India’s paneer market is approximated at 1 lakh crore, and the classification has actually been growing at 15-18 percent|Image Credit: VIBHU H
India’s paneer market is going through an enormous shakeup as an intense regulative crackdown on “analogue” paneer sets off a structural market shift. With a minimum of 8 states currently prohibiting replica items and the Food Safety and Standards Authority of India (FSSAI) preparing to limit the sale of analogue items as paneer across the country customers are deserting more affordable lookalikes blended with vegetable-fat in favour of relied on, branded dairy.
Organised dairy gamers are reporting a spike in need for their top quality paneer and are increasing production capability. Jayatheertha Chary, Managing Director, Mother Dairy stated, “At Mother Dairy, we are seeing a 60-70 percent year-on-year development in need for our packaged paneer throughout the existing quarter, with the development rate almost doubling from the previous quarter.” Chary states contemporary retail, fast commerce, and institutional channels are likewise adding to the velocity, and to equal need, the business has actually currently doubled its paneer capability over the last 2 years.
Jayen Mehta, Managing Director, GCMMF, stated Amul is the marketplace leader with a 30-35 percent share in the top quality paneer sector and produces it in 35 plants throughout the nation while growing capability gradually. He included that there will be no restrictions in satisfying the need as more customers move to top quality paneer.
Need for genuine paneer is likewise surging in the B2B section. VPS Malik, Chief Marketing Officer, VRS Foods Ltd (Paras Dairy), which offers in both B2C and B2B channels, stated the business was earlier making 7-8 tonnes of paneer each day, and now its plants are at complete capability, producing 14-15 tonnes of paneer a day. “We are preparing to include another paneer system,” he included.
Just Recently, Parag Milk Foods revealed a financial investment of about 100 crore to broaden its paneer production capability by 60 MT each day, taking its total capability to 80 MT each day. “The broadened capability is anticipated to be commissioned by June 2027. Paneer is a crucial development classification having actually tape-recorded around 28 percent yearly development over the last 2 years. We continue to see continual customer need for top quality paneer, driven by increasing awareness around quality, consistency and credibility,” stated Akshali Shah, Executive Director, Parag Milk Foods
Double digit development
India’s paneer market is approximated at 1 lakh crore and the classification has actually been growing at 15-18 percent, suggesting considerable headroom for arranged gamers, keeps in mind K. Rathnam, CEO & & Whole-Time Director, Milky Mist Dairy Food. “The increased regulative focus will even more speed up the shift towards quality and compliance, and producing capability for paneer will definitely increase,” he stated.
States consisting of Himachal Pradesh, Maharashtra, Gujarat, Telangana, Uttar Pradesh, Uttarakhand, Karnataka and Chhattisgarh have actually either prohibited or put constraints on production and sale of analogue paneer.
Pranav Rungta, VP, National Restaurant Association of India, stated that in the unorganised sector, gamers purchase analogue paneer either unwittingly or due to cost level of sensitivity. “As far as the regulative actions are worried, while some states have actually prohibited analogue paneer, FSSAI’s draft change is seeking to limit the sale and production of analogue items as paneer. This is not a restriction however constraints on the usage of the classification paneer. This can trigger confusion and requires clearness,” he included.
Keeping in mind that need for top quality paneer has actually been seeing a spike, dairy market veteran RS Sodhi stated that, moving forward, a big portion of share from unorganised sales in loose kind will transfer to jam-packed items. He even more stated that the overall jam-packed paneer market is approximated to be 12,000 crore and, in volume terms, might be around 3 lakh tonnes, whereas the unpacked trade might be around 30,000 crore (12 lakh tonnes).
Released on October 1, 2026