In a remarkable shift for global dairy trade, India has emerged as an unexpected powerhouse in the mozzarella cheese market, disrupting a sector long controlled by Western nations. Government trade data reveals this stunning transformation is occurring even as international partners push for greater access to India's dairy market during ongoing trade negotiations.
Explosive Growth Numbers
The export figures tell a compelling story of rapid expansion. Mozzarella exports skyrocketed from zero in FY23 to $0.71 million in FY24, then leaped to $2.29 million in FY25. The momentum has accelerated dramatically this fiscal year, with shipments reaching $3.29 million during April-September 2025 alone - representing an astonishing 1,200% increase year-on-year.
This mozzarella boom contributed to India's overall dairy export performance, which reached $493 million in FY25, marking an 80% increase from the previous fiscal year. The data underscores a significant shift in India's dairy export capabilities.
Driving Forces Behind the Boom
Industry analysts point to multiple factors fueling this export surge. Global pizza demand continues to expand rapidly, creating increased need for mozzarella - the preferred cheese for pizza preparation. India's unique production method using buffalo milk rather than cow milk gives the cheese a firmer texture and higher fat content that's increasingly appreciated in international markets.
Tarun Shridhar, former secretary of animal husbandry & dairying and director general of the Indian Chamber of Food and Agriculture, explained that buffalo milk provides distinct characteristics that differentiate Indian mozzarella from conventional varieties. With the world's largest buffalo population estimated at 109.85 million, India holds a natural advantage in producing this specialty cheese.
The government's Production-Linked Incentive (PLI) scheme, launched in 2021 with an outlay of ₹10,900 crore over six years, has been instrumental in this transformation. By including mozzarella under the scheme, the government encouraged dairy companies to invest in capacity expansion and technology upgrades.
Industry Leaders and Global Reach
Major Indian dairy players have made significant investments to capitalize on this opportunity. Amul invested ₹200 crore specifically for buffalo-milk mozzarella production and export, announcing this strategic move back in 2021. Other key exporters include Milky Mist and Schreiber Dynamix, forming a strong foundation for India's growing presence in the global cheese market.
The geographic spread of India's mozzarella exports reveals diverse market penetration. Saudi Arabia has emerged as the largest buyer, importing Indian mozzarella worth $2.38 million in April-September 2025 compared to zero imports a year earlier. Other significant markets include Sri Lanka, where imports rose to $0.47 million from $0.07 million, and Bangladesh at $0.14 million. Japan, Nigeria, Bhutan and Bahrain also feature among the importing nations.
According to Rupinder Singh Sodhi, president of the Indian Dairy Association, India now has surplus cheese capacities and competitive pricing for butter and cheese in global commodity markets. This positions the country well for continued export growth.
Broader Implications for Indian Dairy
This mozzarella success story signals a pivotal moment for India's dairy sector. Despite being the world's largest milk producer with output projected to grow from 251 million tonnes in FY25 to 277 million tonnes in FY27, India has historically captured only about 0.25% of global dairy trade, primarily in low-value products like milk powder.
Ajay Srivastava, co-founder of Global Trade Research Initiative, notes that while mozzarella remains a small export segment, the recent spike demonstrates how value-added dairy products can find global markets. Binod Anand of the World Cooperation Economic Forum adds that the surge shows India's dairy sector is finally moving up the value chain, with cooperatives demonstrating global competitiveness through technology investment and quality systems.
The contrast with cheddar cheese exports highlights mozzarella's advantages for Indian producers. Cheddar requires longer aging periods, higher storage costs and stronger branding, while buffalo-milk mozzarella offers a differentiated product in a fast-growing global market.
As Sudarshan Patil from Sonai Dairy observes, demand for dairy products is increasing across Middle Eastern countries, African markets like Morocco and Egypt, and Georgia, creating multiple opportunities for Indian exporters to expand their footprint beyond traditional markets.
