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Perspective:
Cheese Technology

Emergence of Indian cheese Paneer in mainstream U.S. dairy industry

Dr. Mali Reddy

Dr. Mali Reddy serves as president of the American Dairy and Food Consulting Laboratories and International Media and Cultures (IMAC Inc.), Denver, Colorado. He holds several degrees including Doctor of Veterinary Medicine, M.S. and Ph.D. degrees in food technology and microbiology. He is a guest columnist for this week’s issue of Cheese Market News®.

In the past 100 years, the American dairy industry has gone through a series of changes, conforming to the adage “the only thing that is constant in the world is change.” Up until the end of the 1960s, the most popular cheeses in America were Cheddar and Monterey Jack, referred to as “American cheeses.” Prior to the 1970s, the leading national dishes in America were steak and hamburger. This trend changed from the beginning of the 1970s onwards with the massive introduction of fast-food pizza chains. The American cheese industry quickly shifted to manufacturing Italian cheeses such as Mozzarella, Provolone, Parmesan and Romano to supply the fast-growing pizza industry. In the year 1969, the total annual production of Italian cheeses in the U.S. was only 360 million pounds. As of 2022, the total annual production of Italian cheeses is close to 5.9 billion pounds, technically standing at approximately 45% of total U.S. cheese production. For the past four decades, the No. 1 consumed food in America is pizza.

Meanwhile, Latin American cheeses such as Queso Blanco, Queso Fresca, Panela and Oaxaca started to emerge in the mid-1980s. Today it is another one of the fastest-growing industries in the U.S. due to the demand for Mexican cuisine, especially due to the increase in the Latino population, which is supposed to reach 150 million by the year 2050.

Currently, another cheese product making inroads worldwide is the centuries-old Indian origin cheese Paneer. According to published information by the International Market Analysis Research Company (IMARC), the global Paneer cheese market reached US$9.4 billion in 2022, and it is expected to reach US$14.5 billion by 2028, exhibiting a projected compound annual growth rate (CAGR) of 7.6% during 2023-2028.

So, what is Paneer cheese? The word Paneer is derived from the Turkish word “peynir,” which means cheese. Paneer is a non-melting Indian cheese made using high-fat buffalo milk standardized to roughly 5.8% fat, having 9.5% solids not fat (SNF), with a fat to SNF ratio of 1 to 1.65. It is heated to 90 C then cooled to 70 C, acidified using citric acid, and the curd is segregated to form blocks, cooled, cut into portion sizes, packaged and refrigerated. Paneer cheese can also be made with cow’s milk, and it is considered a non-standard-of-identity product.

According to food safety and standard regulations, Paneer cheese shall not contain more than 70% moisture, and the fat content should not be less than 50% of the dry matter. The approximate composition, on average, of Paneer cheese is moisture at 54%; fat at 25%, and with a pH of 5.7 (plus or minus 0.2).

Openly published information points out the following: “According to Joey Wells, global senior principal for product development at Whole Foods Market Inc., Indian cuisine has grown in popularity in the U.S., and consequently, the sales of Paneer cheese in the grocery stores are significantly up, and the demand and growth are strong year after year.”

According to Syama Reddy, vice president of the American Dairy Food and Consulting Laboratories Inc. (ADFAC Labs Inc.), who has a degree in food and nutrition with a major in Dietetics from Iowa State University, Paneer cheese is not only nutritious (due to easily digestible denatured casein and whey proteins), but also appeals well to the vegetarian and health conscious population in the U.S., specifically since the onset of the COVID-19 pandemic. The key factor driving global demand for Paneer cheese is due to the fusion of inter-regional tastes and cuisines. She mentioned that Paneer cheese is a versatile product that can be served as a grilled appetizer, topping for salads, and also as a popular main dish preparation with added herbs and spices.

Currently, Paneer cheese is being sold in certain geographically located Whole Foods, Safeway, Costco, Walmart and several specialty food stores, and in some grocery stores all over the U.S., in addition to online mail orders through Amazon.

In my recent trip to India (March/April 2023), I surveyed and interviewed several dairy product (cheese) producers regarding the growth trends of Paneer cheese in India and demand for such product in the rest of the world. According to the CEO of Dodla Dairy Ltd., a publicly traded and well recognized dairy company in India, Paneer cheese is not only popular in India but also universally accepted in the Middle East, South Asia, North Africa, European Union, United Kingdom, Canada and U.S. markets, according to their survey. Dodla Dairy is planning to manufacture, in a large scale, in the U.S. to meet the growing demand and to avoid shipping Paneer cheese from India.

The American dairy industry must get into large-scale Paneer cheese manufacturing to take advantage of this projected massive growth. The profit margin of Paneer is significantly higher than other cheeses. Yet, I can clearly see that several technological changes have to be made since cow’s milk has to be used instead of buffalo’s milk. The whey derived from Paneer cheese is significantly low in protein and acidic, which makes it hard to spray dry and salvage. Since Paneer is a high-pH cheese (pH above 5.5), care must be taken to safeguard it from pathogens and other spoilage-type organisms. In order to improve interstate shipping and storage, the shelf life of the product must be substantially improved. Currently, it is considered a perishable cheese with a short shelf life, unless it is frozen.

The primary factor to produce the best Paneer cheese is the quality of raw milk. It must be protected from the growth of psychrotrophic and other spoilage organisms. If the titratable acidity of raw milk is greater or equal to 0.2%, it will result in inferior quality Paneer cheese. However, such problems can be handled with improved technologies such as activation of the Lactoperoxidase system in raw milk using milk silo cultures, time-temperature-pH manipulations during cheese manufacture, and undertaking good manufacturing and sanitation practices. Let us be proactive and take advantage of this new developing trend in the cheese business to improve the bottom line for our American cheese and milk producers.

CMN

The views expressed by CMN’s guest columnists are their own opinions and do not necessarily reflect those of Cheese Market News®.

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