 to 2020, Austria (17.3% of import value), the United Arab Emirates (9.7%), and New Zealand (9.0%) were significant suppliers of cheese and curd to Southern Asia. However, their combined share reached only 36.0% of total import value, with the remaining 64.0% distributed among many other trading partners.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Southern Asia in value, 2017-2020